Bitcoin began as an idea shared by a small group of technology enthusiasts. In the last ten years, it has become a global digital asset. It draws interest from big investment firms, governments, and regular people.
Today, Bitcoin is not just a digital currency used for online payments. It is also seen as a new type of asset, similar to gold or stocks, that people can invest in. However, this transformation has come with significant challenges, particularly regarding energy use and environmental impact. As the Bitcoin mining industry matures, the focus is shifting toward more sustainable practices.
The Digital Pickaxe: How Bitcoin Mining Actually Works
In 2024, a major event for Bitcoin took place. The U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs). This decision made it much easier for regular investors and big institutions to buy and sell Bitcoin.
More companies and financial firms now offer Bitcoin to their clients. So, the digital asset is becoming more accepted in mainstream finance. Here’s how its market value compares with other cryptoassets and traditional assets.
Bitcoin depends on a process called “mining” to keep its network secure and to create new coins. Mining is done by powerful computers that solve complex math problems. When a computer solves a problem, it adds a new “block” to the Bitcoin blockchain. The miner then gets new bitcoins and transaction fees as a reward.
This process is called “Proof-of-Work.” It is designed to make sure that no one can cheat the system or take over the network. The more computers, or “hashrate,” that are working to mine Bitcoin, the more secure the network becomes.
Mining has changed a lot since Bitcoin started. At first, anyone with a home computer could mine Bitcoin. Now, most mining is done by large companies using special machines called ASICs (Application-Specific Integrated Circuits). These companies often have mining farms with thousands of machines running day and night.
The Cambridge Digital Mining Industry Report states that a recent survey covered 49 mining companies. These companies control almost half of the total computing power for Bitcoin mining. These companies operate in 16 countries. The United States is now the biggest mining hub, accounting for over 75% of mining activity.
The Energy Debate: Powering Bitcoin
One of the biggest debates about Bitcoin is how much energy it uses. Bitcoin mining is a high-energy process. Because mining requires so much computing power, it also needs a lot of electricity. Some people worry this might hurt the environment. This is a concern, especially if the electricity comes from fossil fuels like coal or natural gas.
The Cambridge report estimates that Bitcoin mining uses about 138 terawatt-hours (TWh) of electricity each year. This is similar to the annual electricity use of a country like Sweden.
- The mining activity also produces about 39.8 million metric tons of carbon dioxide (CO2) each year. However, this share of global emissions remained under 0.1%.
However, the report also shows that the energy mix for Bitcoin mining is changing. More than half (52.4%) of the electricity used by miners now comes from sustainable sources. This includes hydropower (23.4%), wind (15.4%), nuclear (9.8%), and solar (3.2%). Still, natural gas remains the single largest energy source at 38.2%, followed by coal (8.9%).
Many mining companies are trying to use more renewable energy and to find ways to reduce their environmental impact. Some are even using energy that would otherwise be wasted, such as gas flaring from oil fields. These efforts are important as the industry faces growing pressure to be more environmentally friendly.
Meanwhile, the survey shows a possible scenario when miners want to offset the emissions of their activities by buying carbon credits. The chart below compares the cost of removing Bitcoin’s carbon emissions using two methods: nature-based solutions like planting trees, and high-tech solutions like direct air capture (DAC).
Nature-based methods cost about $5 to $9 per ton of CO2, while DAC costs much more—between $134 and $344 per ton. Lower emissions mean lower total costs, and higher emissions mean higher total costs for offsetting.
Wall Street Meets Blockchain: Institutions Dive In
Bitcoin’s price has seen big changes in recent years. In early 2025, Bitcoin reached a new high of about $109,000 before dropping to around $74,000 in April. By May, it had recovered to about $95,000. These price swings show how quickly the market can change.
However, the broader market trend shows growing maturity:
- Institutional adoption is rising. Major firms—including BlackRock, Fidelity, and MicroStrategy—have invested directly in Bitcoin or launched crypto-related products.
- Spot Bitcoin ETFs approved in early 2024 have brought mainstream exposure, unlocking billions in capital inflows.
- Bitcoin’s market cap briefly surpassed $1.5 trillion in early 2025, signaling continued investor interest even amid macroeconomic uncertainty.
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Experts have different predictions for where Bitcoin’s price will go next. Some believe it could reach $150,000 or even $200,000 by the end of 2025, especially as more institutional investors enter the market.
The approval of Bitcoin ETFs has made it easier for large funds and retirement accounts to invest in Bitcoin. Even a small investment from these big players could have a big impact on Bitcoin’s price.
The growing interest from companies is also important. Some businesses, like MicroStrategy, have bought large amounts of Bitcoin as a way to store value. This shows that Bitcoin is being used not just as a currency, but as a financial asset.
These trends point to Bitcoin’s growing acceptance as both a store of value and a portfolio diversifier. This financial legitimacy is helping drive the push toward more sustainable and compliant mining practices. And one name stands out in this direction – American Bitcoin Corp.
Stars, Stripes, and Satoshis: The Rise of American Bitcoin
American Bitcoin Corp. is a majority-owned subsidiary of Hut 8 Corp., one of North America’s leading digital asset mining companies. In early 2025, Hut 8 teamed up with American Data Centers to launch American Bitcoin. This partnership includes investors Eric Trump and Donald Trump Jr. American Bitcoin will focus on large-scale Bitcoin mining and creating a strategic Bitcoin reserve.
Hut 8 serves as American Bitcoin’s exclusive infrastructure and operations partner. American Bitcoin uses Hut 8’s strong data center skills, energy setup, and large-scale operations. They do this through long-term business agreements.
Hut 8’s CEO, Asher Genoot, highlights that separating American Bitcoin helps it raise growth capital on its own. This move also keeps Hut 8 shareholders connected to Bitcoin’s potential gains.
Just recently, American Bitcoin announced a merger with Gryphon Digital Mining. This stock-for-stock deal will take them public. They plan to trade on Nasdaq with the ticker symbol “ABTC.” This move aims to scale American Bitcoin as a low-cost Bitcoin accumulation vehicle, unlocking new capital to expand mining capacity and Bitcoin holdings.
The combined company will be led by a board including Hut 8 CEO Asher Genoot and other key executives such as Mike Ho and Eric Trump. American Bitcoin aims to be the largest and most efficient Bitcoin miner globally. They plan to achieve over 50 exahashes per second (EH/s) of mining power. Their goal is also to maintain an average fleet efficiency below 15 joules per terahash (J/TH).
By combining Hut 8’s operational excellence and infrastructure with strategic capital and market access, American Bitcoin is positioned to lead the U.S. Bitcoin mining industry and build a robust Bitcoin reserve for long-term growth.
Hurdles on the Hashrate Highway
Bitcoin’s future hinges on overcoming several key challenges. Regulatory uncertainty is a big problem. Governments have different rules for digital assets, which makes it hard for mining companies to plan for the long term.
Energy costs are a big concern. Mining only makes money when Bitcoin’s price is higher than electricity and equipment costs. If energy prices keep rising, miners might lose and shut down.
Additionally, as more miners join, mining becomes harder and requires continuous equipment upgrades to remain competitive. Environmental impact remains a concern, but innovations like AI are improving efficiency.
Despite these challenges, Bitcoin mining continues to evolve, with new technologies emerging to enhance sustainability and possibly even support power grids. The balance between growth and these hurdles will shape Bitcoin’s future in the global economy.
