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Bitcoin Changes the Fracking Narrative for This EFT

The VanEck Vectors Unconventional Oil & Gas EFT (FRAK) is up 40% year-to-date, despite the surge in green energy that’s come down hard on fracking practices.

VanEck Vectors Unconventional Oil & Gas EFT Sees Growth with Bitcoin

Government initiatives and key investor buy-in have recently propelled green energy investments, including Invesco Solar (TAN), iShares Global Clean Energy (ICLN), and others. One-year returns on these stocks have averaged over 120%.

The fracking EFT isn’t sweating this trend, however, because a recent energy rally has FRAK fund up over 100% the past year.

Pivoting to Bitcoin

The bedrock of FRAK’s strength—despite the headwinds of governmental regulation—has been in Bitcoin mining as a flaring mitigation solution. This added a new revenue stream for fracking companies at the perfect time, while also doing away with the flaring practices that governments are cracking down on.

Bitcoin miners and shale companies both benefit from utilizing natural gas that companies are otherwise forced to flare. Instead of burning it, on-site generators convert the gas into electricity to power Bitcoin mining equipment.

This symbiosis comes at a time when Bitcoin, too, has been under pressure because of its energy requirements. With this astute solution to the existing environmental concerns, fracking companies and Bitcoin mining rigs have changed the narrative.

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