Bitcoin is currently in a difficult position-but development away from the price action is progressing. Thus, “Stronghold Digital Mining”, a company that uses harmful waste coal to mine bitcoin, has just been able to raise more than $ 100 million for the expansion of its activities.
By Stronghold Digital Mining Inc. is an ESG-focused bitcoin mining company that has announced a $ 105 million capital increase through two private equity placements. Participating investors were MG Capital and” several family offices, ” according to a spokesman.
Stronghold’s main facility, the Scrubgrass power plant in Pennsylvania, converts waste coal into electricity, which is then used to mine Bitcoin and other cryptocurrencies.
Waste coal (also known as coal waste) is the material left over from traditional coal mining. Waste coal has a significant impact on the environment-for example, harmful residues can get into nearby waterways or drainage systems.
However, the waste coal can also be used for energy production. And Stronghold co-chairman Bill Spence believes this is a positive environmental gain for the crypto industry. Spence:
“We are using 21st century crypto mining techniques to rehabilitate the effects of 19th or 20th century coal mining in some of the most ecologically neglected regions of the United States. “
Greg Beard, co-chairman of Stronghold, adds that the scrubgrass plant, combined with the company’s environmental strategy, makes it possible to mine Bitcoin while making a “transformative contribution to the environment.“
Stronghold expects more than 28,000 cryptocurrency miners to be operational by the end of 2021. The company is currently in negotiations to acquire additional plants with more than 200 megawatts of power.
Bitcoin Mining and the Environment
Bitcoin mining consumes an immense amount of energy. According to Cambridge University, the entire Bitcoin network currently consumes about 85 terawatt hours (TWh) of energy per year. In terms of annual energy consumption, the Bitcoin network thus surpasses all countries in the world.
According to a September 2020 study (also conducted by Cambridge University), only 39% of the Bitcoin network is powered by renewable energy.
According to previous reports, the carbon footprint of the non-renewable energy sector of Bitcoin mining (almost two-thirds according to current estimates) has so far reached a level equivalent to 61 billion pounds of burned coal.
Despite the environmental concerns surrounding Bitcoin mining, Stronghold claims that the company’s technology removes about 90% of emissions – by burning waste coal.
According to a presentation by the Western Pennsylvania Coalition for Abandoned Mine Reclamation, coal waste “can now be burned economically due to advanced technology.”
However, economic does not necessarily mean better for the environment. The incineration of coal waste still generates environmental toxins. According to the Energy Justice Network project, 85 tons of toxic ash are produced per 100 tons of burned coal waste.
And with the new funding, Stronghold will continue to contribute to this figure. In good times as in bad.
Text credit: Decrypt
Last updated on June 23, 2021
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