EcoChain to Benefit from China’s “Great Unplugging” from Crypto

New York, New York–(Newsfile Corp. – July 28, 2021) – PCG Digital — Chance favors the prepared mind. While the rest of the world is still reeling from China’s “unplugging” of cryptocurrency, Michael Toporek, CEO of Mechanical Technologies Inc (NASDAQ: MKTY), sees an opportunity. Their crypto division, EcoChain Inc., is poised to step in, buy up crypto mining equipment, and increase their capacity.

“Mining profitability is increasing as Chinese miners relocate their equipment and slow down the delivery of new machines,” Toporek shared in a recent interview. “Meanwhile, the price of S19s and equivalents has dropped, payback periods have shortened to between 7 and 9 months, and the price of second and third generation equipment has gone down.”

China has been cracking down on crypto for years, particularly Bitcoin. In 2013, it banned Chinese banks from handling it. In 2017, it banned initial coin offerings. This year, right on schedule, leaders are going after crypto mining. Bans are now in effect in Xinjiang, Inner Mongolia, Sichuan, and Qinghai. Yunnan has also been heavily restricted.

According to Nasdaq, the bans have put roughly one million crypto mining machines on the shelf. It’s become a fire sale, and MKTY is buying.

“Given much more reasonable payback periods, we’re moving to purchase S19s,” Toporek stated. “It has a much higher power density that allows us to put more hash rate per megawatt into service.”

Mining Capacity is Increasing to 50MW by Year’s End

EcoChain Inc. is a green crypto mining company. Their goal is to develop a network of cryptocurrency mining operations powered by 100% renewable energy. The first link in that chain is a hydroelectric dam in the Columbia River Basin. The company is also actively looking for other investment opportunities in the renewable energy sector.

The “Chain” is ramping up 25MW of crypto mining capacity online, with plans to increase that to 50MW by years end. Their pipeline could get them to 300MW in the next 18 months, all from green energy sources. Uptime on existing facilities is currently at 83%, which is intentional because it keeps their kilowatt hour rate at just 2.3 cents per hour.

As for profitability, the company has already made back its investment on their TNT crypto mining facility in under 12 months of operation and anticipates solid revenue through the remainder of 2021, even with crypto pricing currently at its lower rate. Another facility, called Anaconda, will be fully deployed in October, and a third (Python) is being stocked with new equipment.

Avoiding Crypto Mining Bans with a Green Energy Approach

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The Chinese government had several stated reasons for banning crypto mining. Foremost among them was a promise made by Chinese President Xi Jinping to make China “carbon neutral” by 2060. Crypto mining powered by coal-fired power plants will make that almost impossible to achieve.

By employing renewable energy sources like hydroelectric dams, wind and solar farms, EcoChain is eliminating carbon emissions and securing the future of crypto mining here in the United States. Investors can put MKTY into an ESG portfolio because of that. It also makes this company a strong buy recommendation. They are trading at $8.00 a share this morning, up 60% YTD.

To find out more visit mechtech.com

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