For nearly a year, a bitcoin mining facility in Columbus has quietly operated thousands of computers around the clock, drawing on excess electricity capacity from Columbus Light and Water with hopes of expanding soon.

Owned by LM Funding America Inc. since September, the facility houses more than 2,000 specialized computers used to mine the digital cryptocurrency.

“We run thousands of these computers,” said Todd Liebel, vice president of LM Funding’s U.S. Digital Mining and Hosting Co. subsidiary. “They don’t have screens on them. They don’t look like your standard computer. They’re basically just boxes with fans on them, and most of the day is just keeping these computers online and working.”

Bitcoin is a mostly unregulated currency that is separate from a government-backed currency, like the dollar. Bitcoins are held in digital wallets to be used for transactions, which are publicly and permanently recorded using what is called a blockchain.

The 2,300 computers operating at the Columbus facility, Liebel said, are responsible for securing that blockchain.

“They’re basically guessing numbers, they’re solving equations, and then it helps add security to the blockchain,” he said. “It’s what moves Bitcoins on the blockchain, so if you send Bitcoin from one person to another, this is basically what allows that move to take place. It keeps the whole thing functioning. In return, we are given a reward of Bitcoin for doing it.”

The facility has four on-site technicians who are responsible for monitoring the computers and making repairs when needed, whether that’s fixing a motherboard, changing a fan or working on transformers and other electrical infrastructure.

That infrastructure, Liebel said, was a big draw for locating at the Columbus site.

“What Columbus had already was … a lot of power on the grid ready to go,” Liebel said. “We don’t come in and try to get someone to build out more power to existing power. … CLW said, ‘Hey, we have this off-peak power, and if you want it, we’ll give it to you.’ It allowed us to tie into the grid. They didn’t have to build out any additional infrastructure.

“…The whole name of the game for us is, we try to find cheap power, and the only way power is cheap is if, essentially, there’s excess power when people aren’t using it,” he added.

Liebel said the facility shuts down each day during peak hours for electricity usage. So for example, between 1 and 7 p.m. in the summertime when electricity usage is higher, the computers power down to avoid drawing too much power from the grid.

That remote access means the facility can also be powered down during emergencies when the grid may need more power, like during Winter Storm Fern in January.

“We’re not curing cancer or anything over here,” Liebel said. “… So if there are any problems or anything like that, we’re happy to turn off (and) give the grid the power. You’re not anybody’s friend if … houses are running out of power, and you’re still running your Bitcoin mine.

“…Utilities like CLW, they really get a kick out of it because they’ve got someone pulling load when no one else will,” he added. “But when the load starts getting a little hot,…we turn off.”

Liebel said the facility’s electricity demand is about 7.5 megawatts. However, infrastructure already in place at the facility allows for about 11 megawatts, an expansion Liebel said the company is hoping to start by the end of this year.

“(CLW) has some additional electrical capacity, and it would just be (adding) a few more of these modular (computers)–they almost look like shipping containers–to the site,” he said.

Angela Verdell, general manager for CLW, said the utilities’ relationship with the facility perfectly demonstrates how industrial customers can work with utilities to support both economic development and grid reliability.

“The ability for the facility to reduce or pause power usage during periods of peak demand helps CLW better manage system load and maintain reliable service for all customers,” she said. “Programs like this can be especially beneficial during extreme weather events or other times of heightened energy demand.”

Verdell confirmed discussions around future expansion are in progress.

“Additional flexible load resources can provide economic benefits to the community while also supporting efficient grid operations when paired with strong coordination and demand-response capabilities,” she said.

McRae is a general assignment and education reporter for The Dispatch.