Tesla, Block and Blockstream to mine Bitcoin on solar energy

Tesla has joined forces with Block (formerly Square), led by Jack Dorsey, and the infrastructure company Blockstream to build a Bitcoin mining data centre. CNBC reports.

The pilot project, worth $12 million, will be launched in Texas (Block and Blockstream each invested $6 million). A 3.8 MW photovoltaic solar array and a 12 MWh Megapack energy storage system from Tesla will be installed at the site. The hash rate will be 30 PH/s.

Blockstream co-founder Adam Back told CNBC that the venture is designed as a proof of concept for 100% renewable-energy Bitcoin mining.

“People like to argue about the various factors related to Bitcoin mining. We decided — let’s just prove it,” said Back.

A publicly accessible dashboard will display the project’s performance in real time, including output power and the total amount of BTC mined. A later version will add data on solar energy production and storage performance.

“This is a step toward confirming our thesis that Bitcoin mining can fund energy infrastructure with zero emissions and contribute to economic growth in the future,” said Blockstream co-founder Adam Back.

According to him, the facility’s construction will be completed by the end of 2022. If the project proves profitable in the pilot phase, the partners will add wind power and scale it, Back added.

In February 2021, Tesla reported investing $1.5 billion in Bitcoin. In March the company began accepting digital gold as payment for electric cars. However, less than two months later, backtracked on the decision, citing concerns about the environmental sustainability of mining.

By June, Elon Musk named the condition for reviving the option for the transition of at least half of Bitcoin miners to renewable energy.

At the end of February 2022, Tesla board member Kimbal Musk said that when deciding whether to buy Bitcoin the companyhad no idea of its environmental impact.

In April, the UN-backed Intergovernmental Panel on Climate Change mentioned cryptocurrencies as one of the ecological risk factors.

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