4 Bitcoin miners profiting from the network and mitigating carbon emissions

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CleanSpark, during the Bitcoin 2023 Conference in Miami Beach, Florida, United States, on Saturday, May 20, 2023. The three-day conference is billed by organizers as “the world’s largest annual Bitcoin celebration.” Photographer: Eva Marie Uzcategui/Bloomberg 2023 Bloomberg Finance LP

What I love about Bitcoin is that we can operate in a way that not only avoids harm, but rather adds, CleanSpark CEO Zach Bradford told me during our interview. when considering the impact of bitcoin mining on networks and communities.

CleanSpark is a publicly traded bitcoin mining company that uses a mix of nuclear, hydroelectric, solar, and wind power to mine bitcoin. Something often lost in the sustainability discussion is its purpose. It’s not just to use low-carbon energy for fun, rather we’re doing it to make an impact, Bradford explained of their intentions.

According to Bradford, the Americas grid is more fragile than most people realize, requiring a lot of investment to restore resilience. The unique power consumption characteristics of Bitcoin mining make it the perfect complement to underutilized or stranded power sources.

In addition to creating jobs, CleanSpark has invested hundreds of millions of dollars in rural communities, funding projects ranging from substation upgrades to power line and pole replacements.

There are a number of bitcoin miners that use sustainable power sources or waste power. These operators have a positive impact on the environment, the network and communities around the world. Here are some examples of how they make a difference.

crusoe energy

Cully Cavness is the co-founder, president and chief operating officer of Crusoe Energy. Prior to co-founding Crusoe, Cavness held executive and management positions in the upstream oil and gas industry and the geothermal energy industry as well as in energy investment banking.

Crusoe got his start by tapping into methane that oil and gas operators previously had to flare. By doing so, the methane is burned more thoroughly, reducing emissions. Crusoe is also building data centers cooperatively with wind and solar to smooth their production curves to reduce the strain on the grid.

Bitcoin can be a great tool for reducing methane emissions, Cavness said in our interview. In 2022, the Crusoe team reported reducing natural gas flaring by more than 4 billion cubic feet, mitigating 6,400 metric tons of methane emissions, and reducing more emissions than they generated, resulting in net negative emissions.

Crusoe is now expanding its data center services to cloud and AI. They also recently opened an operation in Argentina, a potentially vital lifeline amid the country’s current currency crisis.

TeraWulf

Kerri Langlais is the Chief Strategy Officer of TeraWulf Inc., a publicly traded bitcoin mining company that also uses carbon-free energy sources.

Langlais told me during our interview that TeraWulf would only set up facilities in places where there is an imbalance between supply and demand. By doing so, she says they can have a symbiotic relationship with the network and the network operators.

For example, TeraWulf recently became the first bitcoin mining facility in the United States directly connected to a nuclear power plant. Langlais referred to TeraWulf as an energy sink, using energy that is independently generated, but would otherwise remain unused and unpaid.

In doing so, TeraWulf increases power plant utilization during periods of low demand, spreading fixed costs over a larger consumer pool, thereby reducing costs for consumers.

The composition

Having built my career on harmonizing humanity’s relationship with the planet, I couldn’t think of a better place to focus my work, Kent Halliburton said in our interview, referring to his previous experience in the industry. renewable energies and his new passion for bitcoin.

Halliburton is the President and COO who oversees the development of bitcoin mining operations at Sazmining, a company that offers retail investors an easy way to invest in bitcoin mining.

Halliburton said he left his earlier career to focus on renewable energy-powered bitcoin mining after discovering bitcoin and realizing the powerful synergies between the two worlds.

Similar to TeraWulf, Sazmining consumes excess electricity from hydroelectric facilities. Halliburton says they are focusing on hydropower because of its low cost and reliability.

As bitcoin mining permeates the energy industry, it has the potential to revitalize rural America and spur development in the Global South, while mitigating emissions and strengthening existing networks.

The incentives are complex, but the results are starting to show. Bitcoin mining is here to stay, and it may be what we need to modernize our energy infrastructure.

Follow me on Twitter or LinkedIn.

I’m a freelance writer exploring the Bitcoin ecosystem. My work has been published by Bitcoin Magazine and Bitcoin News. I am personally invested in bitcoin and am fascinated by the emerging bitcoin economy.

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