Stronghold banks $105Mn to use waste coal to power Bitcoin mining

Stronghold banks $105Mn to use waste coal to power Bitcoin mining

Stronghold Digital Mining, a digital asset miner focused on using sustainable energy, has announced a $105 million funding, advancing its aim for use clean energy to power cryptocurrency mining.

According to sources, the funds were raised through two private offerings of equity securities, with investors receiving registration rights that need a future public listing. MG Capital, certain family offices, and Greg Beard, the former senior partner at Apollo Global Management, were among the key investors.

Stronghold aims at converting waste coal, a byproduct of coal mining, into electricity that is used to mine bitcoin and other cryptocurrencies. State officials classify waste coal as a Tier II alternative energy source, meaning it has the same impact on the environment as hydropower. As per the company, around 200 tons of waste coal is eradicated after mining one bitcoin.

A statement issued by Greg Beard, Stronghold’s CEO and Co-Chairman, Bitcoin mining has always been criticized for having a harmful influence on the environment. He further added that the ownership of its Scrubgrass Plant along with the region's environmental advantages will enables the company to mine bitcoin at some of the lowest prices in the industry, making a significant impact on the environment.

The company boasts itself as a fully-integrated miner, which means it owns a power plant in addition to mining hardware. This setup, excluding waste coal, is the reminiscent of Greenidge Generation, a mining company located near New York.

Over the past few months, carbon emissions form the bitcoin mining sector has come under scrutiny. Elon Musk confirmed in mid-May that Tesla will no longer accept bitcoins as a form of payment due to environmental concerns. Tesla would restart payments after the mining industry uses 50 percent clean energy, Musk later added.

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