Battle to Stop NY Mining Ban
Plus, Mining Co. Buys Engineering Firm - Why it Matters
Bitcoin Proponents Rally in Albany to Oppose NY’s Pending Moratorium on Crypto Mining
“This (Bitcoin) isn’t going to stop. Crypto mining may move somewhere where there is little or no concern for the environment.” - Ken Pokalsky, Vice-President, The Business Council of New York State.
Ken Pokalsky’s words echoed the sentiments of the half dozen speakers assembled at the New York State Capitol in Albany on Monday. Gathered on the Capitol’s famed “Million Dollar Staircase” were state legislators, crypto industry leaders and advocates for technology jobs. The occasion was to urge Governor Kathy Hochul and the state Senate to oppose a two-year moratorium on crypto mining. The bill has already passed the state Assembly.
The bill that passed the Assembly would impose a two-year ban on cryptocurrency mining unless done with 100% renewable energy sources. Though much mining in the state is done with hydroelectric power, the ban would effectively shut down many mining facilities. A notable exception would be the Greenidge facility on Seneca Lake. Greenidge converted an older coal-fired plant to natural gas in 2017 and would be grandfathered in to continue mining.
Both houses of the legislature and the Governor’s chair are controlled by Democrats, so the environment is surely one of their biggest concerns.
The event was organized by crypto company Foundry Services, of Rochester. Foundry is a Digital Currency Group company, focused on mining, equipment sales and financing and staking services. The press conference, hailed by organizers as a “rally/protest,” drew only a couple of dozen supporters and a few legislators. The event was moderated by Cleve Mesidor, Executive Director of the Blockchain Foundation.
Assembly Member Clyde Vanel, representing the 33rd District in Queens, stated that while his party cares about the environment, they also care about jobs and good salaries. It was a theme touched on by many of the speakers.
State Senator Jeremy Cooney, representing the 56th District in Rochester, focused on how legacy financial institutions have long excluded people of color. “Financial inclusion should not be restricted by one’s zip code,” said Cooney. And an even more powerful statement from the Senator, “We can’t stop the conversation with a moratorium.”
Pokalsky, quoted above, also focused on the fact that New York State has struggled to keep up with the nation in job growth. The jobs theme was echoed by Assembly Member Addie Jenne, who also happens to be a regulatory counsel for the IBEW electrical workers union. Said Jenne, “New York should not squander the opportunity to lead the nation in innovation.”
Adrian Hale, the Director of Economic and Community Development for Foundry in Rochester, was probably the most powerful speaker at the event. Hale, previously with the Rochester Chamber of Commerce, pointed out that the city is the third poorest city in the nation. He referenced the New York State “BitLicense” as an impediment to doing business in the state, and especially hurting opportunities for Blacks and Latinos. He also pointed out, in reference to Bitcoin, that there are very few other opportunities for minorities to earn “generational wealth.”
Hale noted that Rochester’s crypto community is alive and well, adopting the slogan, “ROC the block,” or blockchain.
The event had an interesting tone to it, as all of the legislative reps on hand were Democrats, and most attendees were people of color. This was a point stressed by Addie Jenne, who touted the diversity of the effort. The rally was promoted and attended by the Harlem Bitcoin Conference as well. Bitcoin is generally thought of as a right-wing endeavor, but you wouldn’t have known it from this rally.
Hale stated that the goal of nearly everyone involved in the crypto space was “a smart, equitable regulatory framework.”
The bill now moves on to the the New York State Senate.
Bitcoin Mining Company Buys 50 Year-old Engineering Firm: Why it Matters
Crypto companies are going mainstream.
Many are creating wealth and providing capital solutions to old-line businesses. This is a big development.
Ault Alliance, Inc., a newly-formed subsidiary of BitNile Holdings, Inc., has completed a $67.7 million dollar purchase of EYP, one of the largest architecture and engineering firms in New York’s Capital Region.
EYP, formerly Einhorn, Yaffee and Prescott, was formed in 1972 in Albany. It now employs 442 people in eleven different offices. The firm filed for protection under Chapter 11 of the bankruptcy law just a couple of weeks ago, on April 24th. The purpose of the filing, according to company officials, was to “address certain non-balance sheet liabilities.”
BitNile Holdings is a publicly-traded (NILE) Bitcoin mining company based in Las Vegas. Its subsidiary, Ault, is focused on lending and investing, along with some activity in power solutions.
This represents a significant step for mining enterprises, as many are producing cryptocurrency wealth and are looking for ways to invest the capital. As part of EYP’s restructuring, Ault will also provide a $12 million “super-priority” loan.
NOTE: The “non-balance sheet liabilities” apparently refers to a lawsuit filed by former EYP executives, claiming they were defrauded out of millions of dollars by the formation of an employee stock ownership plan. The lawsuit was thrown out in March, but an appeal is planned.
EYP maintains its business operations are solid, showing $126 million in revenue last year.
Key takeaway: Cryptocurrency companies are becoming big players in the finance world, as investing and lending move more and more away from traditional, legacy financial institutions.
Stay tuned………
Issue No. 55, May 6, 2022
Rick Mulvey is a CPA, forensic accountant and crypto consultant. He writes about all things Bitcoin, and yells at the Yankees and Giants. He also runs marathons and makes wine, neither professionally.
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