City of Plattsburgh to consider lifting temporary ban on cryptocurrency mining

PLATTSBURGH, N.Y. —

In an old manufacturing warehouse in Plattsburgh, Ryan Brienza can often be found hard at work.

“(This shelving unit) is configured to hold 108 (cryptocurrency mining devices). Right now, we have 70,” he said.

Ever since January the space has been where the recent Beekmantown High School graduate has chosen to invest his time and money, helping to create Zafra LLC.

“We’re a cryptocurrency miner hosting company. A hosting company is (where) people from around the country or world send us (mining devices). We install them and manage them for other clients. It’s like we run our own mining operation, just we don’t own any of the hardware,” he explained.

He manages the machines, which are essentially solving complicated math problems in order to earn virtual currency, called Bitcoin.

“We have the capacity for 200 (mining devices). We sold out of that in a month back in January,” Brienza said.

The upward momentum for Zafra LLC came to a halt back in March, when the city of Plattsburgh put a moratorium on crypto mining, preventing businesses like Brienza’s from expanding and stopping potential companies from setting up shop.

“I didn’t go to college to pursue this opportunity, and it kind of hurt when (the city) shut the door on (the industry) when we just got up and running,” Brienza said.

Plattsburgh’s mayor, Colin Read, said the moratorium was necessary after the city went over its hydropower quota, forcing city residents to foot the bill for the more expensive power that was purchased.

“We’re the first community to have petitioned the Public Services Commission in Albany to allow for a rate structure that ensures that (the cryptocurrency mining farms pay) for the overages in the future (rather than) spread (the overages) among (residents) like we saw last year,” Read said.

The City Council came up with new zoning laws that designate where cryptocurrency miners can set up shop after concerns over fire hazards arose earlier this year.

With a structure in place, the council could lift the moratorium Thursday night during a public hearing at 5 p.m., which Brienza plans on attending.

He said if the moratorium isn’t lifted, “We’re going to be moving to other towns, because it’s just been too long (of a wait).”

Thursday’s meeting will be held in council chambers at Plattsburgh City Hall.

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