Mining prospects based on renewable energy are booming in Bhutan and Kenya following mining bans in China and recent US restrictions.
African miner Gridless will fund micro-grid projects with bitcoin mining proceeds, while miner Bitdeer will provide Bhutanese jobs through a data center financing agreement with Druk Holding and Investments (DHI).
Bhutan and Kenya are eyeing renewable energy
Singapore-based Bitdeer will invest $500 million in data centers, renewable energy, artificial intelligence, blockchain, and metaverse technology. Clean energy will power data centers, as in African communities using mini-grids.
According to consulting firm DLA Piper, the ban on mining in China has encouraged miners to use renewable energy in other parts of the world with more transparency.
Bitcoin Mining Council estimates More than half of the energy used by Bitcoin (BTC) miners in the fourth quarter of 2022 came from renewable sources.
Microgrid operator is bringing electricity to Kenyan communities with clean energy funded by Bitcoin. The company plans to expand Malawi with newly raised funding from Jack Dorsey’s Block, among others.
US regulators on dirty energy use
Regulatory pressure from US states and the upcoming Bitcoin halving may push miners to greener solutions.
Last year, New York Gov. Kathy Hochul imposed a ban on permit renewals for bitcoin miners using non-renewable energy.
Texas politicians recently passed a bill preventing the state’s Energy Reliability Board (ERCOT) from paying large miners to shut down operations.
Riot Platforms’ 100-acre mining facility in Rockdale must contact ERCOT directly during network emergencies. The bill also eliminates tax incentives for mining companies heading to Texas.
However, ERCOT has also encouraged miners to use excess wind and solar power in West Texas. Marathon Digital has moved its coal-fired mining facility from Montana to greener solutions, including a wind-powered facility in Texas.
The Bitcoin halving reduces the coin’s emission rate by 50%. It happens once every 210,000 blocks and forces miners to buy more efficient machines or reduce electricity costs to maintain revenue. Miners can earn a transaction reward in bitcoins for guessing the correct value of the number needed to calculate the block hash.
Mining-efficient computers can make more guesses per unit of power consumed.
For a recent Be (In) Crypto Bitcoin (BTC) analysis, click here.
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