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Bitcoin mining company States Position

Editor’s note: Stronghold Digital Mining is a cryptocurrency asset mining company currently focused on mining Bitcoin. It is a publicly traded company on Nasdaq with its headquarters at 595 Madison Ave., New York City. It has two power plants in Pennsylvania - Panther Creek Power Plant in Nesquehoning and Scrubgrass Plant in Kennerdell. Stronghold has applied to the Pa. Department of Environmental Protection to burn tire-derived fuel as a supplemental fuel at Panther Creek Power Plant.

By Greg Beard, CEO & Chairman Stronghold Digital Mining

Stronghold Digital Mining was founded in Pennsylvania and owns and operates two waste coal reclamation and power facilities, as distinct from regular coal-fired generating stations.

Coal is in our state’s DNA. Unfortunately, waste coal pollution is in our state’s land, air, and waterways. Acid mine drainage (AMD) from waste coal piles is the largest source of water pollution in Pennsylvania. The Pennsylvania Department of Environmental Protection (PADEP) has estimated that over 5,500 miles of streams are degraded by AMD and has reported that approximately 40 piles are continually burning.

Without purpose-built emission-controlled facilities like Panther Creek, waste coal would sit dormant and continue to cause harm. Stronghold’s facilities have cleaned up approximately 2 million tons of waste coal and reclaimed over 1,050 acres of once-blighted land, now sports fields, parks, and fishing spots for the community. Recent third-party studies, including one prepared by a local university in 2023, have found that the reclamation-to-energy industry significantly contributes to the net reduction of greenhouse gasses by permanently remediating the forever emissions from waste coal piles. Without fuel enhancements, used in limited quantities, such as tire-derived fuels (TDF), we would not be able to continue the reclamation process. This is a state legacy problem and there is, we believe, no other solution.

There are inaccurate and dangerous claims that we burn tires in the open. This would lead to uncontrolled fires, emitting more toxins, and becoming breeding grounds for disease carriers like mosquitoes. Panther Creek’s specialized circulating fluidized bed (CFB) process removes greater than 99.9% of particulate emissions when combusting TDF and waste coal, capturing the harmful pollutants in the process. The PADEP has approved this fuel in several other facilities in PA, and the Environmental Protection Agency (EPA) also supports this activity.

Additional facts and corrections:

• Panther Creek’s application is seeking PADEP approval to combust limited amounts of TDF in a well-controlled combustion process by amending an existing permit that has been in place for years. In relation to recent claims that residents can smell tires burning: The last day any TDF was used at Panther Creek was 12/30/2023.

• Stronghold’s facilities use specialized technology to limit emissions and adhere to state and federal laws. Panther Creek’s existing air permit does not allow visible emissions past the facility’s boundaries. Stronghold meets all PADEP requirements regarding the safe combustion and storage of TDF.

• TDF is recognized by the EPA as a valuable fuel with emissions not significantly different from other fossil fuels and with advantages in reduced greenhouse gas emissions compared to other fossil fuels.

• Claims that Panther Creek is not an electrical generating unit and does not supply power to the grid are false. Panther Creek offers power to PJM, and dispatches power when called. The on-demand power it supplies is a vital source of stability in the transition to a more renewable-based grid.

• Electricity generated in the remediation of these piles is classified by the Public Utilities Commission (PUC) as a Tier II renewable fuel, equivalent to a major hydro plant in terms of renewable power generation.

• We employ over 50 people at Panther Creek and many more via jobs connected to Panther Creek. It is disappointing to hear of the intimidation of our truck drivers. These are local people who do not deserve any level of abuse for doing their job, a job which aids the clean-up of waste coal piles and eliminates AMD release in our waterways.

We are proud to clean up substantial piles of waste coal that have long devastated Pennsylvania. Our capacity to continue this impactful work is contingent on the ability to supplement our waste coal with a higher-quality fuel.