The Singapore-listed catalyst Hatten Land is setting up a crypto mining business in Malaysia and operations will begin later this month.
Hatten Edge is an agreement signed between its subsidiary and SMI Vantage’s SMI CS subsidiary, which will allow the first 50 pilot phases of cryptographic mining equipment to be launched.
More than 2,500 crypto mining platforms are planned
The pilot is in line with plans to install and operate more than 2,500 sets of crypto mining platforms on its properties in 2022.
On Tuesday (January 11), the team confirmed the first shipment of 80 crypto mining platforms with partner Frontier Digital Management.
From February to March 2022, the next batch of 1,500 crypto mining equipment will be installed. SMI CS is able to offer another 1,000 sets of crypto mining equipment per year.
The agreement states that SMI CS will be responsible for maintaining the confidentiality and integrity of the cryptocurrency portfolio that will contain the mined cryptocurrencies. Hatten Edge will take over the task of installing the mining platforms on site.
The net profits from mining are tabulated after deducting related operating and management expenses.
According to Hatten Land, the deal is expected to contribute “positively to its net assets and financial performance” for the year ending June 30, 2022.
The impact of crypto mining on global warming
Cryptocurrency has been seen as a heavy greenhouse gas that contributes to air and water pollution. According to Digiconomist, Bitcoin mining creates About 96 million tons of carbon dioxide are emitted each year, the equivalent of emissions from smaller countries.
Ethereum estimates that the second largest cryptocurrency generates more than 47 million tons of carbon dioxide emissions each year.
While observers may argue that many other industries also contribute negatively to the environment, like aircraft, environmental concerns are that cryptocurrencies are growing in popularity as demand grows and little effort has been made to improve its negative impact on the climate. .
According to A examine, Bitcoin could push global warming beyond two degrees Celsius by 2033. The article stated that in China alone Bitcoin mining (before the ban on crypto mining nationwide) could generate 130 million metric tons of carbon dioxide emissions by 2024.
Because the miners are forced out of China, they are migrating to the United States and other countries that currently include Malaysia. Energy consumption can be even higher if more renewable energy is not used.
China bans mining due to high energy consumption
Until July last year, China controlled two-thirds of all Bitcoin mining in the world. He then quickly banned cryptographic mining in the country due to the high energy consumption caused by cryptographic mining.
In September, China also banned cryptocurrency transactions and banned the opening of new mining projects in the country. One of the main reasons was that most of China’s energy production comes from coal, which is highly polluting.
Small investors are buying crypto-mining platforms outside of China after the crackdown and companies have gone in search of new bases with “friendly regulations” and cheap electricity. It is said to have the largest packages relocated Operations in the US, Malaysia, Russia and Kazakhstan.
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Featured Image Credit: Getty Images, Hatten Land