Union Jack Oil (UJO), a UK-listed oil and fuel agency, is exploring a brand new path to monetize its fuel sources by turning to Bitcoin mining, per an Aug. 7 assertion.
In accordance with the agency, the transfer is targeted on harnessing the pure fuel from its West Newton website in East Yorkshire to generate electrical energy for powering crypto mining operations.
Why Bitcoin mining?
Union Jack’s Government Chairman, David Bramhill, expressed confidence within the venture’s potential, noting that the Bitcoin mining technique might result in the creation of a brand new Bitcoin Treasury technique for the oil and fuel 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 fuel monetization.
The settlement outlines a method to put in gas-powered electrical energy infrastructure and Bitcoin mining items instantly on the manufacturing website.
The initiative goals to make use of fuel from the West Newton A and B wells to energy onsite information facilities. Talking about these facilities, Bramhill stated:
“We proceed to consider that this asset holds materials worth which might finally ship important volumes of onshore low-carbon gross sales fuel into the UK`s necessary home pure fuel market. West Newton is estimated to include gross recoverable 2C fuel sources of just about 200 billion cubic toes, in accordance with an impartial evaluation undertaken by RPS in 2022.”
These facilities will run 360 Power’s “In-Subject Computing” (IFC) system, designed to transform uncooked fuel into electrical energy for crypto mining.
In accordance with Union Jack, early manufacturing ideas like this permit them to unlock worth from current wells with out ready for full subject growth. If profitable, the mannequin may very well 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 information from Cloverpool, Bitcoin mining issue 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 recommended that this deceleration in mining issue is in the end bullish for Bitcoin miners, because it interprets into much less competitors for the every day 450 BTC mined.
