Bitcoin miners turn to renewable energy amid profit margin squeeze

Bitcoin mining companies are turning to renewable energy to reduce costs amid record-low hash price, a critical metric for miner profitability, which is below the $40 level that marks the breakeven point for mining operators.

Hash price, which measures expected miner profitability per unit of computing power used to successfully add a block, is about $39.4 per petahash second per day (PH/s/day) at the time of this writing, to mining data provider Hashrate Index. 

Sangha Renewables, a Bitcoin () miner and renewable energy company, energized a 20 megawatt (MW) solar-powered mining facility in Ector County, Texas, on Thursday, according to .

The Phoenix Group, a mining and digital infrastructure company, in November that it had launched a 30-megawatt mining operation using hydroelectric power in Ethiopia. 

In September, Canaan, a hardware manufacturer and Bitcoin miner, with digital infrastructure company Soluna to deploy a mining facility at a wind-powered site in Briscoe County, Texas. 

Canaan is also to maximize energy efficiency. The hardware balances electrical loads and uses AI to adjust energy usage.

The Bitcoin mining industry is facing several economic challenges, including reduced mining rewards, which have placed industry players in the in the sector’s history.

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The Bitcoin network’s mining hashrate, a proxy for the total amount of computing power securing the protocol, continues to reach new all-time highs.

Although the hashrate oscillates in the short term, the long-term trend is upward, with the network hashrate in April.

One zetahash is equal to 1,000 petahashes. Rising hashrate means that miners must expend ever-greater computing resources to remain competitive and successfully mine blocks.

In November, stablecoin issuer Tether said it was , citing rising energy costs.

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