The debate on Bitcoin’s impact on the environment is ongoing. Especially in Canada, where the goal remains to become net-zero by 2050 and, in response, provinces have enacted caps or limits to cryptocurrency mining projects. Even B.C. placed an 18-month pause on new cryptocurrency mining grid requests to assess the industry’s environmental impact further.
Bitcoin mining has been known to use considerable energy, but now this narrative has begun to change, as a wave of ‘Green Bitcoiners’ has set a new standard for sustainable mining.
Techcouver sat down with HIVE Digital Technologies’ CEO, Aydin Kilic, to discuss how the company has become a ‘Green Bitcoin leader,” setting the standard for other Bitcoin miners through the use of renewable clean energy strategies.
Can you comment on the caps or restraints that Canada has put on crypto mining in the last year to better assess its impact on the environment? How do you think this will change in 2024?
AK: Luckily, most of the regulations curtail new mining operations, so we are not overly impacted at HIVE. We believe that Canadian provinces are beginning to understand the economic value in having Bitcoin mining operations here. At the end of the day, we are flexible partners to utilities; we can participate in grid-balancing and demand response programs to help utilities during peak periods. We have the capability to do this by dropping our power consumption at a moment’s notice, driven by software. This is demonstrated through the work we’ve been doing in Sweden over the last few years.
Compared to other industries, what impact does crypto mining have on the environment?
AK: Compared to traditional data centers, Bitcoin mining is arguably much more grid-friendly. For example, during energy demand spikes, we can shut down mining operations in less than a minute and deliver that power back to the grid when it needs it most. A traditional data center can’t really do that without causing major disruptions to services; data centers need redundancy, so they cannot afford any downtime and thus, charge significant premiums to have over 99.8% uptime.
When done correctly, Bitcoin mining can and should be sustainable. At HIVE, we have made operating with sustainability a key mandate of our business. We’re also green energy focused, as we believe Bitcoin is a decentralized energy-backed digital asset, which is secure through renewable, non-carbon emitting energy.
There’s been an increase in ‘Green Bitcoiners’ internationally. Does HIVE resonate with the ‘Green Bitcoiner’ uprising? Why or why not?
AK: We certainly do. HIVE was a pioneer in the sustainable Bitcoin mining movement. We went public in 2017 with a clear strategy to use the cleanest energy we could find. This is why our operations are spread out across three specific countries (Canada, Sweden, and Iceland), all rich in hydroelectric and other renewable energy sources.
We believe deeply in executing Bitcoin mining in the most modern, clean, and sustainable way possible. As leaders in this space, we hope to influence other Bitcoin miners to do the same.
How has HIVE prioritized sustainability in its business practices? How is HIVE a leader in the sustainability space?
AK: From the beginning, we haven’t compromised on our energy sources. We found both clean and affordable energy, so why wouldn’t we choose both? We continue to innovate and find ways to recycle our heat to give back to local communities. For example, in Quebec, our 30MW data center heats our industrial neighbour: a 200,000-square-foot factory.
Can you talk about why HIVE decided to open up operations in Sweden and Iceland?
AK: There aren’t many locations worldwide that offer clean, affordable energy, stable governance, and cool climate. Sweden and Iceland were a natural choice for us.
Can you share some of the renewable energy strategies that HIVE has implemented in its building centres? How have these strategies impacted the communities in Sweden and Iceland?
AK: All of our buildings are designed to minimize the need for air conditioning. We have high ceilings and use natural cool air to control the climate in our data centers. In addition, we’ve pioneered heat reclamation strategies where we use the heat generated by our data centers to heat nearby businesses. It just makes sense to us to re-use that heat. We believe this technology will likely become the industry standard as it matures.
In Sweden, we are also working with a greenhouse developer, so our Bitcoin miners can provide the energy to keep the greenhouse warm. This gets very exciting when you consider the carbon-negative impact that this has. To illustrate, the envisioned 90,000-square-foot greenhouse has the potential to yield 900 tons of cucumbers or 320 tons of tomatoes. By cultivating this produce locally in northern Sweden—merely 30 km from the Arctic Circle—we effectively mitigate the carbon emissions associated with importing comparable produce from Spain or Italy during the winter months.
Do you have any plans for additional renewable energy strategies or sustainability initiatives in the future?
AK: Yes, we are always seeking ways to improve our overall sustainability. We’ll continue to invest in heat reclamation systems which power local greenhouses and other businesses. And we’ll continue to partner with local utilities to make sure our operations remain flexible and support the community. In the same vein, we’re committed to community investment, exemplified by the Boden hockey arena, named after HIVE. As sponsors, we offer free game access to kids under 16, fostering community engagement.
How can blockchain and mining companies within Canada make sustainability a key mandate of their business?
AK: I think HIVE is setting the standard here, and we invite other companies to follow our lead. We’ve published details of our strategies and shared them with other mining companies. Over the past few years, we’ve certainly seen a shift toward greener energy sources among other miners, and we hope that work continues.
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