Paradigm Defends Bitcoin Mining as Energy-Efficient Amid U.S. and Canada Policy Scrutiny

Policymakers across North America are increasingly scrutinizing the energy consumption of bitcoin mining, artificial intelligence infrastructure, and large-scale data centers, raising concerns about electricity affordability for everyday consumers. However, crypto investment firm Paradigm argues that bitcoin mining should not be grouped with other energy-intensive operations when governments consider new regulations.

Bitcoin mining is widely known for its significant electricity usage, but Paradigm’s recent report claims the industry’s overall impact is frequently overstated. According to the firm, bitcoin mining accounts for approximately 0.23% of global energy consumption and about 0.08% of global carbon emissions. The report emphasizes that mining operations depend on low-cost electricity to remain profitable, which often means tapping into surplus or off-peak renewable energy sources that might otherwise go unused.

Because miners operate within strict break-even electricity price thresholds per megawatt hour, they tend to locate in regions with abundant and inexpensive power. Paradigm argues this economic model can actually support grid stability. During periods of peak demand, bitcoin mining facilities can reduce or shut down operations, effectively returning energy to the grid when households and businesses need it most. The report suggests this flexible demand response system helps balance, rather than strain, local energy infrastructure.

Despite these claims, regulatory pressure is mounting. U.S. Senators Richard Blumenthal and Josh Hawley recently introduced legislation aimed at preventing data centers from driving up electricity costs, though the bill does not specifically mention cryptocurrency mining. Democratic lawmakers have also urged federal regulators to address rising energy demand from AI and crypto mining facilities. Meanwhile, British Columbia in Canada announced plans to halt new crypto mining projects from connecting to its provincial grid.

Paradigm maintains that bitcoin miners using otherwise wasted energy or participating in state-led grid management programs should be incentivized, not restricted. As the debate over crypto mining energy usage intensifies, the future of digital asset infrastructure regulation remains uncertain across North America.