Galaxy Digital, the cryptocurrency investment management firm, founded by billionaire Michael Novogratz, has created an ESG program aimed at using environmentally acceptable crypto mining processes.
The financial technology management stated that it will work hard to reduce its carbon footprint and improve the environment. Galaxy Digital’s plan builds on the company’s recent goal to achieve an 80 % sustainable power mix in the energy it uses to mine bitcoin.
Also it comes as the industry grapples with the environmental impact of widespread cryptocurrency use.
Experts have labelled Bitcoin as an environmentally “dirty” currency because of its massive electricity use and resulting carbon impact. A single BTC transaction consumes 2,264.93 kWh, according to Statista’s latest data (kilowatt-hours). 100,000 Visa transactions, on the other hand, consume 148.63 kWh of electricity.
Galaxy’s Crypto Green Initiative
After announcing its initial sustainability promise in the previous quarter, Galaxy Digital revealed that it used more than 80% sustainable electricity in the third quarter. This is a goal set for by 2025. According to the Global Bitcoin Mining Council, of which Galaxy Digital is a founding member, a 57.7% sustainable mix was used.
The firm also promised to prioritize diversity recruiting, growth, progression, and retention as part of the larger ESG-focused pledge.
Novogratz stated that they will manage their global business with commitment in accordance with environmental, social, and governance best practices.
Resistance from Congress
Institutions are swiftly entering the crypto economy. On the other hand, many investors have stayed away owing to concerns about the environmental impact. This is what regulators and experts are working to address.
Earlier this week, eight Democratic congressmen wrote to six bitcoin mining companies in the US. They want to know how much electricity they use so they can assess the impact on neighbors and the environment.
According to the letters, bitcoin mining raises worries about the effects on the global environment, local ecosystems, and consumer electricity costs. This is because of its high energy usage and carbon emissions.
Senators Elizabeth Warren, Sheldon Whitehouse, Jeff Merkley, and Margaret Hassan, as well as Reps. Ed Markey, Katie Porter, Rashida Tlaib, and Jared Huffman, all signed the letter.
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