London-listed crypto miner Argo signs climate deal

Companies will deploy new technologies that “increase transparency of renewable energy supply from crypto mining.” Photo: Beata Zawrzel / NurPhoto via Getty Images

Argo Blockchain (ARB.L) and cryptocurrency technology company DMG Blockchain Solutions (DMGI.V) have signed a “Crypto Climate Agreement” (CAA) to promote decarbonization of the industry.

The CAA sets several goals for the crypto mining industry, including achieving zero net emissions from electricity consumption by 2030. The pair are among the first cryptocurrency companies to join the CCA, said the pair in a statement.

Under the terms of the deal, the companies will deploy new technologies to “increase transparency in the supply of renewable energy from crypto mining.”

The CAA – a private sector-led initiative with 40 signatories, including 20 leading cryptocurrency companies – also aims to bring the sector to net zero greenhouse gas emissions by 2040.

The initiative will develop standardized tools and technologies to “accelerate the adoption and verification of blockchains powered by 100% renewable energy” under the United Nations Framework Convention on Climate Change (UNFCCC) .

“As more and more data continues to surface regarding the impact of bitcoin and bitcoin mining on the environment, it is imperative that the industry takes real and tangible action,” said Peter Wall , Managing Director of Argo.

Watch: What are the risks of investing in cryptocurrency?

Read more: Argo buys hydroelectric cryptocurrency mines in Quebec as Tesla abandons bitcoin

Argo, which focuses on large-scale cryptocurrency mining, recently embarked on a clean energy campaign. He signed a preliminary agreement with DMG to create the world’s first “green” bitcoin (BTC-USD) mining pool earlier this year. The company this week bought hydroelectric cryptocurrency mines in Quebec, Canada.

Argo shares were trading up 11% at £ 150 on Friday at noon in London.

Chart: Yahoo Finance

Chart: Yahoo Finance

Sheldon Bennett, Managing Director of DMG, said his company was “committed to transparency” and that the partnership had “set the wheels in motion to transform the cryptocurrency industry into a renewable energy industry.” .

Read more: Bitcoin drops below $ 50,000 as Elon Musk doubles climate criticism

The news comes in the middle of the edit reviews on the energy used by the crypto industry and its potential impact on climate change. According to the University of Cambridge, bitcoin mining accounts for 0.7% of global electricity consumption. Much of the electricity comes from coal-fired power plants in China.

On Wednesday evening, Tesla boss Elon Musk expressed concerns about the amount of energy used by the technology and reversed plans for his electric car maker to accept bitcoin.

“We are concerned about the rapid increase in the use of fossil fuels for bitcoin mining and transactions, especially after coal, which has the worst emissions of all fuels,” Musk tweeted.

Tesla’s announcement caused bitcoin to drop 13%. Other major cryptocurrencies – including Ethereum (ETH-USD), Dogecoin (DOGE-USD), and Litecoin (LITE-USD) – have followed suit.

Argo made a profit last year after being boosted by soaring bitcoin and cryptocurrency prices. The company made a net profit of £ 1.7million (£ 2.4million), compared to a net loss of £ 0.7million in 2019. Revenue increased 120% to 19 million pounds sterling.

To look at: What is bitcoin?

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