Bitcoin Mining Goes Green: Over Half Now Powered by Sustainable Energy

Cambridge researchers drop a bombshell: 52% of Bitcoin’s energy mix now comes from renewables. Take that, fossil fuels.

The mining industry’s pivot to hydro, wind, and solar accelerates—just as Wall Street naysayers claimed it couldn’t be done. Guess those ESG reports need updating.

Meanwhile, traditional finance still burns coal to power fax machines and settle trades at glacial speeds. Progress looks different when you’re not stuck in 1985.

Natural Gas Overtakes Coal as Top Energy Source for Bitcoin Mining

Natural gas has now overtaken coal as the largest energy contributor to Bitcoin mining, with usage rising to 38.2%, compared to 25% in 2022.

Coal’s share, meanwhile, has fallen sharply to 8.9% from 36.6%.

The report is based on a survey of 49 mining companies operating in 23 countries, representing about 48% of the Bitcoin network’s total hashrate.

Participating firms included Bitfarms, CleanSpark, Hut 8, IREN, MARA, and Riot.

The study estimates Bitcoin’s total electricity consumption at 138 TWh annually—roughly 0.5% of global energy usage—and calculates carbon emissions at 39.8 megatonnes, with a 24% year-over-year improvement in hardware efficiency.

The study also found that miners are taking steps toward sustainability beyond energy sourcing.

52.4% of the electricity powering global Bitcoin mining is from zero emission sustainable energy sources, according to new research by Cambridge University. pic.twitter.com/Mwd0EUXh4f

About 86.9% of decommissioned mining hardware is either resold, repurposed, or recycled, with Bitcoin mining producing around 2.3 kilotonnes of electronic waste in 2024.

In terms of geography, North America dominates the sector, with the U.S. accounting for 75.4% of activity and Canada for 7.1%.

Electricity remains the primary cost driver for miners, making up over 80% of operational expenses, with a median reported power cost of $45 per MWh.

The report also noted that Bitcoin miners contributed to grid stability, curtailing 888 GWh of electrical load in 2023 to assist during peak demand periods.

Cambridge Calls for More Research on Bitcoin Mining Impacts

The CCAF acknowledged that further research is needed into areas like methane mitigation, heat reuse, and broader social impacts such as employment effects.

“By offering data from nearly half the global mining network, we aim to ground policy discussions in transparent evidence,” said Alexander Neumueller, Research Lead at CCAF.

The report comes as Bitcoin mining’s environmental impact remains a hotly debated topic.

A recent Harvard-led study claimed U.S. Bitcoin mining worsened air pollution, but it has faced criticism from energy experts who argue it relied on flawed methodologies and outdated data.

The United States became a global leader in Bitcoin mining following China’s 2021 crackdown on the crypto industry.

With cheap electricity and strong capital markets, American mining firms quickly gained dominance, and the election of pro-crypto President Donald Trump initially fueled Optimism for continued growth.

However, recent developments are casting a shadow over that momentum.

At the heart of the issue is the U.S. mining sector’s dependence on imported equipment from Southeast Asia.

Countries like Thailand, Malaysia, and Indonesia manufacture the majority of mining machines used in the U.S.

These machines are now facing steep tariffs of up to 36% under a new Trump administration trade policy, although the implementation has been temporarily paused for 90 days.