Greenidge Generation Holdings, whose natural gas-powered bitcoin mining operation has sparked controversy in upstate New York, plans to counteract the emissions that its rigs produce with carbon offset credit purchases starting on June 1.
The power station operator said it will invest in a “portfolio” of greenhouse gas reduction projects to offset 100% of its miners’ carbon footprint. It also plans to invest some of its mining profits in renewable energy projects in New York, according to its statement on Friday.
Greenidge, which is planning to go public through a merger with a special purpose acquisition company, or SPAC, came under fire last month for its plans to expand its upstate New York bitcoin mining facility. Environmentalists objected to the power station burning natural gas to mine bitcoin as well as to its cooling system’s alleged impact on a local lake.
The Greenidge case is one battlefront in a growing war over bitcoin’s environmental footprint. Critics have blasted energy-hungry crypto miners for in their view needlessly contributing to the climate crisis, while defenders of bitcoin’s proof-of-work blockchain argue that the crypto amounts to an insignificant blip in global emissions.
“All miners should follow their example and buy offsets; they’re only around 10 bps (basis points) to neutralize the climate impact,” Nic Carter, a partner at Castle Island Ventures and frequent commentator on the mining controversy, said of Greenidge. “Offsets are an expedient and efficient tool to solve this problem.”
Earlier this week, Tesla CEO Elon Musk suspended the electric-car maker’s policy of allowing bitcoin as a payment because of environmental concerns. He said Tesla could revisit the crypto once “mining transitions to more sustainable energy.”
Though Greenidge’s bitcoin rigs will remain dependent on energy from fossil fuels and will use more energy once it expands its mining operations, the company appears to be one of the first crypto miners with a carbon emissions offset plan.
