An environmental group in Carbon County has lost its effort to shut down a Bitcoin-mining operation constantly using specialty computers powered by its own electric station.
Pennsylvania’s Commonwealth Court last week ruled against Save Carbon County in a fight over the operations of Stronghold Digital Mining and the Panther Creek Plant. SCC’s case says the Panther Creek electric station is polluting the environment in the county and that Pennsylvania officials have let it happen.
Stronghold, which was purchased by Bitfarm this year, burns waste coal and allegedly tires to keep its computers running. The whole operation is a hazard “without contributing any meaningful benefits back to the residents of Carbon Count, but Stronghold’s preliminary objections to the suit say SCC lacks standing to pursue its claims.
The Commonwealth Court agreed, looking at a previous case in which an association of contractors and real estate developers challenged an impact fee imposed by Manheim Township. Some of the association’s members had suffered damages not shared by all members, dooming its standing and leaving individual members free to seek refunds.
“The same issue is presented here,” Judge Michael Wojcik wrote. “(I)t is apparent that the damages allegedly suffered by SCC’s members are individualized.”
SCC can file an amended complaint naming parties that have suffered damages as parties to it. The group is made of about 90 citizens in the area of Nesquehoning.
Stronghold verifies Bitcoin transactions that are added to blocks that need to be verified through the mining process. Each block has a long, unique alphanumeric code, and miners use computers to constantly guess that code, the ruling says.
Mining companies need to have more computers running more often than competitors, which obviously takes a lot of electricity. Stronghold, rather than using the public grid, installed acquired the Panther Creek facility in 2021.
SCC says Panther Creek emits harmful amounts of carbon dioxide, sulfur dioxide, nitrogen oxide and mercury when burning waste coal. Panther Creek also applied for a permit in 2023 to burn tires and has allegedly done so while the approval process is pending.
Claims against Pennsylvania agencies for allegedly letting this happen also failed on standing grounds.
“Absent from the (petition for review), however, are any allegations as to how the Commonwealth Respondents’ alleged failure to perform their fiduciary duties under the (Environmental Rights Amendment) has caused harm to an SCC member,” Wojcik wrote.
“Without more, simply averring that SCC members wish to protect Carbon County’s environment, that members of SCC live near the Panther Creek facility, and that Panther Creek’s operations harm the environment, is not sufficient to confer standing on the organization.”
