Arabella Asis Tech 02.08.2024 02:Feb AM EST

U.S. Government Requires Energy Consumption Report From Large Cryptocurrency Miners

The Biden administration has announced that large cryptocurrency mining operations should report their electricity consumption.

In a press release by The Energy Information Administration (EIA), the requirement was made after the potential threat of huge electricity consumption to the country's electricity grids and environment.

EIA Sets Qualification for Required Consumption Report

The EIA has classified 137 "identified commercial cryptocurrency miners" in the U.S. According to the data, these mining operations are responsible for around 2.3% of the national energy usage or 90 terawatt-hours per year.

In a global setting, crypto miners around the world have consumed the same electricity usage as the entire country of Australia in 2023. In response to this, the EIA will collect data through a survey.

"We will specifically focus on how the energy demand for cryptocurrency mining is evolving, identify geographic areas of high growth, and quantify the sources of electricity used to meet cryptocurrency mining demand," EIA administrator, Joe DeCarolis, stated.

The survey will be used to analyze and research the energy implications of the growing cryptocurrency mining industry in the country.

Cryptocurrency Mining Poses Risk to U.S. Electric Supply

The EIA revealed that around 38% of all bitcoin is mined in the U.S., which increased by 3.4% compared to the 2020 data. However, as the industry grew, concerns about its implications for the country were surfacing.

"As cryptocurrency mining has increased in the United States, concerns have grown about the energy-intensive nature of the business and its effects on the US electric power industry," the EIA said in a report.

If not regulated, the EIA explained that it could strain the electricity grid, especially, during peak periods. This will eventually increase the energy prices for average consumers.