Bitcoin mining is on the move. More and more companies and initiatives are being launched around the world. Blockstream and Square have announced a partnership to build a renewable energy based partnership in the US.
The bitcoin infrastructure startup, led by Adam Back, and the financial services company, led by Jack Dorsey, will create an open source bitcoin mining facility powered by solar energy. The BTC mine will be built on a blockstream mining site in the United States.
Their goal is to share details about the economics of the project and their experience in developing the plant. In addition, they plan to raise awareness and demonstrate that BTC mining and renewable energy can be a catalyst for the clean energy transition.
We’re working with @Square to build a fully solar powered open source Bitcoin mining facility at one of our #BlockstreamMining locations in the United States to demonstrate how #BTC mining and renewable energies can drive the transition to clean energy. ☀️⛏️ https://t.co/0D4yKOe82M pic.twitter.com/HdVhe031GY
– Blockstream (@Blockstream) June 5, 2021
Square will invest $ 5 million and Blockstream will provide the infrastructure and expertise to help build the project. Ultimately, it will be a proof-of-concept that will be used to show that green bitcoin mining is possible on a large scale. Hence the need for transparency in every detail. Chris Cook, CIO and Head of Mining at Blockstream said:
Many mining operations around the world, including our own, are already using renewable energy because it is the cheapest energy available. Together with Square, we hope that the open and transparent nature of the project will become a model from which other companies can learn.
Bitcoin, a tool for building a sustainable future
Once built, the BTC mining facility will allow other participants to expand operations. It will be scalable and have the ability to support future growth even more.
Neil Jorgensen, Global ESG Lead at Square, was enthusiastic about the partnership and will contribute with Blockstream with a working model to prove their thesis. Jörgensen added:
The project will serve as an ongoing, transparent case study that will enable all of us to collectively learn the specific unit economy of Bitcoin mining with clean energy. We can’t wait to share our findings with the community.
Blockstream will provide regular reports on the project and have a publicly accessible dashboard to view real-time metrics on the performance of the BTC mine. This includes its power output and the amount of BTC that is mined. The dashboard is based on a technology called Blockstream Mining Note (BMN).
Square has made several efforts to help the growth of Bitcoin and its ecosystem. The Dorsey-led company partnered with Ark Invest to publish a whitepaper on a system based on renewable energy to power batteries and use BTC mining to absorb the excess energy.
During a discussion with Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, at the Bitcoin 2021 conference, Dorsey said:
Ultimately, the miners have to make a profit and purchasing cheap renewable energy maximizes their profit potential (…). Bitcoin has, over time and today, created incentives for more renewable energies and an awareness of how to get that performance. It gives people the freedom to convert wasted energy into something that creates value for billions of people around the world.
BTC is trading at $ 36,132 with a sustained sideways trend after correcting over 50% last week. On the 7-day and 30-day charts, BTC has a 1.2% gain and 37.1% loss, respectively.
BTC with sideways movement in the daily chart. Source: BTCUSD Tradingview