Alliance Resource Partners (ARLP), a coal mining company based in the US, has announced that it successfully mined 425 Bitcoin valued at $30 million by utilizing excess energy from its operations, as stated during its first-quarter earnings call.

However, Daniel Batten, a crypto environmentalist, argues that ARLP's shift to Bitcoin mining could potentially damage the environmental image associated with the leading digital asset. He remarked, "Bitcoin mining companies have transitioned away from coal usage. However, it seems coal mining companies are still engaging in Bitcoin mining. Regardless, this move doesn't contribute positively to altering the environmental perception surrounding Bitcoin."

In recent years, Bitcoin mining firms have increasingly turned to renewable energy sources, with over half of their energy consumption coming from sustainable sources. ARLP's entry into the Bitcoin mining arena may reignite concerns among critics regarding the environmental impact associated with the sector.

ARLP's Chief Financial Officer, Cary Marshall, disclosed that the company embarked on its Bitcoin mining venture through a pilot project initiated in 2020, tapping into surplus power generated from its operations at the River View mine. Marshall clarified, "At the end of the quarter, we possessed around 425 Bitcoin, obtained through our mining operations. We aren't purchasing Bitcoin directly; instead, we're mining it using our existing miners."

Additionally, Marshall revealed that the company maintains financial stability by periodically selling a portion of its Bitcoin holdings to cover operational costs. During the first quarter of this year, ARLP mined approximately 69 BTC, with 25% of them sold to cover expenses.

CEO Joe Craft emphasized ARLP's cautious approach to Bitcoin mining, ensuring limited exposure to Bitcoin by selling acquired assets to offset expenses. Moreover, the company leases surplus capacity to other Bitcoin miners, leveraging its data center infrastructure to capitalize on low energy costs.

Despite this, ARLP aims to mine up to 190 BTC by year-end, with Marshall stating, "Our projections for the full year indicate mining around 175 to 190 Bitcoin. We'll monetize a portion of this to cover operating expenses, resulting in a net yield of approximately 60%."