US aluminium big Alcoa is reportedly nearing a deal to dump its long-idle Massena East smelter in upstate New York to Bitcoin mining agency New York Digital Funding Group (NYDIG).
The corporate is in superior discussions and expects the transaction to shut “within the center a part of this yr,” CEO Invoice Oplinger advised Bloomberg on Friday. The location, situated alongside the St. Lawrence River, has been inactive since 2014 after Alcoa shut it down amid rising vitality prices and world competitors.
Constructed for twenty-four/7 heavy industrial operations, aluminum smelters include pre-existing substations, transmission traces and high-capacity grid connections. That makes them enticing targets for Bitcoin miners and information middle operators, who usually spend years securing comparable infrastructure approvals from scratch.
Massena East additionally advantages from hydropower provided by the New York Energy Authority, a key draw for energy-intensive computing companies searching for low-cost and lower-carbon energy sources.
Associated: Bitcoin mining problem falls, however projected to rise in subsequent adjustment
US smelters reborn as crypto, AI information facilities
The potential sale comes amid a broader development throughout the US, the place retired industrial websites are being repurposed for digital infrastructure. Earlier this yr, Century Aluminum offered its Hawesville smelter in Kentucky to TeraWulf for $200 million, with plans to transform it right into a high-performance computing and AI facility relatively than conventional industrial use.
In the meantime, NYDIG has been rising its footprint in Bitcoin (BTC) mining infrastructure. The agency, owned by Stone Ridge, already holds a stake in Coinmint, which operates mining {hardware} on the similar campus underneath a long-term lease.
Final yr, Crusoe Vitality additionally agreed to promote its Bitcoin mining enterprise, together with its digital flare mitigation operations, to NYDIG.
Associated: HIVE plans $75M increase to fund AI infrastructure push
Bitcoin miners pivot to AI
NYDIG’s renewed push into Bitcoin mining comes as different miners are more and more pivoting towards AI and cloud computing as shrinking margins in mining push them to diversify income streams.
Earleir this yr, MARA Holdings acquired a 64% stake in French infrastructure firm Exaion, giving the corporate a foothold in AI companies. Different miners, together with Hive, Hut 8, TeraWulf and Iren, are additionally repurposing mining amenities into information facilities, whereas some, resembling CoreWeave, have totally transitioned into AI-focused infrastructure.
Journal: Bitcoin could take 7 years to improve to post-quantum — BIP-360 co-author