Growth of local cryptocurrency mining operation hindered by electricity rates

TAZEWELL COUNTY, Va. (WVVA) – A cryptocurrency mining operation located in the Bluestone Business and Technology Park off Rt. 460 in Tazewell County continues doing business, but high electric rates pose an obstacle for growth.

Blackstone Data Services has a small office space in the large shell building in the park with a separate building erected to house large servers.

Cryptocurrency, or bitcoin, mining is a way to create new digital coins that have monetary value. The operation uses many large computer servers that require substantial power.

Timothy Danielson, Tazewell County Director of Economic Development, said those electricity rates “are a bit of a challenge.”

“They use a lot of power,” he said, referring to the servers.

The business opened in October 2022 and was projected to hire five people with an $18 million investment in the county over a period of 10 years. However, Danielson said the business is just “holding steady,” and the rates have been a hindrance to growth.

Danielson said that while Blackstone’s growth has stalled, the company continues to generate tax revenue, and that is “good for the county.”

He also said a company is looking at the shell building for possible purchase, but no details can yet be released.

Copyright 2024 WVVA. All rights reserved.