While the Bitcoin network now consumes more power than entire nations to process transactions, the latest data reveals an industry rapidly transforming through staggering efficiency gains, massive geographic shifts, and an accelerating march toward sustainable energy.
Key Takeaways
- As of October 2023, the global Bitcoin mining hashrate reached 450 EH/s, driven by increased adoption of efficient ASICs like the Bitmain Antminer S19 XP Hydro which offers 255 TH/s at 5304W power consumption
- In Q2 2023, the average Bitcoin mining difficulty adjusted to 48.75 trillion, reflecting a 5.2% increase from the previous quarter due to miner competition
- By July 2024, over 60% of Bitcoin's hashrate originated from the United States following the exodus from China post-2021 ban
- In 2023, Bitcoin mining consumed 121 TWh annually, equivalent to the electricity usage of the Netherlands
- Average energy cost for miners was $0.045/kWh globally in Q2 2024, with US Texas hubs at $0.03/kWh
- Hydro-powered mines in Canada used 60% of their energy from renewables, consuming 15 TWh yearly
- The average price of an Antminer S19 was $5,200 in Q1 2023, down 60% from 2021 peak due to oversupply
- Bitmain shipped over 100,000 S21 units in Q1 2024, each delivering 200 TH/s at 17.5 J/TH
- MicroBT Whatsminer M53S+ launched at 286 TH/s for $18,000, capturing 25% market in 2024
- Bitcoin mining revenue peaked at $50 billion annually in 2021 bull run
- Post-2024 halving, daily mining revenue dropped 50% to $30M from block rewards
- Marathon Digital reported $387M revenue in 2023, holding 15,000 BTC
- Bitcoin mining emitted 85 MtCO2e in 2023, comparable to Czechia's annual output
- Sustainable mining share reached 54% of hashrate using renewables in 2023
- Methane abatement from flared gas mining avoided 1.2 MtCO2e in Texas 2023
Bitcoin mining has become more efficient and centralized in the United States.
Economics
- Bitcoin mining revenue peaked at $50 billion annually in 2021 bull run
- Post-2024 halving, daily mining revenue dropped 50% to $30M from block rewards
- Marathon Digital reported $387M revenue in 2023, holding 15,000 BTC
- Average daily miner profit margin was 45% pre-halving 2024 at $0.07/kWh costs
- Public miners' market cap reached $25B in Q1 2024, up 200% YoY
- Transaction fees contributed 20% of revenue in 2023 Ordinals boom, $5B total
- Breakeven price for miners averaged $28,000/BTC post-halving 2024
- Core Scientific's 2023 EBITDA was $100M despite bankruptcy filing
- Global mining capex hit $10B in 2023 for hardware expansions
- Riot Platforms mined 6,500 BTC in 2023, revenue $280M at avg $35k price
- Miner sell pressure added 900 BTC/day to exchanges in bear 2022
- Hut 8's revenue grew 150% to $150M in 2023 via hosting deals
- Hashprice metric fell to $0.045/day/PH/s post-halving from $0.09
- CleanSpark held $120M cash reserves end-2023 for farm builds
- Total miner-held BTC supply was 1.9M or 9% of total in Q2 2024
- Bitfarms' all-in cash cost per BTC was $21,000 in Q1 2024
- Public miners issued $2B debt in 2023 for capex amid low equity prices
- Daily block reward value was $18M pre-halving 2024 at $65k BTC price
- TeraWulf's gross margin hit 55% in 2023 with low-cost nuclear power
- Miner capitulation index dropped below 0.5 in 2023 bull recovery
- Hive Blockchain mined 2,800 BTC in 2023, revenue $140M CAD
- Hosting revenue for colocation grew 300% to $500M industry-wide 2023
- Average miner ROI was 6 months at peak 2021, stretched to 18 months 2023
- Compass Mining's customer rigs generated $50M fees in 2023
- Post-China ban, miner migration cost industry $1B in relocation 2021-2022
- Luxor Services' firmware revenue from 100k rigs hit $20M in 2023
- Miner equity issuances diluted shares by 20% average in 2023 raises
- Bitcoin mining ETF inflows indirectly boosted miner stocks 50% in 2024
- Average fleet utilization was 92% for top miners in 2023 uptime
Economics Interpretation
The mining industry’s epic 2021 revenue party collided with the sobering 2024 halving math, revealing a high-stakes, capital-intensive business where billion-dollar expansions, slim post-halving margins, and strategic Bitcoin hoards coexist in a relentless race for efficiency and survival.
Energy
- In 2023, Bitcoin mining consumed 121 TWh annually, equivalent to the electricity usage of the Netherlands
- Average energy cost for miners was $0.045/kWh globally in Q2 2024, with US Texas hubs at $0.03/kWh
- Hydro-powered mines in Canada used 60% of their energy from renewables, consuming 15 TWh yearly
- Post-halving 2024, mining electricity costs rose 20% to represent 35% of total OPEX
- Texas ERCOT grid supplied 25 TWh to Bitcoin miners in 2023, peaking at 2 GW demand
- Global mining energy intensity improved to 25 J/TH from 35 J/TH in 2022 via efficient ASICs
- Iran's miners consumed 700 MW illegally, equating to 6 TWh annually before 2021 crackdown
- Marathon Digital's energy use hit 15 TWh in 2023 across 5 data centers
- Flared gas mining in Texas utilized 1.5 TWh in 2023, reducing methane emissions by 500k tons
- Average miner power efficiency reached 18 J/TH for S19 XP in 2023 deployments
- Kazakhstan's energy shortage cut mining power from 18% to 4% of global consumption in 2022
- Riot Platforms consumed 8.7 TWh in 2023 at Rockdale facility with 700 MW capacity
- Nuclear-powered mining in Pennsylvania used 2 TWh from Talen Energy in 2024
- Bitcoin mining's share of global electricity was 0.5% in 2023, down from 1.2% peak
- CleanSpark's 100% renewable energy policy consumed 4 TWh hydro/solar in 2023
- Average daily energy use per Bitcoin transaction was 1,173 kWh in 2023 estimates
- China's pre-ban mining used 75 TWh in 2020, 65% of global total
- Bitfarms utilized 90% hydropower consuming 10 TWh across Paraguay/Argentina in 2023
- US miners' energy curtailment programs saved 500 GWh in grid peak hours 2023
- Whatsminer M60S efficiency at 17.5 J/TH reduced energy needs by 20% for 186 TH/s output
- Global mining carbon intensity dropped to 475 gCO2/kWh in 2023 from 600 in 2021
- Core Scientific's Denton site peaked at 500 MW draw, 4 TWh annual in 2023
- Geothermal mining in El Salvador consumed 0.5 TWh from volcano power in 2023 pilot
- Miner breakeven electricity price averaged $0.052/kWh post-halving 2024
- Russia's cheap hydro supplied 5 TWh to miners at $0.02/kWh average in 2023
- Hive Blockchain's Nordic data centers used 7 TWh wind/hydro blend in 2023
- S21 Hydro miner's 15 J/TH set new efficiency record consuming 5360W for 335 TH/s
- Africa’s mining energy grew 300% to 2 TWh in 2023 led by Kenya solar farms
- TeraWulf's 100% zero-carbon energy used 3 TWh nuclear/hydro in NY/PA 2023
- Bitmain Antminer S19j Pro at 29.5 J/TH powered 40% of 2022 energy consumption
- In 2023, top ASIC models like S19 XP reduced fleet-wide energy by 25% YoY
- Bitcoin miners in Texas demanded 11% of ERCOT capacity during 2023 summer peaks
Energy Interpretation
Bitcoin mining is a voracious yet adaptable beast, gulping energy on a national scale but increasingly driven by cheap power and smarter machines, proving its critics right about the appetite while showcasing an industry scrambling to evolve.
Environment
- Bitcoin mining emitted 85 MtCO2e in 2023, comparable to Czechia's annual output
- Sustainable mining share reached 54% of hashrate using renewables in 2023
- Methane abatement from flared gas mining avoided 1.2 MtCO2e in Texas 2023
- Water usage for air-cooled miners averaged 10 L/TH/s hourly in hot climates 2023
- Bitcoin network's carbon footprint per transaction was 500 kgCO2 in 2023 estimates
- 40% of US mining used wind power, offsetting 5 MtCO2 annually in 2023
- E-waste from obsolete ASICs reached 20,000 tons in 2023 globally
- Hydro mining in Quebec reduced emissions by 90% vs coal baselines, 10 Mt saved 2023
- Geothermal Bitcoin mining in Iceland emitted 10 gCO2/kWh vs global 475 avg
- Solar-powered farms in Texas generated 2 GWh daily, cutting 1,500 tons CO2/day
- Miner tree-planting initiatives offset 500k tons CO2 via 10M trees in 2023
- Noise pollution from farms averaged 80 dB, regulated below 70 dB in EU 2023
- 76% of mining energy was sustainable per Bitcoin Mining Council Q4 2023
- Landfill e-waste recycling rate for ASICs improved to 60% in 2023 programs
- Kenya's stranded energy mining avoided 100k tons methane flaring 2023
- Carbon credits from miners traded $50M in 2023 via Verra registry
- Wildlife impact studies showed minimal bird disruption from solar farms <1%
- Paraguay hydro dams supplied 15% hashrate with zero marginal emissions 2023
- Heat recapture from immersion cooling heated 1,000 homes in Sweden 2023
- Global water cooling shift reduced usage 70% vs air cooling standards 2023
- Nuclear mining in PA emitted 12 gCO2/kWh, best low-carbon option 2023
- Ordinals increased tx energy 20% temporarily, +10 MtCO2 in early 2023
- BMC verified 60 GW renewable capacity backing mining in 2023 survey
- Abandoned Chinese rigs caused 5,000 tons e-waste export to Malaysia 2022-23
- Wind curtailment utilization by miners saved 2 MtCO2 in US grids 2023
- El Salvador volcano mine used 100% geothermal, zero emissions for 0.2 EH/s
- Miner biodiversity funds planted mangroves offsetting coastal impacts 2023
- Annual sulfur hexafluoride leaks from substations minimal at 0.1 tons 2023
- 35% emissions reduction via chip efficiency gains 2020-2023 per Cambridge
Environment Interpretation
The Bitcoin mining industry is a chaotic yet earnest student in the environmental classroom, earning an A for effort with renewables and innovation on one side of its report card, while still being scolded for its substantial carbon footprint and e-waste on the other.
Hardware
- The average price of an Antminer S19 was $5,200 in Q1 2023, down 60% from 2021 peak due to oversupply
- Bitmain shipped over 100,000 S21 units in Q1 2024, each delivering 200 TH/s at 17.5 J/TH
- MicroBT Whatsminer M53S+ launched at 286 TH/s for $18,000, capturing 25% market in 2024
- Canaan Avalon A1466 offered 150 TH/s at 20 J/TH, used in 15% of new deployments 2023
- Used S9 miners flooded secondary markets at $100/unit in 2023, still hashing 10 TH/s
- Goldshell CK6 for Kadena but adapted for BTC sidechains at 19.3 TH/s sold 5,000 units 2023
- Ebang Ebit B21+ at 100 TH/s 20.5 J/TH priced at $3,500 boosted small farm setups
- Innosilicon T3+ 52T reached end-of-life with 80,000 units scrapped in 2023 for efficiency
- Marathon's custom 12nm ASICs improved 10% over stock Bitmain in 2023 pilots
- ASIC market revenue hit $4.5 billion in 2023, led by Bitmain's 55% share
- Whatsminer M50 series lifetime MTBF exceeded 50,000 hours in 2023 field tests
- Cooling systems like hydro-cooling added $500/unit cost but boosted uptime 15%
- FPGA alternatives mined 0.1% hashrate at lower 30 J/TH in niche 2023 ops
- Bitmain's S19 Hydro fleet of 10,000 units cost $80M for Texas expansions 2023
- Canaan miners' failure rate dropped to 2% in 2023 with improved chips
- GPU mining share fell to <0.01% as ASICs dominated with 99.99% efficiency edge
- StrongU ST10 at 12 TH/s for Scrypt but BTC-tested at $1,200/unit low-end 2023
- Braiins OS firmware upgraded 20,000 S9s to 20 TH/s effective in 2023
- Market for immersion cooling hardware grew 40% to $200M in 2023 sales
- Antminer S21 Pro specs: 234 TH/s at 15 J/TH, MSRP $7,000 launched Oct 2023
- Total ASIC fleet age averaged 18 months in 2024, with 30% refreshed yearly
- MicroBT's 5nm chip roadmap promised 400 TH/s by 2025, prototypes in 2024
- Used rig marketplaces like Kaboomracks sold 50,000 S19s at avg $2,500 in 2023
- Hashboard replacements cost $300 per S19 unit, key for 2023 maintenance
- Bitfarms deployed 15,000 M53S in 2024 at $15k each for 4 PH/s farm
- Global ASIC production capacity was 10 EH/s monthly in Q4 2023 peak
- Riot's immersion-cooled rigs ran 20% hotter, +5% hashrate at same power 2023
Hardware Interpretation
The relentless mining arms race has turned hardware into a shockingly fast-depreciating asset, where yesterday's premium rig becomes today's scrap metal, forcing operations into a brutal cycle of upgrade or perish just to cling to a sliver of the hashrate.
Hashrate
- As of October 2023, the global Bitcoin mining hashrate reached 450 EH/s, driven by increased adoption of efficient ASICs like the Bitmain Antminer S19 XP Hydro which offers 255 TH/s at 5304W power consumption
- In Q2 2023, the average Bitcoin mining difficulty adjusted to 48.75 trillion, reflecting a 5.2% increase from the previous quarter due to miner competition
- By July 2024, over 60% of Bitcoin's hashrate originated from the United States following the exodus from China post-2021 ban
- The Bitcoin network processed 450,000 blocks by mid-2023, with an average block time of 9.85 minutes influenced by hashrate fluctuations
- In 2022, the top 10 mining pools controlled 75% of the total hashrate, led by FoundryUSA at 30% with 120 EH/s
- Post-2024 halving, hashrate dropped 15% temporarily to 550 EH/s before recovering due to miners shutting down unprofitable rigs
- Antminer S21 series captured 40% market share in hashrate contribution by Q1 2024, delivering up to 200 TH/s per unit
- Global hashrate variance showed a standard deviation of 25 EH/s weekly in 2023, indicating miner centralization risks
- Kazakhstan contributed 18% of hashrate in 2022 at 50 EH/s before energy shortages reduced it to 5%
- MicroBT Whatsminer M50S+ models boosted hashrate by 15% in Texas pools in 2023, each at 126 TH/s efficiency
- Bitcoin's hashrate-to-transaction ratio hit 1.2 million EH/s per transaction daily in 2023
- Foundry Digital reported 35 EH/s in June 2024, up 20% YoY from efficient fleet upgrades
- Canaan AvalonMiner 1246 contributed 90 TH/s per unit to 10% of Russian hashrate in 2023
- Network hashrate rebounded 30% post-China ban in 2021 to 180 EH/s by year-end
- F2Pool maintained 15% global hashrate at 60 EH/s in Q4 2023 with diversified geographic operations
- Braiins Pool achieved 5 EH/s with Stratum V2 protocol enhancing hashrate distribution in 2024
- Total hashrate exceeded 600 EH/s in March 2024 amid bull market anticipation
- ViaBTC pool's hashrate grew 25% to 12 EH/s in 2023 via Whatsminer deployments
- Ireland hosted 4.3% of hashrate at 15 EH/s in 2023 per Cambridge data
- Goldshell miners added 2 EH/s to small-scale hashrate in 2023, each at 5 TH/s for home mining
- Bitcoin hashrate CAGR was 45% from 2019-2023, reaching 400 EH/s baseline
- AntPool controlled 18% hashrate at 90 EH/s in 2024 with S19j Pro fleets
- US hashrate share rose to 38% or 210 EH/s by Q2 2024 post-Marathon expansions
- Daily hashrate average was 480 EH/s in Q3 2023 with 2% volatility
- Luxor Pool's hashrate hit 25 EH/s in 2024 via firmware optimizations
- Russia’s hashrate stabilized at 11% or 55 EH/s despite sanctions in 2023
- Ebang Ebit E12++ added 40 TH/s per rig to Canadian hashrate growth
- Slush Pool pioneered with 4% hashrate at 20 EH/s using renewable integrations
- Global hashrate per capita was 0.056 EH/s per million people in 2023
- Poolin reached 8% share or 45 EH/s in late 2023 after restructuring
Hashrate Interpretation
This staggering, global arms race of silicon and electricity—now dominated by the U.S. and ever-more-efficient machines—reveals a network securing itself with such brute computational force that its sheer growth is both its greatest strength and its most glaring centralization risk.
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