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Greenidge Commits to Being 100% Carbon Neutral for Its Bitcoin Mining Facility Starting June 2021

Greenidge Generation Holdings Inc. has announced that it will offset all greenhouse gas emissions from its Bitcoin mining facility through a portfolio of fully accredited offset credits, beginning June 1st.

The company has said that it will conduct an entirely carbon neutral Bitcoin mining operation at its powerplant-cryptocurrency mining hybrid facility in Upstate New York. The company’s announcement comes at a time when Tesla automaker and Square payment company announced that they will not make future Bitcoin purchases, citing environmental concerns associated with crypto mining.

Greenidge has said it will buy voluntary carbon offsets from a selection of U.S greenhouse gas reduction projects. The company mentioned that each project has been reviewed and credited by one of three well-known Offset Project Registries, Verra, the Climate Action Reserve (CAR), and the American Carbon Registry (ACR), ensuring that any project funded by Greenidge minimizes emission or increases sequestration of greenhouse gas in a manner that is verifiable, real, and permanent.

Apart from offsetting 100% of its carbon emissions from its Bitcoin mining, Greenidge also plans to invest in a portion of its mining profits in renewable energy projects. The firm is actively considering direct financing of alternative green energy sources in New York and other locations across the country.

Greenidge also stated that it will continue participating in the Regional Greenhouse Gas Initiative (RGGI), a market-based program in which participating states sell CO2 allowance through auctions and invest profits in renewable energy, energy efficiency, and other consumer benefits programs to generate local green jobs and encourage innovation in the clean energy economy. According to the report, the company buys RGGI allowances every year to cover 100% of its CO2 emitted from power generation and it has been doing so since it started gas-fired operations in 2017.

Bitcoin Mining Worries Many

As institutional and retail investors continue adopting Bitcoin, one concern that has emerged is its connection to energy and environmental issues. Experts argue that the crypto strains the environment because of all the energy it takes to mine a single Bitcoin. The amount of electricity used daily to mine Bitcoin has been identified to be more than electricity used by entire countries such as Ireland.

Some Tesla investors and environmentalists have been increasingly critical about the manner in which Bitcoin is mined using huge amounts of electricity generated from fossil fuels.

On Wednesday, May 12, Bitcoin’s price dropped by 10% after Elon Musk announced that Tesla has suspended the use of cryptocurrency as a payment method, less than two months after the electric vehicle manufacturer started accepting Bitcoin for payment. Musk cited the energy concern, especially the use of “coal, which has the worst emissions of any fuel.”

Earlier this month, a bill was introduced in the New York State Senate to stop Bitcoin mining until the state assesses its impacts on the environment.

South Carolina to Play Home for Greenidge's 175 Acre Crypto Mining Farm

With the United States growing as the dominant region for Bitcoin mining globally, Nasdaq-listed Greenidge Holdings has announced its plans to establish a new data centre for mining cryptocurrencies in Spartanburg County, South Carolina.

The new mining farm will sit on 175 acres of land, creating as many as 40 tech-related jobs in the state.

“This is a significant step in Greenidge’s strategy to build upon our unique expertise at new locations across the country,” Greenidge Chief Executive Officer Jeff Kirt. “The site is ideal, with an energy mix that is more than 60% carbon-free, opportunities for additional growth, and a business-friendly climate. We’re excited to hire great, local talent immediately and support nearby businesses as we grow our company here in South Carolina.”

Since the Chinese crackdown on mining activities, several American-based companies have been investing heavily in establishing a data mining centre. This is because of the increasing demand in providing a home for the thousands of miners that have been rendered homeless with the Chinese ban.

Additionally, Kazakhstan, which was ranked as the second nation with the largest number of Bitcoin miners, is experiencing political turmoil reportedly affecting miners, further making the United States an attractive destination for miners.

The Greenidge project is estimated to be worth $264 million, and the computing machines are billed to go online by the second half of this year. The company said it will continually invest in the new location up to 2025 as it looks to expand its operations. Officials have particularly hailed the investment choice in the, especially with the fact that Greenidge is 100% committed to carbon neutrality.

“To remain globally competitive, it’s imperative to embrace disruptive change and emerging technologies. Today’s announcement by Greenidge Generation is proof that South Carolina has the cutting-edge business environment and talent in place to attract new and innovative industries,” says South Carolina Secretary of Commerce Harry M. Lightsey III.

Greenidge Secures $100m Fund, Aims to Enlarge Operations in U.S.

Greenidge Generation Holdings has secured $100 million in funds to help in enlarging its operations in the U.S.

The total sum included $81.4 million as a loan from an affiliate of NYDIG and $26.5 million as a promissory note with a cohort of B. Riley Financial, Inc.

Greenidge claims to be the “first and only carbon neutral, vertically integrated power generator and Bitcoin miner of scale in the United States.”

The company owns a large crypto mining centre in upstate New York. It plans to increase its data centre capacity to 4.7 EH/s this year, “with the vast majority of the capacity expansion focused outside of the company’s original site in New York,” according to a statement.

According to the company’s recent development, Greenridge has begun mining Bitcoin in a new location in South Carolina. After months, the company claims that its Bitcoin mining accounts for 15% of its aggregate hash rate.

Greenidge’s CEO Jeff Kirt said, “these financings are consistent with Greenidge’s established strategy of using non-dilutive capital to fund our expansion”.

Currently, Greenridge is waiting for approval from the Department of Environmental Conservation for its permit renewal for the mining facility in the Finger Lakes region of New York.

The major concern for the mining facility has been the environmental impact. They have drawn criticism from environmental groups, and some have asked regulators to intervene.

According to Kirt, Greenidge “believe that bitcoin will be the global currency of the future; we believe it is inevitable, adaptable and will become ubiquitous over time.”