PARK FALLS, WI (WSAU-WXPR) — A cryptocurrency mining operation is set up at the former Park Falls Paper Mill.
WXPR Radio in Rhinelander reports that a Chinese company, Future Data Technology, has been mining the digital currencies from the former paper mill since late February.
In its simplest terms, crypto-mining is the process computers go through to create virtual currency and give it value.
Brad Chandler is the Director of the Nicholas Center for Corporate Finance and Investment Banking at the Wisconsin School of Business.
Chandler couldn’t speak to the specific operation in Park Falls, but he is knowledgeable about the world of cryptocurrency.
He says the site is appealing for this business for a couple of reasons. Mining operations need a power source and a cooler environment so that the servers don’t overheat.
“There’s a sense that in this area there’s good electricity costs, at least relative to some other areas they’re looking at, and potentially the idea of a cooler environment to keep them cool,” said Chandler.
WXPR has reached out to the company to learn more about the operation at the mill but has not received a response. The City of Park Falls says even they were left in the dark regarding some of the changes at the facility; issuing a press release in response to a number of social media posts about crypto-mining at the mill in late February.
In the release, the City Administrator said the city has “not participated in any way, in regards to this specific proposal.”
It goes on to say that as long as any business that moves in there conforms to the City’s Zoning Code and Code of Ordinances the city can’t intervene in the operations.
The city also acknowledged “it does not believe this use is the best use of the property in terms of jobs for our area, however, that is a matter solely for the owner of the Mill to decide.”
