Marathon Digital (NASDAQ:MARA) and Nodal Power are pioneering an innovative approach to bitcoin mining, utilizing landfill methane gas to power their operations. The companies have initiated a 280-kW off-grid operation in Utah, marking a significant step towards sustainable cryptocurrency mining. The initiative is not only expected to reduce costs and save energy but also to mitigate environmental impact by harnessing methane, a potent greenhouse gas.
According to the United Nations Environment Programme (UNEP), methane's potency as a greenhouse gas is 80 times greater than carbon. Landfill methane accounts for 14.3% of U.S methane emissions, per EPA data, underscoring the potential environmental benefits of the project.
Nodal Power, which operates across the southeastern United States and Texas, has secured $13 million in seed funding to support two sites, including a data center. The company's involvement in this green initiative aligns with 'Net Zero' commitments, as highlighted in a recent tweet.
Marathon Digital CEO Fred Thiel views this project as a pathway to diversify operations and create positive environmental impacts by utilizing stranded methane. Thiel also indicated the potential expansion of such environmentally friendly initiatives if they prove successful in aiding landfill operators in achieving environmental goals.
This development comes amid the broader shift towards renewable energy within the Bitcoin mining industry. Reports from CryptoSlate Insight and the Bitcoin Mining Council (BMC) suggest that a majority of energy used in BTC mining is now sustainable, surpassing even the banking sector. Other recent examples include Genesis Digital Assets Limited's 8-MW hydropower facility in Sweden and Marathon's own 200-MW immersion-cooled facility in Abu Dhabi’s Masdar City.
Despite falling short in Q2 earnings, Marathon achieved a record mining of 2,926 Bitcoin, resulting in a 228% year-on-year revenue increase to $132.8 million. The company's innovative approach to sustainable mining could potentially drive further growth and set a precedent for the industry.
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