Gridless, a startup backed by Jack Dorsey’s Block, operates six Bitcoin mining operations across Kenya, Malawi, and Zambia, powered by a combination of renewable energy sources such as solar and geothermal power. The company’s unique setup near Hell’s Gate National Park allows them to mine Bitcoin while also providing electricity to local communities. Gridless aims to bridge the gap between power generation and capacity in Africa, where approximately 600 million people lack access to electricity. By utilizing renewable energy sources that would otherwise go to waste, Gridless is able to power homes and businesses in underserved areas.
Bitcoin mining is a process that requires substantial amounts of electricity, with miners running powerful computers to validate transactions and create new tokens. Seeking the cheapest sources of power, miners face challenges due to fluctuating cryptocurrency prices. Recent surges in Bitcoin’s value have renewed interest in mining operations, making it more profitable to continue supporting the network. Analysts predict a shift in the geography of crypto mining, with countries in Latin America, Africa, and the Middle East attracting miners due to lower energy costs.
By leveraging the energy potential of volcanoes and geothermal power stations, Gridless is able to utilize the excess power for Bitcoin mining operations. This approach is not unique to Kenya, as other countries like Iceland and El Salvador have also harnessed geothermal energy for mining purposes. While Bitcoin mining has faced criticism for its energy consumption, when coupled with renewable energy sources, it can help unlock trapped renewable power and incentivize increased production. Bitcoin miners act as energy buyers, utilizing excess power from renewable sources and providing financial incentives for further development.
Gridless’s operations in the volcanic region of Hell’s Gate have not only provided thousands of households with electricity but have also facilitated containerized cold storage for local farmers, charging stations for electric motorcycles, and public WiFi points. Through their mining operations, the company is making renewable energy economically viable in Africa while contributing to the secure functioning of the Bitcoin network. CEO Erik Hersman emphasized the importance of Bitcoin miners in supporting the network, stating that their work in mining containers may not be glamorous but is crucial for securing the network.
As profit margins for Bitcoin mining operations become slimmer following recent halving events, countries with lower energy costs are becoming attractive to crypto miners. This presents an opportunity for renewable energy developers in regions like Africa to utilize their excess power and support the expanding Bitcoin network. Gridless’s mission to harness renewable energy sources for mining operations not only benefits local communities by providing electricity but also contributes to the environmentally sustainable functioning of the Bitcoin network. With the potential to power even more homes and businesses in underserved regions, Gridless’s innovative approach to Bitcoin mining demonstrates the positive impact renewable energy can have on both local communities and global networks.
