Impact of Financial Institutions on Bitcoin Mining: Insights from Greenpeace

The recent report from Greenpeace USA delves into the significant role played by major Wall Street financial institutions in financing the Bitcoin mining industry and its environmental repercussions. Titled 'Bankrolling Bitcoin Pollution: How Big Finance Supports a New Climate Threat,' the report emphasizes the ecological risks inherent in the support provided by Wall Street and banking entities to Bitcoin mining.

The report highlights the shift of Bitcoin mining from a small-scale venture to a substantial commercial enterprise that necessitates considerable capital investment for infrastructure development and technology acquisition. Despite the environmental consequences, banks and asset managers actively back this industry for financial gains.

A focal point of the report is the Riot Platforms' facility in the U.S., flagged for its substantial carbon emissions in 2022. Referring to data from the Cambridge Bitcoin Electricity Consumption Index (CBECI), Greenpeace reveals that the Riot facility alone discharged 526,000 metric tons of CO2 emissions, equating to the annual emissions from 100,000 U.S. households. Major supporters of this facility include Vanguard, BlackRock, Morgan Stanley, and State Street.

Furthermore, the report identifies Trinity Capital, Stone Ridge Holdings, BlackRock, Vanguard, and MassMutual as key financiers of Bitcoin mining operations. Combined, these institutions accounted for over 1.7 million metric tons of CO2 emissions in 2022, equivalent to the yearly emissions of more than 335,000 American households.

Greenpeace condemns traditional financial corporations for their investments in polluting Bitcoin mining and demands accountability from banks and asset managers, particularly focusing on BlackRock. The report calls for increased transparency regarding climate risks linked to investments and urges financial entities to disclose emissions associated with their backing of Bitcoin mining operations.

The report emphasizes the responsibility of financial institutions to inform shareholders and clients about the risks posed by their investments, highlighting the current lack of vital information concerning the climate risks of Bitcoin. Previous criticisms from Greenpeace regarding BlackRock's sustainability commitments underscore the necessity for financial institutions to align their investments with environmental objectives.