A recent study from Cambridge University reveals notable changes in the energy sources powering Bitcoin
$
95,042 mining. The research, conducted by the Cambridge Judge Business School’s Alternative Finance Centre (CCAF), shows that the sustainable energy share increased from 37.6% in 2022 to 52.4% in a short period. Data compiled from 49 mining companies operating in 23 countries point to a significant evolution in the energy mix, operational costs, and environmental considerations of the industry.
Energy Mix Shift
The report highlights a dramatic shift in the energy mix used in Bitcoin mining. In 2022, coal contributed 36.6% of the electricity production used in mining, but by 2024 its share had plummeted to 8.9%. Concurrently, natural gas usage rose sharply from 25% to 38.2%, positioning it as the primary source of energy. Renewable sources, specifically hydropower and wind, now account for 42.6% of the energy mix, complemented by nuclear power’s 9.8% contribution.
Cost Efficiency and Sustainability
The study details how improvements in hardware efficiency, despite a 24% annual gain, have not fully mitigated the high energy costs dominating operational expenses. Electricity represents over 80% of the total costs, with companies reporting an average payment of 45 dollars per megawatt-hour and an overall cost of 55.50 dollars per megawatt-hour.
Environmental considerations remain paramount as the Bitcoin network’s annual electricity consumption reaches 138 terawatt-hours—roughly 0.5% of the global total. Reported greenhouse gas emissions stand at 39.8 megatons of CO2 equivalent, urging the need for additional measures to reduce the environmental footprint of mining operations.
In response to electronic waste challenges, about 86.9% of cryptomining companies either sell, reuse, or recycle their outdated hardware. The anticipated production of 2.3 kilotons of electronic waste in 2024 has prompted some companies to diversify their revenue streams by adopting applications in artificial intelligence and high-performance computing sectors.
A striking feature of the study is its reliance on direct data gathered from industry professionals, replacing previous speculative assessments. Researchers call for further analysis into methane reduction, heat recovery, and job creation, emphasizing the need for a more holistic understanding of the mining sector’s environmental impact.
Bitcoin Mining
The report also revisits the case of Tesla, which once planned to accept Bitcoin for vehicle sales after acquiring significant BTC holdings. However, environmental concerns—especially the reliance on high-emission coal—led to a suspension of Bitcoin payment options. Despite holding approximately 11,509 BTC valued at around 1.1 billion dollars, Tesla has yet to clarify its future payment strategy.
