A hydro-powered cryptocurrency mining company working in Africa has achieved a significant feat for a rural community in Kenya. The company has alleviated the power issue troubling the people.
The crypto mining firm Gridless Compute announced the news on Twitter on December 9th. In addition, Gridless Compute posted pictures of how its hydro-powered Bitcoin mining rigs produce electricity for a rural settlement in Kenya.
In addition, the BTC miner tweeted that it has lowered the electricity rate for the 2000 people living in the area. Electricity costs per month have dropped from $10 to $4.
At the beginning of this week, Gridless Compute raised $2 million through a fundraising round headed by VC Blocks and Stillmark, the parent firm of Square and CashApp, respectively.
Gridless said it would use the funds to expand its Bitcoin mines to more African markets. The firm also said it would target more rural communities to provide them affordable power.
Erik Hersman, Gridless CEO, said renewable power is abundant in Africa. Hence, this is an excellent opportunity for miners to diversify their operations.
Furthermore, Miles Suter, an executive at CashApp and a famous face in the Bitcoin community paid a visit to one of the mining sites. Suter noted that BTC mining had suffered heavy criticism in recent times.
Also read:This is due to its harsh impact on the environment. The current news comes when Bitcoin’s hash rate is falling.
In 2021, the price of BTC was high enough that several Bitcoin miners made huge profits. However, this year’s situation is different, as several miners have shut down their facilities.
Increased Crypto Activity In Africa
Meanwhile, cryptocurrency activity in Africa has been growing despite the regulatory uncertainty in several countries. This is due to increased actual use cases.
Most individuals in Africa use crypto as a means to send and receive money from overseas. Also, due to some countries’ financial crises and poor economies, the citizens have converted their funds to stablecoin to battle inflation.
According to a study by Chainalysis, a blockchain analytical platform, North Africa and the Middle East are among the fastest-growing cryptocurrency markets. However, the International Monetary Fund (IMF) recently asked African countries to enforce tighter regulations for the crypto sector.
Furthermore, there have been several partnerships between foreign firms and African-based companies. Some of such alliances aim to facilitate cross-border payments.
A recent example is Stripe’s latest partnership to allow individuals in the US to send funds to Kenya, Nigeria, and Ghana through Bitcoin’s Lightning Network.
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