Alexander Neumueller, Gina Pieters, Kamiar Mohaddes, Valentin Rousseau and Bryan Zhang.
From its origins as a niche technology, Bitcoin has rapidly gained traction, attracting significant institutional interest and sparking debates about its role in the global financial system. The security of this prominent cryptoasset hinges on a global infrastructure of immense scale – a network of specialised computers engaged in a competitive race to solve cryptographic challenges. Understanding this critical infrastructure is paramount, yet challenging. This report, therefore, presents unparalleled insight, offering a focused, industry-specific analysis based on a comprehensive survey conducted by the Cambridge Centre for Alternative Finance (CCAF). Drawing on survey data from 49 digital mining firms (41% publicly listed, 59% privately held), with headquarters in 16 jurisdictions and operations spanning 23 different countries, and capturing nearly half (48%, or 268 EH/s) of the Bitcoin network hashrate at the time of data collection, this study provides contemporary data on the operational intricacies, market dynamics, and environmental impact shaping the industry.
Such comprehensive data is urgently needed as the ecosystem has evolved at breakneck speed, transitioning from hobbyist communities to billion-dollar industrial operations wielding state-of-the-art hardware, drawing gigawatts of power. Despite this impressive growth, the rapid transformation has outpaced transparent, empirical data collection, often leaving policymakers, researchers, and the public reliant on outdated assumptions or anecdotal information. This report directly addresses that gap. By collecting first-hand insights from major mining firms, we offer a timely and granular snapshot of key operational metrics, energy consumption patterns, industry sentiment, and environmental impacts, illuminating the real-world challenges and opportunities within this dynamic sector.
While the evidence presented marks a significant stride in closing the knowledge gap, this study also underscores that it is a crucial starting point for ongoing analysis. Further enquiry is needed in specific areas like methane mitigation and waste-heat recovery, and a complete understanding also demands examining broader societal and economic effects, such as local job creation. Ensuring policymakers have reliable, up-to-date datasets through regular data collection will be critical as digital mining’s future navigates the path between technological innovation and environmental accountability. Ultimately, our hope is that these findings fuel evidence-based debate, guiding stakeholders toward balanced policies that harness the industry’s potential while managing its resource footprint responsibly, using robust data to navigate this emerging frontier.
Key takeaways
1
Mining hardware efficiency continues to improve
Bitcoin mining hardware efficiency saw a 24% year-on-year improvement, reaching an estimated 28.2 J/TH by June 2024.
2
Rising electricity consumption
Estimated annual electricity consumption grew 17% year-on-year to 138 TWh, representing approximately 0.54% of global electricity usage. This consumption growth occurred despite notable energy efficiency gains in mining hardware that partially offset the impact of the network’s rapidly rising hashrate.
3
Electricity costs dominate cash-based expenses of digital mining firms
Electricity accounts for over 80% of miners’ cash-based operational expenses, with reported median costs of $45/MWh (electricity only) and $55.5/MWh (all-in).
4
Concentration of mining activity in North America, with activity in the US booming
Mining activity surveyed is primarily concentrated in North America, with the United States (75.4%) and Canada (7.1%) leading. Yet, it should be noted that particularly strong engagement from US firms likely has led to the country’s share being overstated. Nevertheless, the survey highlights directionally relevant trends such as emerging activity in South America and the Middle East, alongside ongoing operations in Northern Europe, indicating a change in the mining landscape compared to previous estimates.
5
Notable move towards sustainable energy
Surveyed miners reported to mainly utilize sustainable energy sources (52.4%), signifying a marked increase compared to previous estimates (37.6% in 2022), comprising renewables (42.6%) and nuclear (9.8%). Additionally, natural gas (38.2% in 2024 vs. 25.0% in 2022) replaced coal (8.9% in 2024 vs. 36.6% in 2022) as the largest single energy source.
6
GHG emissions estimates highly depend on methodology
Annual GHG emissions are estimated at 39.8 MtCO₂e (~0.08% of global total, comparable to the annual GHG emissions of Slovakia) vs. 69.6 MtCO₂e using an IP-based model. The survey-based figure could potentially range down to 32.9 to 37.6 MtCO₂e when accounting for factors like a mitigating effect of utilising otherwise flared gas. Moreover, 70.8% of miners report actively undertaking climate mitigation measures.
7
Evidence of digital mining firms serving as flexible load
Miners reported to have curtailed 888 GWh of electrical load during 2023, providing evidence of their capacity to potentially serve as large-flexible loads that can offer increasingly relevant ancillary services to grid operators.
8
Hardware market highly oligopolistic, firmware market more fragmented
The ASIC (SHA-256) hardware market is highly oligopolistic, with the largest manufacturer capturing 82% of market share and the largest three controlling more than 99%. In contrast, the firmware market appears more diverse, featuring a mix of stock, third-party, and proprietary solutions.
9
New insights on hardware lifecycle – recycling and secondary use play a major role
Miners reported that a substantial part of their decommissioned hardware units (86.9%) are either resold, repurposed, or recycled. Overall, this study estimates Bitcoin mining-related e-waste at approximately 2.3 kilotonnes for 2024.
10
Energy prices and regulatory uncertainty top miner concerns
Miners’ primary concerns centre on energy price volatility, regulatory uncertainty, and adverse Bitcoin price movements. Their key risk mitigation strategies focus correspondingly on business and geographical diversification, alongside power hedging. Major barriers identified as limiting growth are insufficient deployment capacity and logistical challenges, including hardware supply.
11
Miner projections on BTC price showed to be conservative, their hashrate forecasts turned out to be slightly too optimistic
Miners overall demonstrated an adept ability to project global operational developments by quite accurately anticipating year-end network hashrate, while a tad too optimistic. Their outlook on year-end bitcoin price was also directionally correct, though ultimately slightly conservative compared to the actual market outcome.
12
The future of digital mining
Facing pressure from changing mining economics (rising network difficulty and halvings versus changes in BTC price and rising energy efficiency of hardware), many mining firms are already proactively exploring business diversification strategies (for example: into HPC/AI) to find new, more steady and predictable revenue streams, or explore innovative energy strategies (such as flared gas utilisation, waste-heat recovery, or DSR) to blend more seamlessly into the existing energy system, thereby boosting operational efficiency and potentially opening up new revenue streams.