US Bitcoin Gets Green Light To Reopen Niagara Falls Mining Outfit

Updated: 28 April 2023

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The US Bitcoin Corp, a Bitcoin mining facility operating in the City of Niagara Falls, has come to a tentative agreement, to reopen its mining operations in the city. According to a local news report, a state supreme court justice shut down the operations early last month. This was after discovering that the operators were in contempt of another judge’s court order. However, the settlement still requires the approval of the city council.

https://twitter.com/AvanzaCrypto/status/1643646948044595203?s=20

The State Supreme Court Justice, Edward Pace, ordered the plant’s closing after “weeks of contentious negotiations” between the US Bitcoin and the city. In that, they enforced a ruling from another state supreme court judge to stop operations. At the same time, the city looked for ways of injunction to implement new city ordinances affecting the plant.

According to Pace, he found the US Bitcoin in contempt of court. This is by the US Bitcoin ignoring the initial order, leading to Pace imposing fines retroactively to December 9. This was when the corporation was initially ordered to shut down. However, per the report, those penalties will accumulate to over $1 million.

Nonetheless, the US Bitcoin will have to pay $150,000 in fees to the city and $180,000, to reimburse legal costs and new application fees. Further, the company will have to comply with strict measures to commence its operations halted in March. Some actions that US Bitcoin needs to comply with include noise reduction and permit applications. These involve limiting noise production from the facility and submitting completed applications for all permits required to comply with the city’s new high-energy usage overlay district.

The US Bitcoin Merging Process

In February, US Bitcoin agreed to merge with Hut 8, putting both firms under the Hut 8 Corporation. According to a press release, it asserted that:

“The transaction is supposed to establish New Hut as a large-scale, publicly-traded Bitcoin miner focused on economic mining, highly diversified revenue streams, and industry-leading best practices in ESG.”

In regards to the merger, the Hut 8 CEO, Jaime Leverton, noted:

“Bringing together Hut 8’s operational track record and diversified revenue streams with US Bitcoin’s scalable mining sites, sizable hosting business, and industry-leading managed infrastructure operations not only accelerates our diversified strategy and positions us for near-term growth but also establishes us a strong US-based player that is able and ready to seize additional opportunities as they come up.”

On the other hand, the US Bitcoin co-founder and CEO, Michael Ho, gave his remarks on the merger with Hub 8. Michael noted that through the process, they see a clear path to leveraging the company’s collective vision to drive innovative technology advancements and become a second-to-none operator.

However, US Bitcoin has facilities in Texas and Nebraska. According to the website, US Bitcoin also asserts that it uses 90% “zero emissions electricity” at its New York plant.

The New York Imposed Moratorium Law

Last year November, the state of New York imposed a two-year moratorium on the proof-of-work mining operation. In that, the PoW mining moratorium will prohibit new mining operations and refuse the license renewal to those already operating in the state. However, any new PoW mining operation would only run with 100% renewable energy.

Apart from that, in June, the state’s Attorney General, Letitia James, issued an alert warning investor about the risks of cryptocurrencies. In a published investors alert, the Attorney General noted that the investors are losing billions in crypto. James stipulated that even digital assets that are well-known and traded in reputable exchanges can crash. Through this, Letiti concluded that crypto investments could create more pain than gain for investors.

The cryptocurrency market is extremely unpredictable. Just last month, the market reached record lows and investors lost hundreds of billions.

New Yorkers should be cautious and think twice before putting their hard-earned money into this unstable market.

— NY AG James (@NewYorkStateAG) June 2, 2022