Bitcoin miner Greenidge Generation has filed a lawsuit against the New York Department of Environmental Conservation (DEC) over licensing issues.

According to an Aug. 15 court filing , the company is seeking a court order after the DEC denied its Title V air permit application for its Dresden power generation and mining facility.

The lawsuit

The DEC had declined to renew the Title V air permit in June 2022, citing noncompliance with the Climate Leadership and Community Protection Act.

Greenidge’s appeal against the decision was rejected in May 2024. However, the company was given a four-month grace period to continue operating under the existing permit until Sept. 8.

Greenidge asserts that the DEC’s decision was “arbitrary and capricious.” The company argued that the DEC exceeded its authority, encroaching on the New York State Public Service Commission’s jurisdiction over electricity-generating facilities and ignoring the New York Independent System Operator’s process.

The company further argued that the regulator's decision to close the facility was based on its involvement in cryptocurrency mining, despite its role in supplying electricity to the grid. Greenidge also highlighted the facility's positive impact on the state's economy, including job creation and tax revenue that supports the county's budget.

Greenidge declared that if the DEC's decision isn't reversed, they will be forced to close their facility and cease operations by September 9th.

Greenidge emphasizes on their website that their Dresden facility provides clean and reliable energy to New York's power grid, enough to power up to 20,000 homes and businesses as of 2020.

Greenidge’s operations

The Dresden plant is a crucial element of Greenidge's operations, supporting power production, cryptocurrency mining, and data center hosting services. Greenidge also has operations in South Carolina, Mississippi, and North Dakota.

Greenidge reported $13.1 million in revenue during the second quarter, with $4.8 million generated from their own mining operations and $6.6 million from hosting cryptocurrency data centers. The company also earned an additional $1.5 million from power and capacity services.

Overall, Greenidge generated $32.4 million year-to-date, primarily from their cryptocurrency data center operations. Their CEO Jordan Kovler stated:

“The actions we took in the first half of 2024 have built a solid foundation that allows Greenidge to grow efficiently moving forward as we continue to expand our business. This quarter, we delivered on our promises to significantly reduce administrative costs, increase our power capacity, and secure and build new locations with low energy costs where we can deploy our own mining equipment.”