Sangha Renewables Breaks Ground on 19.9 MW Bitcoin Mining Solar Facility in West Texas
Sangha Renewables, a bitcoin mining company focused on partnering with renewable energy providers, officially began construction on its flagship 19.9 megawatt (MW) solar-powered bitcoin mining operation in West Texas on Wednesday.
“We’re very pleased with how the project has progressed,” said Spencer Marr, Sangha’s president, in a statement to CoinDesk. “Last November, even before closing the deal, we invested our own funds to purchase long-lead electrical infrastructure to fast-track the mine’s launch. That early move is already paying dividends.”
Marr also praised the company’s network of partners and suppliers, including CSD Energy, EcoDigital, Moonshot Electrical, Fusion Industries, Greenhash, and Pro Mining Solutions, all of whom have contributed to advancing the project.
Unlike most bitcoin mining firms that prioritize securing cheap electricity and acquiring mining rigs, Sangha’s model targets large renewable energy companies, encouraging them to integrate bitcoin mining into their operations.
The logic is straightforward: renewable energy projects often generate electricity at times when demand is low. For example, a wind farm may produce surplus power on a windy night when overall consumption drops. Instead of selling that excess electricity at a loss, these companies can run bitcoin mining rigs to monetize the surplus energy profitably.
The West Texas facility is Sangha’s pilot project. Currently, Sangha owns the mining equipment through several subsidiaries and purchases power from the local energy provider, although the energy company may eventually take over mining operations themselves.
Sangha expects the project to generate $42 million in revenue during its first year and mine roughly 900 bitcoin over the next decade. Electricity costs will range between 2.8 and 3.2 cents per kilowatt-hour under a 30-year lease agreement, enabling investors to acquire bitcoin at a 25% to 50% discount compared to market prices.
Construction is slated for completion in the latter half of July, though unforeseen delays could push this timeline back by up to a month. Mining operations are expected to commence shortly after construction finishes.
“We plan to commission the facility over the summer and use that time to resolve any initial issues,” Marr explained. “We also ordered 2% more ASIC miners than needed as a contingency against faulty equipment.”
So far, Sangha has raised $14 million in equity financing, partly through Plural Energy, a platform that facilitates fundraising for mid-sized renewable energy projects using blockchain technology. The company has secured 82% of its $17 million equity target for the West Texas project.
“By fall, we anticipate running smoothly and leveraging Plural Energy’s smart contracts to distribute earnings directly to equity investors — many of whom are excited to receive payments in bitcoin,” Marr added.
