Tesla, Block, Blockstream Team Up on HUGE Bitcoin Mining Project. What to Know.

Even with the massive popularity it sees nowadays, Bitcoin (BTC-USD) is still polarizing. The energy consumption of the proof-of-work cryptocurrency causes heated debates, even 13 years into its existence. Today, however, two billionaire entrepreneurs, Tesla (NASDAQ:TSLA), Block (NYSE:SQ) and a prominent blockchain tech outfit are all banding together to silence the energy argument against BTC. Can a Block and Tesla Bitcoin mine make the cryptocurrency a green venture?

A Bitcoin (BTC) coin sitting on a mossy piece of wood.
Source: Shutterstock

Both Elon Musk and Jack Dorsey have long histories with Bitcoin. While both crypto buffs, Elon Musk has been slower to warm up to the top crypto. In early 2021, Musk announced that Tesla was buying BTC and holding it on its balance sheet. The electric vehicle company bought $1.5 billion worth of BTC last February. The company also planned to take things further and accept the crypto as a payment method for vehicles.

Unfortunately for investors, though, Elon Musk soon learned of the massive energy consumption of Bitcoin mining and transacting. This knowledge caused Musk to renege on the promise, to the chagrin of crypto faithfuls.

Jack Dorsey, on the other hand, has been nothing but bullish on Bitcoin. The founder of Block, Dorsey had his company’s name changed from Square in December of last year. This comes as Dorsey looks to expand on the company’s payment technology offerings to accommodate the blockchain world.

These differing takes on BTC have caused a clash between the two billionaires. In fact, the two sat on a panel together at a Bitcoin conference last summer to debate the currency. However, today’s news suggests they’ve put the past behind them.

Block, Tesla Bitcoin Farm Partnership Sees Help From Blockstream

Today, Block announced that it will be constructing a sustainable Bitcoin farm in Texas. What’s more, the mining operation will be in partnership with Tesla and blockchain technology company Blockstream. According to the companies, the facility will be completed later this year. However, maybe most notable is that the operation will use Tesla’s solar array technology to power mining; the array is expected to provide a whopping 3.8 megawatts of power.

Blockstream CEO Adam Back is bullish on the concept behind this mining operation. The executive says it will be a “proof of concept” for fully renewable-powered crypto mining facilities. Additionally, Block says the venture will help it achieve its 2030 carbon neutrality goal. Block and Blockstream are splitting the cost to construct the facility, which totals roughly $12 million.

This project stands to turn the energy debate on its head, a debate that has long plagued any type of bullish conversation about Bitcoin. The energy consumption of BTC has been such a heated talking point that it has been commonly used to argue for harsher crypto regulation. In fact, one of the earliest Congressional meetings centered around crypto was a January hearing on “cleaning up cryptocurrency.”

Already, it seems like this idea has turned Elon Musk around on BTC. Hopefully, the project will also better promote low-carbon or carbon-neutral crypto mining practices moving forward.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/tesla-block-blockstream-team-up-on-huge-bitcoin-mining-project-what-to-know/.

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