Executive Summary
- Cambridge Judge Business School's Centre for Alternative Finance (CCAF) released the Cambridge Digital Mining Industry Report, surveying 49 mining firms across 16 jurisdictions representing 48% of Bitcoin's global hashrate.
- 52.4% of miners now use sustainable energy (up from 37.6% in 2022), with an 86.9% hardware recycling rate.
- Rising mining difficulty and shrinking rewards are pushing miners toward energy innovation and business diversification.
Key Findings
1. Mining Hardware Efficiency Improves
Bitcoin mining hardware energy efficiency grows at 24% annually, projected to reach 28.2 J/TH by June 2024 (lower values indicate better efficiency).
2. Electricity Consumption Climbs
Global mining consumes 138 TWh yearly (0.54% of world’s electricity), up 17% despite efficiency gains.
3. Electricity Dominates Operational Costs
Electricity accounts for 80%+ of miners’ cash-based expenses, with median costs at $45/MWh (*energy-only*) and $55.5/MWh (all-inclusive).
4. North America Leads Mining Activity
The U.S. (75.4%) and Canada (7.1%) dominate, though emerging regions like South America and Northern Europe show growth.
5. Shift Toward Sustainable Energy
- 52.4% of miners use sustainable sources (up from 37.6% in 2022).
- Wind/hydro power: 42.6%
- Nuclear: 9.8%
- Natural gas surpasses coal (38.2% vs. 8.9%).
6. Greenhouse Gas Emissions Vary by Model
Annual Bitcoin mining emissions: ~39.8 MtCO₂e (comparable to Slovakia’s output). 70.8% of miners actively mitigate climate impact.
👉 Explore Bitcoin’s energy debate
7. Mining as "Flexible Load" for Grids
Miners reduced usage by 888 GWh in 2023, demonstrating potential to stabilize grids amid renewable energy fluctuations.
8. Hardware Market Concentration
Top 3 ASIC manufacturers control 99%+ market share, while firmware solutions remain diverse.
9. High Hardware Recycling Rates
86.9% of retired mining gear is reused/resold, though e-waste still reaches ~2,300 metric tons annually.
10. Top Risks: Energy Prices & Regulations
Miners cite electricity volatility, regulatory uncertainty, and BTC price drops as primary concerns.
11. Conservative Price Predictions
Miners accurately forecast hashrate growth but remain cautious on BTC price trends.
12. Industry Pivots to Diversification
Strategies include:
- Expanding into AI/high-performance computing.
- Energy innovations like waste heat recovery and grid-balancing services.
FAQs
Q1: How much energy does Bitcoin mining consume globally?
A: ~138 TWh/year (0.54% of global electricity), per Cambridge data.
Q2: What percentage of miners use sustainable energy?
A: 52.4%, up from 37.6% in 2022.
Q3: Why is hardware recycling important for Bitcoin mining?
A: 86.9% recycling rates reduce e-waste, but ~2,300 metric tons persist annually.
👉 Learn how miners adapt to energy challenges