A cryptocurrency company is departing from the London Stock Exchange as part of a restructuring plan. The move could have lasting effects on the future of crypto.
According to TipRanks, Argo Blockchain announced in October that it would delist from the exchange. As a result, shareholders’ equity will be diluted, dropping to a 2.5% stake.
Additionally, leaving the stock exchange will alter Argo’s reporting requirements, per the outlet. The move may also impact regulatory protections, trading, and tax consequences for shareholders.
Argo Blockchain focuses on large-scale mining powered by clean energy, making it a unique industry player, per TipRanks. It’s also the first climate-positive crypto company that aligns with the Crypto Climate Accord.
That said, crypto has been controversial, with many highlighting the negative impacts of the mining process.
For instance, a study by the United Nations University found that in one year, bitcoin produced air pollution equal to burning 84 billion pounds of coal or 190 gas power plants.
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The Natural Resources Defense Council put it another way: One bitcoin consumes the same amount of resources and releases the same amount of pollution as 330,000 credit card transactions.
However, some experts believe that crypto could help the planet through environment-focused projects. Forbes outlined an example where a crypto company awarded coins to solar producers for every energy unit generated.
Some blockchain companies, like Argo, have decided to take environmental concerns into their own hands. By using 100% hydropower (clean energy) at its Baie Comeau facility, it generates less pollution than others.
Another major player in the industry, ethereum, recently switched to a proof-of-stake system to validate transactions, resulting in a 99.95% reduction in energy use.
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A third company decided to put all the energy that goes into crypto transactions to good use by training artificial intelligence models, which are also resource-intensive.
Regardless, what happens to a more planet-focused company like Argo could be a sign for what’s to come for the industry’s green initiatives.
As the UN University study lead, Kaveh Madani, said, the environmental impacts of crypto should “encourage us to invest in regulatory interventions and technological advancements that improve the efficiency of the global financial system without harming the environment.”
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