Eskom Eyes Bitcoin Mining & AI to Tackle $22.7B Debt – Can the Lights Stay On?

Key Points

1. Eskom's electricity sales dropped by 4% in 2023, and it faces a R403 billion ($22.7 billion) debt load, with potential debt ballooning to R3.1 trillion by 2050 if unchecked.

2. Eskom is exploring partnerships with Bitcoin miners and AI firms, inspired by models like Texas-based Riot Platforms, which was paid $32 million for reducing power consumption during peak demand.

3. Eskom's grid is under strain, with average unplanned outages exceeding 15,000 MW, leading to increased reliance on costly diesel-powered turbines, spending R4.51 billion on diesel this financial year.

4. Global Bitcoin mining faces scrutiny for high energy consumption and pollution, with 52.4% of mining now using sustainable energy, though natural gas has overtaken coal as the dominant power source.

5. The U.S. has proposed tariffs of up to 36% on imported Bitcoin mining machines, adding challenges to the sector.