Generation Hemp, Inc. a company dedicated to processing hemp, is to pivot into cryptocurrency mining.
The Texas-based company, which dries, cleans, processes, and stores hemp as well as leases real estate to companies needing seed storage facilities, is to change its name and has bought a majority share of a cryptomining operation at a hydroelectric dam in Costa Rica.
“After a thorough review, the company announced today a new strategic direction into sustainable energy projects, starting with Bitcoin mining. The company's name will change to Evergreen Sustainable Enterprises, Inc. (EGSE) within the next several weeks.”
Generation Hemp said the goal is to establish small-scale 'green' mining sites of 1-10MW in remote locations, utilizing “the highest quality mining machines at the lowest acquisition cost due to the downturn in the space”, while utilizing cheap energy.
Generation Hemp will continue to be maintained as a fully operating wholly-owned subsidiary.
The first move of the re-christened company has seen EGSE subsidiary Cryptorica close on the purchase of 80 percent of Toro Energía Sociedad Anonima, a Costa Rican corporation with ownership of a hydroelectric dam in Costa Rica.
Around 1MW of power generated by the damn will be used to power new Bitcoin mining machines “at an extremely low cost”. The remaining 20 percent ownership of Toro will be retained by the Kopper family, which has owned and operated the dam for over 30 years and will “continue to host the Bitcoin mining operation”.
The Toro Dam is located approximately 25 miles from San Jose between two volcanic craters. Historically, the power produced was sold to the Costa Rican Government. However, private power contracts were reduced in 2020 amid reduced power demand due to Covid.
“Within months of the canceled contract, Eduardo [Kopper] converted his family's three hydro-dams into data center hosting facilities for bitcoin mining for third parties,” Generation Hemp said.
Gary C. Evans, chairman and CEO of Evergreen Sustainable Enterprises, Inc. said: "While the changes we have announced today are significant from a future direction perspective, we believe them to be in the overall best interest of our shareholders for the future. All of our mining sites under development should generate immediate net cash flow to the company during a period when the bitcoin mining sector is down along with the overall capital markets.”
Eduardo Kopper added: "We are very excited to partner with Gary Evans and his team in one of our family assets in order to take our extremely low-cost energy and convert this green resource into much higher profits. We are anxious to install 300 brand-new Bitcoin mining machines over the next few months at the Toro location. We are already discussing additional new venture opportunities. We both have the same philosophy of maintaining very low costs in order to maximize profitability. When the price of Bitcoin starts its upward trajectory, we will be extremely well positioned."
Evans said the company has more than six current mining site locations, including in Arkansas, Kentucky, and Costa Rica.
Last year Generation Hemp partnered with ASICS supplier Crypt Solutions, Inc. (dba, Cryptech Solutions) and Cryptech's sister company, DELV Innovation, which provides infrastructure for mining equipment.
At the time the companies said they planned to build cryptomining data centers that utilize hemp feedstock as a fuel source to power the mining equipment. A 2MW modular plant was then deployed at a 48,000-square-foot (4,450 sqm) warehouse and manufacturing facility located in Hopkinsville, Kentucky, around April 2022.
Generation Hemp was previously known as Home Treasure Finders, a real estate company focused on leasing warehouse space to hemp seed growers. Energy Hunter Resources, Inc., a privately-held energy producer, acquired Home Treasure Finders in 2019 and subsequently renamed the company and divested all of its oil and gas assets to focus on hemp.