NYDIG is negotiating to acquire the inactive Massena East smelter from Alcoa, enhancing its Bitcoin mining operations amid rising energy infrastructure demand.
NYDIG is in negotiations to purchase the dormant Massena East aluminum smelter in New York from Alcoa, according to Bloomberg. Alcoa's CEO, Bill Oplinger, indicated that the transaction is anticipated to finalize by mid-2024.
The Massena East facility, which previously operated on hydroelectric power from the New York Power Authority, has been inactive since its closure in 2014 due to financial losses.
Alcoa is also exploring the sale of additional former metallurgical sites across the U.S., with a total of ten facilities currently on the market. This move aligns with the increasing demand for energy infrastructure from data center operators, as the aluminum sector faces stagnation.
The surge in interest for decommissioned plants is driven by the energy needs of sectors like cryptocurrency mining, artificial intelligence, and cloud computing. For example, in February, Century Aluminum sold its Hawesville, Kentucky smelter to TeraWulf for $200 million and a minority stake.
For NYDIG, acquiring the Massena East facility would enhance its foothold in the Bitcoin mining sector. Unlike many competitors pivoting to high-performance computing, NYDIG is focused on Bitcoin. The firm previously acquired a strategic interest in Coinmint in October 2024, which offers colocation and equipment management services with a capacity of 435 MW. Additionally, NYDIG purchased 120 MW of mining capacity from Consensus Technology Group and announced a deal to acquire Crusoe Energy's business, adding another 270 MW of capacity.
In the first quarter of 2026, mining companies notably sold a record 32,000 BTC, underscoring the growing activity in the sector.
