According to the news reported by CNBC; Blockstream (formerly Square), the company founded by former Twitter CEO and founder Jack Dorsey, and Blockstream will use equipment manufactured by Tesla to mine Bitcoin in Texas. Elon Musk's company Tesla will provide a 3.8-megawatt solar PV array and a 12-megawatt-hour Megapack for this collaboration.
British cryptographer Adam Back, CEO of Blockstream, told CNBC during the Bitcoin 2022 conference in Miami that the aim of this project is to prove that full-scale Bitcoin mining can be 100% environmentally friendly due to the use of renewable energy sources.
Back stated that the project will have a clear dashboard and other players from the Bitcoin sphere will be able to join Blockstream and Block. The dashboard will clearly show the power output of the project and the total amount of BTC mined. It will also showcase data points to show how solar cells and storage are performing.
West Texas is an excellent spot in the US to generate renewable energy because facilities there can draw energy from both sunlight and wind, according to Shaun Connell, senior representative at Lancium, a Houston-based technology company. A lot of solar and wind power can be found and used in remote areas of Texas. Therefore, you need financial incentives to set up the necessary infrastructure to collect all this renewable energy. According to Connell, crypto miners are creating demand for Bitcoin and other PoW cryptos and economically justifying green energy production in Texas. Currently, West Texas could potentially deliver 34 gigawatts of power with just five gigawatts of demand.
Adam Back stated that if the mining project he is carrying out with Block is successful beyond the pilot stage, the participating companies will add wind power to the solar power and increase the scale of the project.
Tesla CO Elon Musk announced in May of last year that Tesla would stop accepting Bitcoin for payments as BTC mining generates too many emissions. Musk later announced that the company will continue to accept Bitcoin for its cars as soon as the rate of BTC mining based on renewable energy becomes at least 50%.
According to Michael Saylor, this metric was obtained in the same year. However, Tesla did not continue to accept Bitcoin payments. Instead, it started accepting Dogecoin, a Bitcoin prank hardfork that also runs on the environmentally unfriendly PoW algorithm. The community reacted to Musk for this hypocrisy, but Musk did not change his stance on this issue. However, Tesla still holds roughly 43,000 BTC, and Musk's personal portfolio also includes Ethereum and Dogecoin.