A crypto mining company Stronghold has welcomed the US Securities and Exchange Commission’s proposal for companies to disclose greenhouse gas emissions and climate-related risks. Gregory Beard, the co-chairman and CEO of Stronghold, highlighted that the company is already doing most of it. Stronghold uses energy from coal waste to mine Bitcoin. Beard shared that the risk section of the company’s filings includes climate-related risks.
SEC’s proposed rule calls for publicly traded companies to reveal information about how climate-related risks have had or are likely to have a material impact on their business. Gary Gensler, the SEC chair, had said that the proposal would provide investors with consistent, comparable, and decision-useful information for making their investment decisions. It would also provide consistent and clear reporting obligations for issuers. Gensler said investors recognize that climate risks can pose significant financial risks to companies. As such, investors need reliable information about climate risks to make informed investment decisions.
In its November 2021 filing, Stronghold outlined that its operatives involving the combustion of coal refuse are subject to a number of risks. It could result in increased operating and capital costs for the company and hit its business activities. Beard highlighted that if there was a way to operate without emitting carbon into the air, Stronghold would do it. He said they would do it even if it wasn’t the most economic thing to do. The crypto mining company is looking at technologies and investments to reduce its carbon emissions and lower its carbon footprint too.
Beard pointed out that a key part of Stronghold’s business model and mission is “environmentally-friendly mining”. The company owns and operates the Scrubgrass Plant – a coal-refuse power generation facility situated in Pennsylvania. Coal refuse, in Pennsylvania, is a Tier II alternative energy source. Beard said it’s quite similar to large-scale hydropower. Stronghold sees its power generation facility as environmentally beneficial. It removes legacy coal refuse and facilitates the remediation of land and water. Power generation is the byproduct of this activity.