US Bitcoin Strikes Deal to Reopen Niagara Falls Mining Facility
US Bitcoin Corp has reached a tentative settlement with the City of Niagara Falls, allowing it to reopen its previously closed mining facility in the city, as per a local news report. The settlement is still pending approval from the city council.
In early March, State Supreme Court Justice Edward Pace ordered the closure of the plant after contentious negotiations between the city and US Bitcoin. The closure followed a previous order for the plant to cease operations while the city pursued an injunction to enforce new ordinances affecting the facility.
US Bitcoin was found in contempt of court for ignoring the initial order, resulting in fines totaling over $1 million. As part of the tentative settlement, the company will be required to pay $150,000 in fees to the city, $180,000 to cover legal costs, and new application fees.
Moreover, to address noise concerns, US Bitcoin will need to construct a noise-dampening wall and agree to third-party monitoring. The company is in the process of merging with Canadian miner Hut 8 and operates facilities in Texas and Nebraska as well. The New York plant reportedly utilizes approximately 90% zero-emissions electricity.
This news coincides with the state of New York enforcing a two-year moratorium on new proof-of-work mining operations. The moratorium does not apply to operations running on 100% renewable energy.The state’s attorney general also issued an investor alert in June, warning of the risks associated with cryptocurrency investing.