Deutsche Telekom, Europe’s leading telecommunications provider, is set to break into Bitcoin mining. The company announced its initiative called “Digital Monetary Photosynthesis,” developed in conjunction with Bankhaus Metzler. The operation aims to utilize surplus renewable energy that would have otherwise been wasted.
The Bitcoin mining project involves establishing mining rigs in Backnang, Germany. Metal and glass facade manufacturer, Riva, will provide the location for these installations. The rigs’ management will be overseen by Metis Solutions according to an announcement on November 11 by Deutsche Telekom.
Deutsche Telekom’s venture into cryptocurrency mining came in the same week Bitcoin’s white paper celebrated its 16th anniversary. This reinforces the blockchain network’s continued global acceptance and practicality.
An abundant supply of renewable energy has prompted Deutsche Telekom’s pilot project. According to Oliver Nyderle, Deutsche Telekom MMS’s head of digital trust and Web3 infrastructure, the uncontrollable nature of renewable energy sources like wind turbines necessitates robust infrastructure for grid regulation.
In the announcement, Nyderle suggested Bitcoin mining might be useful in stabilizing the country’s electrical grid fluctuations: “Working with Bankhaus Metzler and RIVA Engineering GmbH, we are testing the regulatory effect of Bitcoin miners in the energy grid. Excess energy is converted into digital values through the miners, which we term digital monetary photosynthesis”. Meanwhile, Metzler is investigating further opportunities for “financial services with digital assets”.
Bitcoin mining applications extend beyond strictly monetary profits. For instance, in Finland, heat recycled from Bitcoin mining rigs warms a town of over 11,000 inhabitants. The project, erected by Marathon Digital Holdings, is situated in the Satakunte region. Marathon’s facility employs a heating scheme called “district heating” which uses a centralized system to heat water before distributing it throughout houses via underground pipes. As Bitcoin mining rigs generate substantial excess heat, this presents a durable solution for home heating.