A Bitcoin miner turns electricity into revenue, so power is the cost that decides almost everything else. The cheapest power usually comes from energy that is hard to use any other way: surplus generation the grid cannot absorb, gas that would otherwise be flared, or capacity that can be switched off whenever the grid needs it.
Here are the main kinds of power mining runs on today, and what to check before committing machines to a site.
Surplus hydro
Hydropower regions often produce more electricity than local demand or transmission lines can carry, especially in the wet season. Mining can take that surplus at low prices. The trade-off is seasonality: in dry months supply drops, prices rise, and sites may have to curtail or shut down for weeks.
Wind and solar curtailment
When wind or sunshine is strong and demand is low, grids sometimes have to curtail renewable output or prices fall close to zero. Miners placed near these assets can buy the excess and switch off when power is needed elsewhere. Because a mining site can switch off within minutes, it can act as a flexible load that soaks up power when there is too much and steps back when the grid is short.
Flexible load and demand response
In markets like Texas, miners can earn credits or avoid peak charges by switching off when the grid is under strain. In August 2023, during a Texas heat wave, Riot Platforms reported $31.7 million in power and demand response credits from ERCOT. A site that is willing to curtail during the hottest hours can secure a much lower average price. The cost is uptime: plan for hours or days offline each year, and make sure your machines handle frequent restarts — see What to Check Before Restarting Idle Miners.
Flare gas and stranded gas
At oil fields, gas that cannot reach a pipeline is often burned off. Generators can turn it into electricity for containerised miners on site. Power can be very cheap, but sites are remote, conditions are harsh, and getting parts and technicians there takes time.
Heat reuse
Almost all the power a miner uses comes out as heat. In cold climates that heat can warm homes, greenhouses, swimming pools or district heating networks, which effectively lowers the net cost of mining. In 2024 MARA launched a 2 MW pilot in Satakunta, Finland, using miner heat in a district heating network serving about 11,000 residents. Hydro-cooled machines suit these setups best, because water carries heat more easily than air.
Hosting
If you do not want to build a site, hosting providers offer power, space and operations for a monthly rate. Hosting is available in most mining regions, including North America, the Middle East and parts of Asia, and rates move with local power prices and demand.
What to check before committing
- All-in price per kWh. Include hosting fees, demand charges, taxes and minimum-consumption terms, not just the headline energy rate.
- Uptime and curtailment. How many hours a year will machines be off, and who decides when?
- Contract terms. Look for take-or-pay clauses, reserved-power charges that apply while machines are off, and how long you are locked in.
- Cooling and climate. Heat, dust and humidity shorten hardware life. Air-cooled machines in hot, dusty sites wear through fans and power supplies faster.
- Repair and parts logistics. A remote site with cheap power can lose its advantage if every failed hashboard waits weeks for a technician or part — see Cheap Part, Expensive Downtime.
- Fit with your machines. Cheaper power keeps older, less efficient machines profitable for longer — see what to do with old ASIC miners and our shutdown price table.
Moving machines to a new site?
Before machines ship, it is worth stocking spares for the fans, power supplies and control boards that fail most. Send us the miner model, quantity and site location, and we will put together a quote for parts or repairs.
Sources: Riot Platforms ERCOT credits, Blockworks, 6 September 2023; MARA district heating pilot, Cointelegraph, 21 June 2024.