tl;dr
Bitcoin mining's energy consumption rose 17% year-over-year to 138 TWh, with over 50% sourced from renewables like hydropower and wind, despite natural gas remaining the largest single source at 38.2%. The US dominates the mining hash rate at 75.4%, followed by Canada at 7.1%. Mining hardware is con...
Bitcoin mining's energy consumption increased by 17% year-over-year, reaching 138 terawatt-hours (TWh), with over 50% of this energy sourced from renewables such as hydropower and wind. Despite this shift, natural gas remains the largest single energy source, accounting for 38.2% of consumption.
The United States dominates the global mining hash rate, contributing 75.4%, followed by Canada at 7.1%. Mining hardware production is highly concentrated, with Bitmain commanding an 82% market share and the top three manufacturers—Bitmain, MicroBT, and Canaan—controlling over 99% of the market. Efficiency improvements are notable, with ASIC devices becoming 24% more efficient, now operating at 28.2 joules per terahash. Additionally, electronic waste from mining remains controlled; about 86.9% of decommissioned hardware is recycled or repurposed, totaling approximately 2.3 kilotonnes of e-waste.
Electricity costs constitute over 80% of mining expenses, averaging $55.50 per megawatt-hour. Miners face economic pressures from halving events, energy price volatility, and regulatory uncertainties. To sustain profitability, they employ strategies like diversification, geographic expansion, and power hedging. However, hardware supply chain bottlenecks and limited deployment capacity limit industry growth.
New revenue streams are emerging as the mining industry adapts. Firms are expanding into artificial intelligence computing services and investing in sustainable energy projects. Initiatives include gas flaring mitigation, waste heat recovery, and demand response programs to better integrate with power grids. Approximately 70.8% of miners actively engage in climate mitigation, signaling a sector-wide commitment to sustainability.
Overall, Bitcoin mining is evolving toward a more diversified and eco-conscious operational model, balancing technological advancement with environmental responsibility and economic realities.