An Open Letter to President Biden Regarding Bitcoin Mining
In my role as the CEO of CleanSpark, a publicly-traded Bitcoin mining company with a background in the green energy sector, I am writing to draw your attention to a technology that is playing a pivotal role in transforming our nation's energy landscape into a more renewable, efficient, and interconnected grid.
Bitcoin mining, the process of generating new bitcoins and validating transactions on Bitcoin's public ledger, has become a topic of political contention. Unfortunately, the discussions around Bitcoin mining often overlook perspectives from those closely involved, such as residents of areas hosting Bitcoin mining operations. It's crucial to approach this matter objectively and recognize that Bitcoin mining can be harnessed as an opportunity to revolutionize the energy landscape in the United States.
In recent days, the U.S. has experienced extreme heat advisories impacting nearly 110 million Americans, raising concerns about impending heatwaves. The damages and loss of life caused by such heatwaves, as witnessed in 2021, amount to billions of dollars and several hundred fatalities. Addressing this recurring issue necessitates energy grids that are more efficient, resilient, and adept at load balancing.
The aging state of our energy infrastructure has witnessed blackouts resulting from natural disasters or spikes in demand due to extreme temperature. To establish a future where 100% of the U.S. power demand is met through clean, renewable, and emission-free energy sources, it is imperative that we bolster our energy generation capacity and modernize existing infrastructure.
Enterprises like CleanSpark are actively contributing to this energy transformation by embracing Bitcoin mining. This surge of entrepreneurial spirit resonates with the historic American ethos and is now revitalizing our energy sector, making it greener in the process. The allure of Bitcoin mining is attracting inventors and entrepreneurs to the energy industry, thereby fostering opportunities for innovation and economic growth.
Over the last three years, the number of Bitcoin mining companies listed on Nasdaq has more than tripled, reaching 20. Many of these firms primarily rely on renewable energy sources due to their sustainability benefits for both the environment and business operations.
Bitcoin mining has the power to stimulate new renewable energy projects by rendering previously unprofitable endeavors economically viable. This mechanism also facilitates an increased percentage of grid power generation through renewables without altering electricity costs.
Beyond championing renewable energy, Bitcoin mining can contribute to enhancing energy grid efficiency and interconnectivity. Its distinctive power consumption characteristics make it an ideal complement to underutilized or stranded power sources across the nation.
Often situated in remote areas with high renewable energy potential but lacking infrastructure, Bitcoin mining clusters necessitate enhanced interconnection. This drive to accommodate mining facilities triggers the expansion of new transmission lines and infrastructure, ultimately fortifying local energy grids and bolstering national energy resilience.
To unlock the full potential of integrating Bitcoin mining into the energy grid, advanced smart grid technology is essential. This integration can yield more efficient energy consumption, reduced transmission losses, and optimized load management.
Bitcoin mining operations offer vital flexibility to the energy grid through their "demand response" role. During periods of abundant renewable energy generation, surplus electricity can be directed to mining facilities, preventing waste of excess renewable energy.
Furthermore, miners can curtail or halt operations during peak demand, supplying critical energy to the grid within minutes. This swift redirection of power can save approximately 14 hours that a conventional power plant would take to reach peak capacity.
This dynamic load balancing helps prevent grid instability, minimize renewable energy curtailment, and lower energy costs for consumers.
As the Bitcoin mining industry continues to rapidly evolve, it is investing significantly in research and innovation to devise more energy-efficient methods and hardware. This pursuit of efficiency is permeating into other sectors, fostering a culture of energy consciousness and technological advancement.
Mr. President, harnessing the potential of Bitcoin mining to expedite the transition to a renewable-powered, interconnected energy grid is a remarkable opportunity. By offering incentives that encourage miners to utilize renewable energy sources and adopt sustainable practices, we can create a win-win scenario benefiting both the environment and the economy.
I urge your administration to consider supporting initiatives that facilitate the integration of Bitcoin mining into the development of our national energy grid. This forward-thinking approach holds the promise of enduring benefits for our environment, economy, and national security. Your endorsement of this matter would undoubtedly mark a significant stride towards a cleaner and more sustainable energy future.
Thank you for your attention to this crucial matter. I am prepared to provide any additional information or insights you may require as we collaboratively work towards a more abundant energy future for all Americans.