Whereas to the better Bitcoin tradition, Bitcoin halvings are seen as a celebratory occasion, for miners, issues are typically a tad worrying. As Bitcoiners around the globe collect to have fun block 840,000, miners are hunkering down and making ready for his or her reward for mining blocks to lower by 50%, whereas the price of their operations stays the identical.
With the following bitcoin halving scheduled to happen on April 19, one may think that Fred Thiel, CEO of Marathon Digital Holdings, the most important publicly-traded Bitcoin mining firm on the planet, may be frightened. However after sitting down with Thiel simply days earlier than the halving, he doesn’t seem like breaking a sweat.
Why’s that?
One of many causes is that Marathon plans to generate different streams of income using the warmth emitted from its bitcoin mining rigs.
“Bitcoin mining in and of itself does one thing very effectively, which is produce warmth,” Thiel instructed Bitcoin Journal. “50% of commercial power spend is spent to warmth issues, so think about should you might seize the warmth from Bitcoin miners and Bitcoin miners might receives a commission for that. That may subsidize their price of electrical energy.”
Throughout a fireplace chat with Senator Cynthia Lummis (R-WY) on the Bitcoin Coverage Summit, held on April 9, 2024 in Washington, DC, Thiel shared an instance of how Marathon plans to make the most of the warmth its miners produce.
“One of many issues we’re doing in Nebraska truly is we’re beginning to warmth greenhouses and do shrimp farming utilizing the warmth from Bitcoin mining as a byproduct,” Thiel defined to Senator Lummis.
“I feel you’re going to begin seeing this as a method for folks to develop proteins in areas of the deprived world,” he added.
Using the warmth Marathon’s miners produce is without doubt one of the methods during which Thiel is trying to change the notion of Bitcoin mining from one thing that’s parasitic to one thing that’s productive.
This dovetails properly with the truth that Marathon continues to enhance its capacity to make use of waste fuel as gasoline for its miners.
Towards the top of 2023, Marathon launched a pilot challenge during which it mined bitcoin with power derived solely with landfill methane, a fuel that’s 80x stronger as a greenhouse fuel than CO2.
The challenge was successful, in keeping with Thiel.
“It was a proof of idea that confirmed that you would efficiently mine bitcoin utilizing landfill methane fuel,” he instructed Bitcoin Journal. “Mining on landfills may be very onerous, however we had been in a position to show that you would do it fairly efficiently.”
Thiel expanded on these efforts in his dialog with Senator Lummis, tying collectively the concepts that Marathon might produce this warmth it plans to make use of whereas having a constructive affect on the setting.
“You generate power with that by turning it into methane after which changing that into electrical energy and also you create warmth with the electrical energy,” he instructed Senator Lummis. “In the event you can take a waste product, flip it into power and feed warmth again into an industrial course of, you do extra for the setting than lots of environmentalists need. And on the similar time, your price to mine bitcoin turns into very small as a result of your power price is low.”
