Marathon Digital, a Bitcoin mining outfit, has kicked off a pilot project in Utah. It's using methane gas from landfill waste to power its mining operations.
The company announced this on Thursday. They've teamed up with Nodal Power, a renewable energy firm. The project's capacity is a whopping 280 kilowatts, many miners around the globe would be happy to have access to such a capacity for their mining needs.
It's all about testing Marathon's ability to capture methane from landfills.
The goal is simple. Convert the gas to electricity. Use that juice to power Bitcoin miners. It's a win-win, really.
Fred Thiel, Marathon's top dog, is pretty stoked about the whole thing. He said, "At Marathon, we're always looking for cool ways to mix things up."
Thiel's not done. He added, "We want to cut our energy costs and do right by the environment." The pilot project could tick all these boxes.
If it works out, Marathon's keen to expand. They want to help landfill operators meet their green targets too.
Here's the kicker: methane is nasty stuff. The UN says it's 80 times worse than carbon dioxide. Its effects hang around for over two decades.
The Environmental Protection Agency's got some eye-opening stats. In 2021, solid waste emissions made up nearly 15% of all methane emissions in the US. That's a lot of harmful gas.
Thiel's got more to say. "Methane from landfills and biowaste is often just sitting there, doing nothing. Bitcoin miners like us can turn this harmful gas into clean, renewable energy. It's a no-brainer."
Now, here's the thing: electricity is a massive cost for miners. So, they've been poking around for alternative power sources for a while. They're trying to tackle those pesky greenhouse emissions at the same time. It's like hitting two birds with one stone. Using a eco-friendly source of energy, that is powerful enough to provide effective mining might be the answer.
Take Crusoe Energy, for instance. Last April, they raised a whopping $350 million. The plan? Set up remote facilities to use wasted natural gas for mining. Then there's Vespene Energy. In August, they bagged $4.3 million to turn landfill methane into Bitcoin. It's a whole new ballgame.
Marathon's not stopping there. They've just announced plans to raise up to $750 million through a hybrid equity offering. This bombshell came via a FORM S-3 sent to the SEC. What's the cash for? New mining gear and expanding their operations. These guys are going all in.