Enel will not Sell Electricity to Cryptocurrency Miners
Another day, another bad news for the cryptocurrency market. This time, Enel, one of the biggest power companies in Europe, has decided that it will not sell power to cryptocurrency miners. In fact, the Italian company claimed that it has "no interest whatsoever in selling power" to miners.
Enel discussed a deal with a cryptocurrency mining business
Bloomberg reported that Enel previously was in discussions with Envion AG, a cryptocurrency company based in Switzerland, to sign a deal to sell power to the company. The media report indicated that according to some sources, Enel was evaluating the market with the purpose to sell energy for mining.
The fact that Enel was interested in this market was also proven by the fact that the head of the company's front trading office previously stated that Enel was seeking to understand how it could benefit from the blockchain technology.
However, now it has been claimed that the company will not sell power to data centers which are engaged in mining operations. Maybe, Enel did not find any benefit in engaging in such a business. Apparently, Enel made this decision after several discussions. The company explained that it is aiming to provide the so called green power and cryptocurrency mining cannot be done sustainably and in an environmentally friendly way.
The company said it took the decision after study and analysis:
“Enel has undertaken a clear path toward decarbonisation and sustainable development and sees the intensive use of energy dedicated to cryptocurrency mining as an unsustainable practice that does not fit with the business model it is pursuing.”
The energy consumption associated to mining operations has generated a lot of debates. Some companies have decided to open mining centers in areas where electricity costs are very low, drawing also interest from local authorities.
