An environmental advocacy group, Save Carbon County, has filed a lawsuit against Stronghold Digital Mining Inc and the state of Pennsylvania, alleging that their bitcoin mining operations are causing pollution in northeastern Pennsylvania. The lawsuit, filed in state court in Philadelphia, claims that Stronghold’s bitcoin mine, which burns waste coal and old tires for energy, is releasing dangerous chemicals into nearby communities.
The lawsuit seeks compensatory and punitive damages from Stronghold and demands that the state take action to stop the pollution. Save Carbon County argues that Pennsylvania has failed in its duty to protect the environment by issuing permits that allow the pollution to continue and by providing tax incentives to the crypto-mining industry.
According to the lawsuit, Stronghold’s operations have created both public and private nuisances by releasing mercury into waterways and emitting harmful chemicals like sulfur dioxide into the air from an aging power plant it acquired to power its energy-intensive operations.
In response to the allegations, a spokesperson for Stronghold defended the company’s practices, stating that their operations actually contribute to environmental cleanup efforts in the area. The spokesperson claimed that Stronghold’s facilities have cleaned up millions of tons of waste coal and reclaimed over 1,050 acres of land, which now serve as sports fields, parks, and fishing spots for local communities.
The Pennsylvania Department of Environmental Protection declined to comment on the lawsuit.
Cryptocurrency mining, which involves using large amounts of electricity to perform complex mathematical equations for securing cryptocurrencies like bitcoin, has become increasingly popular in the United States. The University of Cambridge estimates that 38% of bitcoin produced globally is mined in the U.S., with the number of mining operations growing rapidly since 2021, when China banned cryptocurrency mining over concerns about its potential impact on financial and monetary systems.
The lawsuit against Stronghold and Pennsylvania highlights the growing tension between the cryptocurrency industry and environmental conservation efforts. While crypto-mining operations can bring economic benefits to regions like northeastern Pennsylvania, they also raise concerns about pollution and environmental degradation.
As the case unfolds in court, it remains to be seen how Stronghold and Pennsylvania will respond to the allegations of pollution from the bitcoin mine. In the meantime, environmental advocates like Save Carbon County continue to push for greater accountability and regulation to ensure that crypto-mining operations do not come at the expense of the environment and public health.
