Digital Power Optimization has shared plans to turn Colombia into a crypto mining hub. Therefore, the DPO aims to reach out to the country’s energy producing companies so that they can sell surplus energy or make better use of their power plants.

As reported by Valora Analitik, DPO seeks to create cryptocurrency as a service (Cryptocurrency mining as a serviceCMaaS), thus offering these companies to purchase energy without immediate delivery commitments.

The idea of ​​the DPO is to be able to execute his project through which he intends to use 1 megawatt of energy (1 megawatt) to create a cryptocurrency.

Conversation with heat generators in Colombia

The company assured that it has spoken to the president of the heat generator to share the business idea with them, which means extra revenue without incurring additional costs.

“Energy producers price their energy and they don’t need to reduce the output of assets they have financed and built because of a lack of electricity demand at some point.”

According to the DPO, as a benefit of selling excess energy or underutilized plants, producers will receive prices equal to or higher than the prices they signed in their current contracts.

For digital power optimization, mining, computers, operations, and the resulting free cash flow can be owned and controlled by the owner of the generation asset with a vertically integrated structure.

This reduces any potential regulatory issues while allowing plant owners to retain nearly all potential investment.

According to Alejandro Beltrán, CEO of Buda.com Colombia, these types of initiatives help to dispel the negative environmental image that Bitcoin mining has been “criticized by environmentalists for its impact.” , and added:

“The project is interesting and replicates, to a certain extent, the early stages of mining in Sichuan, China, which was all about capturing the excess supply that a region is producing in terms of energy, including renewable hydropower resources.”

Regulations for cryptocurrency miners in the country

According to auditing service BDO Colombia, taxpayers interested in crypto assets should acknowledge their fiduciary duties, as cryptocurrency miners are also affected by revenue generation.

“Cryptocurrency miners, those who work to create virtual currency through machines or software, are also subject to income generation, as their work earns commissions or compensation that DIAN interprets as in-kind income.”

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