The U.S.’s largest aluminum producer, Alcoa, is nearing the completion of a sale for its inactive Massena East smelter in upstate New York to Bitcoin company New York Digital Investment Group (NYDIG). The move aligns with their strategy to divest dormant assets and cater to the demand for sites ready for energy consumption.
Bill Oplinger, Alcoa’s CEO, mentioned that negotiations are well advanced, with the transaction likely concluding in the latter half of this year, as reported by Bloomberg. The Massena East site has been non-operational since 2014 when it was closed due to soaring operating expenses and stiff global competition.
The attractiveness of the site stems from its substantial energy infrastructure rather than aluminum production capabilities. These smelters are designed for continuous operation, requiring significant electricity through dedicated substations and transmission lines that remain even after closure.
Bitcoin miners and data center developers find this advantageous as it significantly reduces the time needed to obtain grid access. Additionally, Massena East benefits from proximity to hydropower supplied by the New York Power Authority, appealing to firms in search of affordable, environmentally friendly energy options.
This sale is part of a larger trend; earlier this year, Century Aluminum sold its Kentucky smelter to TeraWulf (WULF), which intends to establish a digital infrastructure hub for high-performance computing and AI.