Bitcoin miner now buys power plants to mine for crypto
By now you’ve probably heard about how much energy is used for cryptocurrency mining and how it is. bad for the environment.
So it should be quite worrying to find out that Bitcoin miners are now buying entire power plants in an attempt 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 station in Venango County, Pa., which he bought over the summer of 2021.
Bastion raised $ 105 million to open the power station for its Bitcoin mining efforts. The plant currently burns waste coal to produce enough energy to power 1,800 mining computers.
According to Stronghold Digital Mining, the company is now burning 600,000 tonnes of scrap coal at Scrubgrass per year in order to operate 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’s getting worse and worse. Stronghold plans to continue its coal-fired power plant business.
In August, the company acquired a second power station in Pennsylvania, called the Panther Creek Power Station. It is also seeking to extend to a third party.
Bitcoin mining requires powerful computer processors in order to solve advanced mathematical equations. This process maintains the digital ledger of the cryptocurrency, known as the blockchain. When these math problems are solved, Bitcoin miners receive the cryptocurrency in exchange.
The more computing power we have, the more equations we can solve and the more Bitcoin we earn. The process is so intense that individuals really cannot earn Bitcoin based on the computing power already available to them. Many miners buy thousands and thousands of dollars 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.
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Bitcoin miners are expected to use around 130 terawatt-hours of energy (TWh), according to Cambridge University 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.
To top it off, taxpayers are funding the profits from Stronghold Digital Mining’s Bitcoin powerhouse.
According to Bloomberg, Pennsylvania provides tax credits for burning waste coal. With these grants, Stronghold calculates that every Bitcoin he earns from mining costs the company less than $ 3,000.
At the time of publication of this article, Bitcoin is trading at over $ 42,000 – which is not a bad profit for a taxpayer-subsidized cryptocurrency mining operation that is damaging the environment.