Jack Dorsey announced Tuesday that he was mining Bitcoin using a third-party service that hosts the equipment he needed to secure the network and compete for its rewards.
When he first showed up in response to a tweet, he announced that he had signed up with Compass Mining, a startup looking to expand its involvement in Bitcoin mining and disrupt an industry now dominated by large data centers.
User @kitt_andrew wrote:
“As a Bitcoin enthusiast for years, I can’t believe it took me so long, but thanks to @compass_mining I finally turned my business into mining. I couldn’t be more excited and can’t wait until February when they fire the first one. ”
Jack Dorsey, CEO of Twitter and Square, has a habit of responding to certain posts from small, independent accounts and getting them a lot of attention. Jack wrote in response: “I’m also trying to mine with @compass_mining …”
It is unclear how many miners Jack sourced and maintains Compass Mining, although it is noteworthy that he chose this mining as his service route, as the billionaire could certainly afford to start his own small mining operation to experiment.
It’s not ruled out that Jack Dorsey would use his compass mining company as an educational test run for Cash App, a platform that enables users to buy, sell, send, and receive Bitcoin.
The vague tweet doesn’t really tell us much about his plan. While it might read more as a personal pursuit than a strategic business partnership, the PR was certainly good for the Bitcoin-first compass mining company.
Compass mining has grown in popularity over the past year. The company rents hardware and space at mining facilities around the world through a platform that looks like a hotel booking service.
Compass is also starting to instill confidence in the mining-as-a-service space, a sector that has historically been dominated by scams and night flight operators.