DMG energy export license
Bitcoin,  Technology

U.S. grants energy export license to crypto mining firm DMG

The license from the Department of Energy will allow the Canadian firm to mine crypto more profitably, cut into China’s mining dominance

The United State’s Department of Energy has granted Canadian crypto mining firm DMG Blockchain Solutions an energy export license.

According to a Sept. 23 announcement, DMG Blockchain Solutions will leverage the license to acquire the cheapest electrical energy from within the U.S. and Canada to power its mining and computing efforts.

“We are excited to have been successful in obtaining a power export license from the U.S. Department of Energy and will continue working on DMG’s power strategy to ensure that DMG is able to access the most reliable and cost-effective power from either Canada or the United States,” said CEO Dan Reitzik.

DMG is a British Columbia-based firm that focuses on mining public blockchains as well as applying permissioned blockchain technology with its infrastructure. Until now, the company acquired its energy from Alberta’s deregulated market. With the new license, the enterprise will be able to purchase electricity across the United States, specifically Washington State, the closest non-Canadian wholesale marketplace.

The firm explained that “mining, distributed computing hosting and new areas such as computational rendering and artificial intelligence require substantial energy, and profitability is proportionally related to power costs and operational uptime.”

Challenging China’s dominance

While China currently dominates cryptocurrency mining—particularly Bitcoin, up to 65% of which estimates say is mined there—DMG is only one of the companies aiming to change that by bringing more mining hardware to North America.

DMG’s report follows the launch by venture capital firm Digital Currency Group of a new subsidiary called Foundry, which aims to create greater access to digital asset mining in North America. The venture capital firm funded its new enterprise with over $100 million, and already acquired 50% of the Bitcoin mining equipment delivered to North America so far in 2020.

Earlier this month, leading mining hardware producer Bitmain announced a partnership with Foundry, aiming to streamline its operations in North America. As part of the collaboration, Foundry will provide financing to the Chinese firm’s customers on the continent, as access to credit is harder to obtain here for mining firms than more usual enterprises.

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Adrian is a newswriter based out of Pisa, Italy. He's passionate about cryptocurrency, digital rights, IT, tech and futurology and likes to think about the future in a positive way.