Crypto miner US Bitcoin Corp has reached a tentative agreement with the city of Niagara Falls that will allow it to reopen its mining operation in the city, according to a local news report. A state supreme court judge ordered the closure of its plant in early March. The deal still requires city council approval.
State Supreme Court Justice Edward Pace ordered the plant closed after “weeks of contentious negotiations” between the city and US Bitcoin over the wording of the order. The order enforced a ruling by another state supreme court judge to cease operations while the city sought an injunction to enforce new city ordinances affecting the plant.
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Pace found US Bitcoin in contempt of court for ignoring the initial order and imposed fines retroactive to December 9, when it was initially ordered to shut down. Those fines will be total more than $1 million, according to the report.
JUST IN: US Bitcoin Corp. is expected to reach an agreement with the city to resume mining in Niagara Falls. pic.twitter.com/AGvfJiG3gX
— Avanza Crypto (@AvanzaCrypto) April 5, 2023
Now the company will have to pay $150,000 in fees to the city, $180,000 to reimburse legal costs, and new application fees. In addition, US Bitcoin will have to take steps to reduce noise at the plant, including building a noise-dampening wall and undergoing third-party monitoring.
US Bitcoin is in the process of merging with Canadian miner Hut 8 in a deal announced in February. It also has facilities in Texas and Nebraska. According to its website, US Bitcoin uses approximately 90% “zero emissions electricity” at its New York plant.
New York State has imposed a two-year moratorium on new test-of-work mining operations and license renewals for existing ones, unless they operate on 100% renewable energy. The state attorney general issued an investor alert warning about the risks of investing in cryptocurrency in June.
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