Canadian Natural Gas Company to Produce Electricity to Mine Cryptocurrency
Canadian energy company, Iron Bridge is planning to burn AECO gas to produce electricity and to use the electricity to power computer hardwares for mininig cryptocurrency tokens.
Iron Bridge Resources Ltd (IBR) has announced the creation of a new subsidiary, Iron Chain Technology (ICT), in an attempt to join the cryptocurrency and blockchain trend, as well as to arbitrage the difference between the value of Bitcoin, which is currently estimated at $ 11,188 per coin, and AECO ‘s , currently estimated at $ 1.98 per thousand cubic feet.
According to a Report, ICT will own and operate cryptocurrency mining centers at the companies oil and gas field sites in Elmworth, alberta, taking advantage of cheap, clean burning natural gas to generate its own electricity.
This move was taken by the company considering the steady decline of natural gas prices. IBR came up with this innovative solution to improve the company’s bottom line. “It was driving me insane to be handing off our gas for next to nothing,” Iron Bridge CEO Rob Colcleugh said. He added:
“We are pleased to join the Blockchain movement, and with our new technology team we want to contribute to the ecosystem by increasing transaction speed and reducing transaction costs,”
GMP First Energy’s vice president and co-head of sales and energy trading, Trent Boehm said in a note sent to customers this week that Iron Bridge could gain about 49 US dollars per mcf for its gases, assuming that 215 kilowatt-hours of electricity are needed to produce a Bitcoin. That’s more than 30 times the price Iron Bridge currently receives for its gas, assuming current AECO and Bitcoin prices.
He said that the iron bridge has an advantage because it is producing electricity anyway and can increase its power generation to run a 45 MW plant.
“Our IBR shareholders should benefit from an increase in net natural gas revenues if we convert our clean, cheap gas into electricity and then use that power to profitably mine the crypto currencies and host platforms for new technologies,” Rob Colcleugh said.
The company has confirmed that operation is booming with ICTs already starting the extraction process with material that their employees procure and assemble. The company now operates only, but wants to focus on Altcoins when needed.
Brian Milne, the national bank financial analyst, said its still too early to speculate on whether it will be a profitable commercial maneuver, but the current demand for cryptocurrency extraction and hosting suggests that the stock will appreciate.