Bitcoin Mining Shifts to Sustainability as Costs Rise and US Leads Global Expansion

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30.04.2025 110 times read 3 Comments

Over 50 Percent of Bitcoin Mining Now Powered by Sustainable Energy

According to a study by Cambridge University, the share of sustainable energy sources in the Bitcoin mining industry has risen to 52.4 percent. This marks a significant increase compared to the 37.6 percent reported in a 2022 study by the same institution. Of the sustainable energy used, 9.8 percent comes from nuclear power, while 42.6 percent is derived from renewable sources such as wind and hydropower.

The study also highlights a shift in the use of fossil fuels: natural gas has overtaken coal as the primary energy source for Bitcoin mining. Natural gas usage increased from 25 percent in 2022 to 38.2 percent, while coal usage dropped from 36.6 percent to 8.9 percent in the same period. The findings are based on a survey of 49 mining companies, including Bitfarms, CleanSpark, Hut 8, IREN, MARA, and Riot.

Cambridge University estimates the annual electricity consumption of Bitcoin mining at 138 TWh, which is about 0.5 percent of global consumption. The associated emissions are 39.8 megatons of CO₂. Additionally, 86.9 percent of decommissioned hardware is resold, reused, or recycled. Bitcoin and environmental analyst Daniel Batten commented, “Cambridge has just politely destroyed the myth of Bitcoin e-waste.”

“Cambridge has just politely destroyed the myth of Bitcoin e-waste.” – Daniel Batten

The report also formally recognizes the ability of Bitcoin mining companies to help stabilize power grids and reduce renewable curtailment. Cambridge’s analysis concludes that miners contribute both to grid stability and to reducing the curtailment of renewable energy sources.

Energy Source 2022 (%) 2024 (%)
Sustainable (total) 37.6 52.4
Renewables n/a 42.6
Nuclear n/a 9.8
Natural Gas 25.0 38.2
Coal 36.6 8.9
  • Annual electricity consumption: 138 TWh
  • CO₂ emissions: 39.8 megatons
  • 86.9% of hardware is reused or recycled

Summary: The Cambridge University study, as reported by BTC Echo, demonstrates a clear trend toward sustainability in Bitcoin mining, with over half of the industry now powered by sustainable energy sources and significant improvements in hardware recycling and grid stabilization.

ZA Miner Launches Free Cloud Mining Platform for Bitcoin and Dogecoin

ZA FUNDINGS LTD has introduced a new cloud mining service, allowing users to mine Bitcoin (BTC) and Dogecoin (DOGE) online without the need for physical equipment, fees, or technical expertise. The platform, now available through ZA Miner’s Dogecoin mining service, enables individuals to start mining by simply creating an account online. Upon registration, new users receive a $100 mining contract, which initiates the mining process without any hardware setup or technical experience required.

Mining activities on the platform focus on Bitcoin, Dogecoin, and Litecoin (LTC), with daily earnings automatically credited to users’ accounts. ZA Miner’s infrastructure is located in energy-efficient regions such as Kazakhstan and Iceland, chosen for their affordable and sustainable energy sources. This supports the company’s goal of operating with a reduced environmental impact by utilizing renewable energy where possible.

A representative from ZA Miner stated that the platform was designed to remove traditional barriers to cryptocurrency mining, such as high equipment and electricity costs and technical complexity. The process is straightforward: users create an account, claim the $100 bonus mining contract, and monitor their rewards through a secure dashboard. Security features include SSL encryption, anti-DDoS protection, and a referral system that offers commissions for inviting new participants.

  • No hardware or upfront investment required
  • $100 mining contract for new users
  • Mining of BTC, DOGE, and LTC
  • Daily earnings credited automatically
  • Infrastructure in Kazakhstan and Iceland for energy efficiency
  • Security features: SSL, anti-DDoS, referral commissions

Summary: As reported by FinanzNachrichten.de, ZA Miner’s new platform makes passive crypto income more accessible, especially for those without prior experience or significant capital, while emphasizing sustainability and user security.

Phoenix Group Expands Bitcoin Mining Capacity to Over 500 Megawatts Worldwide

The Phoenix Group has expanded its Bitcoin mining capacity in Ethiopia by 52 megawatts, bringing its total capacity in the country to 132 megawatts and its global capacity to over 500 megawatts. This strategic expansion strengthens the Phoenix Group’s position as one of the leading companies in the global Bitcoin mining sector. The decision to expand in Ethiopia follows a previous agreement to purchase 80 megawatts of electricity, marking the company’s entry into the Ethiopian market.

The new site is being developed in two phases. The first phase activates 20 megawatts of capacity with 5,300 highly efficient air-cooled mining units, delivering 1.2 exahashes per second (EH/s). The second phase, expected to be completed by the end of Q2 2025, will add 32 megawatts with hydro-cooling technology, doubling the site’s hash rate to 2.4 EH/s.

Over 90 percent of the energy powering Phoenix Group’s Ethiopian operations comes from the Grand Ethiopian Renaissance Dam, one of Africa’s largest renewable hydropower sources. This positions the site as one of the most sustainable large-scale Bitcoin mining projects worldwide. Reza Nedjatian, CEO of Phoenix Mining, AI & Data Centers, stated, “With 132 megawatts of clean hydropower now operational in Ethiopia, we are proud to set a new standard for green mining in Africa.”

  • Global mining capacity: over 500 MW
  • Ethiopia site: 132 MW (20 MW air-cooled, 32 MW hydro-cooled by Q2 2025)
  • Hashrate: 1.2 EH/s (phase 1), 2.4 EH/s (phase 2)
  • Over 90% of energy from renewable hydropower

Summary: According to it boltwise, Phoenix Group’s expansion in Ethiopia not only increases its global capacity but also sets a benchmark for sustainable, large-scale Bitcoin mining, leveraging renewable hydropower for over 90 percent of its operations in the region.

Bitcoin Mining: An Expensive Endeavor in Today’s Market

The era when Bitcoin mining was considered a lucrative investment appears to be over, as new data reveals that the costs of mining a single Bitcoin have soared, calling the profitability of the practice into question. In the United States, the cost of mining one Bitcoin exceeds $137,000, while in Germany, the cost is nearly $200,000 per Bitcoin. These figures raise doubts about whether mining remains worthwhile.

The rising costs are attributed to several factors, including increased electricity prices in many countries and the need for ever more powerful hardware to keep up with the growing difficulty of mining calculations. Even large mining companies like CoinShares are questioning the profitability of their business models. The geographical location of mining farms also plays a significant role, with high electricity prices in countries like Germany making mining particularly unprofitable. Many companies are attempting to relocate to regions with cheaper electricity, but this is not always feasible due to other factors such as political stability and infrastructure availability.

For individuals, Bitcoin mining is hardly an option anymore, as competition from large mining centers is too strong and the investment in necessary hardware and infrastructure is unaffordable for most. The future of Bitcoin mining remains uncertain, with hopes that technological advances may improve efficiency and reduce costs, but it is unclear if these developments will be sufficient to restore profitability.

Country Cost per Bitcoin (USD)
USA 137,000+
Germany ~200,000
  • Electricity prices and hardware requirements are key cost drivers
  • Relocation to cheaper regions is not always practical
  • Mining is mainly viable for large companies with access to cheap energy and advanced technology

Summary: As reported by it boltwise, the current state of Bitcoin mining is marked by high costs and diminishing profitability, making it largely inaccessible for individuals and challenging even for established companies.

USA Establishes Itself as a Leading Center for Bitcoin Mining

The United States has emerged as a major center for Bitcoin mining in recent years, driven by access to affordable energy and the migration of mining companies from China. According to the “Cambridge Digital Mining Industry Report” by Alexander Neumueller of the University of Cambridge Judge Business School, 75.4 percent of mining activities in North America are concentrated in the USA. This development is supported by the availability of capital markets and attractive energy sources.

Access to cheap energy is crucial for competitiveness in Bitcoin mining, as electricity costs account for about 80 percent of miners’ operating expenses. The USA offers a mix of renewable energy sources such as wind and hydropower, as well as nuclear energy, which together make up 52.4 percent of the energy used for mining. Natural gas is the largest energy source at 38.2 percent, while coal has dropped to 8.9 percent.

Major publicly traded mining companies like Riot Platforms and Mara Holdings are based in the USA and are experiencing rapid growth, benefiting from favorable energy supplies and capital market support. The annual electricity consumption related to Bitcoin mining has increased by 17 percent to 138 terawatt-hours, representing 0.54 percent of global electricity consumption. The introduction of Bitcoin ETFs in January 2024 has further increased investor interest and the availability of the cryptocurrency on the market.

Region Share of Mining Activities (%)
USA (North America) 75.4
  • Electricity costs: ~80% of operating expenses
  • Energy mix: 52.4% renewables and nuclear, 38.2% natural gas, 8.9% coal
  • Annual electricity consumption: 138 TWh (0.54% of global consumption)
  • Growth driven by capital markets and energy availability

Summary: As detailed by it boltwise, the USA’s dominance in Bitcoin mining is underpinned by access to affordable and diverse energy sources, strong capital markets, and the migration of mining operations from China, positioning the country as a global leader in the sector.

Sources:

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Really interesting article and some solid info in the comments too. I do wanna pick up on what @CryptoTom said earlier about the ZA cloud mining thing, cause that’s something I’ve actually tried myself (not ZA specifically but a couple of similar platforms). Honestly, I kinda agree it sounds almost too easy, and some people got burned on cloud mining scams before, so I’d just say people should double check if they ever decide to throw real money into these things. The $100 free bonus is cool and all, but I always wonder where that money comes from in the first place, y’know?

That being said, I do think the concept – making mining more accessible for folks who can’t afford massive setups or don't have crazy cheap electricity – is pretty neat. Especially in places where mining on your own is literally impossible cause power is so expensive.

Also, big plus that they say the servers are located in “energy efficient” regions like Iceland, where a lot of the power grid actually is green hydro or geothermal. If only more companies would follow that lead and stop setting up shop in places with dirty coal energy, maybe the whole industry wouldn’t have such a bad rep for the environment. Still, like, until more data comes out by third parties about how much of this cloud mining is really on renewables, I’m keeping a bit of a skeptical eye.

Either way, pretty wild how much the market keeps shifting – just last year people were moaning about e-waste and now they’re pointing at Cambridge studies saying it’s not as bad. Next year probably another headline, haha.
Ok so i been reading thru the coments, n nobody talk abot germany yet so i just gonna say sumthing. Like whys it cost sooo much for mineing bitcoins over ther??? $200,000 for 1BTC is deff way to mutch, i guess cause they got like real high eletrisity fee's over there or taxes idk. I herd germany try to be green but at same time its real hard for them , their power grid not so strong or maybe lot of wind but wind dont always blow rite lol??

And with the cost bein so hi idk how ANYONE can even make profit unless you runnin the minin rigs outa ur garage n the police dont find out or somethin. Probly companys just movin rigs to ethiopea now if its so cheep and has hydro dam for the power, pretty wild, like that 500 forgot the rest megaWATTS for Phoenix in Ethipia is more then hole city mayb. Dunno if germany mining people r just gonna all close up shop or what, caus how u gonna compete with U.S. an ethio pia and kazackstan all havein low prices and clean electricty? Or maybe soon germans make super computer to use like 5% energy n still beat china lol.

One thot : If most the used minin hardware is recyceld like what they say (86%+ is ALOT).... then why people keep sayin its a waste landfill problem, i mean 13% probly is bad, but like all the rest get turned into, idk, tvs or car radios or sumthin?

Also, no1 say much bout the ETF thing in america but for me i dont realy get it why everybody there belives btc gonna go up becaus "ETF" letters, is that got to do with mining or just people tradeing coins on wall street now. Srry guys if my qstion sounds dumb tho, just tryna get it cleer.

In the end just crazy how much math needs to go into power bills, hardware, miners moving countries and what country even wants all this elektricity use anyway... maybe in future theyll jus use 100% solar panels on satilites and beam power down lmao.
The part about mining helping stabilize power grids is actually pretty interesting—never really thought about how the demand could even out some of the fluctuations from renewables, maybe that could be a plus for local energy networks if it’s scaled right.
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