Core Insights - The report highlights the rapid evolution of the digital mining industry, emphasizing its intersection with information technology and energy systems, and provides insights from firms representing nearly 48% of Bitcoin's computational power [21][22][23]. Industry Landscape - The United States has emerged as the largest Bitcoin mining hub, accounting for 75.4% of global mining activity, followed by Canada at 7.1% [21][24]. - The hardware market is characterized by oligopoly, with Bitmain, MicroBT, and Canaan controlling over 99% of the market share, and Bitmain alone holding 82% [26]. Energy Consumption and Environmental Impact - Bitcoin mining consumes approximately 138 TWh of electricity annually, representing about 0.54% of global electricity consumption, with an associated greenhouse gas emission of around 39.8 MtCO2e [21][24][25]. - Sustainable energy sources constitute 52.4% of the electricity mix used in mining, with natural gas being the largest single source at 38.2% [25]. Economic Aspects - Miners' revenue is derived from block rewards and transaction fees, with transaction fees becoming increasingly significant as block rewards diminish due to halving events [2][21]. - Electricity costs represent over 80% of miners' operational expenses, with median electricity costs reported at $45/MWh [24][29]. Future Trends - The industry faces challenges from decreasing block rewards, prompting miners to diversify into high-performance computing and innovative energy strategies [2][30]. - Miners are exploring business diversification and geographical expansion as key strategies to mitigate risks associated with energy prices and regulatory uncertainties [28][29]. Technological Developments - Mining hardware efficiency has improved significantly, with the industry-wide ASIC efficiency estimated at 28.2 J/TH, marking a 24% year-over-year improvement [24]. - The next generation of ASICs is expected to achieve efficiencies below 10 J/TH, although technological advancements may not fully offset the impact of declining rewards [2][30].