Bitfarms, a Canada-based bitcoin mining company, has invested heavily in hydroelectricity to power its facilities, saving it money in the long run.
Bitfarms is a vertically integrated bitcoin mining operation that also builds energy infrastructure and data centers, according to Finimize. The company has developed the capacity for hundreds of megawatts of hydroelectricity — which accounts for much of the company's total energy supply.
Hydroelectricity is generated when a system of turbines and generators converts the natural movement of water into energy. This form of clean energy is responsible for far less pollution than fossil fuels such as coal and gas. It also has associated benefits, including flood control, irrigation support, and water supply, according to the Energy Department.
By locking in rates with utility companies for significant amounts of hydropower, Bitfarms has made its electricity costs more stable. The crypto company gets ahead of its competition by establishing diverse locations and "controlling both energy supply and mining, and locking in long-term power contracts to tamp down wild swings in electricity costs," Finimize reported.
The rising costs of electricity have had widespread effects on individuals and companies. Many people and businesses have turned to renewable energy sources such as hydro, solar, and wind to lower their monthly bills. Many households that switch to solar panels, for example, have decreased their energy expenses to nearly $0. They have often also been able to sell excess energy back to power companies or store it in batteries.
It's especially important for crypto companies to invest in clean energy sources because they consume so much electricity. Between 2020 and 2021, the global bitcoin mining network used 173.42 terawatt-hours of electricity, according to United Nations University. According to this source, this produced carbon pollution equivalent to about 84 billion pounds of burned coal. Critics argue that the associated costs and health consequences of bitcoin operations are often passed along to surrounding residents and businesses.
That said, a recent report found that about 52.4% of bitcoin mining is now powered by a mix of renewable energy and nuclear energy.
Without clean solutions, bitcoin mining will help fast-track rising global temperatures. Beyond hydro, mining companies have invested in wind and solar to keep up with their energy needs, signaling a positive shift in the industry.
|
Should we be pouring money into nuclear fusion technology? Click your choice to see results and speak your mind. |
Yes — it'll pay off 👍 
Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.
Cool Picks
