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dsbatten / Daniel Batten
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2024-06-17 18:51:32

dsbatten on Nostr: I believe the future of bitcoin mining will involve more partnerships between smaller ...

I believe the future of bitcoin mining will involve more partnerships between smaller and larger firms like this one between NodalPower and MARA.

https://bitcoinmagazine.com/technical/report-bitcoin-an-economically-viable-approach-to-reduce-landfill-emissions

Here’s why


Small mining co’s typically lack access to
- capital markets,
- networks and
- bulk purchasing power and
- process/technical innovation.

But big mining co’s often lack access to
- Geographically dispersed sites
- local jurisdictional knowledge,
- direct relationships with power providers,
- domain knowledge, eg: niche energy-harvesting applications

So it makes sense to cooperate.

For Mara to try to move into a new type of mining in a new place by themselves would have been hard. Similarly for NodalPower, it would have been hard to scale without someone like MARA.

Together the partnership made sense, and has not only advanced each of their businesses, but the whole bitcoin ecosystem because they are helping
- geographically decentralise mining
- Change the narrative around bitcoin and the environment by proliferating emission negative mining

This type of cooperation seldom happens outside bitcoin ecosystem.

The large company normally thinks they can do it all themselves. In bitcoin tho, everyone is a disrupter because bitcoin mining as a whole is a disruptive industry.

As such, large bitcoin miners behave like self-aware disrupters, not incumbents with an inflated perception of themselves. They cooperate with other mining companies that another industry would deem a competitor. They collaborate with small mining companies that another industry would deem irrelevant.

There are already many more of these collaborations in the wings. I see this as the future of the industry: two peers each able to bring unique value to the other peer, working together to uplift each other and the industry.

If you’re a small mining company who’s been struggling to raise equity investment, this type of model is another approach. The large play can solve your capital, network, bulk purchasing power challenges, while offering them access to sites, domain knowledge and local relationships they’d otherwise never uncover.

I know a few larger companies who are interested in these sorts of JVs and am happy to introduce wherever I see a fit. It’s in everyone’s interests that we get more smaller bitcoin mining companies decentralizing the network, so reach out.

Well done again to NodalPower and MARA for providing a solid example of how this type of collaboration can work.
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