TLDR: Bitcoin mining leverages 52.6% sustainable energy, making it an appealing ESG investment.
Bitcoin mining has been a topic of controversy in recent years due to concerns over its environmental impact. A 2020 study by Cambridge University found that only 39% of Bitcoin mining was powered by renewable energy sources. However, a more recent study by the Bitcoin Mining Council (BMC) contradicts this finding, revealing that 52.6% of Bitcoin mining is fueled by sustainable energy.
The BMC was established in May 2021 by a group of North American Bitcoin miners who are committed to promoting transparency and sustainability in the industry. The council’s first report, released in July 2021, provides a detailed analysis of the energy consumption and sources used by Bitcoin miners in North America.
According to the report, the majority of Bitcoin mining in North America is powered by renewable energy sources, including hydropower, wind, solar, and geothermal. Hydropower is the most common source of energy used, accounting for 56% of the total energy mix. Wind and solar energy follow at 28.9% and 7.2%, respectively. Geothermal and natural gas account for the remaining 2.4% and 4.6%.
These findings are in direct contrast to the Cambridge study, which found that 62% of the world’s Bitcoin mining was powered by non-renewable energy sources, with coal being the most common source. The difference in results can be attributed to the fact that the BMC report focuses solely on North American Bitcoin miners, while the Cambridge study looks at the global Bitcoin mining industry.
The BMC report’s findings have significant implications for investors who are interested in Environmental, Social, and Governance (ESG) investing. The report reveals that Bitcoin mining is not as environmentally damaging as previously thought, and a significant portion of the industry is powered by renewable energy sources.
As the world becomes increasingly concerned with reducing carbon emissions and transitioning to sustainable energy sources, companies that operate with ESG principles in mind are becoming more attractive to investors. The BMC report suggests that Bitcoin mining can be one such investment, as long as miners continue to prioritize sustainability and transparency in their operations.
In conclusion, the recent report from the Bitcoin Mining Council contradicts previous studies by revealing that the majority of Bitcoin mining is fueled by sustainable energy. The findings are significant, as they demonstrate that Bitcoin mining can be a viable ESG investment opportunity for investors who prioritize sustainability and transparency. As the industry continues to evolve, it will be interesting to see how Bitcoin miners adapt to the changing landscape of sustainable energy.