Hydropower Surges Ahead in Bitcoin Mining's Energy Mix

Bitcoin mining's energy mix has shifted towards cleaner sources, according to recent research from the Cambridge Centre for Alternative Finance. Hydropower has overtaken natural gas as the largest power source, making up 59.4% of total electricity use. This change is partly due to increased participation in the survey, which now represents over half of the global Bitcoin hashrate.

The study found that while overall electricity consumption rose by 38%, carbon emissions grew at a slower pace of 20%. This reduced growth rate is attributed to the increasing share of low-carbon energy sources, including renewables and nuclear power. Hydropower's growing importance is partly driven by new hydroelectric generation in countries like Ethiopia.

While many mining companies are considering diversification into artificial intelligence (AI) and high-performance computing (HPC), few have made the move so far. Almost 90% of surveyed miners expect AI and HPC to become more common in the industry, but interest alone should not be viewed as a firm commitment.