Novogratz launches ESG programme to tackle bitcoin’s ‘dirty’ image

Novogratz launches ESG programme to tackle bitcoin’s ‘dirty’ image

Galaxy Digital, the digital assets company owned by billionaire Michael Novogratz, has ramped up its use of renewable energy for crypto mining, after accepting that the industry is failing to convince investors of its green credentials.

In an interview, Novogratz said Galaxy Digital — founded in 2018 with the ambition to become ‘the Goldman Sachs of crypto’ — had already exceeded its target set six months ago to derive 80 per cent of its crypto mining from renewable energy. It had originally planned to hit that point by 2025.

The company is also launching a sustainability programme — thought to be the first in the industry — covering issues including energy use and hiring practices.

“The market wants green mining. Crypto kind of lost a false narrative around it being bad for the environment,” he said. “But because we are losing that narrative, [we thought] let’s just pivot ourselves, and I think that was the right thing to do.”

Bitcoin’s electricity usage and its impact on the environment are among the key barriers for many investors, who say that cryptocurrencies are incompatible with environmental, social and governance obligations due to the energy-intensive process of mining new units of the coin. Advocates, however, argue that