In the first few months of 2024, Bitcoin miners in the United States have spent a staggering $2.7 billion on electricity, according to analyst Paul Hoffman from Best Brokers.
Hoffman highlighted the massive energy consumption of Bitcoin mining, noting that 20,822.62 gigawatt-hours (GWh) of electricity have been used so far this year.
With an average commercial electricity rate of $0.1281 per kilowatt-hour (kWh) as of February, this expenditure is substantial.
He put the scale into perspective, stating that this amount of electricity could power every electric vehicle in the U.S. nearly 88 times or supply energy to 1.98 million households for a year, representing about 1.51% of all U.S. homes.
The global Bitcoin mining landscape has also seen significant production, with 116,550 Bitcoins mined worldwide, valued at $8.2 billion.
U.S. miners have contributed 44,102 Bitcoins, accounting for 37.84% of the total.
The Bitcoin Halving event in April 2024, which reduced the mining rewards from 6.25 BTC to 3.125 BTC per block, has impacted miners’ profitability.
Before the halving, it took 407,059.01 kWh of electricity to mine one Bitcoin, costing approximately $52,144.26.
After the halving, the energy required doubled to 862,635.55 kWh, raising the cost to around $110,503.61 per Bitcoin.
Despite the high energy consumption, Bitcoin mining has made strides toward sustainability.
The Bitcoin ESG Forecast reported that sustainable energy use in Bitcoin mining reached an all-time high of 54.5% in January 2024, marking a 3.6% increase from 2023.
The shift follows mining bans in China and Kazakhstan, prompting miners to relocate to greener grids in North America and sustainable off-grid sites.
As the total supply of Bitcoin nears its cap of 21 million, with roughly 19.5 million already mined, the industry’s energy dynamics and sustainability practices continue to evolve.
