Sterling Digital (LSE:ASIC) told investors it has successfully started on-site electricity generation at its West Texas site.
The company, which was set up to develop low-energy-cost digital asset mining operations in the United States, started its two 2 MW Caterpillar natural gas generators over the weekend as part of a commissioning programme.
The generators run on underutilised, stranded natural gas from the WAHA pipeline, secured under a five-year Gas Purchase Agreement announced on 8 June, and convert it to electricity via Sterling's proprietary energy optimisation infrastructure. The units are now undergoing fine-tuning and calibration, including checks on fuel, cooling, lubrication and electrical systems, before the company's ASIC mining servers are connected.
Once commissioning is complete, each generator will deliver approximately 1.6 MW of net power, together supporting 420 mining servers representing roughly 193,500 terahashes per second of computing capacity.
"Margins in Bitcoin mining are won on the cost of energy. Sterling's low-cost energy solution is laying the foundation for industry-leading profitability", said CEO Stefan Michaelides.
Miners will be brought online in controlled stages following validation of the power systems.
Separately, Sterling issued 501,000 warrants over shares to a contractor in partial lieu of payment, exercisable at 6p per share and vesting immediately.
News Intelligence what this means for the company
Sterling Digital has successfully started its two 2 MW natural gas generators at its West Texas site, a critical operational milestone that clears the path for mining servers to come online. The generators, running on stranded WAHA pipeline gas under a five-year agreement, are now in fine-tuning before connecting 420 mining servers expected to deliver roughly 193,500 terahashes per second—moving the company from infrastructure build toward revenue-generating operations.
This is a transition from construction to commissioning: the company has proven it can source, install and fire up its proprietary energy infrastructure, validating the core thesis that low-cost on-site gas-to-power generation can underpin profitable mining. The next test is whether controlled staged deployment of miners delivers the expected hash rate and whether the 1.6 MW net output per generator holds under full load.
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