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Bitcoin Mining Becomes More Sustainable: Coal Consumption Drops by 43%
According to a report by Newsbit.de, the Bitcoin mining industry has made significant strides in sustainability. Since 2011, coal consumption in Bitcoin mining has decreased by 43%. Back in 2011, 63% of the energy used in mining came from coal, but by 2024, this figure had dropped to just 20%.
The shift towards renewable energy sources is evident, with an annual growth rate of 5.8% in the use of sustainable energy. Miners are increasingly turning to hydropower, wind, and solar energy to power their operations. This trend is particularly notable as it contrasts with the global increase in coal consumption, which reached a record high of 8.8 billion tons in 2024, driven by countries like India, Indonesia, and Vietnam.
Looking ahead, the report outlines five scenarios for Bitcoin's ecological footprint, depending on its price. In a scenario where Bitcoin reaches $250,000, between 59.3% and 74.3% of the energy used in mining is expected to come from sustainable sources (excluding nuclear energy). The report also predicts that the energy demand for Bitcoin mining will peak around 2030, accounting for only 0.4% of global primary energy consumption, even if Bitcoin's price surges dramatically.
“The Bitcoin mining industry is setting an example by moving towards greener energy solutions, even as global coal dependency rises,” the report highlights.
Key Takeaways:
- Coal consumption in Bitcoin mining has dropped from 63% in 2011 to 20% in 2024.
- Renewable energy usage in mining grows by 5.8% annually.
- Global coal consumption hit a record high of 8.8 billion tons in 2024.
Bitcoin Mining Stocks Plunge Due to New Tariffs
Investx.fr reports that the Bitcoin mining industry in the United States is facing significant challenges following the announcement of new tariffs on imports from Asia. These tariffs, ranging from 24% to 37%, have increased the costs of essential mining equipment, which is predominantly manufactured in countries like Indonesia, Malaysia, and Thailand. This has put American mining operators under immense pressure.
Major mining companies such as Marathon Digital Holdings, Riot Platforms, and Core Scientific have seen their stock prices drop sharply. On April 4, 2025, Marathon Digital Holdings closed at $10.75, down 8%, Riot Platforms fell by 7% to $7.035, and Core Scientific dropped by 10% to $6.94. These declines reflect investor concerns about shrinking profit margins in an industry heavily reliant on cost efficiency.
The tariffs have also highlighted the vulnerability of the U.S. mining sector's dependence on Asian imports. Although companies like Bitmain have attempted to diversify by opening factories in the U.S., the majority of their production remains in Asia. This situation has cast doubt on the feasibility of achieving a "Bitcoin made in America" vision, a goal previously championed by former President Donald Trump.
Analysts suggest that miners may need to adjust their strategies, such as renegotiating contracts or accelerating local production, to mitigate the impact of the tariffs. However, the increased costs could force some miners to scale back operations or raise fees, further challenging their competitiveness.
“The dream of a self-sufficient U.S. Bitcoin mining industry is at risk due to these protectionist policies,” the report states.
Key Takeaways:
- New tariffs on Asian imports range from 24% to 37%, increasing equipment costs for U.S. miners.
- Stock prices of major mining companies have dropped significantly: Marathon Digital (-8%), Riot Platforms (-7%), and Core Scientific (-10%).
- The U.S. mining sector's reliance on Asian imports poses a challenge to achieving industrial autonomy.
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