By Mike Albanese
Special Contributor
A Dallas-Fort Worth real estate investment executive said Fort Worth could see a boom period as it becomes the first U.S. city government to mine for Bitcoin.
“If this catches on, it could be huge,” said Cody Payne, Senior Vice President of Colliers International in Fort Worth. “For one, it could add on to the already high demand for new buildings and could bring in other companies, which would add other jobs and other businesses.”
Fort Worth became the first U.S. city government to mine Bitcoin when the city council unanimously approved a pilot program on April 26 from Mayor Mattie Parker and a partnership with the Texas Blockchain Council.
The city reported that the S9 Bitcoin mining machines began running 24/7 on April 26 in the climate-controlled Information Technology Solutions Department Data Center at Fort Worth City Hall. The miners will be housed on a private network to minimize security risks.
The Texas Blockchain Council, a nonprofit association of companies and individuals that work in Bitcoin, Bitcoin mining, crypto, and blockchain industries, donated three machines for the city’s use.
“With blockchain technology and cryptocurrency revolutionizing the financial landscape, we want to transform Fort Worth into a tech-friendly city,” Parker said in a statement from the city.
“Today, with the support and partnership of the Texas Blockchain Council, we’re stepping into that world on a small scale while sending a big message – Fort Worth is where the future begins,” the mayor added. “These small but powerful machines mark Fort Worth’s larger commitment to becoming a leading hub for technology and innovation.”
Back to The Mines
Bitcoin mining is the process of bringing new Bitcoins into circulation. “Mining” uses hardware that solves complex computational math problems. The first computer to find the solution to the problem receives the next block of Bitcoins, and the process begins again.
Payne, who specializes in selling office and industrial investment properties in Dallas-Fort Worth, said that is the exact type of property would be ideal for this use.
Fort Worth city officials say that by limiting the pilot program’s focus to three machines, the city achieves the goal of responsibly executing a municipal Bitcoin mining program at scale. The city will reevaluate the program after six months.
Additionally, the Economic Development Strategic Plan of the city of Fort Worth has set a goal of a “next-level economic development strategy that must encourage innovation and creativity, build an environment that is attractive to talented individuals and dynamic businesses, and maintain a forward-looking organizational structure.”
Energy Requirements
Bitcoin miners have requirements and it is unknown how big the city is looking to go, Payne said, as the machines take a lot of power and cooling.
According to a 2021 Business Insider article, Bitcoin mining consumes around 91 terawatt-hours of electricity annually — more annual electricity use than all of Finland, which has a population of 5.5 million.
Bitcoin mining uses 0.5 percent of all electricity consumption worldwide — a 10-fold increase from just five years ago.
“I don’t think you will see too much challenge as far as location goes, but I would expect it to be near downtown or North Fort Worth,” Payne said, adding North Fort Worth is seeing growth with tech companies moving to the area.
