Coal Mining Company Quietly Mines Bitcoin for Over Three Years, Holding $25 Million in BTC
Coal mining company Alliance Resource Partners has made a surprising revelation during its first-quarter earnings call – it has been quietly mining Bitcoin for over three years. The company, listed on the NASDAQ stock exchange under the ticker ARLP, disclosed that it saw an opportunity to utilize excess power at its mining operations to venture into the world of cryptocurrency.
According to Cary Marshall, senior vice president and chief financial officer at Alliance, the firm purchased Bitcoin mining equipment in 2020 and 2021, during a period of significant price growth in Bitcoin. Today, Alliance holds 425 BTC on its balance sheet, valued at $25 million. This move has proven to be profitable for the company, with its market cap increasing by 6% over the last five trading days.
The company’s embrace of Bitcoin mining highlights how the energy industry can benefit from digital currency mining, even if it involves a non-renewable source like coal. By utilizing underutilized electricity, Alliance has found a way to monetize its spare resources and generate additional revenue.
While some experts see Alliance’s foray into Bitcoin mining as a positive development, others are more cautious. Daniel Batten, co-founder of CH4 Capital, expressed concerns about the environmental impact of Bitcoin mining, especially when it involves non-renewable energy sources like coal. He emphasized the need for further research to fully understand the implications of Alliance’s involvement in Bitcoin mining.
As the debate around Bitcoin’s environmental impact continues, Alliance’s disclosure has sparked discussions about the potential benefits and drawbacks of cryptocurrency mining. With more energy firms exploring Bitcoin mining as a way to leverage their resources, the industry is likely to see further developments in this space.
Overall, Alliance’s decision to mine Bitcoin underscores the growing intersection between traditional industries and the world of cryptocurrency, raising important questions about sustainability and responsible energy usage in the digital age.
