Texas Electric Utility Courts Unnamed Crypto Miners With Five-Year Deals

In a recent report, the community-driven, nonprofit electric provider in Texas, Denton Municipal Electric (DME), is attracting interest from several crypto mining companies seeking to establish operations. These companies are eyeing a five-year agreement for powering their mining activities.

Texas’ Denton Municipal Electric in Talks With Unnamed Crypto Miners

On Feb. 16, the Denton Record Chronicle reported that a number of unnamed mining operations are pursuing partnerships with DME. Although the identities of these firms remain undisclosed, DME confirmed that discussions about leases have been ongoing for a year. The Chronicle’s Christian McPhate also reported on a potential five-year lease option, noting that DME’s spokesperson, Stuart Birdseye, was not able to provide the names of the interested miners.

These potential newcomers would follow in the footsteps of Core Scientific, which has already secured a deal with DME to set up a mining facility in Denton, Texas. Operating since 1905, DME is a non-profit utility supplying power to 64,000 customers using entirely renewable sources. According to a document accessed by McPhate from DME staff, the proposal includes creating a “modular data center” capable of supporting up to 20 megawatts (MW).

The report suggests Denton stands to gain, projecting revenue of approximately $4.8 million across the lease’s duration. Texas has emerged as a hotspot for mining operations, with a significant number of facilities choosing the state for their bitcoin mining endeavors. However, there’s some discrepancy in the reported number of mining operations within Texas. The Texas Blockchain Chamber cites more than 30 locations conducting around 2,400 MW of bitcoin mining.

The Texas Comptroller’s office has identified at least 27 mining operations, with expectations for more. Moreover, Foundry USA, the largest mining pool globally, indicated that Texas contributed to 8.43% of the U.S.’s hashrate by the end of 2021, a figure that soared to 28.50% by July 27, 2023.

What do you think about the unnamed miners courting Denton Municipal Electric (DME)? Share your thoughts and opinions about this subject in the comments section below.