Home News US miner raises $105M to recycle waste coal into crypto

US miner raises $105M to recycle waste coal into crypto

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American company Stronghold Digital Mining announced that it has raised a total of $ 105 million in investor funds to mine Bitcoin. Funding obtained through the placement of two tranches of securities. And their purchasers were MG Capital, a number of family investment funds. As well as an individual – Greg Beard, ex-senior partner of Apollo Global Management.

Beard also became the co-chairman of the board of Stronghold Digital Mining, as well as its chief executive officer. The securities purchased by investors make it possible to exchange them for Stronghold Digital Mining shares when the organization goes on an initial public offering (IPO) in the future.

Stronghold intends to use the $ 105 million funding to further fund the Pennsylvania recovery efforts, purchase crypto mining equipment, and fund additional coal refining businesses.

Stronghold’s coal-fired energy and Bitcoin production have already reclaimed 1,000 acres of previously damaging land. And returned it to local communities, which now used as playgrounds, sports fields and green spaces.

Stronghold moves towards “green energy”

Stronghold Digital Mining intends to have “one of the lowest costs” in mining the # 1 cryptocurrency. To do this, its factory, which is located in Pennsylvania, plans to recycle waste from coal mining into energy. In accordance with the current regulation in the state, the processing of such waste is a movement towards “green energy”. And the resulting electricity in its environmental properties corresponds to the energy that generated by hydroelectric power plants.

Stronghold Digital Mining estimates that mining each Bitcoin will use the energy that comes from processing about 200 tons of coal waste.

Stronghold’s energy production uses waste. Other Bitcoin mining companies have opted to offset carbon emissions or use hydropower to contribute to sustainable development.

Bitcoin mining criticism

Beard said that he partly agreed with the criticism of Bitcoin mining in general when it comes to mining the # 1 cryptocurrency using electricity from non-renewable energy sources. And that is why Stronghold Digital Mining will be built on the principles of “green energy”. As well as sustainable and responsible attitude to environmental issues. Recall that there is an ongoing discussion about the impact of Bitcoin mining on the environment. And different points of view based on different statistical data manifested in it.

Discussions regarding the environmental friendliness of mining have escalated after the announcement of Elon Musk about the suspension of the sale of Tesla electric cars for Bitcoin.

Later, the businessman said that the company will resume working with cryptocurrency. When it receives confirmation of reaching 50% of the share of clean energy in the consumption of miners.

Recall that Marathon Digital Holdings is going to build a “green” data center for Bitcoin mining in Texas.

In May 2021, the mining company BIT Mining Limited announced the construction of an enterprise with a capacity of 57.2 MW in the same state, of which 85% will be generated using clean and low-carbon electricity.

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