Tesla, Block And Blockstream Team Up to Mine Bitcoin With Solar Energy

Tesla has partnered with Block (previously Square), founded by Jack Dorsey, and infrastructure startup Blockstream to construct a cryptocurrency mining data center. 

Green Mining

The use of solar energy allows you to get cheaper electricity than from fossil carbon sources. The trend towards “green” mining is becoming more and more distinct. There are farms using renewable energy sources.

Well-known members of the industry are increasingly interested in using solar energy for mining. Some companies are driven not so much by financial interest as by the desire to raise awareness in society and show how cryptocurrency mining can serve as a catalyst for the adoption of clean energy.

The Current Case

Block and Blockstream each committed $6 million in the pilot project, which will be carried out in the state of Texas and cost $12 million in total. The facility will be equipped with a 3.8 MW photovoltaic solar array as well as a Tesla Megapack energy storage device with a capacity of 12 MWh. The hashrate will be 30 PH/s at this time.

In an interview with CNBC, Blockstream co-founder Adam Back stated that the new company is intended to serve as a proof of concept for bitcoin mining using 100 percent renewable energy.

“People like to argue about the various factors involved in bitcoin mining. We decided to prove it, ”said Back.

A public dashboard will display project performance metrics in real time, including power output and total BTC mined. A later version will add solar and storage performance data.

“This is a step towards confirming our thesis that bitcoin mining can finance a zero-emission energy infrastructure and drive economic growth in the future,” said the Blockstream co-founder.

Construction on the enterprise, according to him, is expected to be completed by the end of the year 2022. Back went on to say that if the project proved lucrative in test mode, the partners will consider adding wind power and scaling it up.

Tesla’s Contribution

Tesla said in February 2021 that it would make a $1.5 billion investment in bitcoin. Beginning in March, the firm began accepting digital gold as a form of payment for its electric vehicles. However, less than two months later, she reversed her decision, expressing concerns about the mining industry’s environmental impact.

At the beginning of June, Elon Musk stated that the switch of at least half of bitcoin miners to renewable energy was a need for the extension of the option.

Tesla board member Kimbal Musk stated at the end of February 2022 that the corporation had no clue about the environmental impact of bitcoin when it made the decision to purchase the cryptocurrency.

Remember that in April, a multinational committee of experts on climate change convened under the auspices of the United Nations identified cryptocurrency as one of the environmental risks.

In Texas, the fintech business Block by Jack Dorsey and cryptocurrency company Blockstream are teaming up with Tesla to develop a solar-powered mining farm that will be powered by electricity generated by the sun. The mining farm will make use of Tesla energy storage technology, which will include enormous rechargeable batteries that will be installed on site.

Gambit Energy Storage LLC

Tesla subsidiary Gambit Energy Storage LLC is currently developing a more than 100 megawatt energy storage project in Angleton, Texas, a city located approximately 40 miles south of the Houston metropolitan area.

Central and western Texas are among the regions of the United States that have a plethora of wind and solar energy resources. Last year, miners flocked to the area in order to enhance network bandwidth.

Elon Musk grew interested in cryptocurrencies and Dogecoin in early 2021, and he allowed Tesla customers to purchase electric vehicles using bitcoin, causing the cryptocurrency market to soar to a record-breaking level. Later, the manufacturer discontinued accepting bitcoin as payment due to concerns about the mining process’s impact on the environment.

Twitter CEO Jack Dorsey indicated in 2021 that the social network would include bitcoin into its platform. Users will be able to tip their favorite bloggers with bitcoin, for example.

Tesla had $2.48 billion in bitcoin as of March 31st, according to CoinDesk. Bitcoin revenue accounted for more than half of the Block Cash app’s entire net profitability, according to the company.