Composting with coffee is a great way to make use of something that would otherwise end up taking up space in a landfill and composting coffee grounds helps to add nitrogen to your compost pile. If you will be adding used coffee grounds to your compost pile, keep in mind that they are considered green compost material and will need to be balanced with the addition of some brown compost material. The benefit of using coffee grounds as a fertilizer is that it adds organic material to the soil, which improves drainage, water retention, and aeration in the soil. The used coffee grounds will also help microorganisms beneficial to plant growth thrive as well as attract earthworms.

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Source: Gardening Know How