New West Data is creating a new approach in Alberta, Canada. Under the leadership of our President and Founder Sean McDonough, the company is revolutionizing the primary oil and gas business by introducing Bitcoin MINING. Their unique vertically integrated approach enables them to leverage into dual revenue streams, giving them a competitive edge within the still nascent landscape.
The company’s flare gas mining operations in Alberta are still in a pilot stage. They seek to leverage resources that would otherwise be wasted. Through the lens of New West Data’s operations, their efforts reveal a $1.5 million CAD per megawatt capital expenditure (CapEx) cost. This figure highlights the over $1.4 billion investment that’s needed to construct and operate these combined mining facilities.
New West Data’s financial model is distinctive. Specifically, it intends to split its cash flows evenly between oil sales and Bitcoin mining. This balance strikes the right equilibrium in granting necessary breathing room from the chaotic fluctuations of cryptocurrency markets. It helps them build a strong fiscal base, too.
Curiously, the company’s generators are the biggest line item in the CapEx spend, not miners. This serves to illuminate the profound fragility of power infrastructure regarding its ability to bolster large scale, energy intensive operations like Bitcoin mining.
In terms of mining performance, New West Data's hash rate has remained relatively consistent, trading in the 800-900 range for several months. This consistent performance is a clear testament to the mine’s healthy and productive mining operation.
