Australian energy retailer LPE is dipping its toe into crypto mining after raising A$7.5 million to help fund its role in a sustainable-energy biohub near Bundaberg, in the Wide Bay region of Queensland.
The biohub, already generating electricity from biogas, hydrogen, solar and batteries, has crypto mining company Stak Mining as one of five tenants. Sunshine Coast-based LPE (Locality Planning Energy) plans to convert A$3 million of its A$5 million capital works funding into a 50 percent stake in Stak.
Should the conversion take place, LPE would receive a share of the proceeds in cash generated from crypto mining operations at the biohub, along with any additional mining operations Stak develops from its renewables-powered projects.
Deal Subject to ASX Regulatory Approvals
Before exercising its option on Stak, LPE requires regulatory approvals from the Australian Securities Exchange (ASX) relating to its change in business activities. For its part, Stak estimates that its mining operations will commence in Q3 of 2022, although it has yet to build any infrastructure on the site.
LPE chairman Justin Pettet says his company’s involvement in crypto mining is “potentially highly lucrative”, and attractive to both new and existing investors. “The ASX has already flagged that crypto mining listings on the exchange are coming this year, so our timing is perfect.”
Just last month, a piggery near the Central Queensland town of Biloela revealed it was generating enough excess methane via its biogas plant to mine bitcoin. And in September last year, Australian multinational investment bank and financial services giant Macquarie announced a partnership with Blockstream to create a carbon-neutral bitcoin mine in the US.
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