Union Jack Oil (UJO), a UK-listed oil and gasoline agency, is exploring a brand new path to monetize its gasoline sources by turning to Bitcoin mining, per an Aug. 7 statement.
In accordance with the agency, the transfer is concentrated on harnessing the pure gasoline from its West Newton web site in East Yorkshire to generate electrical energy for powering crypto mining operations.
Why Bitcoin mining?
Union Jack’s Govt Chairman, David Bramhill, expressed confidence within the venture’s potential, noting that the Bitcoin mining strategy might result in the creation of a brand new Bitcoin Treasury technique for the oil and gasoline firm.
To realize this, the agency acknowledged that Rathlin Power and its three way partnership companions, together with Reabold Assets, have signed a non-binding letter of intent (LOI) with 360 Power, a Texas-based agency specializing in pure gasoline monetization.
The settlement outlines a method to put in gas-powered electrical energy infrastructure and Bitcoin mining models immediately on the manufacturing web site.
The initiative goals to make use of gasoline from the West Newton A and B wells to energy onsite knowledge facilities. Talking about these facilities, Bramhill stated:
“We proceed to imagine that this asset holds materials worth which might ultimately ship vital volumes of onshore low-carbon gross sales gasoline into the UK`s necessary home pure gasoline market. West Newton is estimated to comprise gross recoverable 2C gasoline sources of virtually 200 billion cubic toes, in keeping with an impartial evaluation undertaken by RPS in 2022.”
These facilities will run 360 Power’s “In-Discipline Computing” (IFC) system, designed to transform uncooked gasoline into electrical energy for crypto mining.
In accordance with Union Jack, early manufacturing ideas like this permit them to unlock worth from present wells with out ready for full discipline improvement. If profitable, the mannequin might be replicated at different close by discoveries.
Mining issue surging
Union Jack’s Bitcoin mining plans come at an attention-grabbing time when Bitcoin mining issue is rising.
In accordance with data from Cloverpool, Bitcoin mining difficulty is anticipated to surge to an all-time excessive of over 130 trillion on Aug. 9.
Regardless of this milestone, the broader progress in mining exercise seems to be decelerating.
In accordance with insights from Blockware, the year-to-date enhance in mining issue stands at simply 16%. If this tempo holds, 2025 might register because the slowest yr of mining issue progress in Bitcoin’s historical past.
The slowdown is primarily attributed to maturing {hardware} capabilities, infrastructure limitations, and the rising curiosity of knowledge middle operators in various sectors like synthetic intelligence.
Blockware steered that this deceleration in mining issue is finally bullish for Bitcoin miners, because it interprets into much less competitors for the day by day 450 BTC mined.