Data Collection

The measurement component of the Monitoring, Reporting, and Verification (MRV) framework for BEC methodology is designed to accurately quantify and report the GHG emissions associated with Bitcoin production. By adhering to the GHG Protocol and leveraging blockchain technology, we ensure the integrity, transparency, and reliability of our emissions data. This foundational step supports our broader sustainability goals, enabling the issuance of Bitcoin Emissions Certificates that contribute to the reduction of Scope 3 emissions for investors.

Measurement Objectives

The primary objective of the measurement process is to quantify the carbon emissions associated with the production of Bitcoin at our mining facilities. This process is integral to the creation of Bitcoin Emissions Certificates (BECs), which represent the carbon intensity of Bitcoin and enable investors to report lower scope 3 emissions.

Measurement Scope

The measurement scope includes all direct (Scope 1) and indirect (Scope 2 and Scope 3) GHG emissions associated with the Bitcoin mining operations. Given the nature of our operations, the focus is predominantly on Scope 2 emissions, which are the indirect emissions from the consumption of purchased electricity, heat, or steam.

Data Collection and Analysis

Energy Consumption

The foundation of our measurement process is the detailed tracking of electricity consumption, as this directly correlates to our GHG emissions. Our data collection methodology involves:

• Real-time Monitoring: Implementing advanced monitoring systems to track energy consumption in real-time at each mining facility.

• Supplier Data: Collaborating with energy suppliers to obtain accurate and timely data on the carbon intensity of the supplied electricity.

Renewable Energy Certificates (RECs)

Our approach includes the utilization of Renewable Energy Certificates (RECs) to offset our carbon footprint, similar to the attribute certificates in the power sector. The purchase and retirement of RECs are documented and verified, ensuring that they are only counted once towards our sustainability goals.

GHG Emissions Calculation

Emissions are calculated using the GHG Protocol’s Corporate Standard, incorporating both the location-based and market-based methods for Scope 2 emissions:

• Location-Based Method: Calculates emissions based on the average carbon intensity of the grid.

• Market-Based Method: Reflects the emissions from electricity that companies have specifically chosen, considering any renewable energy certificates (RECs) or power purchase agreements (PPAs).

Production Data

Mining pools collect data on the hashrate produced by each miner in the pool, as well as the Bitcoin subsidy and transaction fees paid out to them for their mining activity. This information is used to calculate the payouts owed to each miner, which are typically distributed on a regular basis according to the pool's payout schedule. By tracking the hashrate and payout data, mining pools can gain insights into the performance of their miners and adjust their payout policies and other operations as needed to optimize their profitability and maintain a fair and sustainable mining ecosystem.

Reporting Period

The MRV process is conducted regularly, aligning with the fiscal year of our operations. This periodic assessment allows for the generation of quarterly BECs, reflecting the carbon intensity of Bitcoin produced during the specified audit period.