Why Square And Cathie Wood's Ark See Bitcoin Environmental Concerns As Unfounded

Cathie Wood-led Ark Investment Management and digital payment company Square Inc. SQ have teamed up to dispel the notion that Bitcoin (BTC) mining is damaging the environment.

What Happened: Ark Investment and Jack Dorsey-led Square released a whitepaper arguing that Bitcoin mining provides an opportunity to spur the global energy transition to renewables by serving as a complementary technology for clean energy production and storage.

“Combining generation with both storage and miners presents a better overall value proposition than building generation and storage alone,” the companies noted.

The companies believe that Bitcoin miners as a flexible and easily interruptible load option could likely solve the intermittency and grid congestion problems hampering the deployment of solar and wind energy, which are now the cheapest energy sources in the world.

The combination of miners with renewable and storage projects could improve the returns for project investors, allow for the construction of solar and wind projects even before the completion of lengthy grid interconnection studies, and provide the grid with readily available “excess” energy, according to the paper.

“The bitcoin and energy markets are converging and we believe the energy asset owners of today will likely become the miners of tomorrow,” the companies concluded.

Square is heavily invested in Bitcoin. Cathie Wood is also bullish on cryptocurrencies and has acquired shares in cryptocurrency exchange Coinbase Global Inc. COIN, which recently made its debut on the Nasdaq stock exchange.

See Also: Cathie Wood Loads Up Heavily On Debutant Uipath, Trims Tesla

Why It Matters: The release of the research paper comes amid arguments that Bitcoin causes tons of carbon emissions and environmental degradation.

Bank of America analyst Francisco Blanch criticized Bitcoin in March, noting that the Bitcoin network emits about 60 million tons of CO2 annually, roughly the same carbon footprint as the nation of Greece.

For every $1 billion of fresh inflow into bitcoin, Blanch estimates the cryptocurrency will generate additional CO2 levels equivalent to about 1.2 million cars with internal combustion engines.

Microsoft Corporation MSFT founder Bill Gates has also expressed concerns about Bitcoin’s impact on climate change, noting in February that the cryptocurrency “uses more electricity per transaction than any other method known to mankind.”

Read Next: Why Buying A Tesla With Bitcoin Isn't Really A Good Idea — For Now

Posted In: ARK Investment ManagementBitcoinBlockchainCathie WoodenvironmentGreen EnergyJack DorseyCryptocurrencyNewsMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.