Let’s build businesses that use Bitcoin mining heat

Hypothesis: 

Given that Bitcoin mining produces heat at the same efficiency (in $ terms) as all other forms of electrical resistance heat sources, which commonly include:

• Residential water heaters

• Residential interior heaters

• Clothes dryers

• Electric ovens

• Other commercial and industrial form factors

Then a gradient of reasonable and profitable use-cases exist that produce electrical resistance heat via Bitcoin mining,

Therefore a portion of some of those use cases will inevitably turn to heat generation sources which leverage mining due to the economics of their context (regardless of their view / valuation of Bitcoin).

Assumptions: 

• Each use case of mining heat reuse will have it’s individual set of:

  • Requirements, including the profile of the heat (temperature, amount, schedule)

  • Constraints, including physical space and costs

  • Broader ROI inputs, including upfront, replacement, and lifecycle costs of existing / alternative heat sources
    

• Different form factors, applications, and manifestations of heat reuse will be more profitable and scalable than others
  

• Profitable use cases:

• May or may not use resistance heat presently

• May use the mining waste heat in conjunction with other fuel sources to meet their requirements / goals

Context:

• This is not a new idea.  I personally heat my pool at home with a miner, as do others.

• Many others continue to explore and build-out economically viable use cases at scale:

• Marathon growing shrimp and warming greenhouses

• Mint Green partnering with local heating municipalities in Canada

• Community spa in Brooklyn

Goal:

• Connect with and learn from anyone who has explored the areas directly relating to the exploration of mining heat reuse, including:

• Mining form factor innovation (chip / power supply engineering, software, heating products)

• Direct heat reuse experience, research, or interest

• Explore, validate, document, and stack rank the broad economics of 25 use cases (with assumptions as needed).

• Go deep on the top 7 use cases to understand the viability of building profitable and scalable businesses around them.

Methodology:

• Flare:

  • Generally understand all significant forms of heat generation today for across residential, commercial, and industrial applications.

  • Denote which applications use electrical resistance heat, as well as the nature of the heat requirements (temperature, amount, schedule).
    

• Focus

  • Ground the data, market, and purchasing process (who, when, how) of top use cases.

  • Evaluate the feasibility and economics of building a businesses to deliver bitcoin-generated heat to top use cases.

Approach:

• Open by design: any and all data collected by participants, unless explicitly requested, will be shared and published for anyone to use.

• Time boxed: my goal is to begin this exercise of collaboration and data gathering July 23, 2024, and to run in earnest for 3 months.