This mining oasis makes it possible

Bitcoin, the climate killer. That’s the common image in the media. But a change has been taking place behind the scenes for years. Bitcoin, of all things, is poised to become a driving force in the energy transition. Environmentally conscious, climate-friendly, determined: green miners are on the rise worldwide. Also in Berlin.

The Green Mining DAO will be formed here in January 2022. Founded by six pioneers, today it is a small institution in the field of ReFi. The term stands for regenerative finance, a growing social movement. Their hope: Using cryptocurrencies to promote the adoption of renewable energies. Also by mining Bitcoin.

“Mining can be sustainable. And make the entry into renewable energies even less risky,” explains Sascha Grumbach. He used to organize techno parties in Berlin. Today, after founding two successful start-ups, he runs the Green Mining DAO, among others with his partner, Valentine Pleser. With over 20 members, they have been running a bitcoin mining facility in Paraguay since early 2023. A flourishing oasis between high technology and nature.

The plant is located in the region of Asunción, the capital of Paraguay. In the middle of the woods. And runs 100 percent on water energy. The claim: to be as “circular as possible”. The miners use the resources of the environment for cooling, filtered air and water. The resulting heat will be used to dry fruits and grow algae. The plant is built in such a way that it is hardly noticeable in nature: green and quiet. “Even the birds in the trees are louder,” says Pleser.

The production of a bitcoin only costs the miners part of the price on centralized exchanges: in 2022 it was 10,000 euros. The first bitcoins have already been paid out to members. A round of financing is now pending for the Green Mining DAO. The plan: expand the plant in Paraguay – and continue to expand.

Bitcoiners and environmentalists

Behind the DAO is a colorful group of people with conviction. Seasoned entrepreneurs, engineers, a world traveling DJ, the founder of Giphy. So far, entry has cost at least 25,000 Swiss francs. In the future you should be able to participate from 100 euros. The credo: one shareholder, one vote. “We want to give everyone the opportunity to be involved in mining,” explains Grumbach. Members of the DAO can vote on proposals and contribute some themselves. However, the final decision rests with the board of directors.

The digital gold and renewable energies – a perfect match for the team: If the environment needs electricity, you turn off the mining equipment. If there is a surplus, they dig. Wasted energy – a problem of the past. The entrepreneurs explain that mining can make a plant profitable early on and reduce risks.

“Instead of just the multi-billion dollar systems of the corporations, smaller enclaves could also become a driver for the energy transition in the future,” believes Pleser. According to a UN report, 80 percent of small investors will invest in renewable energies in the future. Cities, villages and house communities organized as DAOs: That is the hope. Small communities, big impact. They are certain: “Bitcoin will drive decentralization in this area as well.”