Tesla, Jack Dorsey’s Block and Blockstream to Mine Bitcoin in Texas
Block and Blockstream join forces to mine Bitcoin using Tesla technology that supplies and stores solar energy
CNBC Reports that Blockstream has teamed up with the company founded by former Twitter CEO and founder Jack Dorsey — Block (formerly known as Square) — will use Tesla-made equipment to mine Bitcoin in Texas.
Elon Musk’s company will provide a 3.8 megawatt solar PV array and a 12 megawatt-hour Megapack for that purpose.
— *Walter Bloomberg (@DeItaone) Apr 8, 2022
Using 100% green energy for Bitcoin mining
Blockstream’s head, British cryptographer Adam Back, told CNBC at the Bitcoin 2022 conference in Miami that the goal of this project is to prove that full-scale Bitcoin mining can be 100% environmentally friendly through the use of renewable energy sources. .
Back stated that the project will have an open dashboard and other players from the Bitcoin sphere can join in on Blockstream and Block.
The dashboard openly shows the assets of the project and the total amount of BTC that has been mined. In addition, it will also display data points showing how solar batteries and storage are performing.
Green Outlook for Bitcoin Mining in Texas
According to Shaun Connell, a senior representative for Lancium, a Houston-based technology company, West Texas is a perfect place in the US to produce renewable energy, as the facilities here can get energy from both sunlight and wind.
Much solar and wind power can be found and harnessed in remote parts of Texas. That’s why you need financial incentives to build the necessary infrastructure to boast all that renewable energy.
Crypto miners are creating demand for Bitcoin and other PoW cryptos, according to Connell, and economically justify green energy production in Texas. Currently, West Texas can offer a potential power of 34 gigawatts with a demand of only five gigawatts.
Adam Back stated that if his mining project with Block were successful after the pilot phase, the participating companies would add wind energy to the solar project and increase the scale of the project.
Tesla and Bitcoin mining
In May 2021, Elon Musk announced that Tesla would stop accepting Bitcoin for its e-cars as BTC mining causes a lot of emissions. The period when the auto giant accepted the flagship crypto did not last long; it had started in February.
Musk then announced that the company would resume Bitcoin adoption for its cars once BTC mining is at least 50% based on renewable energy.
According to Michael Saylor, this statistic was reached later in the same year. However, Tesla has not resumed accepting Bitcoin payments. Instead, it has started accepting Dogecoin (a Bitcoin prank hardfork that also works on the non-environmentally friendly PoW algorithm) for merch.
The community rebuked Musk for this hypocrisy, but he hasn’t changed his stance on the matter. However, Tesla still holds about 43,000 BTC, and Musk’s personal crypto stash also includes Bitcoin (as well as Ethereum and Dogecoin).