Jack Dorsey’s Square plans to invest $10 million to promote the adoption of green energy in the Bitcoin mining industry.
According to an official press release from today, U.S.-based financial services company Square has launched a new initiative for the firm to become net-zero carbon for operations by 2030.
As a part of the plan, the Jack Dorsey-led company will allocate $10 million to its Bitcoin Clean Energy Investment Initiative, which intends to fund companies that drive adoption and research into the use of green energy for Bitcoin mining operations.
Bitcoin is often criticized for its heavy electricity usage, which makes mining an expensive business. A 2019 study evaluated Bitcoin’s total carbon output as similar to that of some small countries.
As the Bitcoin mining sector becomes more competitive, major miners are moving to areas that are already producing surplus energy to maximize profit margins.
Although miners are progressively using green energy for their operations, Square is looking to speed up the change. The company plans to reinvest the profit generated into the project to expand the initiative.
The company’s co-founder and CEO, Jack Dorsey, said they believe that Bitcoin mining will someday be powered entirely by clean energy, ruling out its carbon footprint and driving the adoption of renewables globally.
Square hopes to reduce its impact on the environment by spanning its carbon removal portal, which will launch in early 2021. The company has already laid out its path towards a neutral carbon footprint.
Given that Square has financial interests in Bitcoin, its environmental commitment is targeted at one of the cryptocurrency’s biggest controversies.
As a financial company, Square allows its clients to make payments via their mobile devices. Square is also the firm behind CashApp, a popular app that allows clients to buy and sell BTC.
Square regards Bitcoin as a unique part of its footprint. The firm buys the cryptocurrency on behalf of CashApp clients.
The company also recently became one of the first publicly-traded companies to adopt Bitcoin as a treasury reserve asset. This move wasn’t unexpected as Dorsey has always been a Bitcoin advocate.
The CEO has mentioned many times that bitcoin will ultimately become the native currency of the internet.