Not so long ago, Michael Saylor, MicroStrategy CEO stated Bitcoin to be the ‘greatest customer’ for renewable energy in the world. The world’s largest cryptocurrency has had a fair share of criticism in the past, but nothing quite as significant as its ESG concerns.
The entire concept around sustainability over Proof-of-work vs proof-of-stake debate has taken the crypto industry by storm. The most recent news involving Tesla and China’s energy FUD indeed injected fresh disarray in the market.
Can THIS be a game-changer?
As per the recent announcement, Bitcoin technology company Blockstream has partnered with Square Inc. to construct a solar-powered Bitcoin mining facility. According to the aforementioned collaboration, Square ‘will invest $5 million and Blockstream will provide the infrastructure and expertise to help build the project.’
.@Square intends to invest $5M in the facility, with @Blockstream providing infrastructure and expertise to build and manage the project. The facility will be a proof-of-concept for a 100% renewable energy #Bitcoin mine at scale.
— Blockstream (@Blockstream) June 5, 2021
Additionally, the new initiative will also feature a so-called public performance dashboard, where anyone could pull real-time metrics of the mining facility. The dashboard will be based on a technology called Blockstream Mining Note (BMN).
Chris Cook, Blockstream’s CIO and head of Mining said:
“Many mining operations throughout the world, including our own, already rely on renewable energy because it is the most cost-effective power available. Together with Square, we hope that the open and transparent nature of the project will become a model that other businesses can learn from.”
Similarly, Neil Jorgensen, Global ESG Lead at Square stated:
“The project will serve as an ongoing, transparent case study that will allow us to all learn together the specific unit economics of clean energy Bitcoin mining. We can’t wait to start sharing our results with the community.”
Jack Dorsey and his firm, Square have been a major voice for bitcoin in the past as well. Recently, it published a paper, with Ark investment on bitcoin’s potential to tap renewable energy.
Furthermore, to extend his support, the Twitter CEO, while speaking at the Bitcoin 2021 Conference, opined:
“Ultimately miners have to make a profit and getting cheap renewable energy maximizes their potential for profit (…). Bitcoin over time and today do incentivize more renewable energy and awareness about how they are getting that power. It gives people the freedom to convert wasted power into something that creates value for billions of people around the world.”