U.S. Bitcoin Mining Will Consume $2.7 Billion Worth of Electricity in 2024 — Analyst

adminMay 28, 2024

Bitcoin miners in the United States spent $2.7 billion on electricity costs in the first few months of 2024.

“Since the beginning of 2024, Bitcoin mining in the United States has consumed a staggering 20,822.62 GWh of electricity,” said Paul Hoffman, an analyst at Best Brokers. “As of February, the average commercial electricity rate per kWh was $0.1281, which equates to a spend of $2,667,378,196.47.”

“This amount of energy is enough to charge every electric vehicle in the United States 87.52 times and power 1,983,107 households for a year, or 1.51% of all U.S. households,” Hoffman explained.

Globally, 116,550 Bitcoin (BTC) worth $8.2 billion have been mined to date, with US miners accounting for 44,102 BTC, or 37.84% of global production. Before the April halving, the power required to mine 1 BTC was 407,059.01 kWh and cost approximately $52,144.26. Since then, mining 1 BTC now requires 862,635.55 kWh of power, costing approximately $110,503.61 at average commercial rates.

Despite its high energy usage, Bitcoin mining is currently the only major global industry primarily powered by sustainable energy. Last January, the Bitcoin ESG Forecast revealed that sustainable energy use in Bitcoin mining had grown to a new all-time high of 54.5%, with sustainable mining growing by 3.6% overall during 2023.

Following the mining ban in China and the effective ban in Kazakhstan, miners have moved to green grid or sustainable off-grid sites, primarily in North America. Approximately 19.5 million Bitcoins have been mined, leaving 21 million in supply.