Why Bit Digital is expanding into Canada

MInnovative company Bit Digital is expanding its operations in Canada, according to Chief Strategy Officer Samir Tabar.

The New York-based company said on Wednesday it had signed a two-year agreement, noting that the Canadian facility would use “an energy source that is primarily harnessed by hydroelectricity.” The facility powers around 650 miners and plans to host more than double that amount, or around 1,500 Bitcoin (BTC) mining units, in the coming months.

Tabar told CoinDesk TV’s “All About Bitcoin” show that the two main reasons for moving north were an attempt to avoid jurisdictional risks in the United States while finding ways to use “data sources”. ‘renewable energy”.

The company aims to be conservative about the energy demands associated with bitcoin mining. Tabar, however, defended the energy consumption of crypto, saying that often bitcoin mining “uses excess network energy that would otherwise be wasted.”

The mining company’s operations once stretched as far as China, but with financial regulators cracking down on bitcoin miners, Bit Digital opted to move to the United States, settling in New York.

However, New York lawmakers have since taken a tough stance on bitcoin mining operations. More recently, the state imposed a two-year moratorium on any new mining operations fueled by carbon-based energy sources.

Bit Digital still has mining operations in New York, according to Tabar, who said the mining company’s relationship with lawmakers has not deteriorated.

“We’re very glad the legislation didn’t throw the baby out with the bathwater,” Tabar said of the scope of the bill and that it doesn’t take a “one-size-fits-all approach.”

Meanwhile, in the U.S. Senate, Sen. Elizabeth Warren (D-Mass.) and half a dozen other Democrats have written to the U.S. Environmental Protection Agency and the Department of Energy, asking that greater transparency be applied to miners regarding the carbon emissions caused by local mining operations.

Tabar said this emphasizes “bias toward the operations of legacy institutions” and is an attempt by lawmakers to avoid suppressing the energy demand of traditional companies. Investment banker JPMorgan Chase (JPM), for example, is among the top-ranked banks investing in fossil fuel industries. The mining company does not invest in such companies and plans to be “entirely carbon-free eventually”.

Read more: New York State Senate Passes Bitcoin Mining Moratorium

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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