Bitcoin miners as energy buyers, explained


To power their mining operations, Bitcoin miners either purchase electricity from conventional and renewable energy sources or develop and run their own renewable energy facilities, turning them into energy consumers.

Miners typically purchase electricity from energy providers, such as utility companies or independent power producers, to mine BTC. They then use that electricity to power their mining equipment. This can include both traditional energy sources, such as coal or natural gas, as well as renewable energy sources, such as solar or wind energy.

Hydro-Quebec, a Canadian utility company that sells electricity to Bitcoin miners, is a real-world example of how Bitcoin miners act as energy buyers. In order to take advantage of the low electricity prices in the province, the firm has been actively courting Bitcoin miners to establish operations there and utilize excess hydroelectric power to mine BTC.

In some circumstances, miners might also sign long-term agreements with energy suppliers, which could provide them access to a more reliable and consistent source of…

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