Experts fear the ‘environmental narrative’ will reemerge as US coal miner makes $30 million mining Bitcoin

Alliance Resource Partners (ARLP), a U.S.-based coal mining company, said in its first quarter earnings call that it successfully mined 425 bitcoins worth $30 million using surplus energy at its facilities.

However, cryptocurrency environmental activist Daniel Batten argues that the company’s shift to BTC mining could harm the “environmental narrative” of its flagship digital asset. that said:

“Bitcoin mining companies have moved to using coal. But it seems like nothing can stop coal mining companies from mining Bitcoin. “Either way, this is not helpful in terms of changing the environmental narrative surrounding Bitcoin.”

Over the past few years, BTC mining companies have increasingly relied on green energy sources, with more than 50% of their energy sources being powered by renewable energy sources.

ARLP’s entry into the BTC mining scene could reignite critics’ concerns about environmental risks associated with the sector.

ARLP Bitcoin Mining

ARLP CFO Cary Marshall explained that the company began its Bitcoin mining efforts through a pilot project launched in 2020 utilizing surplus power generated by mining operations at the Riverview Mine. He said:

“If you look at the end of the quarter, at the end of the quarter we owned about 425 bitcoins. We’re not actually buying Bitcoin or anything like that. “We are mining Bitcoin with the miners we have.”

Marshall also stated that the company maintained its financial stability by periodically liquidating a portion of its Bitcoin holdings to cover operating costs. He added that the company mined about 69 BTC during the first quarter of this year, of which 25% was sold to cover overhead costs.

Meanwhile, ARLP CEO Joe Craft said the company was taking a cautious approach to BTC mining by limiting its exposure to Bitcoin by selling acquired assets to offset costs. ARLP also optimizes surplus capacity by leasing to other Bitcoin miners and utilizes data center infrastructure to take advantage of low energy costs.

Nonetheless, the coal miner hopes to mine up to 190 BTC by the end of the year. Marshall said:

“If you look at the full year, we expect the total number of bitcoins we will mine per year to be around 175 to 190. Now we will cash out some of that to cover our operating costs. So ultimately our net worth will probably be about 60% of that number.”