Gemini buys carbon credits to offset carbon footprint of Bitcoin it holds
Gemini’s founders, Cameron and Tyler Winklevoss acquired $4-million worth of carbon credits to offset the carbon footprint of the Bitcoin it holds (around 250,843 Bitcoins) in custody. These carbon permits will prevent 341,965 metric tons of carbon from entering the atmosphere.
— Bloomberg Crypto (@crypto) June 24, 2021
This announcement comes in collaboration with Climate Vault, a non-profit founded at the University of Chicago.
According to Gemini’s blog
Gemini plans to purchase carbon permits directly from government-regulated cap-and-trade markets and removed them from circulation. This prevents other market participants from using these carbon permits to emit CO2 and reduces the overall supply of carbon permits.
This falls in line with Gemini Green’s long-term initiative to address ESG concerns. The company also allocated $1 million through the Gemini Opportunity Fund to support companies reach their sustainability potential within the crypto industry.
Tyler Winklevoss, CEO of Gemini stated:
“As Bitcoin emerges as a dominant store of value, it’s imperative that we incorporate sustainability for future generations. We are proud to team up with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonizing of Bitcoin.”
Michael Greenstone, Co-Founder of Climate Vault added,
“Slowing and ultimately reversing the total amount of CO2 entering the atmosphere is vital to preventing disruptive climate change. Climate Vault is providing a simpler, faster, and more reliable path to net-zero emissions, not just for traditional businesses, but now – thanks to Gemini – for the innovative world of cryptocurrency.”
Bitcoin mining’s biggest roadblock has been its carbon footprint concerns. As per Digiconomist, Bitcoin’s energy consumption stood at 131.8 TWh per year. To put it in further perspective, the mining energy used can be compared to the power consumption of Argentina.