Cuentas has announced a Power-as-a-Service and colocation agreement with Power Upp USA for a proposed West Texas Bitcoin mining operation built around onsite electricity generation from methane and associated gas produced alongside oil-field operations.

The first phase contemplates one containerized mining unit with approximately 2.4 MW of contracted power capacity, about 420 operating ASIC miners and 12 spare machines. Cuentas says deployment will be staged so actual generator performance, available power, mining output, operating costs and revenue can be evaluated before the company proceeds with later phases.

A second phase could expand the project to as many as 10 containerized mining units, approximately 24 MW and roughly 4,200 operating ASIC miners with another 120 spares. Those figures describe the planned maximum configuration rather than equipment already operating at the site.

The power architecture is the central infrastructure feature. The project is designed to generate electricity near oil-production operations using methane and associated gas where conventional gas transportation or grid access may be limited. Cuentas does not describe the project as zero-emission. The company instead argues that productive use of associated gas can create economic value while reducing reliance on conventional utility power, subject to project-specific and regulatory conditions.

The commercial agreement also exposes the economics behind the infrastructure. Reporting based on the company’s SEC filing says the service order covers up to 10 container sets at 2.4 MW each. Published terms include a $0.05 per kWh energy charge, a 5% share of gross mining revenue, a $2,500 monthly fee and an 80% take-or-pay minimum. Those contractual costs matter because mining profitability ultimately depends on power price, ASIC efficiency, network difficulty, uptime and Bitcoin hashprice.

Cuentas projects that Phase 1 could produce about 1.5 BTC per month and has published revenue and profit estimates based on its stated Bitcoin-price assumptions. Those numbers are company forecasts rather than realized operating results. Cuentas explicitly cautions that future Bitcoin production and profitability are not guaranteed and will depend on Bitcoin prices, network difficulty, ASIC efficiency, methane supply, generator performance, power availability, operating expenses and regulation.

The proposed deployment adds another example of Bitcoin mining being designed around energy infrastructure rather than treating electricity as a simple utility input. Containerized ASIC fleets can be positioned near energy sources and expanded in increments, allowing operators to test the complete fuel-to-power-to-hashrate system before committing to larger electrical capacity.

Video: West Texas Bitcoin Mining Infrastructure

Sources

• Cuentas announcement: West Texas energy recovery and Bitcoin mining strategy
• SEC-filing-based report on Cuentas and Power Upp service-order terms

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