Amid recent financial setbacks and growing concerns over the environmental impact of cryptocurrency mining, Bitcoin (BTC) miners are looking for innovative ways to reduce costs and operate sustainably.
Bitcoin mining is an energy intensive process, making power the biggest expense for mining operations.
In order to address this issue, mining companies are seeking low-cost power sources to remain profitable and competitive, with renewable energy becoming the preferred choice for its cost-effectiveness and environmental benefits.
Steven Lubka, the managing director of Swan Bitcoin, a Bitcoin-focused financial services company, said that the average cost of mining a single Bitcoin is around $26,000.
However, mining companies that utilize renewable energy sources are witnessing costs ranging from $5,000 to $15,000 per BTC.
Riot Blockchain, a publicly traded Bitcoin mining company based in the United States, said wind and solar energy generated in Texas allow them to achieve some of the lowest mining costs.
The company said in its Q2 investor deck that they spend $8,389 to mine 1 Bitcoin.
According to Kent Halliburton, president and chief operating officer of Sazmining, a hosted Bitcoin mining provider, electricity has always been the biggest expense for mining operations.
Halliburton explained that Bitcoin miners are naturally motivated to find the lowest-cost power, and renewable energy sources often provide excess electricity that is a perfect fit for mining.
Data from the Bitcoin Mining Council indicates that 59% of mining operations are carbon-free, with this number growing at a rate of nearly 4.5% per year.
Halliburton emphasized that all of Sazmining's mining operations in Wisconsin and Paraguay utilize excessRead more on cryptonews.com