Pennsylvania-based Stronghold Digital Mining has announced the completion of two private equity acquisitions valued at $ 105 million.
According to an announcement shared with Cointelegraph, the company’s first power generation plant, the Scrubgrass Generation Plant in Venango County, converts waste coal into energy equivalent to a “large hydroelectric power plant” that is then used to mine Bitcoin and other cryptocurrencies.
The used coal recycled by Stronghold was produced in coal mining in the 19th and 20th centuries. Stronghold’s power generation processes make it possible to rehabilitate large tracts of land devastated by waste carbon dioxide (AMD) drainage.
AMD describes a process by which rain or snow mixes with the sulfur in coal waste, which can enter water systems and threaten aquatic life. After removing the waste coal, Stronghold also plans to return the restored land to local communities.
The company estimates that for every bitcoin it mines, 200 tons of waste coal is destroyed.
“In my home state of Pennsylvania, the coal waste fires have wreaked havoc over the past hundred years,” said Stronghold Vice Chairman Bill Spence, adding:
“We are leveraging 21st century crypto mining techniques to address the effects of 19th and 20th century coal mining in some of the most environmentally neglected regions of the United States.”
Working with local environmental agencies, Stronghold has already reclaimed 1,000 acres of land in Pennsylvania that it calls “once unusable”. In addition to removing more than 98% of mercury, NOx and SO2 emissions, the company’s production process creates fly ash that can be used as fertilizer.
Stronghold hopes to have more than 28,000 cryptocurrency miners up and running by 2022 and is in talks to acquire assets with more than 200 megawatts of power generating capacity.
The pay rise comes as the Bitcoin community becomes increasingly environmentally conscious, with Tesla CEO Elon Musk known to reverse course on the electric vehicle maker’s decision to accept payments in Bitcoin, citing the environmental impact of coal mining.
Earlier this month, Musk indicated that Tesla would consider resuming support for BTC should the mining sector run on at least 50% clean energy.
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The controversy over the environmental footprint of Bitcoin creation has contributed to a sharp downtrend for publicly traded North American mining stocks in recent months, which have fallen between around 50 and 60% from their all-time high.
Although the broader bearish crypto trend is showing few signs of slowing down, independent investment bank Compass Point Riot gave Blockchain (RIOT) and Marathon Digital (MARA) a buy rating – and found the companies to be selling BTC with discounts of 62% and 70. generate% compared to spot prices.