California is in the middle of a new gold rush: a green and gold rush. Many businesses are looking into the development of cryptomining and cannabis development. These new industries have been very profitable for up-and-comers trying to ride the wave of regulation, technology, and social change. As cryptocurrency begins to reshape the world new synergistic opportunities are walking in right beside.
Legalized marijuana is a year-round cash crop with demand for hybrid and specialized breeds. With an increased market for CBD oils the plant is quickly becoming a booming industry. It sits precariously between Federal and State regulations creating unique challenges to investors. Like all new business ventures there are innate challenges.
In the case of urban farms traditional lenders shy away from conflicting and complicated federal mandates. Cryptocurrency adds a layer of protection for investment, but its more than just a shelter for capital. It can be “grown” right alongside the marijuana with many of the same overhead costs.
Bitcoin mining needs power supplementation, heat exchange, and mechanical cooling. Cannabis needs power supplementation, temperature regulation, and hydro mechanical systems. During the cold season mining operations vent warm air into the farm and in the summer, both can share climate control systems and benefit from water harvesting if needed.
This is a tremendous opportunity for property owners, entrepreneurs, and businesses that have ample space and need a low time-investment return on their income. Cryptomines need minimal attention, and well, marijuana grows like a weed.
Taking an existing space and converting to an urban farm can turn blighted locations into money makers.
The first hurdle to overcome is power at the site. Not all properties can handle the power load and those that can may not be up to code. Each property has its own unique circumstances and requires an evaluation focused on the end goal. If a location can support one, it can usually support the other. Many of the structures in Sacramento were built in the 70’s and may need upgrades.
Commercial cannabis operations have minimum energy supply needs of 4000 amps, which rival small factories and industrial operations. Ideally, a business owner would convert unused offices, warehouse space, or work with an existing structure that had commercial electrical set up.
Finding the right location is more than just power. State and local governments have a series of rules and regulations that must be maintained when growing controlled crops. Specific security and safety requirements must be recognized in the selection of an area. In some cases, a midtown location might be harder to develop than something in Folsom.
Water availability, use, and Sacramento City regulations issues arise from the location and age of the structure too. Power, location, and a variety of permits and regulations are the initial challenges in creating a hybrid farm.
HOW TO DO IT RIGHT
Fortunately, there are ways to work within and around these problems and create a long-term sustainable solution for the entire property.
Solar system installations, with rebates, and subsidy, can reduce the residual costs of operating an urban industrial farm. As California moves towards Grid Parity, the price of solar is now comparable to that of fossil fuels. Combined with discounted set ups from state and local districts, the cost of the system is absorbed by the annual savings. This can offset or even solve the heavy power supply.
Other unique systems involve integration with water harvesting and hydroponic systems to regulate water temperature and keep the miners cool. California has relaxed water harvesting laws allowing for reduced cost of water intake. Depending on your property you might be able to replace up to 60% of your water needs.
Cryptocurrency and Investment
Cannabis and Crypto are the new frontier of entrepreneurship. No two products have every matched up so well. At Absolut Electric we can assist with everything from efficient grow-op design, to conceptual and schematic engineering services, overseeing various permitting processes, and retrofitting or building your ground-up operation.
Have your property assessed today and talk to us about installing your future.