ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. Data Points to Convince Bitcoin Naysayers
Beyond Basic Beta Channel
Share

Data Points to Convince Bitcoin Naysayers

Tom LydonApr 10, 2023
2023-04-10

Bitcoin mining is an energy-intensive endeavor. That’s not up for debate. Nor is the fact that in the industry’s infancy, miners relied heavily on electric power fueled by traditional sources, such as coal and natural gas.

That wasn’t to the liking of climate activists and investors that demand more environmental, social, and governance (ESG) awareness from bitcoin miners. Data indicate the industry, including some members of the VanEck Digital Assets Mining ETF (DAM ), could be listening.

A recent report by Daniel Batten, a venture investor focusing on climate tech and crypto, among other fields, indicated that the energy sources used in bitcoin mining are increasingly green. If nuclear — the cleanest-burning power source — is considered “green,” then the percentage of clean/renewable energy used by bitcoin miners is slightly more than 51%. That’s ahead of the combined 44% for coal and natural gas.

“Sustainable mining companies such as OceanFalls, Blockfusion, Hut8, Iris, Sato, Terawulf, Statar/Lake Parime, Gridshare and HPG are examples of companies that are either 100% powered by hydro or majority-hydro powered,” according to Batten’s report. “The next highest sustainable energy source is Wind, now representing almost 14% of all bitcoin mining power. Companies such as Marathon, with 14 EH of hashrate, the heavy component of which is behind-the-meter wind farms, contribute to this strong showing.”

Marathon Digital Holdings (MARA) is the largest of DAM’s 20 holdings, commanding 15.28% of the exchange traded fund’s roster. Hut 8 Mining (HUT) is the ETF’s third-largest component at a weight of 10% while Terawulf (WULF) and Iris Energy (IREN) combine for over 7% of the DAM portfolio.

Translation: DAM member firms aren’t just proving responsive to embracing renewables to power mining activities. They’re leaders on that front.

Of note to long-term investors viewing DAM as a potential winner by way of increased renewable adoption is the point that that thesis may already be playing out in real time. The BEEST model, which gauges bitcoin mining’s consumer power from a variety sources, indicates as much.

“The BEEST model suggests that the sustainable composition of the Bitcoin network is currently increasing at 6.2% per year. if sustainable energy growth continues to trend upwards, then this is likely to cause the relative percentages of coal, gas and other fossil fuel sources to decline,” concluded Batten.

Interestingly, and this could be notable to DAM investors, is the point that the model assumes that bitcoin miners will consume slightly more renewable industry than the global average.

For more news, information, and analysis, visit the Beyond Basic Beta Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X