How Does Off-Grid Bitcoin Mining Work?

Image of solar panels, an example of how off-grid Bitcoin mining is powered

A modular data center is a system consisting of modules and components that work together to provide the required data capacity. The major advantage of a modular data center is that it is endlessly scalable. New modules can be added to the system to expand the data capacity in a cost-effective manner. Individual modules can both be added to existing data centers and combined in a system of multiple modules.

MDCs are typically containerized/portable data centers with equipment fitted into shipping containers. They can also feature prefabricated components that can be quickly built on-site and added to when necessary.

Bitcoin mining is now big business. The crypto sector grabs more headlines than perhaps any other environment within the finance arena, with Bitcoin at the heart of the conversation. If you’re looking to join the cryptocurrency revolution, an industry that can generate up to $63m in a single day, you must educate yourself on the options. Here’s all you need to know about off-grid Bitcoin mining. 

What is Off-Grid Bitcoin Mining?

Off-grid Bitcoin mining is a self-explanatory term for those who know the two phrases. Bitcoin mining is the process of mining digital assets. Powerful machines work to solve complex mathematical equations, which record transactions and release crypto coins to the public ledger. The machine that solved the problem is also rewarded with Bitcoin, which makes it a very profitable industry.  

The term off-grid means using energy that is not connected to traditional power sources. In many cases, off-grid endeavors will usually focus on green energy practices. Many finance enthusiasts choose off-grid mining for this reason. 

Bitcoin miners who use off-grid practices can also save money. Off-grid Bitcoin mining avoids peak hour energy prices, which is vital given that mining takes place 24/7. Miners can see bigger profit margins while also tapping into sustainable energy sources. Off-grid mining is also less vulnerable to government clampdowns on crypto mining and the management of digital assets. 

Bitcoins can be mined using sustainable off-grid practices

How Are Off-Grid Energy Sources Used?

Off-grid energy covers four main sources. They are solar, wind, hydro, and natural gas. 

Natural Gas Mining

Most off-grid miners look to natural gas Bitcoin mining. Over 160TWh of natural gas is flared in America annually, which surpasses the energy used by the Bitcoin mining industry. It is particularly useful on sites like oil drilling sites where natural gas is a by-product because transporting the gas would be unsuitable.

Solar Bitcoin Mining 

A growing number of miners look to solar Bitcoin mining because it is more cost-effective than selling energy back to the grid. However, miners need to consider the location of their chosen center as they are dependent on sunlight. In most cases, solar bitcoin mining is used as a secondary source of energy.  

Wind Bitcoin Mining 

Wind turbines can create energy in an effective way. Wind energy is responsible for just over 8% of utility-scale electricity generation in America. New turbines do not have to be connected to the grid, while existing facilities can be disconnected. As the turbines turn, any resulting energy can be used for mining. The results outperform selling energy back to the grid. 

Hydro Bitcoin Mining  

Off-grid Bitcoin miners are less likely to use hydro energy because most dams are connected to the grid. However, facilities that have been disconnected for one reason or another may be used to produce energy for crypto mining processes. 

How Does Mawson Use Off-Grid Energy?

Mawson Inc. aspires to be the industry leader in sustainable Bitcoin mining and achieved 100% Net Zero Carbon-Neutral status in 2020. Our goal is to be Net Zero by 2030. Using off-grid energy to partially power our large-scale infrastructure plays a part in this. Our operations currently use over 75% non-carbon emitting energy (nuclear, hydro, wind) and our goal is to improve this mix over time as we expand our business globally. If you want to learn more about this and our other sustainable practices, get in touch today! 


Contact us today and learn how Mawson can design a digital assets management program tailored to the specific needs of you and your enterprise.
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