With recent market turmoil and increasing concerns around crypto’s environmental impact, bitcoin mining companies are seeking innovative ways to cut costs and “go green.”
Bitcoin mining is an energy-intensive process, making electricity the number one expense for operations. To stay profitable amid market headwinds, miners are tapping low-cost renewable power sources like solar, wind, and hydropower.
“Miners are economically motivated to find the cheapest power possible,” said Kent Halliburton, COO of bitcoin mining firm Sazmining. Renewables often provide excess capacity well-suited for mining.
Per Steven Lubka of Swan Bitcoin, the average cost to mine a Bitcoin is around $26,000, but with renewables, it can be $5,000-$15,000. Riot Blockchain claimed its Texas wind and solar facilities achieve some of the world’s lowest mining costs at $8,389 per coin.
Sazmining runs entirely on excess hydroelectricity in Wisconsin and Paraguay, Halliburton noted. Data shows that 59% of mining is carbon-free and growing nearly 5% annually.
The renewable shift appears an enduring trend for sustainable miners. Sabre56 works with dozens of miners, housing 2,200 rigs at its Wyoming facility, which utilizes substantial renewable power. The forced-air design leverages natural airflow for cooling.
OceanBit takes a novel approach by integrating mining into its planned ocean thermal energy plants. Co-founder Michael Bennett said ocean thermal’s vast potential as an electricity source could scale globally when combined with mining.
Some miners do utilize controversial sources like waste coal. But the economics continue driving the adoption of renewables. With costs high and scrutiny rising, miners are getting creative in pursuit of cheap, clean power.
