Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’)(TSX-V:SOLR) is pleased to announce that it has acquired a 165,000 square foot warehouse facility in Murphysboro, Illinois for a nominal cost as part of the “Renewing the Murphysboro Community Through Green Energy Jobs” initiative Solar Alliance has undertaken with the City of Murphysboro. The Company is also pleased to announce it has signed a Memorandum of Understanding (“MOU”) with a top tier solar panel manufacturer for the development of multiple solar powered facilities designed to host cryptocurrency mining operations, including the Murphysboro project. Solar Alliance’s Murphysboro mining facility has access to low cost grid supplied power that will be complemented with a behind the meter 3 megawatt (“MW”) solar array. Once the facility is operational, the Company expects to benefit from a recurring revenue stream from cryptocurrency mining tenants.
Solar Alliance Spokesperson and renewable energy advocate William Shatner is excited about the potential for solar energy to support the growing cryptocurrency industry.
“I am proud to be a part of the group that is powering the digital currency revolution,” said Mr. Shatner. “Blockchain technologies, and cryptocurrencies specifically, are at the cutting edge of a new distributed technology infrastructure. As an advocate for solar energy I was intrigued by the potential for it to power cryptocurrency mining operations. They are energy intensive and utilizing solar arrays to power them makes social and economic sense. Cryptocurrencies can help prevent fraud, speed payment settlement, reduce identity theft and provide global access to capital. The combination of solar and cryptocurrency mining facilities represents meaningful change,” said Mr. Shatner.
The MOU with the major panel manufacturer outlines the steps the two companies will take to execute a final Joint Development Agreement (“JDA”). The JDA may include provisions for preferred panel pricing, sponsor equity provision and a credit facility for development funding for cryptocurrency mining projects. As a global leader in solar panel production and project development, the top tier manufacturer is an ideal partner to help accelerate the adoption and expansion of solar power cryptocurrency mining facilities. The partner will be identified once the JDA has been executed.
“The acquisition of the Murphysboro warehouse facility and the MOU represent Solar Alliance’s strategic entry into tenanting and supplying low-cost power to the cryptocurrency mining sector,” said Chairman and CEO Jason Bak. “This new business line takes advantage of our team’s expertise in designing, permitting and the construction of large commercial solar projects and leverages that expertise into a new energy-intensive industry. The demand from cryptocurrency mining operations for reliable, competitively priced power is immense and we are perfectly positioned to take advantage of that demand. We are also excited that this project will include clean energy training programs and a plan to attract new business to the Murphysboro area,” concluded Mr. Bak.
Murphysboro Mayor Will Stephens echoed Mr. Shatner’s excitement about the project. “The acquisition of this building by Solar Alliance is a wonderful opportunity to move Murphysboro forward toward a brighter future. The combination of solar and cryptocurrency will provide opportunities for the local workforce and position our community for the future. The agreement signed with the major solar panel manufacturer provides a solid partnership that will help deliver a much-needed project to our community,” concluded Mayor Stephens.
Solar Alliance is in discussions with several potential cryptocurrency mining tenants and expects to announce a hosting and colocation agreement in the near future. Interested cryptocurrency mining companies can contact Solar Alliance at email@example.com for information and space availability.
Cryptocurrency mining operations use powerful computers to support the unalterable digital ledger referred to as the blockchain. Blockchain relies on “miners” to securely validate and record transactions through a network of computers. Miners are responsible for validating, processing, and adding transactions to an unalterable ledger. This creates a tamper-resistant consensus that allows the blockchain to function. Miners are rewarded with cryptocurrency (Bitcoin, Ether, etc.) for contributing intensive computing power that is required to perform the above tasks. The computers require a lot of power and a key catalyst for miners is access to low cost power. According to a report from Coherent Market Insights, the global cryptocurrency mining market was valued at US $610.91 million in 2016 and is expected to reach US $38.38 billion by 2025, growing at a compound annual growth rate of 29.7 percent over the forecast period.