Facing intense criticism, the crypto mining industry is trying to change the view that its energy-guzzling computers are harmful to the climate
Peter Wall, Argo’s chief executive, at the new 126,000-square-foot facility in West Texas
Credit…Carter Johnston for The New York Times
By David Yaffe-Bellany for the New York Times
Along a dirt-covered road deep in Texas farm country, the cryptocurrency company Argo Blockchain is building a power plant for the internet age: a crypto “mining” site stocked with computers that generate new Bitcoins.
But unlike other Bitcoin mining operations, which consume large quantities of fossil fuels and produce carbon emissions, Argo claims it’s trying to do something environmentally responsible. As Peter Wall, Argo’s chief executive, led a tour of the 126,000-square-foot construction site one morning this month, he pointed to a row of wind turbines a few miles down the road, their white spokes shining in the sunlight.
Related energy and environmental news:
Enviros want NY Gov. to pull the plug on crypto mining (Times Union)
Bitcoin Uses More Electricity Than Many Countries (NY Times)
Every Bitcoin transaction consumes over $100 in electricity (Fortune)
The new facility, an hour outside Lubbock, would be fueled mostly by wind and solar energy, he declared. “This is Bitcoin mining nirvana,” Mr. Wall said. “You look off into the distance and you’ve got your renewable power.”
Facing criticism from politicians and environmentalists, the cryptocurrency mining industry has embarked on a rebranding effort to challenge the prevailing view that its electricity-guzzling computers are harmful to the climate. All five of the largest publicly traded crypto mining companies say they are building or already operating plants powered by renewable energy, and industry executives have started arguing that demand from crypto miners will create opportunities for wind and solar companies to open facilities of their own.
The effort — partly a public-relations exercise, partly a genuine attempt to make the industry more sustainable — has intensified since last spring, when China began a crackdown on crypto mining, forcing some mining operations to relocate to the United States. A trade group called the Bitcoin Mining Council was also formed last year, partly to tackle climate issues, after Elon Musk criticized the industry for using fossil fuels.
Crypto mining does not involve any picks or shovels. Instead, the term refers to a verification and currency creation process that is essential to the Bitcoin ecosystem. Powerful computers race one another to process transactions, solving complex mathematical problems that require quintillions of numerical guesses a second. As a reward for this authentication service, miners receive new coins, providing a financial incentive to keep the computers running.
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