Did you know there's a spa in New York that heats its jacuzzis by mining Bitcoin?

Written by María Guinda Pérez, CFA , Chief Investment Officer at Whale Capital

Submerged in the buzz and flow of the Big Apple, a gem of both relaxation and innovation is nestled away. The Bathhouse Spa in New York, famed for its restful pools and saunas, has made waves with an unconventional strategy: mining Bitcoin to heat its waters.

Bitcoin mining is a computational process that demands a substantial amount of electrical energy, needed not just to power the systems but also to keep them cool and functional. This is why Bitcoin mining has come under fire for its environmental footprint. However, more and more businesses are looking to repurpose this energy-intensive system for alternative ends. Here we have a case where a business with a significant electrical energy demand converts it into thermal energy.

A crypto-mining spa? It might sound like extravagant energy waste, yet the owner of this spa realized that the heat emanating from the mining rigs could warm up the place quite literally. Thus, they opted to swap out traditional boiler systems for Bitcoin mining machinery—a move where cost is cleverly turned into investment.

The linchpin of this achievement, besides the business acumen, is a technique called "submersion cooling." The mining equipment is plunged into a mineral oil bath, keeping it cool and efficient. Concurrently, the byproduct heat from these rigs is redirected to a more enjoyable purpose: ensuring the pools and saunas are at an ideal temperature. That is, while a conventional miner needs power to run the equipment and more to cool it, the Bathhouse requires only the former, making the most of the latter for its own advantage.

Let's engage in some soothing arithmetic. Whereas the traditional method of generating 100 watts of heat might incur a cost of around $20, this particular spa has found a profitable ally in Bitcoin mining. Considering the current statistics, and accounting for average energy efficiencies, network difficulties, and electricity pricing in New York, the spa not only cuts down on heating costs but is also projected to make a profit of up to $330, depending on Bitcoin's value.

Initiatives like this remind us that creativity is essential for devising more profitable solutions in the long run. The Bathhouse Spa offers its patrons not just a respite from the frenetic urban pace but also the comfort of dipping into waters warmed by a power reshaping our financial future.