The initiative is being championed by Blockstream’s CEO, Adam Back, and Square’s founder, Jack Dorsey. The Bitcoin mining facility will be built on a Blockstream mining site in the United States. Both parties will share details on the project’s economics, as well as their experience in the development of the facility.
The project hopes to demonstrate the possibility that Bitcoin mining and renewable energy can fuel a transition towards clean energy. The Proof-of-Concept will demonstrate that Bitcoin can be mined at scale with renewable energy. The CIO and head of Mining at Blockstream noted:
While Square will invest $5 million in the initiative, Blockstream will provide the infrastructure and expertise to build the project.
A transition to renewable energy?Bitcoin came under a lot of fire in May for its high energy usage. Tesla’s CEO Elon Musk triggered a market sell-off when he announced that his vehicle manufacturing company would no longer accept payments in the leading digital asset, citing environmental concerns.
Iran has also moved to suspend Bitcoin mining activities until September 22 after blaming crypto mining for a series of blackouts across major cities.
The collaboration between Blockstream and Square couldn’t have come at a better time. Once built, the Bitcoin mining facility will allow other industry participants to expand their operations. It will be designed to be scalable.
Neil Jorgensen, Global ESG Lead at Square, expressed his excitement over the partnership. He said: