Bitcoin mining company powered by waste coal raises $105 million

Stronghold Digital Mining Inc., an ESG-focused Bitcoin mining company, has announced a $105 million raise as part of two private equity settlements. A spokesperson said MG Capital and "multiple family offices" were among the investors involved. Stronghold's primary facility, the Scrubgrass Manufacturing Facility in Pennsylvania, converts waste coal into electricity and is then used to mine Bitcoin and other cryptocurrencies. Waste coal, also known as coal waste, is leftover material from traditional coal mining. Besides being dazzling, waste coal has significant environmental impacts, including seepage of harmful residues into nearby waterways or drainage systems. However, waste coal can also be used for energy. Stronghold co-chairman Bill Spence believes this is a positive environmental win for the crypto industry. “We use 21st century crypto mining techniques to counter the effects of 19th or 20th century coal mining in some of the most ecologically neglected areas of the US,” he said. Stronghold co-chairman Greg Beard added that along with the company's environmental strategy, the Scrubgrass facility will enable the company to mine Bitcoin while making a "transformative contribution to the environment." Stronghold expects to have more than 28,000 cryptocurrency miners by the end of 2021 and is currently in talks to purchase additional facilities with more than 200 megawatts of power capacity. Bitcoin mining and the environment Bitcoin mining consumes a large amount of energy. According to the University of Cambridge, the entire Bitcoin network currently consumes about 85 terawatt hours (TWh) of energy per year. In terms of annual energy consumption, this puts the Bitcoin network above most countries in the world. According to a study (also conducted by Cambridge University) in September 2020, only 39% of the Bitcoin network is powered by renewable energy.

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