Subsidiary intends to bring approximately one thousand net-zero carbon miners online this year; Company plans to expand to 24,000 miners over the next 24 months
The OLB Group, Inc., a provider of cloud-based omnicommerce and payment acceptance solutions for small- and mid-sized merchants, announced DMint, Inc., a wholly-owned subsidiary of OLB (“DMint”), is planning to bring approximately one thousand cryptocurrency mining machines online this year operated by zero carbon footprint data centers.
“Cryptocurrency mining consumes electricity at rates that exceed the available capacity of the traditional power grid”
OLB has entered into an exclusive agreement to purchase all-natural gas yield from wells in Bradford, PA through Cai Energy Blockchain. The terms of the agreement enable DMint to become a vertically integrated cryptocurrency mining company. The environmental impact footprint of the cryptocurrency mining operation will be close to zero as the natural gas will be taken directly from the well heads to generate electricity.
“DMint is an integral part of OLB’s multi-stage strategy to empower our merchants with enhanced services, which today include access to capital and expanded crypto commerce services that help them compete and stand out in any market,” said Ronny Yakov, Chief Executive Officer at the OLB Group. “We have taken an aggressive position with cryptocurrency and underlying blockchain technology in our omnicommerce platforms. We believe that cryptocurrency will have a major impact in the payment industry and want to be at the forefront of the industry as it adopts acceptance of cryptocurrencies. We are committed to grow with this market, and are looking to add other capabilities and services that will expand crypto commerce access for our merchants.”
DMint has initiated the first phase of the cryptocurrency mining operation by placing purchase orders for data centers and ASIC-based Antminer S19J Pro mining computers specifically configured to mine Bitcoin. The first lot of equipment will be used to establish a proof of concept before DMint expands the number of computers in operation. As configured, it is expected that the computers purchased will have a combined computing power of approximately 100 petahash per second. Based on the mining profitability rate as of today, assuming a mining operation working at 100 petahash per second would generate $1 Million monthly recurring revenues expected starting in Q4, 2021.
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If the initial mining operation results are as anticipated, DMint plans to expand the number of mining computers every quarter, whereby it would potentially have the computing power of 500 petahash per second by the end of 2022.
DMint plans to continue to leverage Cai Energy‘s breadth of experience in gas operations and acquisitions to ensure consistent delivery of natural gas necessary to produce electrical power for its cryptocurrency mining operations as they are expanded.
“Cryptocurrency mining consumes electricity at rates that exceed the available capacity of the traditional power grid,” said Bessie Cai, Chief Executive Officer of Cai Energy Blockchain. “DMint will have access to sufficient natural gas to produce the 100MW of electricity necessary for the initial data centers, and Cai Energy has already secured up to 1000MW of electricity capacity for further expansion.”
Yakov added, “Once up and running, the DMint’s cryptocurrency mining operations will provide OLB with a significant revenue and profit engine for rapid organic growth on a quarter-to-quarter basis going forward.”
