Sphere 3D Corp (NASDAQ: ANY) surged 60.5% after signing an Agreement and Plan of Merger with Gryphon Digital Mining. The companies agreed to purchases around 250,000 Certified Emission Reductions (Credits) on a 50:50 basis subject to closing conditions.
Sphere 3D and Gryphon partner on carbon neutrality
The credits will allow Gryphon to become the first carbon-negative crypto miner, in addition to supporting ESG obligations in reaching net-zero emissions for the parties. The sales are contingent on the seller having verification from the UNFCCC. Under the United Nations Framework Convention on Climate Change (“UNFCCC”) regulations, the seller is in the process of finalizing verification CERs for the renewable energy facility. This process will be completed by Q4 2021.
With this credit purchase, the companies will remain carbon negative for the next five years, based on the size of existing operations. According to BlueSource, any organization’s carbon emissions come from one of three sources: direct ownership of the source of emissions (Scope One), operating facilities contributing to emissions (Scope Two), or other emissions produced through supplier chains, worker travels, and so on (Scope Three).
Gryphon to offset Scope Two and Three carbon emission
The carbon offset credits will be vital in offsetting emissions from Scope Two and Three activities such as foreign shipping of bitcoin mining machines, personnel travel, meals at corporate meetings, and other miscellaneous activities.
Rob Chang, Gryphon Digital Mining CEO, said that they recognize that carbon emissions are caused by more than just the energy consumption at the company. Therefore even though the company is already 100% renewable, there is still a need for more. The credits are steps Gryphon is taking towards sustainability. Chang said they believe that rather than merely sustaining themselves, global ecosystem members should try to improve the environment by.