A new Congressional study in the USA, bitcoin and cryptocurrency revealed the impact of energy consumption of mining companies.
“Bitcoin Mining Companies in the USA Consume As Much Electricity as Houston”
An investigation by Democrats has revealed that seven leading mining firms nationwide are using 1,045 megawatts of electricity, enough to power a Houston-Texas-sized city with a population of 2.3 million, The New York Times reported.
Their energy consumption is likely to increase after the majority of companies said they plan to add more mining machines in the coming years. For example, Marathon Digital Holdings operated approximately 33,000 mining machines as of February and plans to reach 199,000 machines within two years.
It is stated that the seven companies involved in the research plan to increase their cumulative consumption by at least 2,399 megawatts in the coming years. However, the companies did not specify whether they would continue the expansion plan due to the ongoing crypto bear market.
Democratic Senators Want Mining Companies to Report Energy Consumption
“These limited data reveal that crypto miners are major energy users, causing significant and rapidly increasing amounts of carbon emissions,” said Elizabeth Warren, Massachusetts Senator.
Further, the research states that the influence of cryptocurrency mining companies has resulted in increased electricity costs for those living in states like Texas. Also, power grids in areas that host companies are struggling to serve residents.
The research, launched earlier this year, is part of an initiative by Democratic lawmakers who want to force mining companies to regularly report their electricity consumption. It is also noteworthy that companies have submitted energy use data as part of the research.
*Not investment advice.