Bitcoin mining has become a global industry, facing significant challenges related to energy consumption, regulatory differences, and community relations. A recent report indicates that 52.4% of mining operations now utilize renewable energy sources, such as hydroelectric power in Canada and geothermal energy in El Salvador. However, concerns persist over the use of fossil fuels in regions like Kazakhstan and Texas, which contribute to increased carbon emissions.
Regulatory responses to Bitcoin mining vary significantly worldwide. Kuwait has banned mining in 2025 due to grid strain, while the U.S. under Trump has relaxed environmental regulations to attract miners. ESG compliance is increasingly important for institutional investors, with companies like Marathon Digital committing to 100% renewable energy. Despite these efforts, challenges such as e-waste from ASICs and energy cost volatility continue to pose significant hurdles for the industry.
Bitcoin Mining Faces ESG and Regulatory Hurdles in 2025
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