US Coal Mining Company Generates $30 Million from Bitcoin Mining, Raises Environmental Concerns

By: Eliza Bennet

Alliance Resource Partners, a US coal mining firm, has reported to mine 425 Bitcoin, equating to $30 million, using surplus energy from its factories as per its Q1 earnings call. The firm's focus on Bitcoin has fueled worries about environmental sustainability, with many arguing it contravenes the green energy narrative around Bitcoin.

Eco-conscious experts like Daniel Batten have argued that Alliance Resource Partners' pivot disrupts the ecological dialogue associated with Bitcoin. Batten has stated that while Bitcoin mining companies have largely shifted their operations away from coal, coal companies' move to Bitcoin don't aid the environmental narrative. In fact, over 50% of the energy consumed by Bitcoin mining companies currently comes from renewable resources.

Alliance Resource Partners' foray into the world of Bitcoin mining calls into question the industry's environmental impact once again. The company embarked on this journey in 2020 with a pilot project that used extra power from mine operations at the River View mine.

The company has managed to maintain financial stability by periodically selling off part of its Bitcoin holdings to cover operational costs. With the end goal of mining around 190 Bitcoin by year's end, it remains to be seen how this will influence the overall environmental conversation around digital currencies.