Magma Power, a Florida-based innovator in geothermal energy technology, has officially announced the launch of a groundbreaking initiative to transform Bitcoin mining through its patented magma-based geothermal energy solutions.
According to certain reports, the stated initiative will effectively combine the immense potential of magma reservoirs with blockchain mining to create a scalable, low-cost, and environmentally sustainable operation.
More on Magma’s patented geothermal technology would reveal how it actively taps into underground reservoirs of the company to produce reliable, high-output renewable energy. For better understanding, we must mention that this technology can generate up to 50 megawatts (MW) of baseload power per well, thus setting a new benchmark for efficiency and sustainability in renewable energy.
Moving on, the solution can also deliver the required energy at an extremely competitive rate of $0.02 per kilowatt-hour (kWh). Such a low-cost, on its part, enhances the profitability of Bitcoin mining, while simultaneously ensuring that it is powered by clean, renewable resources.
To understand the significance of such a development, we can also look at Cambridge Centre for Alternative Finance calculation, which claims that the average global electricity price for Bitcoin mining is $0.05 per kWh.
“At Magma Power, we are committed to solving the energy challenges of the future,” said Levi Conner, CEO of Magma Power. “Bitcoin mining has faced criticism for its environmental impact, but with our clean energy technology, we’re proving it doesn’t have to be this way. Our geothermal technology provides renewable, cost-efficient power that’s perfectly suited to the high demands of blockchain mining.”
The next detail in line we must mention relates to how, unlike intermittent energy sources such as solar and wind, Magma Power’s geothermal energy is able to provide baseload power 24/7, year-round. Such reliability treads up a long distance to facilitate uninterrupted operations for energy-intensive applications like Bitcoin mining, as well as contribute towards global efforts to reduce carbon emissions.
All in all, Magma is expected to pair its low-cost, geothermal energy with the advanced Antminer S21 Bitcoin mining machines. These machines, in case you weren’t aware, are among the most efficient miners available, offering high hash rates but consuming significantly less power.
The benefits of such a combination would be an increase in per machine profits. You see, at$0.02/kWh, the energy cost per Antminer S21 machine will be around $1.68/day. Now, putting this into perspective is a fact that, based on current Bitcoin network difficulty and rewards, an Antminer S21 machine can produce $10.30/day in net profit before depreciation costs.
There is also likely to be an increase in profits per well. Each Antminer S21 machine currently costs around $4,500, whereas on other hand, a single 50 MW magma well can power 14,000 machines. The stated figures indicate towards daily profit of $144,000 per well.
Furthermore, at $101,420 per Bitcoin, a single well can also generate $52 million/year in EBITDA (earnings before interest, taxes, depreciation, and amortization).
“By combining geothermal energy with blockchain mining, we’re addressing two major issues at once: the environmental concerns surrounding cryptocurrency mining and the need for a sustainable, affordable energy source,” said Richard McDonald, Chief Strategy Officer of Magma Power. “This is the kind of innovation that can redefine industries.”
Magma Power’s clean energy initiative has already identified several strategic global locations with high geothermal potential for Bitcoin mining and other energy-intensive applications. These locations include El Salvador. Known as the Bitcoin City, El Salvador basically offers the perfect conditions to pair Magma Power’s technology with the country’s geothermal resources.
Next up, we have Iceland, which was picked on the back of its abundant geothermal activity and commitment to clean energy. The country’s cool climate also reduces operational costs for Bitcoin mining facilities.
Joining the mix is Vanuatu. As a Pacific Island nation vulnerable to climate change, Vanuatu has been urgently looking for a transition to renewable energy. In that regard, Magma Power’s solutions could power the nation’s sustainable industries and strengthen its energy independence.
Apart from that, Azores islands also made the cut largely because of its untapped geothermal potential. By integrating Magma Power’s technology, the Azores can become a leader in renewable energy.
