An entpreneur from County Durham has invested £500,000 in a Canadian bitcoin mining venture that aims to take advantage of the country’s hydro-electric power capacity.
Alex Lineton, who was previously managing director of Newton Aycliffe grounds maintenance company Beaumont Machinery, has invested in Vancouver-based Mine One Blockchain Inc.
Bitcoin mining is performed by high-powered computers that require large amounts of energy. Mr Lineton’s investment has included spare capacity at a hydro-electric plant in the area.
Read more: the pros and cons of cryptocurrency
The deal comes as the role of bitcoin - a digital crytocurrency - is still the subject of much debate, with some economists dismissing it as worthless but others saying that it has demonstrated its value in recent years.
Mr Lineton said: “Mine One Blockchain Inc. is a blockchain infrastructure company, with the aim of demonstrating that cryptocurrency mining can be done at scale in an environmentally friendly and sustainable way.
“Canada is producing all this hydro power, the world has a problem with Chinese miners being shut down, and we need to keep Bitcoin transactions going.
“So we’re taking Bitcoin mining, which is in huge global demand, to somewhere that has a lot of spare power capacity, to create a carbon neutral hydro electric mining development in Canada to provide the infrastructure for Bitcoin.
“By using only renewable and carbon neutral energy sources, in association with next generation mining rigs, the company has huge potential and is already rapidly scaling.”
Bitcoin is a digital currency created in 2009. It is not legal tender in most parts of the world and not backed by governments or central banks, but is still traded online with one bitcoin currently valued at nearly $50,000.
Bitcoin mining is the process by which new bitcoins are entered into circulation by using sophisticated computers to solve complex mathematical problems.
Despite widespread scepticism on the currency, Mr Linton believes it is a sound investment.
He said: “There’s a fascination with Bitcoin. It’s new but it’s incredibly valuable.
“Everyone saw the headlines a few years back and everyone thought Bitcoin had it’s day. But it has now stabilised, with its value growing rapidly in recent months, and what many people don’t realise is that Bitcoin will probably be the currency of the future.”
Mr Lineton said he could float Mine One Blockchain on the Toronto Stock Exchange if it is successful.
