Singapore Exchange catalist-listed firm Hatten Land is setting up a crypto mining farm in Malaysia and operations will start by the end of this month.
This is an agreement signed between its subsidiary Hatten Edge and SMI Vantage’s subsidiary SMI CS, which will allow the pilot phase of the first 50 sets of crypto mining rigs to start operations.
Over 2,500 crypto mining rigs planned
The pilot is in line with plans to install and operate over 2,500 sets of crypto mining rigs within its properties in 2022.
On Tuesday (Jan 11), the group confirmed its first shipment of 80 crypto mining rigs with partner Frontier Digital Management.
The next batch of about 1,500 crypto mining rigs will be installed from Feb to Mar 2022. SMI CS has the option to provide another 1,000 sets of crypto mining equipment for the year.
The agreement states that SMI CS will be responsible for safeguarding the confidentiality and integrity of the crypto wallet that will contain the mined cryptocurrencies. Hatten Edge will take on the task of installing the mining rigs at the facilities upon delivery.
The net proceeds from the mining are tabulated after deducting related operational and management expenses.
According to Hatten Land, it expects the deal to contribute “positively to its net assets and financial performance” for the financial year ending Jun 30, 2022.
Crypto mining impact on global warming
Cryptocurrency has been viewed as a heavy greenhouse gas emitter, as it contributes to air and water pollution. According to Digiconomist, Bitcoin mining generates about 96 million tonnes of carbon dioxide emissions each year, equivalent to the amount of emissions generated by some smaller countries.
The second largest crypto by valuation Ethereum, produces more than 47 million tonnes of carbon dioxide emissions annually.
While observers may argue that many other industries contribute negatively to the environment as well, like aviation, the concerns from environmentalists are that cryptocurrency, with its increased popularity, is growing in demand and there has been little efforts to improve its negative impact on the climate.
According to a study, Bitcoin could push global warming to beyond two degrees celcius by 2033. The article noted that Bitcoin mining in China alone (before the nationwide crypto mining ban) could generate 130 million metric tons of carbon dioxide emissions by 2024.
With miners forced out of China, they are migrating to the United States and other countries which now includes Malaysia. The energy consumption could grow even larger unless more renewable energy is used.
China’s mining ban due to high energy consumption
Up till July last year, China was controlling as much as two-thirds of all Bitcoin mining in the world. It then swiftly banned crypto mining in the country because of the high energy consumption caused by crypto mining.
In September, China also banned cryptocurrency transactions and prohibited the opening of new mining projects in the country. One major reason was because the majority of China’s energy production comes from coal, which is highly pollutive.
Small investors have been buying up crypto mining rigs outside of China after the crackdown and companies moved out to seek new bases with “friendly regulations” and cheap electricity. The biggest pack are said to have shifted operations to the US, Malaysia, Russia, and Kazakhstan.
Shop and support the best homegrown brands on VP Label now:
Featured Image Credit: Getty Images, Hatten Land