Bitcoin miner Greenidge has experienced a notable surge in its stock price, rising over 37% following the announcement of a five-year renewal of its environmental permit from New York state. This pivotal agreement comes as part of the company’s commitment to significantly reduce its greenhouse gas emissions, a move that aligns with New York’s ambitious climate goals of reducing statewide emissions by 40% from 1990 levels by 2030.
In exchange for the permit renewal, Greenidge has pledged to cut its permitted emissions by 44% within the same timeframe. This decision marks the resolution of years of litigation with state regulators, who previously declined to renew the company’s air emissions permit due to environmental concerns. The New York State Department of Environmental Conservation’s recent settlement effectively concludes an ongoing legal battle, allowing Greenidge to stabilize its operations under stricter environmental standards.
The announcement on Friday led to a dramatic 75% surge in Greenidge’s stock (Nasdaq: GREE) after market hours, although it has since moderated to a 37% increase, currently trading around $2.08. Greenidge operates a natural gas power plant in Dresden, New York, which supports its Bitcoin mining endeavors and contributes electricity to the state’s power grid.
The decision has been met with acclaim from local unions, highlighting the balance struck between job preservation and environmental responsibility. Roman Cefali, the business manager of the IBEW Local Union 10, praised the agreement as a victory for working-class families in the region. He expressed gratitude to Governor Kathy Hochul and her team, emphasizing the importance of protecting good-paying union jobs while making tangible progress in environmental efforts.
The impact of proof-of-work digital asset mining on New York’s power grid has been a contentious issue, especially given the state’s economic profile and its cautious stance on cryptocurrency operations. Recently, a group of New York lawmakers put forth a proposal to impose a tax on proof-of-work miners, such as Greenidge, based on their electricity consumption. The revenue generated from this tax would be directed towards funding an energy affordability program aimed at assisting lower-income households.
As Greenidge moves forward with its new environmental commitments, it stands at a crossroads of balancing corporate interests, environmental sustainability, and community needs, amidst the ongoing debate surrounding the energy consumption of cryptocurrency mining operations in New York.
