Bitcoin rose about 400 minutes ago and finds buyers at $43,700. Of course, there is a reason for this. Blockstream and Jack Dorsey’s company Block and Elon Musk’s company Tesla are starting a business partnership. It is expected that this partnership will expand in the future. So what are the details of the deal?
Elon Musk and Bitcoin
Blockstream and Block are laying the groundwork for solar- and battery-powered bitcoin mining in Texas, which uses Tesla’s solar and storage technologies. A 3.8 megawatt Tesla solar photovoltaic battery and a 12 megawatt-hour Megapack will provide electricity to the facility. Blockstream co-founder and CEO Adam Back told CNBC on the sidelines of the Bitcoin 2022 conference in Miami that the mining facility was designed as a proof of concept for 100% renewable energy.
“This is a step towards confirming our thesis that bitcoin mining can finance zero—emission energy infrastructure and ensure economic growth in the future,” Back said.
Mining using renewable energy sources
West Texas is the center of renewable energy in the United States. “In West Texas, you get a perfect match with both the quality of the sun and the speed of the wind,” said Sean Connell, vice president of energy at Houston—based technology company Lancium. But most of this wind and solar energy is concentrated in remote areas of the state. Without financial incentives, there is no particular reason to build a renewable infrastructure to use this energy.
According to Nick Carter of Castle Island Venture, miners are driving demand for these semi-abandoned assets and making renewable resources economically viable in Texas. Adam Back said that offline mining, which is expected to be completed this year, highlights another fundamental principle of the Bitcoin network: miners are location-independent and “can do it from anywhere without a local infrastructure.”
Beck said that if the project turns out to be profitable at the pilot stage, the companies will add wind energy and scale the entire project.
As a result, Blockstream stated that the key goal is to strengthen the Bitcoin network by diversifying the cryptocurrency’s energy sources. Thus, the exit door may have been opened for bitcoin miners who are under pressure due to environmental issues. Elon Musk, in his statements last year, said that “if the majority of bitcoin miners switch to renewable energy sources, we will be able to reactivate payments with bitcoin.”
Bitcoin rose to $43,900 under the influence of the news.