Stronghold Digital Mining, a Pennsylvania-based holding company, purchased a complete coal power plant in Venango county, Pennsylvania, over the summer to power 1,800 mining machines, NBC News reports.
The plant currently burns 600,000 tonnes of coal per year. This is a worrying return to polluting energy and raises red flags for environmentalists.
These miners don't just require cheap energy. They also need a reliable source of power. Their machines must run 24/7 and therefore, fossil fuels are the best choice.
According to NBC, Stronghold plans to expand its operations and buy two more coal waste plants. Coal waste plants are responsible for the creation of hazardous piles of coal waste. These byproducts of mining operations can leach contaminants into waterways, but they still emit plenty of greenhouse gases.
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While cryptocurrency mining operations are flourishing in the US, others around the globe are actively trying stop them, such as China, which declared all crypto transactions illegal Friday.
The huge amount of energy used to mine crypto is a major reason for China's crackdown. The country wants to be carbon neutral by 2060.
Stronghold is one of the few companies that are returning to coal. It was a source for electricity that was just surpassed last year by renewables, and its low cost environment is why.
De Vries said that miners are reviving abandoned coal mines and gas plants in New York and Montana.
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Stronghold is currently preparing for its first public offering. According to Securities and Exchange Commission filings Stronghold claims it is environmentally friendly, pointing out that it uses up coal waste.
The company stated in its SEC filing that it uses 21st-century crypto mining techniques to mitigate the effects of 19th and 20th-century coal mining in some of America's most ecologically neglected areas.
Environmentalists believe there are better ways to deal with waste coal than lining landfills and planting sea grass over them.
However, local legislatures seem to be more supportive of cryptocurrency mining operations being taxed less than they are for investing in the environment.
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READ MORE: Bitcoin miners join fossil fuel companies, alarming environmentalists
More about crypto: China makes cryptocurrency transactions illegal, leading to a crash in the bitcoin market
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