Cryptocurrency
Bitcoin miners seek alternative energy sources to cut costs
During the 2021 bull market, many large mining companies took on massive loans to buy equipment and the proper infrastructure required to mine cryptocurrency. Yet the collapse of crypto exchange FTX and Celsius left many of these companies filing for bankruptcy.
The current bear market, coupled with high Bitcoin network hash rates and low profits, has yet again left the crypto industry wondering if miners will be able to recover from losses. While this remains questionable, it’s become evident that mining companies today are focusing more on alternative energy resources to cut costs, ensure profits and, in some cases, reduce their environmental impact.
Alternative energy sources used by miners
Steven Lubka, managing director for Bitcoin-focused financial services company Swan Bitcoin, told Cointelegraph that while the average rate to mine a single Bitcoin (BTC) is around $26,000, mining companies focused on renewable energy sources are seeing rates between $5,000 and $15,000 per BTC.
A spokesperson for Riot Blockchain, a United States-based publicly traded Bitcoin mining company, told Cointelegraph that wind and solar energy generated across Texas has helped Riot ensure some of the lowest costs to mine crypto. “As stated in our Q2 investor deck, it costs Riot $8,389 to mine 1 Bitcoin,” he said.
Kent Halliburton, president and chief operating officer of Sazmining — a hosted Bitcoin mining provider — told Cointelegraph that the biggest expense for mining has always been electricity:
“Bitcoin miners are naturally incentivized to find the lowest-cost power. Excess electricity is the lowest priced. With renewables, there is often excess electricity, which makes it a perfect fit for Bitcoin mining.”
Halliburton added that independently sourced data from the Bitcoin Mining Council shows that the Bitcoin network may indeed be one of the most sustainable industries. According to the source, 59% of mining operations are carbon-free and growing at a rate of nearly 4.5% per year.
“All of our mining operations in Wisconsin and Paraguay are utilizing excess hydroelectricity,” he said.
The shift to alternative energy sources seems to be a trend for miners thinking about long-term success. Phil Harvey, CEO of crypto mining infrastructure provider Sabre56, told Cointelegraph that the company is currently working with dozens of mining companies to get machines set up across Sabre56’s three facilities located in Wyoming and Ohio.
Harvey explained that Sabre56’s facility in Gillette, Wyoming — known as “Bonepile” — hosts nearly 2,200 mining machines that are powered by a combination of energy sources, including a material contribution from renewable energy. The 5,200-square-foot site draws on Basin Electric’s mixed energy portfolio. According to Basin Electric’s website, this includes 24% wind, 0.6% recovered energy and 4.3% hydro, which adds up to 28.9% renewables.
Harvey said, “The machines at our Bonepile site consist of a mixture of MicroBT Whatsminer M50s and Bitmain Antminer S19s. In terms of the site design and methodology, we leverage a forced-air design, meaning air is forced into the facility to cool the machines.”
According to Harvey, the Bonepile facility is designed to ensure surplus air provision. Harvey explained that this method reduces overheating and strain on the mining equipment while also allowing the miners to naturally exhaust hot air through overpressure.
“This is different from the standard design widespread in the mining industry, which is often extracting the hot air with an additional mechanism while not having a system in place to aid air into the facility,” he remarked.
OceanBit, a company developing renewable energy platforms using ocean thermal sources, is taking a different approach. Michael Bennett, co-founder of OceanBit, told Cointelegraph that the company is integrating Bitcoin mining into its ocean thermal energy power plant design. “This will allow us to balance variable loads, deliver power faster to offshore operations, and monetize excess energy to improve plant profitability,” he explained.
According to Bennett, ocean thermal energy is the largest untapped energy source on the planet. “It’s a base load source of renewable energy, like hydro or geothermal, but uses the temperature difference in ocean water to generate electricity.”
Bennett believes Bitcoin is the missing piece needed to scale the energy source to global adoption since it solves a number of ocean thermal energy conversion (OTEC) commercial challenges.
Nathaniel Harmon, co-founder and CEO of OceanBit, elaborated, “The byproduct of OTEC generation process is four degrees Celsius cold water, which makes it ideal for cooling ASICs, while the byproduct of ASICs is low grade heat, which makes it ideal to use in the OTEC process. The combination increases the efficiency while decreasing the cost of both.”
Bennett shared that OceanBit plans to unveil its R&D power plant in Hawaii in 2024.
Some alternative energy sources are controversial
Pennsylvanian crypto mining company Stronghold Digital Mining is using coal refuse to power its mining operations.
This refuse — also known as gob, culm or boney — is the result of the refining process of coal mining. These unrefined bits of coal mixed with shale, slate or other impurities are piled on thousands of acres of abandoned mine lands in Pennsylvania.
Greg Beard, CEO of Stronghold Digital Mining, told Cointelegraph that his firm is working with the Pennsylvania Department of Environmental Protection and local environmental authorities to clean up piles of waste coal and use them to power Bitcoin mining operations.
He said, “Acid mine drainage from these piles is one of the largest sources of water pollution in Pennsylvania. The waste piles have also been catching fire for decades by way of spontaneous combustion, releasing toxic pollution into the air. Stronghold converts the coal refuse into power by way of specialized facilities and then either supplies the power to the local grid or uses the power to mine Bitcoin.”
“Bitcoin mining is required to continue the waste coal cleanup activities, making it a much more efficient operation than miners seeking out power sources,” added Beard.
While this does provide a method of cleaning up the tons of coal refuse, from an environmental perspective, it also poses something of a Catch 22.
The special plants that can use refuse coal are still burning hydrocarbons. The Pennsylvania arm of the Energy Justice Network project has even contended that refuse coal-firing plants pollute more than new coal plants.
Stronghold itself further came under the scrutiny of environmental groups when it applied for a permit to burn tire-derived fuel at its Panther Creek plant.
Clean Air Council activist Russell Zerbo recently said on a podcast that the plant “uses the electricity it produces to generate cryptocurrency; rather than selling that electricity to the energy grid, the plant should be completely repermitted as a solid waste incinerator that would be subject to increased air pollution monitoring requirements.”
Challenges for miners may hamper adoption
While it’s notable that crypto mining companies are using alternative energy sources, certain challenges could hamper adoption. Halliburton claimed that misinformation regarding alternative energy sources is common:
“Local populaces may throw-up roadblocks because they don’t realize that Bitcoin miners are providing a net benefit to their local communities through job creation and monetizing wasted or excess electricity. Electricity is also misunderstood; it’s extremely expensive to store, and if electricity is not utilized or stored when it’s generated, it gets wasted — quite literally put into the earth.”
Moreover, the challenges that come along with using renewable energy are also evident. Harvey mentioned that the altitude of Gillette, Wyoming results in much thinner air quality. As such, the machines at Sabre56’s Bonepile facility can struggle with pulling in enough air required for cooling.
Then comes the challenge of thermal pollution, as hot air is released into the atmosphere from the mining machines, which Cointelegraph witnessed firsthand at the Bonepile site in Wyoming. Given this, some mining companies are finding unique ways to reuse heat production. For instance, Genesis Digital Assets uses hot air produced by mining equipment to grow vegetables in the Nordic regions.
All things considered, the future of mining operations will likely rely on renewable sources. Margie Feng, head of marketing at Bitmain — a leading producer of crypto mining equipment — told Cointelegraph that the company has shifted gears and is currently working hard on promoting hydro-cooling technologies, as she believes that demands for this type of equipment will only grow in the future.
Feng added that Bitmain has found that almost a quarter of all Bitcoin miners use water to power their setups, while wind and nuclear are the second- and third-biggest contributions, respectively.
[PRESS RELEASE – Los Angeles, United States, September 10th, 2024]
Ethernity, the leading entertainment-focused Layer 2 blockchain solution, proudly announces a $10 million grant program dedicated to revolutionizing the entertainment and creator economy through development of Ethernity’s Layer 2. This substantial investment aims to support developers, founders, and startups building the future of digital entertainment on the Ethernity Layer 2 ecosystem.
Fuelling Innovation in Entertainment and the Creator Economy
The Ethernity Grant Program is designed to fuel groundbreaking projects that elevate the entertainment landscape, offering financial support, strategic mentorship, and valuable business resources. By focusing on enhancing the creator economy, Ethernity empowers brands and founders to leverage blockchain technology for new levels of engagement, security, and monetization.
Program Focus Areas:
- Games and Entertainment Products: Innovative games and interactive experiences that push the boundaries of digital entertainment.
- Blockchain Infrastructure: Tools, protocols, and infrastructure enhancements that strengthen the Ethernity ecosystem for entertainment applications.
- Entertainment Infrastructure: Projects that integrate global entertainment brands with blockchain, enabling new business models and fan experiences.
- DeFi Tools: Financial applications tailored to the needs of the entertainment industry, providing new ways to monetize and secure digital assets.
- RWA’s and Collectibles: Cutting-edge digital assets and marketplaces that redefine ownership and engagement.
- Education and Outreach: Initiatives that promote blockchain adoption and educate the creator community.
How to Apply
The program is open globally to developers, startups, and organizations whose projects align with Ethernity’s mission to disrupt the entertainment industry through innovative products. Applicants are encouraged to submit detailed proposals outlining their project objectives, milestones, and potential impact.
What Grant Recipients Will Receive
Grant recipients will receive financial backing to accelerate project development, access to mentorship from entertainment and blockchain experts within Ethernity’s network, and support with marketing and PR to enhance visibility. They will also benefit from technical resources, including tools, SDKs, and dedicated technical support, as well as opportunities to connect with venture capitalists for further investment and growth.
“Ethernity is committed to fostering a dynamic ecosystem that supports the next generation of entertainment and creator-focused technologies,” said Nick Rose Ntertsas, CEO of Ethernity. “This $10 million grant program is a significant step in empowering innovators and creators to bring their visions to life on the blockchain.”
For More Information and Application Details
Developers, creators, and organizations are invited to apply for the Ethernity Grant Program and join a pioneering movement to transform entertainment and the creator economy through blockchain technology.
For more information and to apply, users can visit https://www.ethernity.io/grants
About Ethernity
Ethernity is a Layer 2 blockchain solution designed specifically for the entertainment industry and the creator economy. It offers AI-powered security and Digital Rights Management (DRM) to protect intellectual property on-chain. With a robust infrastructure and strong partnerships, Ethernity is poised to become the leading web3 platform for entertainment, providing a secure, scalable, and user-friendly environment for creators and brands.
Website: Ethernity.io
Twitter: @EthernityChain
Telegram: EthernityChain
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Pepe Unchained is in contention to become the top meme coin, potentially overtaking the industry titans like Pepe and Dogecoin.
These are the thoughts of popular crypto analyst ClayBro, who hailed Pepe Unchained’s ($PEPU) rapid momentum and utility-rooted use case as reasons it could outdo the current meme coin frontrunners.
ClayBro says $PEPU is Set Apart by its Presale Home Run
“The crypto market is going through a brutal period in terms of fear, yet Pepe Unchained is able to raise money, they’re able to sell out – they’re doing something no other presale can,” said ClayBro.
Pepe Unchained has raised over $12.5 million throughout its presale, making it one of the most successful campaigns of 2024.
Considering crypto prices have been crashing almost the entirety of the presale, ClayBro thinks the project has significant potential.
While most cryptocurrencies fold under bearish momentum, investors have accumulated Pepe Unchained without flinching.
According to ClayBro, Pepe Unchained is on track to “become the top meme coin.”
What’s driving this interest? It all comes down to its use case.
Pepe Unchained: the First Pepe-Themed Token With a L2 Blockchain
Layer 2 blockchains have changed the way users interact with Ethereum. They no longer bid for limited block space on the congested main network. Instead, they use connected offshoot chains (layer 2s) that are faster and cheaper.
Now, users can transact in the Ethereum ecosystem without worrying about the previously exorbitant gas fees – it’s a game changer.
But imagine packing that innovative utility behind the viral face of Pepe coin. That’s what Pepe Unchained will be.
It claims to offer lower fees and 100x faster speeds than Ethereum, and its focus on meme coins opens up a wide range of new potential use cases.
While meme coins like Dogecoin and Pepe rely purely on “vibes” and community spirit to boost their prices, Pepe Unchained is underpinned by tangible utility.
It’s a clear distinction from its peers and a narrative investors are getting behind.
$PEPU Staking Offers 162% APY, 20x Higher Than ETH Staking
More good news for Pepe Unchained holders – $PEPU staking is far more lucrative than the market average.
Currently, $PEPU staking offers returns as high as 162% APY. In comparison, ETH staking offers up to 7% APY.
And with ETH staking, users must host their own node or delegate to someone else. Either way, the take-home profits work out even less. But that’s not the case with Pepe Unchained.
However, the staking rewards are capped at 30% of the total $PEPU supply.
This means rewards will decrease over time, incentivizing prospective investors to act early.
Simultaneously, the Pepe Unchained presale price will gradually increase, with the next uptick in just over one day.
Bull Market is Back on – Expect an Uptick in $PEPU Presale Momentum
If Pepe Unchained could raise $12.5 million in bearish conditions, imagine what it would do in a bull market.
Traders have rallied behind its novel use case.
The crypto market cap has jumped 3.09% today as traders spot a higher low on the Bitcoin price chart. This typically indicates a trend reversal, shifting from bearish to bullish.
Causally putting in its first higher low in almost 200 days…
Potential rate cuts next week…
Fear & greed – extreme fear…
Bottom signals flying left and right….
Time to pray. pic.twitter.com/hvaMWYkb2h
— cousin crypto (@cousincrypt0) September 9, 2024
It comes amid expectations of a tailwind from favorable macroeconomic changes. Goldman Sachs anticipates three consecutive 0.25% interest rate cuts through 2024, which would drive more liquidity into risk-on asset classes like cryptocurrencies.
Goldman Sachs, $GS, expects the Federal Reserve to initiate a series of three consecutive 25 basis-point rate cuts in September, November and December.
— unusual_whales (@unusual_whales) August 29, 2024
But its meme coins taking center stage – the sector’s total market cap has surged 7.5% today.
As the market regains strength, Pepe Unchained could be about to experience its first-ever bull market rally.
Investors can follow Pepe Unchained on X or join its Telegram for the latest updates. Otherwise, they can visit its website to buy and stake tokens.
Disclaimer: The above article is sponsored content; it’s written by a third party. CryptoPotato doesn’t endorse or assume responsibility for the content, advertising, products, quality, accuracy, or other materials on this page. Nothing in it should be construed as financial advice. Readers are strongly advised to verify the information independently and carefully before engaging with any company or project mentioned and do their own research. Investing in cryptocurrencies carries a risk of capital loss, and readers are also advised to consult a professional before making any decisions that may or may not be based on the above-sponsored content.
Readers are also advised to read CryptoPotato’s full disclaimer.
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Bitcoin recorded one of its most impressive daily performances in recent history yesterday when it pumped from a daily low of $53,600 to just over $58,000.
Here are some of the possible reasons behind this surge while the community speculates whether the worst has passed and BTC could resume its 2024 bull run.
ETF Flows
Ever since their inception in mid-January this year, the US spot Bitcoin ETFs have played a significant role in the underlying asset’s price movements. Trends of positive flows have led to price increases and vice versa.
As such, it wasn’t a big surprise that BTC tumbled hard in the past few weeks, from over $64,000 (on August 26) to under $52,500 (on September 6). Within this timeframe, the ETFs saw almost $900 million in net outflows.
However, the trend changed on Monday, and investors broke the longest negative streak in the history of ETFs. The net inflows for the day exceeded $28 million, and this could be among the most probable reasons behind BTC’s price resurgence.
Going Against the Crowd
The popular crypto analytics tool, Santiment, has repeatedly outlined a certain strategy that’s relatively unpopular among the community. After all, it advises traders to go against the crowd, which seemed to have worked in the past day.
The latest report informed by traders had ‘heavily’ shorted BTC on major exchanges like Binance and BitMEX since Saturday. According to Sentiment, “trader FUD and doubt in this rally will only fuel prices higher.”
Bitcoin’s market value is finally rallying, making it as high as $57.6K Monday and +4.8% in the past 24 hours. On major exchanges like Binance & Bitmex, Bitcoin has been heavily shorted since Saturday. Trader FUD and doubt in this rally will only fuel prices higher. pic.twitter.com/1uY1AaQBLx
— Santiment (@santimentfeed) September 9, 2024
Stablecoins Inflows
Another possible reason behind BTC’s impressive daily surge could be attributed to investors trying to take advantage of the price dip. This is supported by data from IntoTheBlock, which reads that $300 million worth of stablecoins were transferred into exchanges on Monday.
Stablecoins are the easiest gateway for investors to purchase digital assets on exchanges. Such large movements are typically executed to look for good buying opportunities, such as the recent price dips.
$300 million worth of stablecoins flowed into exchanges yesterday, signaling a potential move by investors to capitalize on the dip. pic.twitter.com/c7CTrqc8oT
— IntoTheBlock (@intotheblock) September 10, 2024
Back in early August, when BTC’s price tumbled even lower (under $50,000), the total stablecoin inflows skyrocketed to around $1 billion. Days later, the cryptocurrency, alongside most of the market, recovered its losses and even soared past $65,000 in weeks.
Something relatively similar on the matter came from Lookonchain. The on-chain resource informed that larger bitcoin investors had withdrawn more than $34 million worth of the asset in the past day alone. This could reaffirm the thesis that investors have used the opportunity to go on a buying spree.
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LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!
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