Bitmain/Allrise appear to be preparing to sue PUD over control of Box Canyon Dam power

There is something troubling about a guest corporation from the People's Republic of China litigating our local government in order to compel them to use our native natural resources to benefit Beijing at the expense of the very local citizens who collectively own the resources. 

Beijing's Bitmain and their partner Allrise Capital appear to be preparing to sue our PUD over control of the Box Canyon Dam power. As we have previously reported, Bitmain/Allrise have repeatedly threatened our PUD in the past. See Beijing's Bitmain's and Allrise Capital's local executives repeatedly threatened our PUD for refusing to subsidize their Bitcoin mining public records show - PROTECT PEND OREILLE

Now Bitmain/Allrise's attorney, Mr. Andrew Moratzka from the law firm Stoel Rives, LLP, recently requested hundreds of pages of PUD documents relating to our PUD's beneficial contract with the Clark County PUD in Vancouver, WA, for the entire future output of the PUD-owned and operated Box Canyon Dam through 2041. Large public records requests by law firms are typically preparatory to a lawsuit. 

Bitmain/Allrise are after the power produced by the Box Canyon Dam because, until this month, it has been much less expensive than the market price of electricity that Bitmain/Allrise have been paying since they started full-scale bitcoin mining operations last September. For a more detailed explanation of how power costs impact their revenue potential, see POC Cryptonomics - PROTECT PEND OREILLE

Contrary to misinformation campaigns by Bitmain/Allrise (See: PUD Documents Show Allrise/Bitmain Misleading Public about Box Canyon Deal - PROTECT PEND OREILLE), our PUD kept the bitcoin company informed on their efforts to remarket the power from the Box Canyon Dam after the PNC papermill bankruptcy left our PUD and the residents of Pend Oreille County with $22 million in unpaid debts. Our PUD repeatedly invited Bitmain/Allrise to bid for a long-term contract for the power, but Allrise's CEO confessed that they did not have the money to pay for a long-term contract. 

Unable to pay for the Dam's output, Bitmain/Allrise have sought to force our PUD to cancel the Clark deal-- something that would cost the residents of POC millions of dollars each year. See: What's at stake? Crypto plans in power negotiations would cost Citizens of POC millions, throttle local economy - PROTECT PEND OREILLE 

​Last August, Allrise announced a highly questionable plan to restart the former PNC papermill-- contingent, of course, on our PUD agreeing to provide them with the power from Box Canyon at a substation discount to what Clark PUD agreed to pay. 

In February, Bitmain/Allrise retained a west-side lobbyist in an attempt to get the state legislature to compel our PUD to cancel the Clark deal and sell them the power at a discount.

Now, it appears they are preparing a lawsuit. 

Although the power from Box Canyon did help power the papermill for many years, it was never sufficient to power the mill (or the later bitcoin mining facility) without additional market power. However, it is enough power to significantly subsidize the Bejing's bitcoin mining at the cost of millions of dollars each year that would have to be paid for by POC residents.