Tuesday, July 20, 2021

A WHIFF OF BRE-X ABOUT THIS

A Single Company Could Bring 1 Million Bitcoin Mining Rigs From China to Canada

(Image credit: Shutterstock)

A single China-based mining operation reportedly plans to move 1 million Bitcoin mining rigs to Canada over the next 24 months with the help of a U.S. company.

The partnership between Optimum Mining Host (OMH) and Black Rock Petroleum Company (BRPC) could offer a glimpse at the scale of the mining operations being forced to leave China because of the country's restrictions on cryptocurrencies. Or it could be a sign that companies want to cash in on the uncertainty of Bitcoin's future.

BRPC said it plans to "host and operate up to one million Bit miners" for OMH "across three Natural Gas producing sites located in Alberta Canada." The first 200,000 units are set to be hosted at the Quirk Creek plant near Millarville, Alberta, and it seems that BRPC and OMH would split the costs of maintaining the devices

It's worth noting that, at least in our searches, mentions of OMH begin and end with this announcement. BRPC's website also relies exclusively on stock imagery, and founder Zoltan Nagy is also said to be "President and Principal Controlling Executive Officer" as well as "Financial & Accounting Officer, Treasurer, Secretary, Director.

BRPC is also listed on OTC Markets, which has more lax requirements than the likes of the New York Stock Exchange or NASDAQ, under the BKRP ticker symbol. But if the announcement was meant to buoy the company's share price, it didn't work. That price fell from $3.04 on July 15 to $2.26 at the time of writing and was declining even before the rest of the market crashed because of the Delta variant of COVID-19.

Even without this deal, there are signs that China-based Bitcoin mining operations plan to move to the U.S. and Canada in pursuit of cheap energy, privacy protections, and the relative stability of their regulations for cryptocurrency mining. There are also reports of miners planning to move hundreds of thousands of mining rigs.

Companies planning to move up to a million systems used for Bitcoin mining wouldn't be outside the realm of possibility, then, even if it's hard to fathom multiple operations devoting that much hardware to the cryptocurrency. Whether or not BRPC will be the first company to facilitate that great migration remains to be seen.

Cryptocurrency & Mining

1 million Bitcoin mining rigs being moved from China to Canada

Optimum Mining Host is moving 1 million Bitcoin mining rigs from China to ALBERTA, Black Rock Petroleum Company will help out.



Anthony Garreffa@anthony256

PUBLISHED MON, JUL 19 2021 

It seems the gigantic crackdown on cryptocurrency mining operations in China is going to the next level, with Chinese Bitcoin mining outfit, Optimum Mining Host, moving 1 million Bitcoin mining rigs from China to Canada.

Moving 1 million anything from one place to another is a gigantic operation no matter what it is, which is why the company is getting Black Rock Petroleum Company to help out. Moving all of that hardware out of China is going to be hard -- for many reasons, not just a logistics reason -- with the 1 million rigs being moved out of China and into Alberta, Canada spread out across 3 locations.

The new Alberta, Canada relocation will have the 1 million Bitcoin mining rigs will be spread across three Natural Gas producing sites. The first 200,000 machines will be hosted by the Quirk Creek Gas plant which is operated by Caledonian Midstream Corporation.

The companies signed a 24-month contract, with an optional 12-month extension available if required. The initial deployment of 200,000 Bitcoin mining rigs will be joined by 300,000 "near term" machines and then mid-term 500,000 immediately available once their new home in Canada is ready.

Maybe they're not Bitcoin mining machines and maybe most of the hash power used for "cryptocurrency mining" is really feeding into a huge AI... and that AI wants to have itself moved from China to Canada. Hah ;)

1 Million Bitcoin Mining Systems Could Be Headed To Canada From China


By Alex Casas
Jul 19, 2021


Bitcoin, the father of cryptocurrencies

The Chinese Bitcoin mining firm, Optimum Mining Host, is reportedly moving 1 million Bitcoin mining rigs all the way to Canada over the next 24 months with the help of the Black Rock Petroleum Company.


1 Million Bitcoin Mining Rigs Will Be Moved To Canada In The Next 24 Months

With China cracking down on cryptocurrency mining operations, many operations have already been shut down and are looking elsewhere. The two main reasons behind China's move to ban cryptocurrency mining operations are two have a carbon-neutral footprint and the People's Bank of China wants to move away from the volatile cryptocurrencies. In an official statement, the People's Bank of China said that:

Virtual currency trading activities disrupt the normal economic and financial order, breed the risk of illegal and criminal activities such as illegal cross-border asset transfer and money laundering, and seriously infringe on the property safety of the people.

Mining operations in certain regions have already been shut down and graphics card prices in China have begun to drop. The partnership between Optimum Mining Host and Black Rock Petroleum Company shows the great scale of mining operations that were previously operating in China as well as the trouble companies are going to have to go through to move all of the equipment out of China.



In the statement, Black Rock and Optimum Ming Host describe how many mining rigs will be utilized as well as where they will be located. 1 million mining rigs will be located across 3 sites in Alberta, Canada.


Caledonian Mainstream (“Caledonian”) is an Alberta-based company and the owner/ operator of 14 producing liquids-rich natural gas wells at Quirk Creek, Caledonian will become a wholly owned subsidiary of Black Rock upon completion of the recently announced transaction and Black Rock will utilise the site to host and operate up to 200,000 of the one million bit miners with 300,000 mining machines at a second site in Alberta and 500,000 at a third site to be identified shortly as negotiations are concluded.

The statement doesn't specify how the cost of operating all the bitcoin mining rigs will be split, but it seems as if the two companies will be splitting the cost. The linked statement goes over the agreement in its entirety.


A miner inspects a setup in Sichuan, China in September, 2016. (Image Credits: Chinafile)

Tom's Hardware also noticed that the Black Rock Petroleum Company website is very basic only uses stock imagery. The founder Zoltan Nagy holds both the "President and Principal Controlling Executive Officer" position as well as the "Financial & Accounting Officer, Treasurer, Secretary, Director" position. Both executives on the about us section of the website also do not have headshots and opted for a stock image.

It is certainly plausible to move 1 million systems to Canada from China, but whether or not it actually happens is another question. We will just have to wait and see for 24 months if the 1 million mining rigs have arrived in Canada.


Black Rock Petroleum Company Announces Bitcoin Mining Agreement


July 15, 2021 11:53 ET | Source: Black Rock Petroleum

BLACK ROCK PETROLEUM ANNOUNES BITCOIN MINING AGREEMENT TO OPERATE UP TO ONE MILLION BITMINERS TO BE DEPLOYED ACROSS THREE NATURAL GAS ENERGY PRODUCING SITES IN ALBERTA CANADA.


Los Angeles Ca , July 15, 2021 (GLOBE NEWSWIRE) -- Black Rock Petroleum Company (OTC:BKRP), a Nevada corporation (“Black Rock”), announced today it has entered into a binding agreement with Optimum Mining Host Limited Liability Co to host and operate up to one million Bit miners to be relocated from locations in China and exported to Canada by(OMH) to be deployed by BKRP, across three Natural Gas producing sites located in Alberta Canada with the first 200,000 units to hosted on site of the recently announced Planned acquisition by BKRP, the Quirk Creek Gas plant operated by Caledonian Midstream Corporation.

The contract term is 24-month contract with an optional 12-month extensions with prior notice. OMH will pay the fully loaded electrical supply costs. OMH will maintain different electronic payment term in account of the fully loaded electrical costs, around 2 cents (USD) or $55.55 (USD) per miner per month as wholesale price. Payments can be made in US Dollar (USD) or Canadian Dollar (CDN). OMH will pay the host and maintenance services fee of 2.19 cents (USD) or $60.00 (USD) per miner per month. For equipment installation, service, firmware updates, maintenance, and repair, BKRP will charge an Administrative and Management fee of 1.83 Cents (USD) or $50.00 (USD) per miner per month. Maintenance and repairs are limited to swapping hash boards, fans, or miner configuration changes as the normal course of business. OMH will provide and maintain an expected inventory of spare parts for the number of miners installed and replenished based upon known failure rate. OMH will pay the fee of 0.36 cents (USD) or $10.00 (USD) per miner per month, for the allocation of the host services OHM required to have including: OMH Authorized Chinese speaking technicians, OHM Authorized English/Chinese speaking technicians, and OMH Authorized 24-7 hi-level Armed securities guard with enforcement power. OMH will pay BKRP all in price extra 0.18 cents or $5.00 (USD) per miner per month Any provided equipment that is found to cause damage to the electrical infrastructure at the facility will be disconnected and the companies will work together to resolve the issue. If faulty equipment cannot be remediated within 15-days than BKRP will remove it from the network and OMH has the right to provide replacement devices for the term of the contract. The initial contract commitment is for 200,000 machines to be scheduled for deployment, plus near term 300,000 machines and midterm 500,000 immediately contract commitment when the host capacity is ready.

Caledonian Mainstream (“Caledonian”) is an Alberta-based company and the owner/ operator of 14 producing liquids-rich natural gas wells at Quirk Creek, Caledonian will become a wholly owned subsidiary of Black Rock upon completion of the recently announced transaction and Black Rock will utilise the site to host and operate up to 200,000 of the one million bit miners with 300,000 mining machines at a second site in Alberta and 500,000 at a third site to be identified shortly as negotiations are concluded.

Raw production at Quirk Creek has recently averaged approximately 12 MMcf/d, with natural gas sales averaging approximately 8.5 MMcf/d, approximately 475 barrels of natural gas liquids and 60 tonnes of molten sulphur per day. Total remaining recoverable natural gas associated with the Quirk Field are estimated at 49 Bcf on a proved plus probable producing basis.

The Quirk Creek plant is connected to the Plains Midstream Pipeline by a company-owned, 34-mile pipeline capable of transporting natural gas to market in Fort Saskatchewan Alberta, as well as the TC Energy Gas Transmission Pipeline, with routing through Southern Alberta, the interior of British Columbia and the Western United States, terminating in the Sacramento/San Francisco.

Zoltan Nagy, Chief Executive Officer of Black Rock, commented on the recent announcement, with the company entering the Bitcoin Mining and Hosting business in Canada, it joins publicly traded companies in this space like Riot Blockchain,(RIOT) Marathon Digital (MARA) and Argo Blockchain (ARGO) and Genesis Digital Assets the worlds largest bitcoin miner as a serious competitor achieved via its agreement with OMH, to provide one million bitcoin mining machines and that “Caledonian Midstream is a great fit for Black Rock, and as demand for natural gas continues to grow, in Alberta and across North America, and the Quirk Creek property is perfectly situated to service those markets. Current production levels are good, and our engineers have looked at the property’s historical production records and analysed recent reserve evaluations, and we are confident we have the expertise, technology and resources to materially increase production and, in turn, the cash flow of the site and to host and operate bitcoin miners at an energy cost of circa three cents Canadian per KWH.

ABOUT BLACKROCK PETROLEUM

Black Rock Petroleum Company is expanding and diversifying its operations by the acquisition of Caledonian Midstream that owns and operates the Quirk Creek Gas Plant in Alberta Canada and by entering the very lucrative and cash generative Bitcoin and Crypto Mining Sector via its agreement with (OMH) to host and operate up to one million bit miners in Alberta Canada, in addition to its existing oil and gas exploration-stage company in California.

To learn more about Black Rock Petroleum, please visit the website

www.blackrockdrilling.com

Contact:
Zoltan Nagy, CEO
(778) 814-7729
Zoltan@starflick.com

Source: Black Rock Petroleum Co./ Torrance Petroleum Co.

Safe Harbour Statement: This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934; and is subject to the Safe Harbour created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and as such are by definition subject to risks and uncertainties.


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