San Antonio-based Ecoark Holdings Inc. plans to begin beta testing a cryptocurrency mining approach in May that would be powered by natural gas that is constrained by a lack of infrastructure.
The diversified holdings company established a strategic initiatives team in February to analyze ways to deploy capital for the test project. Led by CFO Brad Hoagland, the team is looking at opportunities related to environmental, social and governance initiatives that would reduce emissions.
“By redirecting power back to the grid when green sources of energy production are unable to supply the required load, we alleviate grid pressure and help fill gaps that currently hinder the growth of green energy technologies,” said Hoagland.
“We plan to mine a diversified basket of higher margin, established cryptocurrencies. Our strategy entails reselling cryptocurrency back into the market, as permitted by applicable laws, and redeploying the capital raised toward accretive growth projects within this sector.”
Ecoark plans to use “regionally constrained energy that is otherwise lost” because of a lack of commercial natural gas infrastructure to economically process and/or transport volumes to market.
There are no plans to use flared gas from individual wells for the pilot because of the “unpredictability of gas production uptime, personnel requirements to service non centrally located assets, lack of oversight and control, surface use issues, and gas quality issues.”
The “modularized infrastructure