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On Tuesday, Stronghold Digital Mining, Inc., an ESG-friendly cryptocurrency miner, announced that it has raised $105 million in two rounds of private equity securities financing. Stronghold’s business converts waste coal into alternative energy sources to mine Bitcoin and other cryptocurrencies.
Although many people have been concerned about the environmental problems caused by outdated reports and maps, many ESG-friendly cryptocurrency mining companies have been taking action in the industry. Stronghold Digital Mining is a Pennsylvania-based company that uses waste coal to power digital currency miners.
In Pennsylvania and many other areas of the world, waste coal and acid mine drainage (AMD) are among the largest sources of pollution. Due to the combination of precipitation and coal waste, AMD can pollute nearby waterways and threaten aquatic life. Stronghold uses waste coal at the main operating site of the Scrubgrass power plant in Pennsylvania, not only for mining cryptocurrencies such as BTC, but also donating the cleared land to the local community.
Stronghold will use the newly acquired funds to continue its expansion, as it expects to have approximately 28,000 cryptocurrency miners in operation by the end of the year. The mining company also cooperates with the Pennsylvania Department of Environmental Protection (DEP), and statistics to date show that Stronghold has “cultivated 1,000 acres of once unusable land in Pennsylvania.” Stronghold’s announcement details that the company is “negotiating to obtain more environmentally-friendly facilities” with approximately 200 megawatts of electricity.
Stronghold CEO and Co-Chairman Greg Beard believes that the joint venture allows the company’s mining model to adapt to ESG-friendly policies. The company’s announcement stated that the company estimates that it will take about 30 years to recycle all the waste from the neighboring grassy power plant. The company claims: “For every bitcoin mined by the company, it is estimated that 200 tons of waste coal can be eliminated.”
“The negative impact on the environment has long been a criticism of Bitcoin mining, and this is well-founded. Our ownership of the Scrubgrass factory, coupled with the environmental benefits generated in the region, allows us to take what we believe is the lowest cost in the industry. Mining Bitcoin while making a transformational contribution to the environment. Our vertically integrated model ensures that we are fully self-sufficient and adaptable,” Stronghold’s CEO said in a statement.
At the same time, other mining businesses, such as the EZ blockchain, upstream data, and Crusoe Energy System, are using flare gas to mine bitcoin to reduce emissions. EZ Blockchain recently detailed that the company has partnered with Silver Energy, an oil and gas supplier based in Texas.
What do you think about Stronghold raising $100 million and how the company will convert waste coal into Bitcoin? Please tell us your thoughts on this topic in the comments section below.
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