Bitcoin treasury company raises eyebrows with latest announcement: ‘Onward and upward’

Japanese bitcoin treasury Metaplanet has secured another $93 million worth of cryptocurrency, according to crypto.news.

This brings Metaplanet’s total holdings to 18,888 bitcoin, collectively worth $1.94 billion at the current market value. 

Cryptocurrency has typically come with major infrastructure and environmental concerns. Blockchain technologies like crypto have intensive processing needs, sometimes high enough to knock out electrical grids. Some crypto businesses have resorted to burning coal to power that processing.

Ultimately, though, the underlying blockchain technology is enticing because it can be applied to far more than just creating speculative assets. It works by computers cross-checking data on a single, shared, public ledger. This enhances the trustworthiness of a given piece of data. 

Fortunately, many operators make a point to lean on renewables. A recent study from the University of Cambridge found that more than 42% of bitcoin mining now depends on renewables, while more than half uses sustainable energy sources, including nuclear.

What’s more, some companies have employed blockchain to validate carbon credits or sustainable materials. Some alternative cryptocurrencies have tried to rely on more energy-efficient algorithms to lower their environmental impact. 

Despite these interesting applications of the technology in the sustainability space, the blockchain still could have a concerning impact if not carefully managed and scaled. One study suggested that every $1 increase in bitcoin value translates into $6 in increased costs from carbon emissions alone. 

Atmospheric pollution contributes to increasingly extreme weather patterns like floods and droughts. These, in turn, have impacts on agriculture and housing costs, among many other negative economic outcomes.  

This is before even looking at the impact of e-waste increases from burned-out mining rigs. One study estimated that bitcoin mining produces as much electronic waste as the Netherlands.

Regardless, Metaplanet intends to continue expanding its bitcoin holdings. It aims to have 30,000 bitcoin by the end of the year, 100,000 bitcoin by 2026, and it hopes to hold 1% of the world’s supply by 2027. It also owns a hotel, which it intends to rebrand with bitcoin themes early next year. 

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“18,888 BTC. Onward and upward,” said Metaplanet CEO Simon Gerovich.

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