How Renewable Energy is Transforming the Bitcoin Mining Industry

At the World Digital Mining Summit (WDMS) in Hong Kong on Sept. 22, Bitmain unveiled its latest Antminer S21 and S21 Hydro ASIC miners, which boast a hash rate of 200 TH/s and 335 TH/s respectively, and an efficiency of 17.5 J/T and 16 J/T. These figures are particularly impressive given that most Bitcoin ASICS have been operating in the 20 J/T range.

With the Bitcoin halving projected to occur in April 2024 and electricity costs continuing to rise, miners are increasingly focused on ASIC efficiency and incorporating renewable energy sources into their operations.

Bitcoin miners focus on efficiency and renewable energy

The importance of sustainable development in the mining industry was highlighted in most of the panels at the WDMS. During the opening roundtable, representatives from Terrawulf, Core Scientific, CleanSpark and Iris Energy shared their opinions on how the integration of renewable energy sources will be an essential strategy for miners after the Bitcoin supply halving in April 2024.

Nazar Khan, COO of Terrawulf, said:

Due to the halving, miners will have to keep their capital and operational costs the same, while also paying back any loans, while their block reward will be reduced by half.

Therefore, miners will either have to increase their hash rate derived from sustainable energy sources or make changes to their ASIC fleet to remain or become profitable.

When asked about the Antminer XP 21 and its effects on the mining industry, BMC founder Justin Kramer said:

Speaking of the exciting features of the new S19 XP, Kramer commented that:

Bitcoin is en route to becoming an ESG asset

The notion that Bitcoin mining is bad for the environment and the industry’s reliance on carbon-based energy production accelerates emissions has been challenged by Bitcoin miners and BTC advocates in recent years.

Haitian Lu, professor in accounting and finance at Hong Kong Sustaintech Foundation, bluntly stated that:

Lu argued that “Bitcoin mining has become more efficient and is also using cleaner energy. Our history shows that as human development progresses from an agricultural society to industrialization to the future of a digitalized economy, energy consumption per capita increases. What makes the difference is our ability to use renewable energy, thus achieving sustainable development.”

Similarly to other panelists, Lu stated that Bitcoin miners’ participation in demand response agreements with power producers and distributors leads to energy grid efficiency, and they “provide an economic incentive for the promotion and development of renewable energy projects.”

The efficiency advancements of next-generation ASICs like the Antminer S21 not only reduce miners’ energy consumption, but also allow them to boost their profits.