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Saudi Aramco refutes moving to Bitcoin (BTC) mining

Mon 02 Aug 2021 ▪ 17h15 ▪ 3 min read — by Greg Hansen

Saudi Aramco, the Middle Eastern oil giant with annual revenues of approximately $230 billion (~£165 billion), has denied its plans to start Bitcoin mining.

From waste to crypto

Saudi Aramco, officially known as Saudi Arabian Oil Company, is Saudi Arabia’s national oil company founded in 1933. Being the world’s largest oil company in terms of oil production and the size of oil reserves, it is the source of up to 80% of Saudi Arabia’s budget revenues.

Raymond Nasser, a Brazilian miner, during his interview for Bitcoinheiros, suggested that Saudi Aramco will switch to Bitcoin mining operations to further monetise production through converting flared gas into an energy source for mining equipment.

Flared gas is a by-product of the petroleum extraction industry. According to Ray Nasser, Saudi Aramco is far better off not disposing of such waste but using it to generate additional revenue from mining digital assets.

Nasser stated that the amount of unused gas is sufficient to generate enough energy to keep half of the Bitcoin network running.

“We are negotiating with Aramco. All black liquid [oil] that comes out of the desert belongs to this company. All the flared gas they’re not using, and that’s public information, I can tell you, it’s enough to ‘power up’ half of the Bitcoin network today from this company alone,” claimed Raymond Nasser, Head of Mining Operations at Wise&Trust.

Unforeseeable refutation

Saudi Aramco is a blockchain-friendly organisation. The oil giant is likely to join the Bitcoin mining industry due to its current usage of Data Gumbo and VAKT distributed-ledger technologies.

In fact, Nasser’s got a point. For instance, Bitcoin mining company Stronghold, which specialises in Bitcoin mining, uses waste from the coal industry during its operations. At this stage, the firm is on its way to an IPO on the US stock exchange Nasdaq.

However, Saudi Aramco has denied all rumours about the company’s interest in the cryptocurrency mining industry, as reported by Trade Arabia. In the official statement, the firm unequivocally said:

“With reference to recent reports claiming that the company will embark on bitcoin mining activities, Aramco confirms that these claims are completely false and inaccurate.”

With the growing number of green BTC mining operations and the obvious need for the economy diversification, Saudi Aramco’s turn to Bitcoin is rather a matter of time. So unexpected came the company’s statement denying plans to use the extraction by-product, flared gas, as a power source for mining. Time will tell if the positive experience of other companies in the industry can influence the Saudi firm’s mindset.

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Greg Hansen avatar
Greg Hansen

Belgium native who has a passion for writing. Since 2015 I have understood that the blockchain will radically change our lives, and I absolutely want to share my findings with you!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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