Bitcoin miners are devouring energy at a record pace during the crypto runup

The surge in activity is sparked by a runup in the world’s largest cryptocurrency, fueled by newly launched spot Bitcoin exchange-traded funds, and a quadrennial event called the halving that is slated to take place in April. Bitcoin has surged more than fourfold since plunging by 64 percent in 2022 amid a series of crypto industry bankruptcies and scandals.

“Scale matters because you can get machines for better rates, bigger energy deals and drive down the cost of development,” said Asher Genoot, chief executive at Hut 8 Corp., one of the largest publicly traded Bitcoin miners. “When you have scale, you have more marginal and growth profits and you can cover your big costs.”

Bitcoin miners were some of the best performing stocks last year, allowing the companies to raise capital by selling newly issued shares through “at-the-market” offering programs. That’s in addition to the rising value of Bitcoin held on the books of the miners. Bitcoin reached a record high of more than $70,000 on March 8.

“The most efficient miners will benefit the most as the increase in Bitcoin price will push even more profits to the bottom line,” said Bradford.

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