{"id":3230,"date":"2023-01-31T00:00:00","date_gmt":"2023-01-31T00:00:00","guid":{"rendered":"http:\/\/www-prod.greenpeace.org\/usa\/campaign-updates\/3230\/american-financial-institutions-are-providing-a-lifeline-to-bitcoin-while-it-kills-the-climate\/"},"modified":"2024-11-22T05:51:05","modified_gmt":"2024-11-22T05:51:05","slug":"american-financial-institutions-are-providing-a-lifeline-to-bitcoin-while-it-kills-the-climate","status":"publish","type":"post","link":"https:\/\/www.greenpeace.org\/usa\/american-financial-institutions-are-providing-a-lifeline-to-bitcoin-while-it-kills-the-climate\/","title":{"rendered":"American financial institutions are providing a lifeline to Bitcoin while it kills the climate"},"content":{"rendered":"<p><span class='p4descriptive_paragraph'>With Wall Street backing, Bitcoin is likely here to stay. How do we lessen its environmental impact?<\/span><\/p>\n<figure class='wp-block-image size-large p4featured_image'><img src='https:\/\/storage.googleapis.com\/planet4-usa-stateless\/2024\/11\/3a797041-gp0sttutp_medium_res_with_credit_line.jpg' alt='Burning Earth Action in Budapest' \/><figcaption class='wp-element-caption'>Greenpeace Hungary displayed a burning Earth at Heroes\u2019 Square, in Budapest, to call for immediate action in a state of climate emergency. Greenpeace demands the Hungarian government in a petition to act immediately to defend its people.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Between the ongoing <\/span><a href=\"https:\/\/www.nytimes.com\/2022\/11\/10\/technology\/ftx-binance-crypto-explained.html\"><span style=\"font-weight: 400;\">FTX debacle<\/span><\/a><span style=\"font-weight: 400;\"> and widespread talk of a \u201c<\/span><a href=\"https:\/\/wapo.st\/3vWLIpg\"><span style=\"font-weight: 400;\">crypto winter<\/span><\/a><span style=\"font-weight: 400;\">,\u201d the eventual (and potentially imminent) demise of cryptocurrency seems inevitable to some. <\/span><b>But here\u2019s the reality: for better or worse, cryptocurrency is most likely here to stay \u2014 and financial institutions know it.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">American financial institutions like BlackRock, Fidelity Investments, Goldman Sachs, Mastercard, and others offering Bitcoin products are doubling down on their Bitcoin investments in numerous ways \u2014 from purchasing stakes in Bitcoin mining companies to expanding transactional services. But in doing so, these companies also fund coal power, the number one electricity source for energy-hungry Bitcoin mining worldwide. According to <\/span><a href=\"https:\/\/ccaf.io\/cbeci\/index\"><span style=\"font-weight: 400;\">Cambridge Bitcoin Electricity Consumption Index (CBECI)<\/span><\/a><span style=\"font-weight: 400;\">, coal and other fossil fuels (oil and gas) account for almost two-thirds of the total electricity mix (62.4%) for Bitcoin mining &#8211; taking us in the exact opposite direction we need to be going to combat climate change.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These financial institutions want to have it both ways. On the one hand, they present stories to the public about their climate goals and commitments. On the other, they embrace Bitcoin even though it\u2019s contributing to catastrophic climate change.\u00a0<\/span><\/p>\n<p><b>BlackRock<\/b><span style=\"font-weight: 400;\">, particularly, is deepening its climate <\/span><a href=\"https:\/\/blackrocksbigproblem.com\/\"><span style=\"font-weight: 400;\">problem<\/span><\/a><span style=\"font-weight: 400;\"> with a growing stake in Bitcoin. In December 2022, the company provided a $17m <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-12-30\/blackrock-blk-lends-money-to-bankrupt-bitcoin-btc-miner-core-scientific\"><span style=\"font-weight: 400;\">loan <\/span><\/a><span style=\"font-weight: 400;\">to <\/span><a href=\"https:\/\/corescientific.com\/\"><span style=\"font-weight: 400;\">Core Scientific Inc<\/span><\/a><span style=\"font-weight: 400;\">., a Bitcoin mining company that is shoring up climate-wrecking coal power infrastructure throughout <\/span><a href=\"https:\/\/www.reuters.com\/article\/usa-bitcoin-environment\/update-1-insight-coal-to-crypto-the-gold-rush-bringing-bitcoin-miners-to-kentucky-idUKL5N2VO4WT\"><span style=\"font-weight: 400;\">Appalachia<\/span><\/a><span style=\"font-weight: 400;\">. The December loan follows $37.9 million of secured convertible notes to the same company, a <\/span><a href=\"https:\/\/www.forbes.com\/sites\/anthonytellez\/2021\/08\/19\/blackrock-joins-fidelity-and-vanguard-as-a-bitcoin-mining-investor\/?sh=305577002738\"><span style=\"font-weight: 400;\">6.71% stake in Marathon Digital Holdings (MARA), and 6.61% of Riot Blockchain<\/span><\/a><span style=\"font-weight: 400;\"> (RIOT). BlackRock also <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-08-11\/blackrock-offers-bitcoin-investing-to-big-institutional-clients?cmpid=BBD102722_crypto&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=221027&amp;utm_campaign=crypto\"><span style=\"font-weight: 400;\">offers<\/span><\/a><span style=\"font-weight: 400;\"> Bitcoin investments to institutional investors, all despite their commitment to achieving <\/span><a href=\"https:\/\/www.blackrock.com\/us\/individual\/about-us\/road-to-net-zero#\"><span style=\"font-weight: 400;\">net-zero greenhouse gas emissions<\/span><\/a><span style=\"font-weight: 400;\"> by 2050.\u00a0<\/span><\/p>\n<p><b>Fidelity Investments<\/b><span style=\"font-weight: 400;\"> has also <\/span><a href=\"https:\/\/www.forbes.com\/sites\/anthonytellez\/2021\/08\/04\/fidelity-buys-74-of-bitcoin-mining-company-marathon-digital-holdings-across-multiple-funds\/?sh=fe5eb9f26f2c\"><span style=\"font-weight: 400;\">invested in Bitcoin mining<\/span><\/a><span style=\"font-weight: 400;\">, offers <\/span><a href=\"https:\/\/www.cnbc.com\/2022\/11\/04\/fidelity-forusall-offering-401k-investors-access-to-cryptocurrency.html\"><span style=\"font-weight: 400;\">Bitcoin products<\/span><\/a><span style=\"font-weight: 400;\"> to millions of their 401(k) customers, and has plans to debut a retail <\/span><a href=\"https:\/\/www.fidelity.com\/crypto\/trading?%7bimm_pid=700000002638647&amp;immid=100927_SEA&amp;imm_eid=ep74219676426%7d&amp;utm_source=GOOGLE&amp;utm_medium=paid_search&amp;utm_account_id=700000002638647&amp;utm_campaign=CRY&amp;utm_content=58700008019681936&amp;utm_term=fidelity+bitcoin&amp;utm_campaign_id=100927&amp;utm_id=71700000100016972&amp;gclid=Cj0KCQiAiJSeBhCCARIsAHnAzT_iEqFw8V87uzk7QcrXhqAW1ltYBywyT_l1s7rSXL2kWow6DTpLWSMaAqS_EALw_wcB&amp;gclsrc=aw.ds\"><span style=\"font-weight: 400;\">crypto trading platform<\/span><\/a><span style=\"font-weight: 400;\"> despite their claims of <\/span><a href=\"https:\/\/www.fidelity.com\/mutual-funds\/investing-ideas\/sustainable-investing\"><span style=\"font-weight: 400;\">sustainable investing<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both <\/span><a href=\"https:\/\/www.goldmansachs.com\/our-commitments\/sustainability\/sustainable-finance\/our-operational-impact\/2025-operational-commitments\/\"><span style=\"font-weight: 400;\">Goldman Sachs<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.mastercard.com\/news\/press\/2021\/january\/mastercard-pledges-net-zero-emissions-innovates-for-collective-climate-action\/\"><span style=\"font-weight: 400;\">Mastercard <\/span><\/a><span style=\"font-weight: 400;\">are also expanding their stake in Bitcoin despite pledges for net-zero emissions by 2050. <\/span><b>Goldman Sachs <\/b><span style=\"font-weight: 400;\">has begun trading <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/06\/18\/bitcoin-goldman-sachs-ramps-up-trading-in-partnership-with-mike-novogratz-galaxy-digital.html\"><span style=\"font-weight: 400;\">Bitcoin futures with Galaxy Digital<\/span><\/a><span style=\"font-weight: 400;\">, while <\/span><b>Mastercard<\/b><span style=\"font-weight: 400;\"> is offering Bitcoin transaction <\/span><a href=\"https:\/\/www.mastercard.us\/en-us\/business\/issuers\/grow-your-business\/crypto.html\"><span style=\"font-weight: 400;\">services<\/span><\/a><span style=\"font-weight: 400;\"> for its commercial customers despite stating in its <\/span><a href=\"https:\/\/www.mastercard.us\/content\/dam\/public\/mastercardcom\/na\/global-site\/documents\/mastercard-sustainability-report-2017.pdf\"><span style=\"font-weight: 400;\">2017 Corporate Sustainability Report<\/span><\/a><span style=\"font-weight: 400;\"> that &#8220;new research shows that cryptocurrencies like Bitcoin are inherently more energy-intensive than Mastercard&#8217;s payment network.&#8221;\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These Wall Street firms are likely to be <\/span><a href=\"https:\/\/www.forbes.com\/sites\/billybambrough\/2023\/01\/13\/fear-and-greed-why-the-huge-bitcoin-and-crypto-price-pump-could-be-just-getting-started\/?sh=36763df9de10\"><span style=\"font-weight: 400;\">followed by others<\/span><\/a><span style=\"font-weight: 400;\">, potentially unleashing more Bitcoin products that could spur more mining and keep dirty power plants in operation. <\/span><span style=\"font-weight: 400;\">Some financial companies are even becoming miners <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-01-12\/as-loan-defaults-surge-crypto-lenders-plug-in-miners-repossessed-bitcoin-rigs?cmpid=BBD011223_crypto&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=230112&amp;utm_campaign=crypto\"><span style=\"font-weight: 400;\">by repossessing rigs backed by their loans<\/span><\/a><span style=\"font-weight: 400;\"> to the mining companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Along with these companies&#8217; varied financial interests in Bitcoin is the growing climate risk on their balance sheets. The U.S. Securities and Exchange Commission (SEC) <\/span><a href=\"https:\/\/www.sec.gov\/news\/press-release\/2022-46\"><span style=\"font-weight: 400;\">proposed mandatory rules on disclosing climate-related information<\/span><\/a><span style=\"font-weight: 400;\">. With increased scrutiny from regulators and customers, companies denying that investments and services for Bitcoin are contrary to their climate commitments or ESG principles are in a no-win situation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It does not have to be this way. Financial institutions looking to capitalize on risky, climate-wrecking cryptocurrencies can instead bring their clout and resources to the growing movement calling for a Bitcoin code change and invest in what matters most: a low-carbon sustainable economy and a thriving planet. It\u2019s time to call on BlackRock, Fidelity Investments, and other Bitcoin backers to divest from climate-wrecking mining operations and publicly call for Bitcoin to change its code and end energy-hungry mining.\u00a0\u00a0<\/span><\/p>\n<p><b>Ready to get involved in the Change the Code movement? <\/b><span style=\"font-weight: 400;\">We\u2019re going after the major financial institutions that prop up Bitcoin and calling on them to join us \u2013 starting with Fidelity Investments<\/span><b>.<\/b> <a href=\"https:\/\/engage.us.greenpeace.org\/ck8bt3hblUuZHRmQpPVcfQ2\"><b>Sign our petition to tell Fidelity Investments to publicly demand a change to Bitcoin&#8217;s code so it stops fueling the climate crisis!<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Between the ongoing FTX debacle and widespread talk of a \u201ccrypto winter,\u201d the eventual (and potentially imminent) demise of cryptocurrency seems inevitable to some. But here\u2019s the reality: for better&hellip;<\/p>\n","protected":false},"author":65,"featured_media":8270,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"ep_exclude_from_search":false,"p4_og_title":"","p4_og_description":"","p4_og_image":"","p4_og_image_id":"","p4_seo_canonical_url":"","p4_campaign_name":"","p4_local_project":"","p4_basket_name":"","p4_department":"","footnotes":""},"categories":[209],"tags":[50],"p4-page-type":[31],"class_list":["post-3230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-campaign","tag-bitcoin","p4-page-type-campaign-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.9 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>American financial institutions are providing a lifeline to Bitcoin while it kills the climate - Greenpeace<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.greenpeace.org\/usa\/american-financial-institutions-are-providing-a-lifeline-to-bitcoin-while-it-kills-the-climate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"American financial institutions are providing a lifeline to Bitcoin while it kills the climate\" \/>\n<meta property=\"og:description\" content=\"Between the ongoing FTX debacle and widespread talk of a \u201ccrypto winter,\u201d the eventual (and potentially imminent) demise of cryptocurrency seems inevitable to some. 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