Mining company Stronghold was fined $1.4 million for violating electricity market rules while mining Bitcoin

ChainCatcher news, mining company Stronghold Digital has violated energy market rules while prioritizing its Bitcoin mining business, agreeing to pay over $1.4 million in fines and refunds.

Stronghold has a contractual obligation to provide available power to the PJM grid to help ensure the reliability of the grid. However, the Federal Energy Regulatory Commission's enforcement office found that Stronghold failed to meet this obligation from June 2021 to May 2022, instead diverting power to its Bitcoin mining operations.

Stronghold and Scrubgrass will repay PJM $678,635 in improperly earned capacity revenue and pay a civil penalty of $741,365 to the U.S. Treasury. The company must also submit compliance reports for at least two years and provide market rules training for its personnel.