DC Two launches new vertical offering eco-friendly Bitcoin mining data centres

With the price of Bitcoin appearing to have found its newest support level amid the price boom which sent BTC to it’s all-time high, data centre company DC Two (ASX: DC2) has found an innovative way to capitalise, leasing out modular data centres to miners seeking to reduce their power consumption expenses. 

The process of mining Bitcoin, an entirely digital mechanism, has long been a significant consumer of electricity due to the complexity of computing, but with Bitcoin prices significantly outweighing the cost of power, BTC miners around the world are deploying their mining operation en masse. This has created a major commercial opportunity for DC Two and their ‘Data-Centre-in-a-Box’ modules which include solar panels and wind farms. With the data centres so close to the renewable energy sources, DC Two has flagged plans to grow this vertical of the business, starting with a 5-year lead with a cryptocurrency miner valued at $926k. 

“As Bitcoin and the digital currency sector grows and becomes more mainstream, what used to be fringe or niche is gradually becoming a normal day to day activity for many,” said DC Two Managing Director, Justin Thomas. 

“Furthermore, while our corporate and commercial focus will remain on securing large scale enterprise customers for our Bibra Lake data centre, the low cost and eco-friendly attributes of our Modular data centres have opened up this new market for the Company”

As part of the deal, the customer will purchase 176kw of power over the 5-year period at the lease space which also includes internet connectivity and cooling which is critical to prevent mining hardware from overheating during its round-the-clock operation. 

Given the price rise of Bitcoin which has jumped from USD $9,000 to $40,000 over the past 12 months, the increase is significantly exceeding the costs of electricity and has prompted DC Two to explore this modular data centre vertical further. 

Being a turn-key solution to cryptocurrency miners, DC Two will begin a small marketing campaign targeting parties that may be interested in the sector for similar eco-friendly digital mining operations. With its expertise in data hosting and centre design, DC Two has existing relationships with cryptocurrency mining hardware manufacturers and resellers that it will explore in the coming months. 

While Bitcoin mining takes place in Australia, it is not currently a location of choice for miners due to the warmer Australian climate. However, using renewable energy to reduce cooling expenses could unlock fresh opportunities.