Slimmer margins are driving Bitcoin miners to green energy
About 56% of Bitcoin is now mined using renewable energy, up from 34% three years ago. But the shift isn't because miners are environmental warriors.
In September, Marathon set up a small data centre in an unusual spot: a landfill dump. The world’s largest publicly-listed Bitcoin miner wanted to see if it could use the methane gas generated by the rubbish to power computers that mine cryptocurrency.
The company is calling the pilot project a success. Over 240 days, the operation converted 16.1 million cubic feet of methane into electricity, which powered the Bitcoin mine, according to a report released earlier this month.
The company is promoting this as an environmental win – proof that methane can be captured and utilised instead of being released into the atmosphere. If anything, that is a happy coincidence. The primary concern for miners like Marathon is cost efficiency. The electricity generated was about 60% cheaper than the industry average, according to its report.
Marathon’s junkyard adventure illustrates a shift happening within the entire crypto mining industry. Faced with thinner margins, miners are increasingly seeking cheaper sources of electricity. The most economical option is excess renewable power, where solar, wind, and hydro farms produce more than the grid can absorb. Utilities, often lacking sufficient battery storage, sometimes pay miners to take this surplus energy. More operations, including Australia’s Iren, are capitalising on such "off-grid" energy.
