Top 5 Companies Pioneering Sustainable Bitcoin Mining
While Bitcoin opponents cite the Bitcoin network’s high energy consumption as one of their main arguments against the digital currency, Bitcoin miners are increasingly adopting green energy solutions to power their facilities, prompting the Bitcoin mining sector to move towards becoming a pioneer in sustainable energy.
Read on to learn about the environmental concerns surrounding Bitcoin mining and what Bitcoin mining companies are doing to address these issues.
Bitcoin Mining and the Environment: What is the (Perceived) Problem?
Bitcoin mining has been debated among environmentalists, policy makers and technology enthusiasts. Some argue that it is a significant contributor to global warming, while others believe that it is not as big a problem as it has been made out to be.
So, what is the problem with Bitcoin mining and the environment?
First, let’s understand how bitcoin mining works. Bitcoin is a decentralized digital currency, meaning that no government or financial institution controls it. Instead, transactions made with bitcoin are verified and recorded in a public ledger called the Bitcoin Blockchain. For this to happen, Bitcoin miners solve mathematical problems to verify transactions using specialized computers. They earn newly minted bitcoin and transaction fees as a reward for their efforts.
The perceived problem with bitcoin mining is that it consumes large amounts of electricity. According to some (admittedly dubious) estimates, the electricity consumed by bitcoin mining is equivalent to the annual energy consumption of small countries. This has led to the claim that bitcoin mining significantly contributes to global warming.
Is Bitcoin Really an Environmental Villain?
The Cambridge Bitcoin Electricity Consumption Index reports that Bitcoin consumes 122.74 TWh annually, which is only 0.6% of the world’s electricity as of March 2023. Critics claim that Bitcoin uses more electricity than countries like Argentina, but fail to consider that Bitcoin has more users than Argentina has citizens.
In terms of carbon emissions, Bitcoin is not even among the biggest polluters. You have to replace gold mining, air conditioning, the military industrial complex and aviation before you even consider Bitcoin’s carbon footprint.
While Bitcoin’s carbon output has increased since 2018 due to increased usage, alternatives are already being developed.
The reality is that most of the power used to mine bitcoin comes from renewable sources such as wind, solar, water and geothermal energy. In fact, a recent report from CoinShares estimated that 74.1% of bitcoin mining is powered by renewable energy.
Why? Because bitcoin miners, especially in recent years, tend to set up their operations in areas where electricity is cheap and plentiful, often in regions with access to clean, renewable energy sources.
So while there are valid concerns about the environmental impact of bitcoin mining, the perceived problem may be less, some experts argue.
Most of the power used to mine bitcoin comes from clean, renewable sources, and many miners are taking steps to further reduce their carbon footprint.
And since miners are looking to maximize Bitcoin mining profits, they are always looking to find cheaper sources of energy to power their mining machines, leading to innovation in sustainable energy solutions.
The reality of Bitcoin Mining’s move towards sustainable energy
As Bitcoin’s popularity has grown, so has the demand for mining. And with that demand comes a need for energy to run the mining process.
In the past, this energy was often generated by non-renewable sources such as coal and natural gas in China, leading to concerns about the environmental impact of Bitcoin mining.
On the other hand, Bitcoin mining is moving towards sustainable energy, and it happens quickly. Mining farms are now actively looking for ways to reduce their carbon footprint and transition to sustainable energy sources such as hydropower, wind power and solar power.
One of the main drivers behind this shift towards sustainable energy is the growing awareness of the environmental impact of traditional energy sources. Fossil fuel use for energy production has contributed significantly to climate change, and the Bitcoin mining industry is taking steps to reduce its contribution to the problem.
Another development is the emergence of innovative technologies that make Bitcoin mining more energy efficient. For example, using liquid immersion cooling technology can reduce energy consumption by up to 90% compared to traditional air cooling methods.
The move towards sustainable energy is not only beneficial for the environment, but it also makes economic sense for mining companies.
Renewable energy sources such as solar and wind power are becoming increasingly cheaper and more accessible, making them an attractive option for Bitcoin miners. In fact, many mining companies are now located in areas with an abundance of renewable energy, such as Iceland, where geothermal power is readily available.
Finally, the shift towards sustainable energy could potentially change the perception of Bitcoin mining. The industry has been criticized for its high energy consumption and carbon footprint, but by embracing sustainable energy sources, Bitcoin mining can become part of the solution rather than a problem.
With the increasing use of renewable energy sources, innovative energy-efficient technologies and global initiatives to promote sustainability, Bitcoin mining is poised to become more environmentally friendly and cost-effective in the coming years.
5 Companies Making Bitcoin Mining More Sustainable
Let’s look at some of the companies that are making Bitcoin mining more sustainable.
Hive Blockchain Technologies
Hive Blockchain Technologies is a fast growing and sustainable Bitcoin mining company. In March 2022, Hive Blockchain Technologies announced a partnership with Intel Corporation to purchase high-performance ASIC chips to be integrated into purpose-built mining equipment for HIVE. They also plan to host 100 MW of mining capacity by the end of 2023 in a new renewable energy data center in Texas.
The real game-changer for the company is Intel’s Blockscale ASIC, which will be introduced in 2022. Intel Corporation has only made the chip available to a few select customers, and HIVE Blockchain is one of four global customers to receive it. This chip promotes energy efficient hashing for proof of work consensus using green energy, which is in line with HIVE’s sustainability goals and ESG focus.
With its ongoing commitment to sustainability, HIVE Blockchain Technologies is a company to watch in the world of Bitcoin mining.
Marathon Digital Holdings
Marathon Digital Holdings is not only one of North America’s largest Bitcoin mining companies, but also one of the most sustainable. In 2021, the company announced its plan to move its Bitcoin miners from a facility in Montana to locations with more environmentally friendly and non-carbon emission sources.
Their goal was to achieve 100% carbon neutrality by the end of 2022, and to do so, Marathon made a strategic move to transition to more sustainable power sources. CEO Fred Thiel stated that the company is committed to operating the miners sustainably. With the majority of their fleet already planned to be deployed by renewable power plants, it was the perfect time to move away from fossil fuels.
The transition to more sustainable power sources happened gradually through 2022. This is a big step towards Marathon’s mission to build a better future for the environment and the Bitcoin industry.
EZ Blockchain
EZ Blockchain is a Bitcoin mining company established in 2017 to provide hosting solutions for Bitcoin mining data centers. Since then, it has transformed into a vertically integrated mining company that controls all aspects of the power generation cycle. With offices in Los Angeles, Chicago, Houston and other cities across the US, EZ Blockchain provides mining infrastructure for energy companies at the most affordable power prices.
The company aims to combat the world’s energy waste problem by using cryptocurrency mining. As an energy-focused technology firm, EZ Blockchain connects the digital asset sector with the energy industry to maximize energy efficiency by using Bitcoin mining to tackle wasted energy issues.
In 2018, EZ Blockchain began manufacturing mobile data centers that offer large-scale modular data centers. These data centers are built for crypto mining and are designed to run on cheaper energy sources.
Bit farms
Bitfarms is a sustainable Bitcoin mining company that uses clean hydropower to generate energy for mining. The company’s nine facilities are located in the USA, Canada and Paraguay.
By running its mining activities with clean energy, Bitfarms reduces its carbon footprint and helps make Bitcoin mining more sustainable.
In 2021, Bitfarms raised CAD 155 million in equity, a testament to their commitment to sustainable Bitcoin mining and the potential for growth in the coming years.
Cabin 8
Hut 8 is a veteran of North America’s Bitcoin mining scene, having started operations in 2018. As a firm of technical experts, Hut 8 advocates for decentralized systems that drive financial inclusion and sustainability.
Its commitment to clean energy sets Hut 8 apart, demonstrated by the company’s use of nuclear and hydropower to power all of its high-performance data centers across eight Canadian facilities.
With three data mining facilities and five multi-tier data centers, Hut 8 is equipped to handle a wide range of high-performance computing needs. The company serves over 400 commercial Bitcoin mining customers and had 6,115 self-mined Bitcoins as of February 2022.
How Bitcoin Mining Can Become a Driver for Renewable Energy Solutions
Bitcoin mining has been controversial due to its perceived negative environmental impact. However, with recent developments, Bitcoin mining could become a significant driver of renewable energy solutions.
The use of renewable energy sources, such as sun, wind, hydropower and geothermal power, has been increasing in recent years. These sources have become increasingly cost-effective, making them more so attractive to companies and authorities who want to reduce their carbon footprint. Bitcoin mining companies have noticed this trend and are actively and rapidly shifting towards renewable energy sources.
Bitcoin mining can act as a driver for renewable energy solutions because it creates a demand for renewable energy and encourages investment in the development of renewable energy infrastructure. Bitcoin mining is a 24/7 operation, requiring a consistent energy supply to keep the network running. This energy supply can be covered by renewable sources, which can provide a steady supply of power over a long period of time.
As Bitcoin mining continues to grow, it could drive innovation in the renewable energy sector. The need for efficient and cost-effective energy sources to run Bitcoin mining can lead to the development of new technologies and solutions, such as Intel’s Blockscale ASIC chips. These innovations can be applied to other industries, leading to wider use of renewable energy sources.
Furthermore, developing renewable energy solutions for Bitcoin mining can also help bring electricity to remote areas where traditional power sources are unavailable or unreliable. This can have a positive impact on local communities, as it can lead to the creation of jobs and stimulate economic growth.
In the past, sustainable energy has struggled to maintain momentum due to funding constraints. But with the huge capital raising potential in the Bitcoin market, this could be the final push that sustainable energy needs to really take off. So not only is Bitcoin mining driving the shift towards greener energy, but it is also helping to accelerate the development of sustainable energy solutions.
