GRIID Infrastructure Announces Plans to Double Capacity of Lenoir City, Tenn. Bitcoin Mining Operations
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The expansion of GRIID Infrastructure Inc.'s bitcoin mining operations is indicative of the company's strategic growth within the energy-intensive cryptocurrency mining industry. By doubling the capacity from 20 MW to 40 MW, GRIID is significantly increasing its operational scale. This move is particularly notable in the context of the Tennessee Valley Authority's (TVA) provision of affordable and low-carbon electricity, which may offer GRIID a competitive advantage in terms of operational costs and sustainability.
For stakeholders, the short-term implications include potential increases in capital expenditures to fund the expansion, but these could be offset by increased revenue from the enhanced mining capability. In the long term, the expansion could solidify GRIID's market position and provide resilience against fluctuations in bitcoin value, given the lower operational costs afforded by TVA's energy mix. However, the reliance on the cryptocurrency market's volatility remains a risk factor.
The plans to expand GRIID's mining capacity is a response to the growing demand for bitcoin and reflects confidence in the cryptocurrency's future. This capacity increase to power approximately 6,500 additional mining machines could potentially lead to a greater hash rate contribution by GRIID to the bitcoin network, which in turn may have implications for the company's revenue generation capabilities.
From an investor's perspective, this development could signal stronger future earnings potential, assuming bitcoin's price and mining difficulty remain favorable. However, investors should also consider the inherent risks associated with the high volatility of the cryptocurrency market, regulatory challenges and potential technological shifts within the industry.
The expansion of GRIID's operations in Lenoir City is poised to have a positive impact on the local economy. The sentiment expressed by city officials underscores the anticipated benefits such as increased tax receipts and job creation. For local stakeholders, including residents and businesses, the presence of GRIID as a reliable customer for public power plants can contribute to economic stability and infrastructure improvements without additional financial burden on ratepayers.
However, it is important to monitor how the local community adapts to the increased industrial activity and any environmental considerations associated with the expansion. The long-term economic relationship between GRIID and the local community will depend on the company's continued commitment to being a 'good neighbor' and its ability to maintain a balance between growth and community welfare.
CINCINNATI, Feb. 14, 2024 (GLOBE NEWSWIRE) -- GRIID Infrastructure Inc. (Nasdaq: GRDI) (“GRIID” or the “company”), a vertically integrated bitcoin mining operator, announced plans to double the capacity of its bitcoin mining operations in Lenoir City, Tenn. from 20 MW to 40 MW in mid-2024 by adding a new site expected to power approximately 6,500 machines.
“We’re focused on building our growth and expanding our capacity by moving sites like this from our power pipeline to production,” said Trey Kelly, CEO of GRIID. “We’re especially pleased to be expanding our footprint in the Tennessee Valley, where the Tennessee Valley Authority’s (TVA) mix of affordable, reliable and low-carbon electricity has made this area an excellent long-term location to mine bitcoin.”
“GRIID has been a good neighbor, and we’re excited to see them expand their operations in Lenoir City,” said the city’s mayor, Tony Aikens. “Bitcoin has been a net benefit for the city and for our state, generating tax receipts and good jobs. We look forward to GRIID being our neighbors for many years to come.”
That sentiment was echoed by Shannon Littleton, CEO of the Lenoir City Utility Board. “Having a reliable customer like GRIID helps keep public power plants in business that might otherwise be struggling,” Littleton said. “They also pay for infrastructure improvements, a burden that will normally fall exclusively on local ratepayers. In a period of high inflation, I would have few options: raise prices, issue debt, reduce services, or find more customers like GRIID to bridge the gap.”
GRIID operates two other mining facilities in East Tennessee, one in Maynardville and the other in Limestone, as well as a development, deployment and equipment repair center in Rutledge. GRIID also operates a facility co-located at the Glen Park Dam in Watertown, New York.
In the aggregate, GRIID operates 68 MW of mining capacity (55MW in Tennessee). On February 6, the company announced plans to build a new 60 MW mining facility in Jackson, TN. When the new facilities in Jackson and Lenoir City become fully operational, GRIID would have nearly 150 MW of mining capacity, which would more than double its current capacity and represents the ongoing commitment to growth in the Tennessee Valley.
About GRIID Infrastructure Inc.
GRIID is a purpose-built bitcoin mining company, founded in 2018, that has operated mining facilities since 2019. GRIID has built long-term power relationships securing affordable, reliable, environmentally responsible power, enabling a vertically integrated self-mining business model with significant growth opportunity. Headquartered in Cincinnati, Ohio, GRIID operates a R&D center in Austin, Texas and a development, deployment and equipment repair center in Rutledge, Tennessee. GRIID currently maintains mining facilities in Watertown, New York; Limestone, Maynardville and Lenoir City, Tennessee. To learn more, please visit www.griid.com.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements. Forward-looking statements are statements that are not historical facts and generally relate to future events or the Company’s future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements, including statements regarding GRIID’s growth and prospects and GRIID’s expectations regarding the listing of its securities on stock exchanges, are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by GRIID and its management, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, various factors beyond management’s control, including general economic conditions and other risks, uncertainties and factors set forth in GRIID’s filings with the Securities and Exchange Commission, including the registration statement on Form S-4 filed by Adit EdTech in connection with the business combination, as well as factors associated with companies, such as GRIID, that are engaged in bitcoin mining, including anticipated trends, growth rates, and challenges in those businesses and in the markets in which they operate; market acceptance of bitcoin; reliance on third parties, including utility providers, for the reliable and sufficient supply of electrical power to GRIID’s infrastructure; and the ability to stay in compliance with laws and regulations that currently apply or become applicable to bitcoin. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this press release, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. GRIID expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in GRIID’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Cboe Canada has neither approved nor disapproved the contents of this press release and accepts no responsibility for the adequacy or accuracy of this release.
Media Contact:
Malory Van Guilder
Skyya PR
+1 651-335-0585
GRIID@skyya.com
Investor Contact:
Jim Golden
Collected Strategies
+1 646-354-7698
griid-cs@collectedstrategies.com
Company Contact:
Harry Sudock
GRIID Infrastructure
+1-615-854-7556
harry@griid.com
FAQ
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