Bitcoin Miners Turn to Renewables as Industry Matures: Cambridge Report

More than half of global Bitcoin mining is now powered by sustainable energy, but the industry continues to face mounting economic pressures as it matures, according to new research from the Cambridge Centre for Alternative Finance (CCAF).

The Cambridge Digital Mining Industry Report, released on Monday, highlights how rising operational costs, especially for electricity, are pushing miners to seek low-cost renewable power sources while accelerating consolidation across the sector.

Based on surveys and interviews with public and private miners representing about half of the Bitcoin network’s hashrate, the report finds that operating costs — especially for electricity — have become the primary concern for miners, with energy expenses now accounting for roughly 80% of total operational costs.

Despite these challenges, the study also highlights a significant shift toward sustainability: more than 50% of Bitcoin mining’s energy mix now comes from sustainable sources, according to CCAF’s findings. The report attributes this trend to miners increasingly seeking out low-cost, renewable energy hubs, particularly in North America, the Middle East, and parts of Africa.

“Mining has become more professionalized but also more vulnerable to energy price fluctuations and market dynamics,” the report stated. As miners gravitate toward locations offering stable and affordable power, former hubs like Kazakhstan have seen notable declines amid regulatory pressures and rising tariffs.

Industry consolidation is expected to accelerate as smaller operators struggle to compete. Over half of the surveyed mining firms anticipate further mergers and acquisitions over the next two years, driven by the need for economies of scale and greater resilience against Bitcoin price volatility and mining difficulty increases.

The report also notes a mixed response to environmental concerns. While the share of sustainable energy use is rising, the verification of energy sources remains inconsistent, complicating broader efforts to assess and improve the industry’s carbon footprint.

At the same time, many mining companies are pursuing diversification strategies, expanding into high-performance computing and artificial intelligence infrastructure hosting — areas where their experience in large-scale power procurement and data center management can offer an advantage.

“The Bitcoin mining industry is entering a new phase where adaptability, financial resilience, and strategic diversification are critical to long-term survival,” the CCAF report concluded.