Stronghold Digital Mining Co. has all the time walked its personal path within the cryptocurrency trade. The corporate trades underneath the ticker SDIG on the NASDAQ and prides itself on being an ‘environmental energy firm’ that makes use of Bitcoin mining to drive its eco-conscious agenda.
Notably, Stronghold is headquartered in Carbon County, Pennsylvania. Right here, it acquired the Panther Creek Energy Plant in 2021 to re-engineer its enterprise mannequin round Bitcoin mining and vitality gross sales.
Bitcoin Miner Proposes New Techniques
Stronghold just lately filed an software with the Pennsylvania Division of Environmental Safety (DEP) to burn shredded tires instead gas supply at its Nesquehoning plant. The appliance cites a 1991 EPA report and claims that the tire-derived gas would meet air high quality requirements.
The transfer goals to decrease the immense vitality consumption concerned in Bitcoin mining, a course of that necessitates highly effective machines working across the clock to unravel complicated algorithms.
Learn extra: How To Mine Cryptocurrency: A Step-by-Step Information
Nonetheless, Stronghold’s recycled rubber ambition has struck a nerve with environmental teams and native residents. Organizations resembling PennFuture and Save Carbon County argue that burning tires releases dangerous toxins into the air. This may be recognized to extend the chance of most cancers, bronchial asthma, and different well being points for these residing close by.
Linda Christman, who spearheads Save Carbon County, notes that Carbon County is among the many poorest counties in Pennsylvania. Critics like Christman argue that firms would possibly exploit the group’s socio-economic vulnerability to maneuver forward with doubtlessly hazardous operations.
Moreover, Russell Zerbo from the Clear Air Council highlights that Stronghold had incurred seven DEP air high quality violations since taking possession of the plant in 2021. This casts a shadow over the corporate’s declare to stick to environmental requirements.
Stronghold Digital Weathers the Crypto Winter
Stronghold Digital Mining has additionally been grappling with monetary woes, recording an working lack of $14.5 million for the quarter ending in March 2023. Regardless of a microcap standing and market volatility, the agency produced 626 BTC in Q2-23, exhibiting slight development from 618 BTC in Q1-23. Furthermore, the corporate just lately invested $3 million in buying 2,000 new miners, signaling intent to develop.
Given its precarious monetary state of affairs, the corporate raised $10 million by a securities buy settlement in April. This marked one more capital infusion after earlier funding rounds.
Stronghold’s tire-burning proposal is a part of a broader dialogue surrounding the environmental affect of Bitcoin mining. The agency is attempting to marry cryptocurrency with eco-conscious vitality options. Its strategies are contentious and fraught with each ecological and health-related dangers.
Bitcoin Mining Power Sources. Supply: Batcoinz
Stronghold’s intent to make the most of waste materials for vitality manufacturing is commendable. Nonetheless, its strategy raises severe considerations for each native residents and environmental advocates.
Because the DEP evaluates the applying, Stronghold’s future hangs within the stability, caught between innovation and controversy.