0
0
Alliance Resource Partners Quietly Mined Bitcoin for Over Three Years
Alliance Resource Partners, a coal mining company listed on the NASDAQ stock exchange under the ticker ARLP, recently disclosed that it has been engaged in Bitcoin mining for over three years. The revelation came during the company’s first-quarter earnings call, where Cary Marshall, the senior vice president and chief financial officer, explained that the initiative stemmed from the excess power available at their mining operations.
According to a transcript of the earnings call published on Monday, Marshall stated, “It was just an opportunity that we saw due to the fact that we’ve got excess power at our mining operations.” This surplus energy led Alliance to invest in Bitcoin mining equipment in 2020 and 2021, coinciding with a significant period of price growth in Bitcoin’s history.
As of today, Alliance Resource Partners holds 425 BTC on its balance sheet, valued at $25 million. With a market cap of $2.8 billion, the company has seen a 6% increase in its valuation over the last five trading days. This disclosure places Alliance’s involvement with Bitcoin on a timeline similar to that of MicroStrategy, one of the largest Bitcoin holders globally, which began acquiring BTC in August 2020.
Alliance’s Approach to Bitcoin Mining
Marshall clarified that Alliance Resource Partners does not engage in direct Bitcoin purchases but instead mines the cryptocurrency using the acquired mining equipment. The company’s approach to Bitcoin mining is supported by its first-quarter 8K report to the SEC, indicating $30.3 million worth of “digital assets” on its balance sheet.
While the utilization of Bitcoin mining by a coal mining company may seem contradictory in terms of environmental impact, Nishant Sharma, founder of Bitcoin mining research firm BlocksBridge, views Alliance’s move as a strategic step in leveraging underutilized electricity resources for economic gain. Sharma predicts that more energy firms will follow suit with Bitcoin mining pilot projects in the future.
Alliance Resource Partners asserts that its Bitcoin mining operations utilize pre-existing, underutilized electricity capacity, suggesting that no additional coal is burned solely for cryptocurrency mining purposes. However, despite this claim, critics argue that the association between a coal mining company and Bitcoin mining may harm Bitcoin’s image regarding environmental concerns.
Controversy and Environmental Impact
CH4 Capital co-founder Daniel Batten expressed skepticism about Alliance’s involvement in Bitcoin mining, highlighting potential implications for the environmental narrative surrounding the cryptocurrency. Batten acknowledged the complexity of the situation and the challenges it poses for pro-Bitcoin environmentalists.
While some argue that Bitcoin mining can move away from coal-fired operations, the news of a coal mining company engaging in Bitcoin mining raises questions about the industry’s environmental impact. Despite efforts to utilize existing resources efficiently, concerns about environmental sustainability persist in the context of cryptocurrency mining.
Image/Photo credit: source url
