Virunga National Park in the Democratic Republic of Congo has become the first national park in the world to open a Bitcoin (BTC) mine in an effort to protect its forests and wildlife. Cointelegraph spoke to Sébastien Gouspillou, CEO of Big Block Green Services, and the man who introduced Bitcoin mining to the park.
Speaking via video call, Gouspillou said with a smile: “Bitcoin mining saved the park from bankruptcy.”
Virunga is Africa’s oldest protected park and a symbol of the continent’s biodiversity. A report by journalist Adam Popescu, published in the MIT Technology Review, explains that the region was plagued by problems before Bitcoin mining. From local militias carrying out brutal attacks on animals and their employees to the Ebola outbreak to kidnappings, the emblematic national park has struggled for revenue in recent years.
The COVID-19 pandemic and the subsequent cancellation of tourism was almost the nail in the coffin for the park, as visits to see gorillas, wildlife and other waterfalls dried up. The article explains that tourism represents about 40% of the park’s revenue.
When Gouspillou found out about the park’s dispute, he wanted to help. He met with Emmanuel De Merode, director of the park – and a Belgian prince by bloodline – at a chateau in France at the end of 2019. Gouspillou explained that he immediately recognized the extraordinary opportunity that the park presented.
The park is capable of producing abundant and untapped natural resources to sustain its existence. Gouspillou explained to De Merode how Virunga could turn to Bitcoin mining to generate income.
The conversation in the chateau did not stop. “It must have been hours,” Gouspillou explained. These discussions, as well as follow-ups and visits to Congo, finally ended in De Merode setting up the first part of the mining operation in early 2020, which successfully mined the first coins in September of that year.
Almost three years later, the park has a significant income from Bitcoin. During the few months of the 2021 bull run, the park was rewarded with up to $150,000 a month – almost entirely offsetting lost tourist revenue.
Virunga’s Bitcoin Mine is a unique solution to the problem of maintaining the park’s biodiversity while also generating revenue. Bitcoin mining is a highly energy-intensive process, but the Virunga mine is unique because it uses clean energy: It is a green technology surrounded by a green rainforest.
The mine is powered by three hydro plants in the park, a sustainable source of electricity that has been used to power nearby towns. The site has hired nine full-time workers, who work in rotating shifts operating miners in the forest, to staff the facility. Fearless guardians protect the site – a story that inspired a Netflix documentary, and more.
The facility has 10 shipping containers, with each container holding 250 to 500 rigs. Virunga has three such containers, Gouspillou the other seven. Gouspillou bought energy from Virunga as part of the arrangement, while keeping Bitcoin mined.
In addition, as Gouspillou explained, the existing Bitcoin mining facility is part of a “global plan,” in which there will be opportunities to generate more power. Another power station will be set up across the park, it is explained, to connect the local village to electricity and, of course, another Bitcoin mine.
De Merode is confident that the project will be successful despite the bear market. It is true that some Bitcoin miners are victims of the 2022 bear market, but De Merode occupies a unique position: The park does not speculate on the value of Bitcoin, but generates Bitcoin using excess energy to monetize something worthless.
Additionally, there is a small risk of Bitcoin (or private key) being lost if De Merode is killed in action. Over 200 of the park’s security, or rangers have been killed since 1996 – and De Merode was shot twice during a trip to Goma in 2014, so it’s tragic but it can be a result that should be prepared for.
The park’s finance team manages the custody of the Bitcoin wallet, and the funds generated by mining are sold regularly to pay for the upkeep of the park. In an MIT Technology Review article, De Merode is quoted:
“It is impossible for us to sit on Bitcoin for more than a few weeks, because we need money to open the park. So if something happens to me or our CFO loses his password, we will give him a hard time – but it will not cost us much.
Like the treatment of El Salvador in the mainstream media, the “bet” that De Merode made has invited skepticism from experts who wonder what crypto has to do with conservation. Gouspillou explained that it took some time for De Merode to refer to the project as a Bitcoin mining project, preferring to use the term “blockchain mining,” as it is more PR friendly.
As for Gouspillou, he has yet to find a flaw in the story of how Bitcoin mining saved the national park:
“It is difficult to find a negative side of this story. There is nothing. The energy is clean, even ASICS – we will recycle it at the end of its life by distributing it in African communities.
ASICS, or application specific integrated circuits, are Bitcoin mining machines. Every 10 minutes, ASICS participates in a digital lottery to guess the next Bitcoin block in the Bitcoin time chain. As Gouspillou explains, this machine will be broken down and recycled, so e-waste. The miners use excess, clean energy, and De Merode uses the funding to protect wildlife.
Buoyed by his success in Congo, Gouspillou has his eyes on other Bitcoin mining projects in Sub-Saharan Africa. He was part of a delegation that visited the Central African Republic – the second country to use Bitcoin as legal tender.
Bitcoin mining projects in Africa using non-renewable and renewable energy are seen as a growing trend. From the mountains of Kenya to the tropical climate of Malawi, Bitcoin mining is growing in the most unlikely areas of the world.
Magdalena Gronowska, regular Cointelegraph contributor and Bitcoin mining specialist, explains why:
“Miners are buyers of the first resort (always want to open) and the last resort for overproducing energy locations to be economical. When consumer demand grows in the community, Bitcoin mining can be reduced or removed altogether, but it can create critical infrastructure.
In essence, if an area offers stranded or abundant, overproduced energy, Bitcoin mining can be financially attractive.
However, the park still needs funding and investment. The Congolese government only allocates 1% of its operational budget while tourism will remain low when the conflict threatens security. As Gouspillou explains, Bitcoin mining is one solution to the park’s problems, as it provides a source of revenue that can be used to protect the park and its wildlife for years to come.