Bitcoin (BTC) mining companies are further embracing green energy as the global Bitcoin mining industry increased its sustainable energy mix by approximately 59% year over year.
The Bitcoin Mining Council (BMC) is a group of 44 Bitcoin mining companies that claim to represent 50% of the global Bitcoin network, or 100.9 exahash (EH). It released a new report on Monday, April 25, with the findings. The group is also led by Bitcoin advocate and MicroStrategy CEO Michael Saylor.
The latest survey of BMC member companies questioned how much electricity their businesses consumed, what percentage of that electricity is generated by hydro, wind, solar, nuclear, or geothermal sources, and what the hash rate of their operations was.
The BMC estimates that the global mining industry sustainable electricity mix for the top crypto is now 58.4%, which is a 0.1% drop from last quarter. Perhaps most importantly, its significant growth from the 36.8% of renewable energy estimated in the first quarter of 2021.
However, it is worth noting that the BMC was only formed in June 2021, so it is not exactly clear how they formulated the value of 36.8% of renewables estimated in the first quarter of 2021.
Self-reported data by BMC members showed that they were using electricity with a sustainable energy mix of 64.6%. Estimates for global Bitcoin mining were based on data from BMC members.
Related: Earth Day Analysts Say Bitcoin Mining Is Naturally Gravitating Towards Green Energy
Bitcoin has been criticized for its high energy use and high carbon footprint, and the mining industry is keen to show its embrace of using greener energy sources or wasting by-products from other operations to combat criticism.
The figures provided by BMC contradict a February study published in the scientific journal Joules that highlighted that the Chinese ban on crypto mining contributed to a 17% increase in carbon emissions produced by operations to sustain the Bitcoin network.
The report breaks down total estimated energy use by industry, claiming that global Bitcoin mining operations use 247 terawatt-hours (TWh), less than half of what gold mining operations consume and 0.16% compared. with the world’s total energy use.
Bitcoin mining efficiency is improving
Results on self-reported electricity consumption and company hash rates apparently show that mining efficiency has increased.
Over the last 12 months, the industry’s electricity consumption decreased by 25%, while the hash rate increased by 23% from 164.9 to 202.1, which is equivalent to a 63% increase in mining efficiency in the latest year since Q1 2021. BMC alleges that Bitcoin mining is 5,814% more efficient than it was eight years ago.