With crypto adoption surging globally in Q1 of 2025, the concerns regarding environmental fall out of bitcoin mining is real as the sector has been majorly dependent on non-renewable energy resources like coal for electricity consumption. However, a new study finds that hydro power holds the key for Bitcoin mining’s future that could largely decrease dependence on fossil fuels.
Daniel Batten, a climate tech investor and Bitcoin analyst, recently presented updated findings about the power sources which fuel the Bitcoin network through an assessment published on LinkedIn.
According to Daniel, the Cambridge Centre for Alternative Finance (CCAF) originally determined that coal represented the main fuel source used in Bitcoin mining. However as per latest investigation report, hydro accounted for 23.12%, coal at 22.92% followed by gas at 21.14%.
The research by Daniel Batten demonstrates how hydroelectric energy dominates as the primary power source for Bitcoin mining after considering unregulated off-grid operations leading to a 23% contribution rate of all electricity consumption.
Sustainable off-grid mining operations are the main reason behind the growing prevalence of hydroelectric power in mining operations. Hydroelectric resources provide more than half of Bitcoin mining conducted off-grid while companies like OceanFalls and Blockfusion and Hive lead these efforts. Hydroelectric utilities provide 15.8% of power for Bitcoin’s mining operations as documented by Our World in Data’s research.
Wind power resides as the second significant renewable energy source that supplies about 14% of Bitcoin mining energy. The power generation by Marathon mining companies remains a significant contributor to Bitcoin mining operations because of their wind farms operated through their own utilities infrastructure. Wind generation on the ERCOT grid enhances its contribution to Bitcoin mining operations because an extensive section of this grid functions with wind energy.
Bitcoin has experienced dramatic shifts in its energy utilization patterns towards environmental sources yet fossil fuel consumption remains active in its operations. Since 2020 Bitcoin mining has progressively reduced its coal usage according to annual trends of 6.2%.
Bitcoin mining requires only 22.92% of the coal that electric vehicles consume for power because they need 36.7% coal-powered electricity. The use of gas in both sectors remains relatively equal at twenty-one point one four percent. Therefore the study by Daniel shows that the future of Bitcoin mining indeed belongs to hydro power.
Also Read: Bitcoin Mining May Spark Green Energy Revolution: Study
