US Leads Bitcoin Mining with 75.4% Market Share as Clean Energy Adoption Reaches 52.4%, According to Report

Recent findings from a research organization indicate that North America now represents 82.5% of the total Bitcoin mining capacity worldwide.

This analysis is based on feedback from 49 mining enterprises spanning 23 different nations, which collectively contribute to nearly half of the Bitcoin network’s hashrate.

Sustainability Practices

The research identified a growth in the adoption of sustainable energy, with 52.4% of miners utilizing renewable sources, 42.6% from renewables and 9.8% from nuclear energy, marking an increase from 37.6% in 2022. Additionally, natural gas emerged as the leading individual energy source at 38.2%, surpassing coal, whose share fell from 36.6% to 8.9%.

Conversely, the total annual electricity consumption of the network increased by 17%, reaching 138 TWh, which represents around 0.54% of the global electricity demand. This surge occurred alongside a 24% enhancement in the efficiency of mining equipment, which achieved an estimated 28.2 joules per terahash (J/TH) by mid-2024.

Electricity costs remain the primary expense for miners, making up over 80% of cash expenses, with a median cost reported at $45 per MWh.

The annual greenhouse gas emissions from the industry are approximated at 39.8 million metric tons of CO₂, amounting to about 0.08% of the global emissions. The report suggests that this figure could potentially decrease to 32.9 million tons if flared gas is utilized. Furthermore, 70.8% of miners reported implementing measures to mitigate climate impact, such as waste-heat recovery and demand-side response (DSR), leading to a reported reduction of 888 GWh in load for 2023.

In the mining hardware sector, a few key companies dominate the landscape, with Bitmain, the leading ASIC manufacturer, controlling 82% of the market share. Meanwhile, the firmware market exhibits greater diversity. Approximately 86.9% of retired equipment is either repurposed or recycled, with the mining-related electronic waste projected at 2.3 kilotonnes for 2024.

Market Dominance and Challenges

The research indicates an increasing concentration of Bitcoin mining in North America, with the United States contributing 75.4% and Canada 7.1%. However, mining activities are also expanding in developing regions such as South America and the Middle East.

From an economic perspective, the Bitcoin mining industry in the U.S. has emerged as a significant contributor. An alternative report indicates that the sector supports over 31,000 jobs and contributes more than $4.1 billion to the gross product annually. Texas leads the charge with $1.7 billion and 12,200 jobs, followed by Georgia at $316.8 million (2,300 jobs) and New York at $225.9 million (1,600 jobs).

Despite these advancements, the analysis by CCAF reveals that the mining sector is grappling with several challenges, including regulatory ambiguity, fluctuating energy costs, and unpredictable Bitcoin market dynamics. Consequently, an increasing number of stakeholders are pursuing diversification strategies in areas like AI computing and energy innovations to maintain profitability.