Bitcoin Mining Company Buys Entire Coal Power Plant

A Pennsylvania-based holding firm referred to as Stronghold Digital Mining purchased a whole coal energy plant in Venango County, Pennsylvania over the summer season to energy 1,800 mining computer systems, NBC News reports.

The plant is now burning about 600,000 tons of coal a yr, a troubling return to a extremely polluting type of power and elevating purple flags amongst environmental advocates.

“These miners don’t simply want low cost power, however a secure supply of energy as a result of their machines have to run 24/7, and fossil gasoline sources are finest fitted to it,” Alex de Vries, a Dutch economist, researcher and founding father of Digiconomist, instructed NBC.

Stronghold is now planning to broaden its operations by shopping for two extra coal waste crops within the space, in keeping with NBC. Coal waste crops dissipate environmentally hazardous piles of coal waste, byproducts of mining operations that may leach contaminants into waterways — however burning it nonetheless emits loads of greenhouse gases.

While cryptocurrency mining operations are flourishing stateside, different elements of the world are actively attempting to cease it, like China, which declared all crypto transactions unlawful on Friday.

A significant concern driving that crackdown in China is the astronomical quantity of power getting used to mine crypto. The nation goals to grow to be carbon neutral by 2060.

Companies like Stronghold are returning to coal, a supply of electrical energy that was not too long ago surpassed by renewables for the primary time in US historical past final yr, as a result of it’s low cost — setting be damned.

“Miners are reviving gasoline crops and idle coal mines in locations like New York and Montana,” de Vries instructed NBC.

Stronghold is now making ready for its preliminary public providing. The firm maintains it’s “environmentally useful” in Securities and Exchange Commission filings, pointing to the very fact it’s utilizing up coal waste.

“Simply put, we make use of twenty first century crypto mining strategies to remediate the impacts of nineteenth and twentieth century coal mining in a number of the most environmentally uncared for areas of the United States,” the corporate wrote in its SEC filing.

But environmentalists argue there are higher options to coping with waste coal, equivalent to diverting it to lined landfills or planting sea grass on high of the piles.

Local legislatures, nonetheless, seem like extra in favor of chopping taxes for cryptocurrency mining operations than investing in cleansing up the setting.

READ MORE: Bitcoin miners align with fossil fuel firms, alarming environmentalists

More on crypto: China Makes Crypto Transactions Illegal, Prompting Bitcoin Market Crash

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About the Author: Daniel