Greenpeace Catches Hell for ‘Explosive’ Bitcoin Mining Report

Greenpeace USA has hit back at its harsh criticism of the Bitcoin mining industry, but its claims of environmental damage and Big Oil partnerships have drawn strong opposition from its targets.

In a report released Tuesday, the US-wing international charity said the industry is exposing its “deep ties” to the fossil fuel industry and “right-wing climate deniers” whose corporate interests are at odds with tackling the climate crisis.

Some of the accusations include “overlap” between groups promoting Bitcoin mining and funding from the Koch brothers and the “revolving door” between the Bitcoin mining industry and the Trump administration.

“Since Bitcoin provides a lifeline to fossil fuels by keeping dirty coal and gas plants running, it's no wonder fossil fuel companies and climate opponents are excited about the industry,” writes Greenpeace.

The group said such a tie-up would “cast doubt” on the industry's argument that bitcoin mining could encourage the development of renewable energy, reduce methane emissions or stabilize electricity grids.

“Most of the electricity for Bitcoin mining comes from oil, coal and gas,” the report added. “Meanwhile, rising energy demand from Bitcoin miners is straining electricity grids and increasing costs for ratepayers, while doing nothing for the expansion of renewable energy.”

Bitcoiners were quick to dispute the group's claims, accusing the nonprofit of spreading misinformation about Bitcoin's energy use.

While mining proponents point out that the industry's benefits are well-documented by up-to-date and legitimate studies, Greenpeace US's more pessimistic claims cite outdated and unclear sources.

Bitcoin mining companies agree. Pierre Rochard, VP of Communications at Riot Platform, said that bitcoin miners that don't use renewable energy will simply go out of business.

“Emissions from power plants are already controlled, renewable generation is growing rapidly in the United States, and Bitcoin mining itself is zero-emission,” Rochard told Decrypt.

CleanSpark's chief communications officer, Isaac Holoak, said the company runs 81% of its mine sites using carbon-free energy, noting that renewable sources are simply cheaper than coal to run the business. The company itself says it has invested millions of dollars in energy infrastructure in Georgia, including distribution upgrades, transformers, power lines and poles.

“The Greenpeace report is a total drive,” he said. Here's the reality… Bitcoin miners are essential to monetize abundant and abundant energy in rural communities and invest in the power grid.

In fact, the proponents of Bitcoin miners help stabilize electricity grids, not save stability, by scaling operations up or down depending on the needs of the grid.

“Bitcoin data centers can turn off during peak hours and turn on during off-peak hours,” said Kyle Schnepps, vice president of public policy at Foundry. Because Bitcoin mining is location agnostic, it can be deployed in remote areas to monetize renewable energy sources that have no other source of demand that can be outsourced, he said.

“According to the Lawrence Livermore National Laboratory, up to 2/3 of energy consumption in the United States is rejected or used inefficiently: Bitcoin miners use what else is wasted,” Shneps explained.

“Bitcoin is now widely recognized as a largely sustainable energy source,” wrote Daniel Batten, founder of CH4 Capital and former Greenpeace activist, on Twitter. His fund invests in companies that produce bitcoins using landfill gas, which burns and produces only air pollution.

Batten cited a September 2023 study from Bloomberg Intelligence that identified a 52.6% sustainable energy mix for the industry, as opposed to “very old” data from Cambridge University from Greenpeace US. The co-founder cites peer-reviewed research from Cornell University that says bitcoin mining has helped make renewables more profitable.

Critics clearly do not believe that Greenpeace US's anti-Bitcoin mining arguments are made in good faith. Batten, for example, notes that the organization has fallen behind other environmental organizations that have shifted their focus to support bitcoin after taking more time to learn about it.

Even Greenpeace's global operations are not on the same page, he said.

“We know from direct feedback that other Greenpeace affiliates have asked serious questions about GreenPeaceUSA's anti-Bitcoin campaign, their tactics, and the reliability of the sources they used,” Batten said.

In fact, many have called Greenpeace US a shady relationship.

“The anti-Bitcoin arm of Greenpeace is openly funded by Ripple's Chris Larson and is not impartial or neutral,” Swan founder Ian Pritzker said. In the year In March 2022, Larson-backed GreenPay USA and a local working group campaigned for a $5 million Bitcoin code change to make the network use less energy.

GreenPeaceUSA did not respond to Decrypt's request for comment.

Edited by Ryan Ozawa.