Tesla will mine Bitcoins with its Megapacks

The world leader in electric vehicles, Tesla Inc. (NASDAQ:TSLA) partners with two crypto companies to mine Bitcoins (CRYPTO:BTC). Here are all the details.

What happened

A partnership was announced in April between Tesla, Block Inc. (NYSE:SQ) and Blockstream for the operation of Megapacks.

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A solar farm and a giant battery provided by the EV manufacturer will power an open-source Bitcoin mine.

The first four Megapacks were recently delivered to the Texas factory, as reported by Electrek. It will be the first BTC mine to use solar power and Tesla batteries as a power source in partnership with the automaker and energy company.

“The Megapacks have landed. I repeat, the Megapacks have landed! », tweeted Blockstream.

The company said the facility runs entirely on renewable energy and zero-emission bitcoin mining “has just begun.”

Blockstream launched a token that raised around $40 million. The funding helped defray the costs of the mining facility, giving holders the opportunity to participate in the success of the project.

Why this matters

The partnership with Blockstream sees two major listed companies, which fund Bitcoin, collaborate on cryptocurrency mining.

Indeed, Tesla invested $1.5 billion in the project in February 2021. The automaker sold $272 million worth of BTC in the first quarter of 2021 for liquidity requirements, the automaker’s CEO explained at the time. automobile, Elon Musk. At the end of last quarter, Tesla had $1.26 billion in digital assets on its balance sheet.

The company accepted the coin as payment for its vehicles before suspending this option, due to the environmental impact of mining. Providing the energy needed to help mine BTC in Texas could offset these concerns, prompting the firm to accept the token again for the purchase of its vehicles.

Price movement

On Thursday morning, Tesla stock price jumped 5.49% to $695.95; BTC is currently trading at $29,227.71.

Photo courtesy of Tesla Inc.

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