A Bitcoin miner is buying power plants to mine crypto now.
A Bitcoin miner is buying power plants to mine crypto now
By now, you've probably heard about the sheer amount of energy cryptocurrency mining uses and how that's bad for the environment.
So, it should be quite concerning to find out that Bitcoin miners are now buying entire power plants in their effort to get rich on the speculative asset.
A Pennsylvania-based holding company called Stronghold Digital Mining is currently running a Bitcoin mining operation using the Scrubgrass power plant in Venango County, Pennsylvania, which it purchased over the summer, in 2021.
Stronghold raised $105 million to open the power plant for its Bitcoin mining endeavors. The plant currently burns coal waste to produce enough energy to power 1,800 mining computers.
According to Stronghold Digital Mining, the company is now burning 600,000 tons of coal waste at Scrubgrass per year in order to run its Bitcoin mining operation. This information is public due to Stronghold's filings with the SEC, as the company plans to go public.
And it gets worse. Stronghold is planning to further its coal-burning power plant operations.
In August, the company acquired a second power plant in Pennsylvania, called the Panther Creek power plant. It's looking to expand to a third as well.
Bitcoin mining requires high-powered computer processors in order to solve advanced mathematical equations. This process helps maintain the cryptocurrency's digital ledger, known as the blockchain. When these math problems are solved, Bitcoin miners receive the cryptocurrency in exchange.
The more computing power one has, the more equations that can be solved and the more Bitcoin they earn. The process is so intense that individuals really can't earn Bitcoin based on the computer power already accessible to them. Many miners purchase thousands upon thousands of dollars worth of equipment to mine Bitcoin and even then, only these multi-million dollar operations can really mine enough Bitcoin to make the process profitable at this point.
Bitcoin miners are predicted to use around 130 Terawatt-hours of energy (TWh), according to The University of Cambridge’s bitcoin electricity consumption index. As TechCrunch points out, Bitcoin's carbon dioxide emissions are roughly the same as a country like Jordan, with a population of 10 million people.
For the cherry on top, taxpayers are funding Stronghold Digital Mining's Bitcoin power plant profits.
According to Bloomberg, Pennsylvania provides tax credits for burning coal waste. With these subsidies, Stronghold calculates that each Bitcoin it earns through mining costs the company under $3,000.
At the time this piece was published, Bitcoin was trading at more than $42,000 – not a bad profit for a taxpayer-subsidized cryptocurrency mining operation that's spoiling the environment.
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what is this "mining" and power plant BS anyway?
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That’s why China will ban BT first. Dropped holdings to 1%
ReplyDeletegood thing btc will be dead before November
ReplyDeleteno way, regulation is coming. and Btc wont pass regulation, not even close.
DeleteThe bad guys that hold BTC are going to stack it for a rug pull shortly.
This will happen after evergrande goes belly up, tether gets delisted, the XRP lawsuit will be settled.
Btc will flow into xrp after the black swan event.
by jan 2022 BTC wont exist as you know it now.
DUDE - we have heard that before. Bitcoin is officially now a speculative asset with money coming from traditional portfolio managers. You can not outlaw that kind of money.
Delete.. this will age like milk in the sun.
DeleteBtc will flow into xrp, fact.
I hope not. I hate XRP with a passion. PUKE
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ReplyDeleteAs with any market, nothing is for sure.
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Considered the amount of time have i have spent in crypto and stock I think I prefer crypto over stock , crypto is a better side income am having a wonderful crypto journey with
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ReplyDeleteIn 50 years we'll be Mad Max but with Bitcoin.
ReplyDeleteImagine all the vehicles are modified Tesla Trucks
Deleteby the looks of the truck elon knew what will be happening
DeleteA Bitcoin miner is buying power plants to mine crypto now Taxpayer-subsidized, too!
ReplyDeleteFor the cherry on top, taxpayers are funding Stronghold Digital Mining's Bitcoin power plant profits. Pennsylvania provides tax credits for burning coal waste. ……
We need to fire the Bitcoin PR person!!
Delete"A Pennsylvania-based holding company called Stronghold Digital Mining is currently running a Bitcoin mining operation using the Scrubgrass power plant in Venango County, Pennsylvania, which it purchased over the summer, in 2021. Stronghold raised $105 million to open the power plant for its Bitcoin mining endeavors. The plant currently burns coal waste to produce enough energy to power 1,800 mining computers."
ReplyDeleteMove the mining to North America they said. ESG, more environmentally friendly, fuck coal, etc.... Lol
DeleteNew type of monopoly incoming.
ReplyDeleteMonopoly: Energy Race
DeleteThe greed has no end.
ReplyDeleteSo much potential with renewables here in Quebec, Canada. Shame that the governments doesn't like the industry. Last to innovate up here as always. Go oil go
ReplyDeleteThat got me to think. In Germany you get payed for any generated kW/h you Produce and you get payed Double If you dont plug it to the grid.
ReplyDeleteHow about We use solar to Power miner and get payed double. We Just have to make Sure its Not plugged in to a inlet.
So you would have to run it 24/7 on solar. A smaller rig would work, but smaller rigs are not worth the trouble of building something like this. :THINKING:
DeleteIMO solar powered mining makes sense and it's being done already on a limited scale. #137
ReplyDeleteThat’s a power move, literally and figuratively speaking
ReplyDeleteNow just need to hire Homer Simpson!
DeleteSo it's kind of worrying that there is anyone in this thread that is OK with this. Not to shill NANO, but there are better alternatives and if a whole fucking power plant is required to mine BTC, its just not good enough.
ReplyDelete