Sangha Systems

About Sangha Systems

Sangha Systems was founded in late 2017 by Spencer Marr and other co-founders with a background in renewable energy law, development, and public policy. The founders recognized the unique energy profile of cryptocurrency mining and its potential to accelerate the adoption of renewable energy. Their journey began with identifying a profitable opportunity to build and operate their first bitcoin mine at a former steel plant in Illinois in 2018.

The company has since evolved, with the founders shifting their focus to create Sangha Renewables, a company that integrates bitcoin mining with sustainable power solutions. Sangha Renewables develops and operates bitcoin mining data centers co-located with renewable energy projects, particularly those facing challenges like grid congestion and negative power pricing. This business model provides a solution for distressed large-scale energy projects by purchasing their excess energy, thereby creating a new revenue stream for the power producers. The company's clients are independent power producers (IPPs) and accredited investors.

Sangha's core service involves developing, owning, and operating high-efficiency mining facilities. They offer a vertically integrated approach, handling the regulatory, legal, and engineering development processes. A key feature is their proprietary energy management software, Ghost, which automates energy consumption to optimize profitability. For investors, Sangha provides a project finance model, allowing direct investment into site-level special purpose vehicles (SPVs) that yield returns in the form of bitcoin or bitcoin-backed income, bypassing intermediaries. This structure, borrowed from the renewable energy and real estate sectors, emphasizes risk mitigation and regulatory compliance. By being highly interruptible, their data centers can shut down operations when energy costs are too high, ensuring a positive energy price environment. Their first major project was an 82 MW facility in Hennepin, Illinois, and they have since broken ground on a 19.9 MW facility in West Texas that operates behind-the-meter on a large solar farm.