Sealminer A4 Ultra Hydro
Bitcoin & Bitcoin Cash ASIC Miner
886TH
HASHRATE
9.45W/TH
EFFICIENCY
8373W
POWER
£862.14
EST. MONTHLY
NO PAYBACK
EST. ROI
Image: Merkle Standard · Original source.
Renewables and heat reuse
Ponderay Industries reported that Merkle Standard began operating a mining data centre at its paper-mill campus in 2022. The mill had entered bankruptcy in 2020 and was acquired in 2021. This is a reuse of industrial land and power infrastructure, rather than evidence of paper waste being converted into mining fuel.
- Project at a glance
- Former Ponderay paper-mill campus
- Source date and context
- 31 August 2022; later context checked September 2026
- Published financial detail
- The sources reviewed do not include full project accounts.
- Our comparison
- A UK example per 1,000 miner kWh
About 6 minutes to read
From paper mill campus to computing site
Ponderay is a story about reusing an industrial site. The paper mill entered bankruptcy in 2020, was acquired in 2021, and its owner reported mining operations beginning in 2022. Existing electrical infrastructure, buildings and access were part of the opportunity. The cited evidence does not show paper waste being converted into fuel for Bitcoin mining.
“Merkle Standard began data center operations on the shared industrial campus earlier this year.”
- 2020The paper mill entered bankruptcy.
- 2021The mill assets were acquired by a new owner.
- 2022Ponderay Industries reported Merkle Standard mining operations at the campus.
- 2026Local reporting described a move towards AI computing.
The connection and buildings were part of the value
Existing industrial campus and grid connection→computing→potential local heat use
Reporting in 2022 described mining heat warming the mill. A 2026 local report discusses a transition towards AI, while the operator now markets broader computing infrastructure. These are different stages of the site's history. A valuation should distinguish the paper business, the mining operation and later plans, and check the condition and legal use of the electrical connection.
What the numbers could look like in the UK
The calculation below uses assumed UK prices to show how the costs fit together. It is our example, not this project’s reported earnings. Replace the inputs with current machine estimates and the costs at your own site.
Illustrative UK calculation
Income and running costs
1,000 kWh used by miners, plus 50 kWh for pumps and fans. All amounts in pounds.
Operating contributionBefore equipment and installation costs
£51.905.19p per miner kWh
Here, using the electricity for mining gives up a 5p/kWh export payment. That cost includes the 50 kWh used by pumps and fans. It is the value of an alternative sale, so it is not also charged as a grid electricity bill. The example assumes the generation equipment already exists.
| Mining income | 8p per miner kWh; an assumed rate, not a live earnings estimate |
|---|---|
| Electricity | 5p/kWh × 1,050 kWh = £52.50 |
| Pool fee | 2% of gross mining income |
| Useful heat | 60% of miner electricity = 600 kWh; valued at 6p per delivered kWh |
| Other running costs | £10 per 1,000 miner kWh; an allowance to replace with your own costs |
| Costs still to add | Equipment, installation, finance, tax, depreciation, major replacements and any costs above the allowance |
The contribution is what remains from mining income and useful heat after the stated running costs. It is not net profit: the equipment and other excluded costs still have to be recovered. Pumps and fans use electricity but earn no mining income in this calculation.
| Gross income per miner kWh | Without heat value | With useful heat |
|---|---|---|
| 5p | −£13.50 | £22.50 |
| 8p Chart example | £15.90 | £51.90 |
| 11p | £45.30 | £81.30 |
- Mining income needed to cover running costs
- 2.70pper miner kWh
- Highest electricity cost or export value supported
- 9.94pper total electricity kWh
These are two ways to read the same example. Adding equipment costs or a larger maintenance allowance raises the income needed and reduces the electricity price the project can afford.
Compare heating options and work out annual costs
Use the heating system you would actually choose as the comparison. For example, a heat pump using electricity at 20p/kWh with a seasonal COP of 3 has an electricity cost of about 6.67p per kWh of heat. A resistance heater at that tariff uses 20p per kWh of heat. These are calculation examples, rather than measurements from this project.
For an annual estimate, use the miner electricity expected during hours when running makes sense. Scale the contribution by annual miner kWh divided by 1,000, then deduct fixed annual costs. Recalculate if electricity prices, mining income or usable heat change.
Simple payback is the total installed cost divided by positive annual cash contribution. There is no payback under a scenario with zero or negative contribution. The sources reviewed here do not provide the full project accounts needed to calculate an actual payback for this installation.
Follow the changes in use over time
Investigate the value of an existing industrial connection, buildings and heat demand before assuming a new power plant is necessary.
Separate paper production, mining and later computing plans in the timeline. Obtain electrical rights, actual operating load and any metered heat benefit before valuing the campus.
Questions worth asking
- Which infrastructure is reusable without major upgrades?
- Are employment and restart claims about the mill or the data centre business?
Try your own electricity and heat figures
Compare available miners and dated earnings estimates. Include heat only where you can use it or have a customer for it.
Sources and photographs
Sources checked on 29 September 2026. Project facts and quotations come from the publications below; the UK calculations and practical assessment are The Mining Shop’s analysis. This article is based on published material, rather than a site visit.
- Ponderay Industries company announcement
- Merkle Standard infrastructure and strategy
- InvestigateWest / Cascade PBS site reporting
- 2026 local report on the AI transition
Photographs: Merkle Standard (source).
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