Bitcoin mining has since ticked the box Elon Musk set three years ago. He said at least 50% of its energy must come from renewable sources. Well, miners just hit 54%.
This should, in theory, be enough for Tesla to dust off its Bitcoin payment system, as we kindly suggested in the past.
Elon’s ultimatum and Bitcoin’s big energy problem
Back in May 2021, Elon pulled the plug on Bitcoin payments for Tesla, citing environmental concerns. His issue? Mining Bitcoin was guzzling electricity, much of it coming from coal and other dirty sources. “We are concerned about the rapidly increasing use of fossil fuels for Bitcoin mining,” Elon said at the time.
But the 54% progress didn’t happen overnight. It’s the result of miners packing up and moving to regions with cleaner, cheaper power. Think Quebec with its hydro plants, Iceland with its geothermal hotspots, and even sunny Texas, where wind and solar farms are booming.
But let’s not pretend Bitcoin’s energy makeover is complete. Mining still devours about 127 terawatt-hours (TWh) a year—more electricity than countries like Argentina. Carbon emissions remain a problem, too, with Bitcoin responsible for around 69 million metric tons of CO₂ annually.
That’s roughly the same as Greece’s annual emissions. Clean energy or not, Bitcoin’s power consumption is still a headline magnet for critics.
The new energy mix: Less coal, more wind and water
Meanwhile, hydropower is leading the renewable pack, making up 23% of the total energy used. Iceland and Quebec are the poster children here, thanks to their abundance of water resources and dirt-cheap electricity.
Wind energy is another big player, especially in Texas. Bitcoin miners have swooped in to take advantage of sprawling wind farms and the Lone Star State’s pro-business attitude. Wind now accounts for about 5% of Bitcoin’s energy mix.
Solar energy is making moves too, although it’s still a small fry at just 2%. For miners in sunny places, pairing solar panels with battery systems is becoming a trendy way to cut costs and boost energy independence.
Then there’s nuclear power, which provides 9% of Bitcoin’s energy. While not technically renewable, nuclear is low on emissions and reliable. It’s especially popular in places where other clean energy options aren’t available.
Finally, geothermal energy is quietly being used in places like El Salvador, where volcanic activity powers mining rigs. And coal is still hanging around like an uninvited guest, making up 22% of the energy mix. But that’s a slight improvement from earlier years when coal accounted for 40% of Bitcoin’s power supply.
Natural gas is also in the mix at 21%, and while it’s cleaner than coal, it’s not winning any green awards. Bottom line? Renewables are gaining ground, but Bitcoin mining is still far from being liked by environmentalists.
Will Tesla bring Bitcoin payments back?
The big question now is whether Tesla will reinstate Bitcoin payments. Technically, Elon’s condition has been met. The Bitcoin network has hit 54% renewables, so what’s stopping Tesla from flipping the switch?
Part of the hesitation could be tied to politics. Elon is now rubbing elbows with Donald Trump, who’s back in the White House. Elon reportedly donated $277 million to Trump’s presidential campaign and is set to head the Department of Government Efficiency (D.O.G.E).
This new role gives him unlimited access to the Oval, which could mean smoother sailing for Bitcoin and other digital assets. Trump, for his part, has promised not to introduce any policies that could crash Bitcoin. That’s music to the ears of Bitcoin fans—and probably Elon, too.
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