Making case for Cochin International Airport Limited to accept, hold and mine Bitcoin.
#Bitcoin #Energy #Airport #Solar #Mining
For context, it is easier to make case for a privately held public utility to explore Bitcoin than it is to make case for Kerala State. Eventually states will be able to adopt but to make things simpler we are using CIAL as an example.
The saga of making of Cochin International Airport has been inspiring. The astonishing public participation and a sustainable business model have made Cochin International Airport Limited (CIAL) — the company which operates the airport — an international brand.
The paid up capital of the company is Rs.382.57 Cr with over 19,000 shareholders from 31 countries. The Government of Kerala owns the biggest chunk at 32% and other bigger share holders like CV Jacob, Yusuf Ali and others Families owning.
Over the years, the company accrued gross assets worth of Rs. 2455.64 Cr. which include three sprawling terminals having two million SFT of area and offering state of the art passenger facilities, a convention centre, a golf course and an aircraft maintenance hangar.
The company has been paying dividend from 2003–04 and with the year 2019–20, the total dividend pay-out has touched 282%.
Cochin International Airport is not just an Airport; it is a symbol of hope in our State. It is a sign that things can actually work if one puts his heart to it.
CIAL is the World’s first airport fully powered by solar energy. At present the total installed capacity of solar power plants at CIAL is at 80MW.
Here is how CIAL can embrace Bitcoin.
A. Accept Bitcoin
B.Hold Bitcoin
C.Mine Bitcoin
A. Accept Bitcoin
The counters at airport already accept various payment methods. Being an airport, it also accepts multiple currencies. You can pay in INR, USD, EUR or dozen other currencies using Cash, Card or other Banking methods.
Bitcoin could unify these and make it easier to pay using Bitcoin as more people start using bitcoin as a payment method. This could start at Duty Free Shops, Lounges, Food Court etc. It could eventually include payments made for tickets, flights, fuel and other services availed by CIAL and provided at the airport.
It will be easier to Book a private jet using Bitcoin.
B. Hold Bitcoin
Once CIAL accepts Bitcoin, they have two options. Either sell the bitcoins immediately at market price and hold the value in USD or INR like they usually do in Bank accounts or other cash equivalent investments. Or they could HODL. This means they include Bitcoin as a store of value asset in their balance sheet. This practice is already followed by many listed companies in the US like Tesla Microstrategy etc. This provides a unique hedge against inflation and protects share holder wealth.
C. Mine Bitcoin.
CIAL has more land around the airport that acts as buffer zone which could be used to develop further solar capacity. Most of the energy requirements of the airport is already met by existing solar capacity. They have zero incentive to further invest in solar as selling back to the grid is unprofitable. The capital costs cannot be justified as power distribution is a state monopoly and the price is capped.
Enter Bitcoin Mining.
CIAL can use the excess solar capacity to provide Bitcoin mining service. It can be initially for CIAL but could eventually be provided as a service to larger clients.
Now is the time to invest in greener sources of energy and Bitcoin.
This ensures more green energy is used to mine Bitcoin and breaks the problem of solar electricity generation being a zero sum business opportunity in Kerala.
