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@ Delta Mike
2025-04-29 10:41:06
Cambridge Digital Mining Industry Report dropped today.
Download the full report:
https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/cambridge-digital-mining-industry-report/
Summary:
The Cambridge Digital Mining Industry Report provides an in-depth analysis of Bitcoin mining, covering global operations, industry sentiment, and energy use. Here’s a detailed breakdown:
Industry Evolution & Market Dynamics
- Bitcoin mining has transitioned from a hobbyist activity to a billion-dollar industry, with firms deploying state-of-the-art hardware and consuming gigawatts of power
- The industry is experiencing consolidation, with smaller operators struggling to compete due to rising electricity costs
- Energy expenses now account for 80% of total operational costs, making access to low-cost renewable energy a priority for miners
Energy Use & Sustainability
- 52.4% of Bitcoin mining now relies on sustainable energy sources, including 9.8% nuclear and 42.6% renewables like hydropower and wind.
- Natural gas (38.2%) has replaced coal (8.9%) as the dominant energy source, marking a significant shift in the industry’s energy mix
- Bitcoin mining consumes an estimated 138 TWh of electricity annually, about 0.5% of global consumption, with network-wide emissions of 39.8 MtCO₂
Geographical Distribution
- North America dominates Bitcoin mining, with the U.S. accounting for 75.4% of total reported activity, followed by Canada at 7.1%
- Former mining hubs like Kazakhstan have seen declines due to regulatory pressures and rising tariffs
- Verification of energy sources remains inconsistent, complicating efforts to assess and improve the industry’s carbon footprint
Future Outlook
- The industry is expected to see further mergers and acquisitions as firms seek economies of scale and resilience against Bitcoin price volatility
- Some mining firms are diversifying into AI infrastructure hosting, leveraging their expertise in large-scale power procurement and data center management