Electricity consumption in Bitcoin mining has grown by 38% in eighteen months, reaching 190 TWh per year. In this period, hydroelectricity has surpassed natural gas for the first time to become the primary power source for the network. While the figure may seem dry, it represents a simple economic reality: miners, like any other business, seek the cheapest and most stable energy, not abstract "greenness.".
According to preliminary data from the Cambridge Centre for Alternative Finance, the share of low-carbon sources in the miners' energy mix has reached 59.4%. Hydropower stations, particularly in Ethiopia and other regions with abundant cheap water, have displaced gas. CO₂ emissions have risen by "only" 20% to 48 million tons. The growth in consumption outpaces the growth in pollution precisely because the energy source mix is shifting towards cleaner energy.
For an investor in cryptocurrency or mining company stocks, this is more than just statistics. Cheap hydroelectricity directly impacts mining profitability. When electricity costs less, hashrate grows faster, and the cost of producing one Bitcoin falls. Those who previously bought mining farms in regions with expensive gas are now losing out to those who managed to establish themselves near dams.
Interestingly, only 10% of surveyed miners have already redirected part of their capacity to AI computations. The rest are still observing. The reason is simple: Bitcoin mining can be quickly shut down during electricity price spikes, while data centers for artificial intelligence require round-the-clock stability and expensive infrastructure. Flexibility remains the main competitive advantage of crypto-miners.
Emissions are still increasing because the overall volume of consumption is growing. Even with a cleaner mix, absolute figures are higher. This is a classic example where relative "greenness" does not negate the absolute increase in load on the energy system. Investors should remember: regulatory risks and reputational costs do not disappear, even if hydroelectricity takes the top spot.
Ultimately, Bitcoin mining increasingly resembles a standard energy-intensive business, where those who best manage their kilowatt-hour costs win. For the individual investor, this is a signal: monitor not only the coin price but also the geography and energy sources of the companies they invest in. Cheap water provides an advantage today, but the rules of the game may change tomorrow.
