BTC Miners On Notice As US Government Considers Energy Data Disclosure

On January 31st, the US Energy Information Administration (EIA) announced the commencement of a temporary survey to gather data on electricity consumption through identified crypto-mining companies operating in the country.

The proposed expedited survey, named Cryptocurrency Mining Facilities, received approval as an emergency collection of data requested by the Office of Management and Budget (OMB) on January 26th. Commencing next week, the EIA will collect data via a selection of commercial crypto-miners, mandating miners to provide details about their energy consumption. The agency will also seek public input on the collection of energy use data by crypto miners.

Growing Demand

As outlined by the OMB, the gathering of energy data aims to establish a foundational overview of the crypto mining companies in the sample, quantify the rate of change in crypto mining activity among the companies in the sample, identify electricity sources for US crypto miners in the sample, and finally identify regions in the United States with concentrated crypto mining activity based on the companies in the sample.

Glenn McGrath, an electricity expert at the EIA, believes that there is a significant source of demand which is worthy of additional research based on quantification, adding that until experts can substantiate growing activity with better data, there will just be more questions to answer.

Potential Upsurge In BTC Mining Activity

According to a report by the International Energy Agency (IEA), in 2022, crypto mining comprised 0.4% of the global annual electricity consumption, consuming about 110TWh. In 2023, this figure rose to 130TWh, with Bitcoin contributing 120TWh to the total.

The report predicts a 40% increase in electricity consumption through crypto mining in 2026, reaching 160 TWh. The United States emerged as the largest mining hub globally after China banned crypto mining operations in 2021. McGrath acknowledged that the EIA has received requests via various sectors to begin to quantify cryptocurrency mining energy use going forward.

In a memo by the EIA requesting emergency approval of the project, the agency explained that the 50% surge in the price of BTC in the last three months increases the likelihood of public harm, as the higher price reward will incentivize more crypto mining activity, subsequently increasing electricity consumption.

However, the Bitcoin community and independent institutions like the Cambridge Centre for Alternative Finance (CCAF) have raised substantial doubts about similar data and conclusions via other governments and BTC critics.