Crypto investment firm Paradigm has argued that Bitcoin mining should be viewed as a flexible grid asset rather than an energy drain amid rising scrutiny of high-density computing infrastructure.
The firm said Bitcoin mining is often unfairly grouped with artificial intelligence data centres, even though miners respond dynamically to electricity prices and grid conditions instead of consuming power continuously.
In a research note, Paradigm’s Justin Slaughter and Veronica Irwin wrote that mining is frequently mischaracterised in public energy debates and should be evaluated within broader electricity market dynamics.
Paradigm estimates Bitcoin mining accounts for roughly 0.23% of global energy consumption and about 0.08% of global carbon emissions, adding that the network’s fixed issuance schedule constrains long-term energy growth.
The report challenges modelling approaches that measure energy use per transaction, noting that mining energy expenditure is tied to network security and competition among miners rather than transaction volume.
Paradigm also emphasised that miners typically seek low-cost or surplus electricity and can curtail operations during grid stress, framing the activity as a form of flexible demand similar to other energy-intensive industries.
The analysis comes as rapid AI data centre expansion fuels political and community backlash over electricity usage, with several traditional Bitcoin miners including Hut 8, HIVE Digital and MARA Holdings pivoting partially toward AI workloads.
At the time of reporting, Bitcoin price was $68,678.18.