In a move aimed at addressing environmental concerns, the US Energy Information Administration (EIA) is poised to initiate monitoring of power consumption by cryptocurrency miners. This decision addresses a notable gap in data and sparks a necessary public dialogue regarding the substantial electricity usage within the growing industry, particularly with the impending Bitcoin halving event.

Starting next week, a select group of crypto miners will be required to report their electricity usage, following a mandate issued by the Office of Management and Budget on January 26, 2024.

According to Joe DeCarolis, the EIA Administrator, the agency is dedicated to examining the energy footprint associated with crypto mining activities in the United States. He emphasized the agency's intention to monitor shifts in demand, areas experiencing rapid growth, and the sources of electricity fueling this demand.

The recent relocation of crypto mining operations from China to the US has resulted in increased energy consumption in certain American regions. This trend has raised concerns among regulators, particularly in anticipation of the Bitcoin halving event, which will raise the cost of Bitcoin mining.

Bitcoin and similar cryptocurrency mining operations require substantial energy inputs. Miners utilize powerful machines to solve complex puzzles that validate blockchain transactions, leading to high electricity demand. Miners compete for Bitcoin rewards, further driving up energy consumption in the industry. In response to criticism comparing the industry's energy consumption to that of entire nations, the sector is gradually adopting more environmentally friendly practices.