Bitcoin miner Greenidge Era has filed a lawsuit towards the New York Division of Environmental Conservation (DEC) over licensing points.
In keeping with an Aug. 15 courtroom submitting, the corporate seeks an injunction after the DEC denied its Title V air allow utility for its Dresden energy era and mining facility.
The lawsuit
The DEC had refused to resume the Title V air allow in June 2022, citing non-compliance with the Local weather Management and Neighborhood Safety Act.
Greenidge’s attraction towards the choice was rejected in Could 2024. Nevertheless, the corporate was granted a four-month grace interval to proceed working below the present allow till Sept. 8.
Greenidge claims the DEC’s resolution was “arbitrary and capricious.” The corporate argued that the DEC overstepped its authority, infringing on the New York State Public Service Fee’s jurisdiction over electricity-generating services and disregarding the New York Unbiased System Operator’s course of.
The agency additional argued that the regulator’s stance on shutting down the ability was based mostly on its involvement in crypto mining regardless of its function in supplying electrical energy to the grid. Greenidge additionally emphasised the ability’s contribution to the state’s financial system, together with job creation and tax funds that help the county’s finances.
Greenidge acknowledged that if the DEC’s resolution is just not annulled, it will be compelled to close down and stop working the ability by Sept. 9.
On its web site, Greenidge highlights that its Dresden facility offers clear, dependable energy to New York’s power grid, able to powering as much as 20,000 houses and companies as of 2020.
Greenidge’s operations
The Dresden plant is a essential a part of Greenidge’s operations, supporting energy era, crypto mining, and knowledge heart internet hosting providers. Greenidge additionally operates in South Carolina, Mississippi, and North Dakota.
Greenidge reported $13.1 million in income in the course of the second quarter, with $4.8 million derived from self-mining and $6.6 million from crypto knowledge heart internet hosting. The corporate additionally earned an extra $1.5 million from energy and capability providers.
Total, Greenidge generated $32.4 million year-to-date, primarily from its crypto knowledge heart operations. Its CEO Jordan Kovler mentioned:
“The actions we took within the first half of 2024 created a powerful basis that positions Greenidge to develop effectively transferring ahead as we proceed to scale our enterprise. This quarter, we adopted by means of on our guarantees to considerably scale back SG&A, develop our energy capability and acquire and construct new websites with low energy the place we will deploy our personal miners.”
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