The American Stronghold Digital Mining, amid growing energy consumption in the mining of cryptocurrencies, switched to using waste from coal-fired power plants.
Stronghold CEO Greg Beard said that his company uses “a by-product of the energy industry” to mine cryptocurrencies. And thanks to this decision, it does not harm the US national energy system:
“The bitcoin mining network is the largest decentralized computer network in the world. It consumes a lot of energy, so placing bitcoin mining next to a coal-fired power plant makes a lot of sense.”
The CEO explained that the company uses coal ash left over from old power plants, which it takes from a nearby mine in Pennsylvania. Byrd says the by-product is processed and sent to a boiler room, where it is burned to generate enough electricity to mine bitcoin.
Bird claims that by using coal ash, the company is protecting the environment and local communities from the harmful effects of waste. These wastes contain heavy carcinogenic metals, which can, if they get into groundwater, poison the environment and local residents. Stronghold Digital Mining Co-Chairman Bill Spence sees serious prospects for the industry and states bluntly that mining is “an ideal niche for cryptocurrencies.”
The problem of growing consumption of electricity by mining farms is becoming serious. According to Bloomberg research, by the end of 2021, the energy consumption of bitcoin miners exceeded 91 TWh, while in 2020 this figure was about 67 TWh. More and more mining companies are switching to alternative energy sources or going to reduce energy costs. For example, in February, Texas miners voluntarily reduced the load on the power grid under the threat of a snow storm. However, the founder of the investment company Morgan Creek Digital Anthony Pompliano (Anthony Pompliano) sees great value in bitcoin and believes that the cost of electricity to maintain its ecosystem is fully justified.