A proposal is spreading in the virtual asset industry to use surplus eco-friendly energy for mining assets like Bit. Voices are also growing to create an industrial complex for virtual asset companies at the national level.
According to the financial sector on the 25th, a research team including Professor Choi Yun-seul from the Department of Applied Statistics and Professor Jung Jae-hong from the Department of Mathematics at Hanyang University analyzed in an English paper published earlier this month, 'Leveraging Surplus Electricity: Profitability of Bit Mining as a National Strategy in South Korea', that by mining Bit using surplus energy from eco-friendly generation such as solar power, an annual net profit of up to $348 million (approximately 476 billion won) can be achieved.
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The research team presented six scenarios assuming Bit prices and mining costs, estimating net profits ranging from $292 million to $348 million. The paper stated that "utilizing idle power from eco-friendly energy generation can not only generate economic benefits but also minimize energy loss and reduce Korea Electric Power's debt".
Eco-friendly energies like solar and wind power vary greatly in generation volume depending on weather, season, and time of day. In contrast, power demand is concentrated during specific times based on people's lifestyle patterns and industrial activities. This creates a time difference between supply and demand, often leaving produced electricity unused. In such cases, supplying surplus power to an industrial complex for digital asset companies, including Bit mining, can improve energy efficiency and generate revenue, according to academic and industry explanations.
Overseas, idle power is already being used for virtual asset mining. Texas in the US has attracted numerous Bit mining companies through low electricity rates and regulatory relaxation. When power demand surges, they provide incentives to companies that reduce usage, maintaining a stable power grid while ensuring mining company profits. El Salvador in Central America is a prime example. The local government supplies surplus power from the geothermal power plant near Tecapa Volcano exclusively for Bit mining and has mined 474 Bits from 2021 to 2024. Jang Jae-yoon, CEO of Mining TV, who has been mining virtual assets since 2018, emphasized, "Currently, the mining industry is not clearly classified as a legal industry, so it does not receive benefits in electricity rates or taxes" and "establishing the institutional status of the mining industry is a priority along with industrial complex discussions".
- Reporter Do Ye-ri
- yeri.do@sedaily.com
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