Blockstream to Pilot Renewable Bitcoin Mining Facility With Australia’s Macquarie

Blockstream to Pilot Renewable Bitcoin Mining Facility With Australia’s Macquarie

The bitcoin company said it has ambitions to scale to new sites as infrastructure is further developed. The first site will be in the U.S.

Australia-based financial services giant Macquarie Group Ltd. and bitcoin technology firm Blockstream have linked arms to pilot a mining facility powered by renewable energy.

Macquarie, best known as a multinational investment bank, will utilize Blockstream’s crypto mining facilities and tap into the firm’s expertise in mining-hardware hosting, Blockstream said Wednesday.

The site for the pilot facility will be based in the U.S., Samson Mow, Blockstream’s chief strategy officer, told CoinDesk via Telegram. If successful, Blockstream plans to scale to new sites as green power infrastructure is further developed.

Blockstream Mining provides bitcoin mining equipment to institutional and enterprise customers. The firm also provides hosting services where it deploys mining equipment and then hands over control of the equipment to the customer.

The facility will explore carbon-neutral alternatives for mining cryptocurrencies, with Macquarie funneling its investment to “explore” opportunities in providing renewable energy to power the mining process, the companies said.

The initiative targeting a greener approach to mining cryptocurrency attempts to build on previous collaborations from Blockstream.

Read more: Blockstream Raises $210M, Acquires Mining Chip Manufacturer Spondoolies

In June, financial payments company Square announced a $5 million investment in Blockstream with the aim of building a solar-powered bitcoin mining facility. Last month, the crypto tech firm unveiled its Blockstream Energy service for energy producers to sell excess electricity to proof-of-work miners.

On Aug. 24, Blockstream also clinched $210 million in additional funding from U.K. investment management firm Baillie Gifford and iFinex, the parent company of cryptocurrency exchange Bitfinex. The funding coincided with its acquisition of the intellectual property and key employees of Israeli bitcoin mining hardware manufacturer Spondoolies.

Founded in 1969, Macquarie, which manages more than $428 billion in assets, has pivoted toward investing in renewable energy infrastructure, with 44 gigawatts of generation under development or in operation, according to the release.

Read more: Bitcoin in Race for Adoption Before Central Banks Launch Digital Currencies: Australia’s Macquarie

The bank has warmed to the idea of bitcoin investment. In a January research report, Macquarie stated bitcoin could provide returns uncorrelated to traditional assets while affording protection from currency debasement and a spike in inflation.

“Macquarie’s experience and scale in traditional infrastructure investment, as well as commodity and energy markets, and Blockstream’s position as a leading Bitcoin miner and provider of Bitcoin-based technology solutions, offers terrific potential,” said Blockstream CEO Adam Back.

Mexico-based crypto exchange Bitso is the core crypto-service provider for Chivo, the digital wallet developed by the government of El Salvador for the use of bitcoin throughout the Central American country.

The company said in a press release Tuesday it will work with the U.S.-based Silvergate Bank to facilitate transactions in U.S. dollars. It is unclear whether this includes both international remittances and domestic transactions or only one type of transaction.

According to its press release, Bitso’s role as the core crypto-service provider began when the Chivo wallet app was placed in the Android and iOS phone app stores on Tuesday.

“We are looking forward to working with El Salvador in an initiative that will transform payment structures and increase financial inclusion in the country,” said Santiago Alvarado, VP of Bitso for Business. “As the leading crypto exchange in the region, we are thrilled to bring our experience in remittances and in secure and low-friction financial services to Salvadorans.”

In the early hours of Tuesday morning, the Chivo wallet registered technical errors and the government interrupted its use to reinforce “technical aspects,” according to a government statement published on Tuesday.

A spokesperson for Bitso did not respond to a request for comment about its role in this interruption.

According to Bitso, “The use of the Chivo wallet is completely optional, and those without citizenship will be able to access the app as well.”

In May, Bitso raised its Series C funding round at a $2.2 billion valuation. It was the region’s first cryptocurrency company to exceed a $1 billion valuation.

El Salvador has also tapped crypto custodian BitGo for wallet infrastructure and security.