The operations of companies involved in Bitcoin mining rely on capital from banks, asset managers, insurers, and venture capital firms. A report identified the top five financiers of carbon pollution from Bitcoin mining in 2022: Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual. Together, they were responsible for over 1.7 million metric tons of CO2 emissions, equivalent to the annual electricity use of 335,000 American homes.
Additionally, Bitcoin mining companies Marathon Digital, Hut 8, Bitfarms, Riot Platforms, and Core Scientific generated emissions comparable to 11 gas-fired power plants. The report also highlighted the worsening environmental effects of Bitcoin as the industry expanded. Cryptocurrencies, unlike traditional currencies, operate through a decentralized digital ledger.
The report emphasized that energy-hungry miners are straining electrical grids across the U.S. and world, draining electricity needed for global climate targets. Greenpeace suggested that institutions encourage miners to use more energy through tax breaks and bank benefits. The report contended that miners depend on backing from banks and asset managers, and the banking industry is responding favorably, seeking rewards from the Bitcoin industry.
The report called for Bitcoin miners to disclose data about their energy use and carbon emissions. It also urged financial companies to report on the financed and facilitated emissions associated with their investments, loans, and underwriting services for Bitcoin mining companies. They advocated for Bitcoin miners to pay a fair share for their electricity use, strain on electrical grids, greenhouse gas emissions, water consumption, and disruption to nearby communities.
Additionally, they suggested implementing a different consensus mechanism for Bitcoin to address the current energy-intensive proof-of-work model and ultimately resolve Bitcoin’s environmental impact.