The Bitcoin Firm Betting Big on Waste Coal

Stronghold's CEO Greg Beard believes that the market is undervaluing his company versus other Bitcoin miners, but he thinks its thesis will be proven out in 2024. 

Why it matters: Stronghold is a publicly traded bitcoin mining firm operating in Pennsylvania that represents its work as “environmentally beneficial,” because it powers its data center by burning off waste coal and reclaiming land for humans and wildlife.

How it works: Stronghold describes itself as vertically integrated. 

  • The two pieces of the bitcoin mining equation are electricity and mining rigs. Stronghold can generate its own power and directly owns most of its own bitcoin mining machinery (the specialized computers that make guesses to decrypt blocks of bitcoin transactions).

On one level, all bitcoin miners are the same: Who can throw the most power at the problem of decrypting bitcoin blocks?

  • Stronghold's differentiating thesis is that large capital investments are worthwhile if it gives a miner flexibility over its cost of power.

What they're saying: “”Our whole model is based on the idea that if power prices are high [from the grid], we will generate our own power,” he told Axios. 

  • “If you buy machines and you're paying a third party to run them and you're buying your power from another party, what's your operational advantage?”

The intrigue: Its claim of environmental benefit is based on where it gets that power from.

  • It operates two coal ash sites for a combined capacity of 165 MW, burning the waste left over from coal-burning power plants and converting it to detoxified ash that can be reused in a variety of ways.

Beard presented in front of the Pennsylvania legislature arguing that bitcoin mining has been the best way to fund land reclamation and retire piles of toxic coal ash accumulated over the state's many years of coal usage for power and steel production. 

  • The advantage of burning off the ash, he argued, is that they can control more of the contaminants released into the air versus when the piles burn on their own. 
  • Coal ash also pollutes waterways. As such operations diminish those piles, Beard argues, that pollution decreases. 

The other side: Environmental groups agree that coal ash is a problem, but they have been opposed to burning it off as a solution.

  • “Cryptocurrency in Pennsylvania is a big deal because these sorts of operations threaten to increase pollution where we have seen decreases,” Charles McPhedran, an attorney at Earthjustice, told Fox56 in Pennsylvania.

Zoom out: A lot of political rhetoric has been directed at bitcoin since the boom of 2021. Most relevant here: the Biden administration's push to tax miners's power use, but Beard has not invested a lot of his own energy in fighting it. 

  • “You can debate whether or not bitcoin is good or bad for society, but today we have a government that hasn't put the heavy hand of government on uses of power.”
  • He pointed to a couple other industries that people debate the benefit of and noted no one is arguing for a special tax on their power supply. “I haven't been overly concerned because it's un-American to do that,” he said.

By the numbers: Stronghold's stock price is up, like most other healthy bitcoin mining companies, but it is up considerably less than others.


Originally published on Axios.com

Write This Stock Ticker Down Right Now

Enter your email address to see the name and ticker on the next page.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

How to Collect "Amazon Royalty" Payouts Before the Deadline

Thanks to a little-known IRS loophole, regular Americans can collect up to $28,544 (or more) in payouts from what is called “Amazon’s secret royalty program”…
Enter your email address to access all the details.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Elon Musk's "Project Omega"

It could soon mint new millionaires, while plunging millions of unprepared Americans into poverty. Get the stocks at the center of it all.
Enter your email address to receive the names and ticker symbols.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

The #1 Trade For 2023

Elon Musk is set to reveal his secret “Project X” that could revolutionize a $23 Trillion industry, and potentially be 1,000x bigger than EV’s. 
This Backdoor play could hand early investors a windfall of gains.
Enter your email address to receive this company’s name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

#1 A.I. Stock Currently Trading For $3

Gain immediate access to this revolutionary $3 A.I. stock that is set to disrupt a $15 Trillion Market soar 75X.
Enter your email address to receive the name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Project An-E

Breakthrough A.I. Just Predicted What the Stock Prices of Tesla, Nvidia, and Apple Will Be 30 Days from Now…
Enter your email address for immediate access.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

Elon Musk's "Project Omega"

It could soon mint new millionaires, while plunging millions of unprepared Americans into poverty. Get the stocks at the center of it all.
Enter your email address to receive the names and ticker symbols.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

#1 A.I. Stock Currently Trading For $3

Gain immediate access to this revolutionary $3 A.I. stock that is set to disrupt a $15 Trillion Market soar 75X.
Enter your email address to receive the name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)

#1 Stock of This Generation

Set to disrupt global industries, this tiny $2 stock could very soon shoot up 150%, 400% … even 900% or more!-
Enter your email address to receive this company’s name and ticker symbol for free.


By submitting your email address, you give Profitable News permission to deliver the report or research you’re requesting to your email inbox. As a bonus, you will also get a free subscription to one of our carefully selected marketing partners. To learn more about our partners, click here. You can unsubscribe at any time. (Privacy Policy)