Innovative AgriFORCE Powers Bitcoin Mining with Stranded Natural Gas

Could energy waste fuel the future of digital gold? Agriculture firm AgriFORCE Growing Systems is tapping into an unconventional energy source – stranded natural gas – to power its Bitcoin mining operations, marking an interesting intersection of traditional industry and cryptocurrency.

AgriFORCE’s Strategy: Leveraging Stranded Gas for Bitcoin Mining

Canadian agriculture company AgriFORCE has launched an initiative to use natural gas that would otherwise go to waste. This is not just a pilot project; the company has deployed 120 Bitcoin mining rigs at a site in Berwyn, Alberta. This site, developed in partnership with BlueFlare Energy, currently draws 425 kilowatts (kW) of power, providing 32 petahashes per second (PH/s) of computing power.

What exactly is ‘stranded gas’? It refers to natural gas deposits that are difficult or uneconomical to transport to market using existing pipeline infrastructure. Often, this gas is flared (burned off) or vented, releasing greenhouse gases. By converting this energy source into power for crypto mining, companies like AgriFORCE aim to utilize an otherwise wasted resource.

The company isn’t stopping at one location. AgriFORCE has signed a binding letter of intent with BlueFlare to establish two additional sites in the Alberta region, specifically in Oyen and Hinton. These new sites are intended to replicate the model proven at the Berwyn location.

AgriFORCE CEO Jolie Kahn highlighted the efficiency of this approach, stating, “We don’t wait for permits or grid upgrades — we convert gas into compute in weeks, not years.”

How AgriFORCE Manages its Bitcoin Strategy

Beyond powering the rigs, AgriFORCE has a clear plan for the Bitcoin they mine. The company reports having already mined 7 BTC from its operations in Alberta and Ohio. Based on recent market values, this amounts to approximately $735,000.

AgriFORCE’s strategy involves potentially retaining up to half of the mined BTC in its corporate treasury. The remaining portion will be directed towards funding further expansion of its mining operations. Furthermore, the company has indicated that it could allocate up to 50% of capital raised through fundraising directly towards purchasing Bitcoin.

AgriFORCE Stock Performance and Financial Health

Following the announcement, shares in AgriFORCE (AGRI) saw a modest increase, rising by 1.85% to close at $1.10 on Tuesday. However, the stock’s year-to-date performance shows a significant decline, down more than 53%.

Despite the stock’s recent performance, AgriFORCE’s underlying financial results for the fiscal year ending 2024 showed strong growth:

• Revenue increased by 317% year-over-year.
• Net profit increased by over 66% during the same period.

The Broader Trend: Energy Use in Crypto Mining

The cost of mining Bitcoin has been rising. A report from TheMinerMag indicated the average cost to produce one BTC was $64,000 in Q1 2024, projected to increase to $70,000 by Q2 2025. This rising cost incentivizes miners to find cheaper energy sources.

Simultaneously, there’s a notable shift in the energy sources used for crypto mining. While coal-based electricity reliance is decreasing, the adoption of renewable energy sources is growing. Renewable energy use in mining is reportedly increasing at an average rate of 5.8% yearly. Initiatives like AgriFORCE’s use of stranded natural gas fit into this trend of miners exploring alternative, potentially more cost-effective, and sometimes environmentally beneficial (by utilizing waste) energy solutions.

Conclusion: A New Angle for Energy and Crypto

AgriFORCE’s move to power its crypto mining operations with stranded natural gas highlights an innovative approach to energy use in the digital asset space. By leveraging a resource that would otherwise be wasted, the company not only secures power for its Bitcoin mining rigs but also potentially improves the economic viability of certain gas extraction sites. As the crypto mining industry continues to evolve, expect to see more companies explore diverse and unconventional energy strategies like the one implemented by AgriFORCE.