Alliance Resource Partners Mines $30 Million Worth of Bitcoin Using Excess Energy, Drawing Criticism from Environmentalists
Alliance Resource Partners (ARLP), a US-based coal mining company, has made headlines by successfully mining 425 Bitcoin worth $30 million by harnessing excess energy from its facilities. This move marks the company’s entry into the lucrative world of cryptocurrency mining, but it has also sparked concerns among environmentalists.
Crypto environmentalist Daniel Batten has criticized ARLP’s pivot to Bitcoin mining, arguing that it could harm the “environmental narrative” around the digital asset. Batten pointed out that while many Bitcoin mining companies have shifted towards using green energy sources, ARLP’s involvement in the sector could renew concerns about the environmental impact of BTC mining.
ARLP’s Chief Financial Officer, Cary Marshall, explained that the company began its Bitcoin mining venture through a pilot project in 2020, utilizing surplus power from its mining operations at the River View mine. Marshall revealed that the company has been able to maintain financial stability by periodically liquidating a portion of its Bitcoin holdings to cover operational expenses.
CEO Joe Craft emphasized that ARLP is taking a cautious approach to BTC mining, limiting its exposure to Bitcoin by selling acquired assets to offset costs. The company also leases its surplus capacity to other Bitcoin miners, leveraging its data center infrastructure to capitalize on low energy expenses.
Despite the criticism, ARLP remains optimistic about its Bitcoin mining prospects, with Marshall projecting that the company could mine as much as 190 BTC by the end of the year. However, the company plans to monetize some of its holdings to cover operating expenses, ensuring a net profit from its mining activities.
As ARLP continues to navigate the world of cryptocurrency mining, its foray into Bitcoin has raised questions about the environmental impact of the sector. Critics will be closely watching to see how the company balances its mining activities with its environmental responsibilities in the future.
