- The Department of Energy is surveying US crypto miners’ electricity usage, citing concerns about recent Bitcoin price increases incentivizing more energy-intensive mining activity.
- The survey was approved after Bitcoin’s price rose 50% in 3 months. Crypto miners will be required to provide their energy consumption data.
- The survey is part of increased US government oversight of crypto mining’s massive electricity use and environmental impacts as mining activity grows.
The United States Department of Energy (DOE) has announced it will begin collecting data on crypto mining companies’ electricity usage, citing concerns that recent Bitcoin price increases could incentivize more mining activity and energy consumption.
Bitcoin Price Jumps 50% in 3 Months
On January 31, the DOE’s Energy Information Administration (EIA) said it is initiating a 6-month survey of U.S. crypto miners’ energy use beginning next week. This comes after the EIA submitted an emergency request claiming Bitcoin’s price “increased roughly 50% in the last three months.”
Bitcoin rose just over 18.4% in the 3 months leading up to January 24. The EIA said the price jump would likely “incentivize more cryptomining activity, which in turn increases electricity consumption.”
Required Participation from Crypto Miners
The EIA survey was approved by the Office of Management and Budget on January 26. Crypto mining companies will be required to provide details on their electricity usage. Public comments on crypto mining energy use will also be collected.
EIA Administrator Joe DeCarolis said the survey will “specifically focus on how the energy demand for cryptocurrency mining is evolving, identify geographic areas of high growth, and quantify the sources of electricity used to meet cryptocurrency mining demand.”
U.S. Government Ramps Up Crypto Mining Oversight
The survey represents the latest effort by the U.S. government to oversee the crypto mining industry. The U.S. became the world’s top destination for crypto miners after China banned mining in 2021.
In 2022, Congress held hearings questioning mining’s energy usage and emissions. Lawmakers also recently called on the EPA to investigate mining’s environmental impact.
President Biden proposed a 30% tax on miners’ electricity costs in 2023 to curb mining activity. The administration has expressed concerns about mining’s growing energy consumption and climate impacts.
Bitcoin Mining’s Massive Electricity Use
According to Cambridge University, Bitcoin miners consumed a record 121.13 terawatt-hours of electricity globally in 2023. For comparison, the entire country of Belgium used 93.8 terawatt-hours in 2022.
The International Energy Agency forecasts crypto mining electricity usage will reach 160 terawatt-hours by 2026. With mining’s massive energy appetite colliding with climate goals, regulators are pressing for more oversight of the industry’s environmental footprint.
