Gemini, a leading cryptocurrency exchange run by Cameron and Tyler Winklevoss, has purchased carbon credits to offset the emissions of its Bitcoin holdings. On Thursday, the company announced that it was incorporating climate-consciousness in its long-term initiatives and consequently partnering with Climate Vault, a nonprofit established by the University of Chicago.
Through its collaboration with Climate Vault, Gemini will purchase $4million in carbon credits, which will offset 350,000 metric tonnes of carbon emitted by non-renewable sources of energy used to mine Bitcoin. Gemini intends to continue offsetting its carbon footprint till the Bitcoin network makes a complete transition to renewable energy.
As per the announcement, Gemini will buy the credits directly from cap-and-trade markets and remove them from circulation. This will prevent other companies from claiming these credits for their carbon dioxide emissions and reduce the total supply of carbon permits. Gemini indicates that the subsequent decline in emissions is equivalent to the distance of 1 billion miles covered by a normal car.
The company’s carbon offsets will account for the Bitcoin held by its hot and cold wallets. According to Gemini, its average daily Bitcoin balance has reached 250,843 coins this year.
Gemini’s Green initiative will continue to work towards encouraging sustainable practices in businesses. As part of its efforts, the initiative has pledged $1 million for companies and projects that are environmentally conscious.
The company’s emphasis on a climate-conscious model of operations comes amid inflating concerns about the impact of crypto mining on the environment. As the crypto sector tries to expand its appeal among institutional investors, it must address the subject.
Not long ago, Tesla CEO Elon Musk had expressed his concerns over crypto mining. In mid-May, he announced that his company won’t accept Bitcoin as payment until 50% of the energy utilized by miners is renewable. As a result, the largest cryptocurrency fell sharply and is still struggling to find a stable support level.