In short
- Shares of Bitcoin miner Greenidge rose more than 37% on Monday after receiving a five-year extension of its environmental permit from New York state.
- The company agreed to reduce greenhouse gas emissions by 44% by 2030, in line with the state’s climate law and to end years of litigation with regulators.
- The deal was praised by a local union as a balance between preserving jobs and achieving environmental progress, amid the ongoing debate over the energy impact of crypto mining.
Bitcoin miner Greenidge saw its shares rise more than 35% on Monday after the company announced a deal with New York state officials to secure the five-year extension of a key environmental permit.
In exchange for the permit, Greenidge has agreed to significantly reduce greenhouse gas emissions at a rate consistent with New York State’s ambitious climate goals. The company has committed to reducing permitted emissions by 44% by 2030.
That goal aligns with a landmark New York climate law passed in 2019 that aims to reduce statewide greenhouse gas emissions by 40% below 1990 levels by 2030.
The New York State Department of Environmental Conservation’s settlement with Greenidge comes three years after the state regulator rejected to renew the crypto miner’s air emissions permit, citing the negative impact of its activities on the environment.
Friday agreement also ended all litigation between New York State and Greenidge, who sued after being denied a new air emissions permit in 2022.
Following news of the settlement after market close on Friday, shares of Greenidge (Nasdaq: GREE) rose more than 75%. The stock has fallen a bit since then, but is still up more than 37% as of Friday afternoon, to $2.08 at the time of writing.
Greenidge operates a natural gas power plant in Dresden, New York, which powers a Bitcoin mining operation and also supplies electricity to the state grid.
A local union representing workers at the Dresden plant celebrated Friday’s settlement as a win-win for workers and environmentalists.
“By reaching a tough new permit agreement, New York State is standing up for working families,” said Roman Cefali, business manager of IBEW Local Union 10, in a statement shared with Declutter. “I want to thank the governor [Kathy] Hochul and her employees for their hard work to protect good-paying union jobs while achieving real, tangible environmental progress.”
The toll of proof-of-work Mining digital assets on New York’s power grid has long been a controversial topic in one of America’s most economically critical and economic sectors. crypto-skeptical states.
Last month, a group of New York lawmakers introduced one account that would tax proof-of-work crypto miners like Greenidge for their electricity consumption. The proceeds from the taxes would finance a national energy affordability program for lower-income households.
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