The following is a direct excerpt from Marty’s Bent Issue #1198: “One step closer to Bitcoin Mining Permanent Funds” Sign up for the newsletter here.
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This is an encouraging sign as the city of Fort Worth, Texas has launched a bitcoin mining pilot at its local city hall. The pilot may be small, with just three S9s generating a combined profit of $3.39 per day – assuming an electricity cost of 0.05 kWh and that the machines are running Braiins OS+. This may not seem like anything but a marketing gimmick, but I think this is a very important signal that the City of Fort Worth is sending to cities and towns across the United States; Bitcoin is something you should take seriously and Bitcoin mining is something you should consider.
This appears to be the first step of many being taken towards permanent bitcoin funds popping up across the country. Your Uncle Marty has been campaigning for durable funds that use stranded energy sources or surplus energy since April 2021. Bitcoin provides small towns, counties, and entire states with a mechanism that can be leveraged to harness their wasted or underutilized energy resources to produce sats streams that can flow into dedicated permanent funds that have the sole purpose of mining bitcoins for an extended period of time Period of time after which the city/city/county/state can begin using the mined sats to fund necessities and reduce—or possibly eliminate—taxes. It may seem crazy, but it can also work.
One low-hanging fruit that comes to your Uncle Marty’s mind is orphaned natural gas wells that lie on land controlled by the local government. A permanent fund could be set up by allowing a private sector miner to take over the well for free, use the natural gas to generate electricity on site, mine with that electricity and direct a small percentage of the sats as a contribution to the permanent fund, to take over the well. The local government wouldn’t even have to bother to become a miner themselves.
This is one way to do it. Another avenue would be to take what El Salvador is trying to do with its volcano tie to the community level. Local governments could issue muni bonds with the sole intention of raising funds to purchase mining equipment that would be used to take advantage of stranded or wasted energy plays, with the bondholders recovering first and the mining operations going straight thereafter contribute permanent fund .
If I were a small town, town, or state looking to attract talent, I would fight to set up a permanent bitcoin mining fund that would allow you to offer lower tax rates and show voters that you’re forward-thinking and innovative are.
Salute to the City of Fort Worth and the team at Luxor (who helped coordinate all of this) for pushing that ball forward. Over time, my dream of a permanent bitcoin mining fund will become a reality.
