Power Play: The Race to Secure Energy Access in Bitcoin Mining

Fré Sonneveld on Unsplash

The recognition of Bitcoin (BTC) and different cryptocurrencies like Ethereum (ETH) and Dogecoin (DOGE) has exploded. 

Celebrities like Elon Musk, CEO of Tesla (NASDAQ:TSLA) are consistently tweeting about it. And institutional cash has flooded in from the likes of Greyscale Bitcoin Belief (OTC:GBTC) and CitiBank (NYSE:C).

This elevated reputation has pushed adoption and, in so doing, created an arms race between large-scale Bitcoin mining corporations like Marathon Digital Holdings Inc. (NASDAQ:MARA), Riot Blockchain Inc. (NASDAQ:RIOT), and Mawson Infrastructure Group Inc. (NASDAQ:MIGI). These corporations contribute large quantities of computing energy to the Bitcoin community and, in so doing, assist safe it. They’re important to retaining the community operating easily.

On the core of their enterprise is energy. Electrical energy. Bitcoin mining employs specialised computer systems known as application-specific built-in circuits (ASICs) to course of unbelievable numbers of computations per second. These computations permit the community to perform. And these ASICs are very power-hungry.

For context, the Antminer S19, a well-liked ASIC, makes use of 3,250 watts of energy. The machines run 24/7, 365. So 1 ASIC consumes 78 kilowatt-hours (kWhs) of vitality in a day and 28,470 kWhs in a 12 months. That’s nearly as a lot vitality as 3 common American households use in the identical period of time. And that’s 1 machine. Most of those corporations run tens of hundreds of machines without delay.

If one factor is true for these corporations, it is that energy is king. Entry to low-cost, ample energy is probably the one most vital think about a Bitcoin mining operation’s potential to thrive.

These corporations know this and are competing to safe probably the most dependable and low-cost vitality they’ll discover. This isn’t simple. As the businesses develop their operations, entry to energy is usually a bottleneck. It’s the limiting issue.

Mawson has labored diligently to supply itself with room to develop. It builds its personal amenities, chooses its websites rigorously, and secures long-term leases. This implies the corporate is within the driver’s seat and never on the whim of a Third-party internet hosting firm. 

The corporate presently has 2 U.S. amenities with a mixed 200 megawatt (MW) capability by Q1 2022, and vital alternative to increase the scale of those amenities over time. Mawson not too long ago introduced a brand new 100MW facility in Pennsylvania. It’s constructing out these amenities and plans to safe one other U.S. web site and a couple of Australian websites to develop to a 1,000 MW capability by 2023. This 5 instances enhance will permit Mawson to deploy tens of hundreds of further miners and proceed to develop that capability with out concern.

Within the race to safe low-cost, dependable (and sustainable) energy, Mawson appears to have a leg up on the competitors.


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