A microgrid company in Woods Cross, Utah, may have a solution to Elon Musk’s sustainability challenge for Bitcoin mining.
“Cryptocurrency is a good idea on many levels and we think it has a bright future, but it can’t come at the cost of the environment,” Musk tweeted. “Tesla has suspended purchases of vehicles using Bitcoin (because) we are concerned about the increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of all fuels. “
CleanSpark uses microgrid technology to improve the efficiency of Bitcoin mining operations and other applications.
The existing grid supplies electricity from a power plant to users. For most people, connecting to the network is as easy as inserting a plug into a wall outlet.
Microgrids combine the traditional grid with solar, wind, fuel cell and other green technologies to balance the load requirements between various sources with the aim of ensuring clean energy at a good price.
Microgrids could be a suitable response to growing concerns about the energy source used in Bitcoin mining. The system configuration and the software necessary to run it can be designed to meet specific demands, including future growth.
CleanSpark is also a Bitcoin miner and recently invested in new energy efficient equipment to increase its hash rate and reduce power consumption.
The company is publicly traded, but so far it is only covered by two analysts. CleanSpark shares recently hit $ 16.51 per share. The consensus price target, or fair value estimate, is $ 47.50.
Competitors include Tata Power Solar, Longi, Acme Climate Solution and d.light design.
A report from Navigant Research, a company based in Boulder, Colo., Said the modular microgrid market is expected to grow at a compound annual rate of 28% between 2020 and 2029.
“Although they are only a minority of the market when measured by peak capacity, modular microgrids have the potential to constitute the majority of systems deployed over the next decade,” said Peter Asmus. , Navigant Research Director, in a report. “Adopting a modular approach should help dramatically increase microgrid deployments by commoditizing off-the-shelf microgrid offerings that can be replicated, thereby reducing design and deployment costs. “
The Crypto Climate Accord, based on the Paris Climate Agreement, is a private sector initiative aimed at decarbonizing the cryptocurrency industry.
“For climate advocates, we can eliminate emissions from a rapidly growing source of electrical charge,” the agreement says. “For the clean tech industry, we can bring in a whole new class of customers with significant demand for low carbon solutions. For the crypto industry, we can help support the widespread adoption of crypto by making the industry more sustainable.
It is signed by the major companies in the sector.
The Center for Alternative Finance at the University of Cambridge has estimated that 39% of the energy used by crypto miners is powered by renewable resources, mostly hydroelectric.
In a related case, the US Department of Commerce banned six Chinese producers of raw materials and components for the solar industry amid allegations of human rights violations against ethnic minorities.
The action could boost the U.S. solar industry.
The Solar Energy Industries Association, a Washington-based trade group, said the industry has experienced average annual growth of 42% over the past decade and now employs about 230,000 people at about 10,000 companies in all 50 states.
The industry has the capacity to deliver 100 gigawatts, or enough electricity to power 18.6 million homes, the trade group said.
At midday on Friday, Bitcoin changed hands to $ 33,341.32, down 2.91% in the past 24 hours but up 15.08% for the year. The 24 hour range is $ 33,011.86 to $ 35,200.90. The all-time high is $ 64,829.14. The current market capitalization is $ 624.99 billion, CoinDesk reported.
The warning signs of the housing market seem to be glaring:
– The US Department of Commerce said new home sales fell 5.9% on an annualized basis.
– House prices are at an all time high.
– The National Association of Realtors said sales of existing homes had declined for four consecutive months.
– Consumer confidence has declined.
– Inflation is on the rise.
– Commodity prices soared as demand increased, pushing up the cost of new homes.
The housing market is a key part of the recovery as the economy emerges from the COVID-19 shutdown. The negative indicators raise a fundamental question: is the housing boom over?
Lisa Shalett, investment director for wealth management at Morgan Stanley, says no.
“We believe that supply disruptions and rapid price appreciation have only interrupted buyers’ confidence and buying behavior in what is expected to be an above-average race for housing. “she said in a research report for the New York investment bank. “In our opinion, the US real estate market has a solid foundation, arguably the best in decades. “
Shalett said many household balance sheets are strong and Millennials have entered their prime of starting a family. Morgan Stanley research estimated that 1.2 million new owner households were created in the past year.
“Anecdotal evidence suggests that the pandemic may have shifted behavioral priorities towards deurbanization and remote working, creating lasting support for housing demand,” the analyst said.
Construction of new homes is about 10 years behind schedule due, in part, to lessons learned from the collapse in the subprime mortgage market that triggered the 2007-2009 recession, the deepest since the Great Depression from the 1930s.
Housing supply growth is now nearly 60% lower than annual household formation, an imbalance that is likely to support single-family home prices, Shalett said.
Lending standards were tightened during the coronavirus pandemic, but have now been relaxed.
“It could help offset rising house prices and mortgage rates,” she said. “With the Federal Reserve last week giving the green light to all major US banks that have undergone its annual stress test, homebuyers could expect even more credit availability.”
The Federal Reserve, the country’s central bank, examined 23 major banks and concluded that each had strong capital reserves and could continue to lend to households and businesses during a severe recession.
“Over the past year, the Federal Reserve has carried out three stress tests with several different hypothetical recessions and all of them have confirmed that the banking system is strongly positioned to support the ongoing recovery,” said Randal K. Quarles, vice -President of supervision, in a press release. Press release.
The Fed’s stress test examines a bank’s resilience by estimating losses, income and capital levels – a cushion against possible losses – and “what if scenarios” over the next nine quarters. Sales of existing homes fell in all regions except the Midwest in May, reported the National Association of Realtors, a Washington-based trading group.
The median price of existing homes of all types in May was $ 350,300, up 23.6% from the same period a year ago. The total housing stock stood at 1.23 million units in May, up 7% from the April total, but down 20.6% from a year ago.
“Home sales declined moderately in May and are now approaching pre-pandemic activity,” Lawrence Yun, chief economist for the NAR, said in a report. “Lack of inventory continues to be the main factor holding back home sales, but declining affordability is simply excluding some first-time buyers from the market. “
The outlook, however, is encouraging.
“Supply is expected to improve,” he said, “which will give buyers more options and help lower record asking prices for existing homes.”
The National Mortgage Bankers Association, a Washington-based trade group, said loan applications fell 6.9% for the week ended June 25 from the previous week, reaching their lowest level in about 18 month.
The average interest rate for a 30-year fixed rate mortgage guaranteed by the Federal Housing Administration fell to 3.19% from 3.21%.