Crypto companies Argo Blockchain and DMG Blockchain Solutions are partnering to launch the clean energy powered mining pool Terra Pool.
The new cryptocurrency mining pool, claimed as a world first for the creation of ‘green Bitcoin’, will consist initially of the hashrate of the two companies, which is mostly generated by hydroelectric power, but other mining companies are expected to follow suit and join the pool.
The initiative builds on moves to introduce more sustainability into the sector, which has come under increasing scrutiny for its energy consumption, particularly for Bitcoin mining. As the price of Bitcoin has surged, so too has the energy consumption for mining, which has reached record levels since the start of the year and as of writing shows no sign of slowing.
It also is timely. While individual companies are increasingly opting for clean energies with Cambridge Centre for Alternative Finance’s 2020 study estimating 39% of mining activity to be renewable powered, primarily by hydropower, there has been no general industry initiative.
Peter Wall, Chief Executive of the London-based cryptocurrency miner Argo Blockchain, says that addressing climate change is a priority for the company.
“Partnering with DMG to create the first ‘green’ Bitcoin mining pool is an important step towards protecting our planet now and for generations to come. We are hopeful other companies within the Bitcoin mining industry follow in our footsteps to demonstrate broader climate consciousness,” he says.
Dan Reitzik, Chief Executive of DMG, a Vancouver-based cryptocurrency and blockchain platform company, adds that the company’s innovative strength and continued focus on eco-friendly Bitcoin mining has the opportunity to drive transformations in how the Bitcoin mining community acts towards a climate-conscious future.
“We believe this is an opportunity for continued growth as we develop a better understanding of climate-friendly operations while simultaneously integrating the newest and most innovative blockchain technologies.”
As part of these operations, DMG has developed an immersion cooling system for miners, which compared with conventional air cooled rigs shows a reduction in the overall power consumption per hashrate by up to 10% while increasing the hashrate by at least 30%.
With immersion cooling the miners are immersed into custom designed tanks using specialised non-conductive liquids. This fluid transfers the heat from the miners and is then subsequently cooled with a connected heat exchange system. DMG is planning large-scale deployment of its immersion cooling during 2021.
In January DMG also entered into an agreement with the cryptocurrency miner Marathon Patent Group to launch a North American cooperative mining pool.
Other recent initiatives to bring a more sustainable approach to the Bitcoin industry include the delivery of flexibility to the grid from mining and the offer of crypto mining as a service to support increasing renewables integration by taking up oversupply.