Crypto market maker GSR goes carbon neutral, including for its bitcoin mining business

Quick Take

  • Crypto market making firm GSR has committed to making its whole business carbon neutral through carbon credits.
  • Half of its bitcoin mining operations are already powered by hydroelectricity; it will use carbon credits to offset the other half.

Crypto market-making firm GSR has committed to using carbon credits to make its entire business carbon neutral, according to an announcement Thursday.  This will also include its recently launched bitcoin mining business, which is already powered in part by hydroelectric energy.

Hong Kong-based GSR is one of the oldest liquidity providers in the crypto space. According to the firm, it provides more than $1 billion in liquidity per day for more than 50 crypto protocols and some of the biggest crypto exchanges. It said it has 500 institutional clients and is involved in the over-the-counter market for cryptocurrency options trading.

The firm has been steadily growing its bitcoin mining operations since they began in the first half of 2020. While the firm declined to state its current hash rate, or computing power, according to previous reporting by The Block, its custom trading products created for miners produced an annualized run rate — projected yearly revenue — of $250 million by the end of 2020.

To offset its carbon emissions, GSR has partnered with environmental platform MOSS, which uses blockchain technology to make carbon credits easier to buy. MOSS works by turning its carbon credits into MCO2 tokens on the Ethereum blockchain. When these tokens are bought and burned (sent to an inaccessible address), this offsets 1 ton of CO2, according to the company.

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