The energy consumption involved in mining cryptocurrencies is causing some companies to buy power plants directly.
Despite the volatility that accompanies any cryptocurrency and the multiple problems that are being encountered in the sector lately, such as China’s ban, this is a business that continues to grow. But many obstacles still have to be overcome.
Mining cryptocurrencies takes a lot of energy. This poses several challenges and one is more than known: today it is highly polluting. But it is also a barrier for those who are dedicated to mining, so much so that some companies have started buying power plants.
Stronghold Digital Mining is an American bitcoin mining company that now has its own power plant at ” Scrubgrass in Venango County, Pennsylvania, ” as reported by Mashable .
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The company has bought this coal-fired power plant during the summer and uses it to power the more than 1,800 pieces of equipment it dedicates to mining bitcoin.
As reported in his presentations, he burns 600,000 tons of coal waste a year to mine bitcoin. Information that may be unpopular, but which they make public due to their intention to take the company public.
Furthermore, they are aiming to buy at least two more plants with the focus of increasing their presence in the bitcoin world. As is well known in this business, the benefit is greater the more teams are mining bitcoin and try to take advantage of the current context.
In Mashable they discuss one of the most striking issues with this company. Because of the tax credits for burning coal waste, they also make a profit this way, ” taxpayers are funding the profits from Stronghold Digital Mining’s bitcoin power plant .”
It is to be hoped that soon there will be greater regulation in this regard, but for now, the investment focused on bitcoin continues to grow and it can almost be said that these ambitious movements are hardly surprising.