- Blockstream, Block, and Tesla would soon launch a Bitcoin mining plant in Texas.
- The facility would help provide information on the feasibility of running a Bitcoin mining facility on solar power.
- If successful, it would be proof that Bitcoin mining can spur the growth of renewable energy infrastructure.
Blockstream has revealed that they would be partnering with payments company Block to launch a Bitcoin mining facility in Texas. The mining plant will run on solar energy generated by equipment manufactured by Tesla.
A Feasibility Study To End Profitability Debates
The energy-intensive nature of the rapidly growing Bitcoin mining business has become a cause for concern as it is thought to increase the reliance on fossil fuels due to the strain it puts on power grids. Detractors often compare the industry’s energy consumption to that of entire countries. Still, several Bitcoin maximalists believe that such metrics are faulty, saying comparing Bitcoin mining with other energy-intensive sectors is more appropriate.
As a result of rising concerns, many Bitcoin miners are now dabbling in renewable energy sources. While solar energy is one of the options available to miners, there are ongoing debates that mining on a stand-alone or off-grid solar power system is not profitable. The believers in this theory cite the variability of solar power as a major factor.
With this in mind, blockchain firm Blockstream had last week revealed that they would be working with payments company Block, run by Jack Dorsey, to launch a Bitcoin mining facility powered by a stand-alone solar power system provided by Tesla. According to Blockstream, the mining facility will be equipped with a 3.8 megawatt (MW) solar photovoltaic cell array and a 12 megawatt-hour (MWh) Megapack.
According to the report, the group would also create a transparent and accessible dashboard that will report on the facility’s performance. The dashboard will be globally accessible online and will feature metrics like power generation, battery performance, the amount of Bitcoin mined, revenue generated, and expenses incurred.
The companies hope that they can end the debate of whether companies can run a bitcoin mine solely on renewables with this experiment. If successful, it will show that Bitcoin mining can offer the necessary demand for renewables to incentivize renewable energy infrastructure development.
Blockstream CEO Adam Back, speaking with Yahoo Finance, said, “If you’re trying to achieve financing for a solar or renewable energy project, you need to demonstrate to financiers that you have a buyer for the power, so there’s got to be a revenue stream that can allow a project to pay back its capital costs,” adding that their “initial theory, after talking with power producers, was that maybe Bitcoin mining could help grow zero-emission energy infrastructure.”
Bitcoin mining in recent times has evolved into a political and regulatory concern. However, not all members of the government are opposed to it. While the Elizabeth Warrens of this world would like to put a stop to it, some other lawmakers, including; Senator Ted Cruz, Senator Cynthia Lummis, and Waco Congressman Pete Sessions, see the potential for Bitcoin mining to fix energy concerns in the US and play a role in achieving energy independence.