The Bitcoin Business Newsletter | Bitcoin's Impact on Renewables

Key insight

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This week, we're exploring why energy companies should consider Bitcoin mining. Special thanks to Richard Madras for his contributions to this section.

Simply put, Bitcoin mining is the process of using electricity to secure the Bitcoin network. Miners employ powerful application-specific integrated circuits (ASICs) to solve complex puzzles, verify transactions, and maintain network security. As a reward, they earn Bitcoin from both transaction fees and block rewards. Proof of Work (PoW), is at the heart of Bitcoin, and an innovation of immense proportions.

Most energy companies end up with wasted or stranded energy in various ways. By employing Bitcoin miners, they can create a new revenue stream from this otherwise unused energy, while also improving operational efficiency and optimizing energy use.

The applications are almost endless since most energy producers end up with either stranded energy from their renewable energy sources or methane gas as a byproduct of crude oil extraction. Below is a cursory overview of just some of these issues.

• Renewable energy sources like solar and wind often generate excess power when demand is low, leading to wasted electricity. Bitcoin mining can act as a 'demand response' tool, absorbing this surplus energy to stabilize the grid and provide a flexible load management solution. By utilizing otherwise lost energy, companies can enhance revenue stability and improve the overall efficiency of their energy production.

• Hydroelectric power plants—the most widely used renewable energy source— are built to handle peak consumer demand, but during off-peak hours or seasonal fluctuations, they can generate more electricity than is needed. Mining can utilize this surplus energy, converting it into a new revenue stream and optimizing plant operations by preventing waste and balancing supply and demand more effectively.

• Methane released during oil extraction is often flared because it is too far from pipelines or markets to be used efficiently. Harnessing this methane for mining operations not only creates a new revenue stream but also cuts greenhouse gas emissions—transforming an environmental risk into a valuable asset. This strategy boosts operational efficiency by making use of what would otherwise go to waste.
• Nuclear plants face high operational costs and fluctuating demand, which can result in electricity being sold at negative prices or production being curtailed. Bitcoin mining offers a way to monetize excess energy, allowing plants to maintain continuous output without incurring financial losses during periods of low demand. This integration can significantly improve operational efficiency by ensuring that energy is consistently put to profitable use.

Source: https://batcoinz.com/how-carbon-negative-are-different-ways-of-combusting-atmosphere-bound-methane/

All of these operations could benefit from Bitcoin mining. When energy supply exceeds traditional demand, Bitcoin miners can step in to utilize this surplus, creating a new revenue stream, and improve operational efficiency. If the company isn’t interested in Bitcoin at this particular time, it can effortlessly be converted into your local currency.

The biggest barrier to this adoption remains education, of course. Many energy producers are unaware that Bitcoin mining can easily solve their excess energy problem. Moreover, even if they understand the potential, they often lack the knowledge or personnel to implement Bitcoin mining effectively.

We're excited to announce that we’ll be assembling a team of energy and mining experts, to assist these companies. As a trusted partner, we'll assess their situations and provide the necessary guidance and education. Additionally, we'll explore opportunities to connect existing miners with energy producers who have stranded energy resources. Stay tuned for more updates on this in the future.

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Top News Stories

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Blockstream Secures $210M Led by Fulgur Ventures To Drive Layer-2 Growth and Expand Bitcoin Treasury

Blockstream aims to use new funding to accelerate market adoption of Layer-2 technologies, level up its mining business, and significantly expand its already-substantial Bitcoin Treasury, positioning it as one of the world’s largest.

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MicroStrategy Eyes Trillion-Dollar Valuation in Bitcoin Bank Endgame – Bitbo

Michael Saylor envisions MicroStrategy becoming a trillion-dollar Bitcoin bank by leveraging debt to maximize returns and aggressively investing in Bitcoin.

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Italy Considers Raising Bitcoin Capital Gains Tax to 42% From 26%

Italy plans to raise the Bitcoin capital gains tax from 26% to 42% in its 2025 budget and eliminate the revenue thresholds for the Digital Services Tax.

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Bitcoin to have ‘crazy decade’ as global wealth managers dive in

Cointelegraph spoke with Riot Platforms’ Pierre Rochard and Metaplanet’s Dylan LeClaire at the Bitcoin Amsterdam 2024 conference.

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BlackRock’s Larry Fink: Bitcoin is an Independent Asset Class

BlackRock CEO Larry Fink called Bitcoin "an asset class in itself", boosting its mainstream acceptance and potential inclusion in institutional portfolios.

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Bitcoin ETF options expected by Q1 2025: Bloomberg analyst

Options on Bitcoin ETFs could speed up adoption among financial advisers, James Seyffart said at Permissionless.

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Recommended Podcasts

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Chart of the Week

Addresses Holding > X BTC by Year

The indicator tracks Bitcoin adoption by showing addresses holding at least 0.01, 0.1, and 1 BTC over time. While useful, it's imperfect as individuals can hold multiple addresses for security and privacy reasons, and exchanges group many users under one entity. Despite these limitations, the data gives a general sense of Bitcoin adoption growth.

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“Bitcoin frees people from trying to operate in a modern market economy.”

– Timothy C. Draper

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