Europe’s $152B Telecom Giant Wants to Mine Bitcoin

MMS, a subsidiary of Deutsche Telekom, one of the largest telecommunications companies in Europe, is teaming up with Bankhaus Metzler, Germany‘s second oldest bank, to explore Bitcoin mining using surplus renewable energy.

The pilot project intends to use excess energy generated by renewable sources like solar and wind power. With this initiative, the firm seeks to create a sustainable solution that leverages digital technology to stabilize energy grids during peak production periods.

Bitcoin Mining with Surplus Energy

In a press release, Deutsche Telekom said that the project will be powered by electricity from renewable energy sources, which would often go unused due to its limited grid capacity or inadequate storage solutions.

Metis Solutions GmbH will host the mining operation at Riva GmbH Engineering’s facility in Backnang, which has a photovoltaic system. Telekom MMS will oversee the mining equipment, while Bankhaus Metzler will focus on test runs and data analysis.

Oliver Nyderle, Head of Digital Trust & Web3 Infrastructure at Deutsche Telekom MMS, highlighted the need for this initiative, stating:

“With the growing number of renewable energy sources and the resulting fluctuations in available energy, the need for quickly available regulating power increases. For this, we need mechanisms that can respond quickly to changes and absorb fluctuations. Together with Bankhaus Metzler and RIVA Engineering GmbH, we are taking a step in this direction to test the regulatory effect of Bitcoin miners in the energy grid. Surplus energy is converted into digital values through the miners. We call this digital monetary photosynthesis.” 

Notably, this project follows similar successful implementations in the US and Finland, where Bitcoin miners help balance grid supply and demand.

Hendrik König, head of the digital assets office at Bankhaus Metzler, commented on the growing importance of blockchain technology. He added that the goal of this project is to gain experience in various application areas to advance the innovative power of blockchain technology in Germany.

Telekom’s Blockchain Adventures 

It is worth mentioning that this is not Deutsche Telekom’s first foray into the blockchain space. The telecom giant has been involved in various decentralized protocols in the Web3 sector, including Chainlink, Fetch.ai, and Polygon.

In 2023, the firm expanded into the proof-of-work network by running a Bitcoin node, marking a significant milestone in its blockchain journey.