Overview of Sustainable Energy Use
According to a recent analysis by The Bitcoin ESG Forecast, sustainable energy use for Bitcoin (BTC) mining hit a record high of 54.5% in 2023, marking a 3.6% increase over the year. The study compared Bitcoin’s sustainable energy mix with data from other industries over the past four years and revealed that Bitcoin mining is now the largest consumer of sustainable energy among subsectors.
- The industry has made significant progress in increasing its reliance on sustainable energy sources, surpassing other global sectors.
- One notable finding was the use of off-grid Bitcoin mining powered by methane emissions. Certain mining companies have started utilizing vented methane to generate electricity, mitigating 7.3% of emissions without offsets.
“The Bitcoin network now mitigates 7.3% of its emissions without relying on offsets,” – The Bitcoin ESG Forecast
Furthermore, advancements in off-grid renewable mining, such as Tether’s hydro mining expansion in Latin America, have further contributed to Bitcoin’s shift towards sustainable energy sources. Following mining bans in China and Kazakhstan, many miners have transitioned to greener grids in North America or sustainable off-grid locations.
Preparing for the Bitcoin Halving Event
With the 2024 Bitcoin halving event on the horizon, leading cryptocurrency miners are gearing up for significant transformations. Asset manager CoinShares’ analysis identifies Riot (NASDAQ: RIOT), TeraWulf (NASDAQ: WULF), and CleanSpark (NASDAQ: CLSK) as well-positioned companies to navigate the challenges ahead.
- The Bitcoin halving event, scheduled for April 2024, will halve the block reward for miners, reducing the rate of new Bitcoin creation and implementing a deflationary policy.
- Post-halving, production costs and cash costs per Bitcoin are projected to rise substantially, necessitating miners to expand their operations to maintain profitability.
“[…] we think Riot, TeraWulf, and CleanSpark are best positioned going into the halving,” – CoinShares
