US to collect crypto miner energy use data following 'emergency' request citing bitcoin's price rise as evidence

The Energy Information Administration — a statistical and analytical agency within the U.S. Department of Energy — will begin surveying identified crypto mining companies in the country on their electricity consumption from next week.

The Office of Management and Budget authorized the survey on Jan. 26, valid for the next six months, following an “emergency collection of data request” from the EIA, according to a statement on Wednesday. The EIA also plans to solicit public comment on U.S. crypto miners’ energy use.

“We intend to continue to analyze and write about the energy implications of cryptocurrency mining activities in the United States,” EIA Administrator Joe DeCarolis said. “We will specifically focus on how the energy demand for cryptocurrency mining is evolving, identify geographic areas of high growth, and quantify the sources of electricity used to meet cryptocurrency mining demand.”

The OMB’s approval document details an annual equivalent cost to the Federal Government of $193,152 for the survey.

Bitcoin’s price increase 'evidence' for emergency request

The EIA cited bitcoin’s price increase in recent months as evidence for the emergency request. 

“[The] EIA is making this [emergency] request … because public harm is reasonably likely if normal clearance procedures are followed,” the EIA’s justification reads. “As evidence, the price of bitcoin has increased roughly 50% in the last three months, and higher prices incentivize more crypto mining activity, which in turn increases electricity consumption.”

“At the time of this writing, much of the central United States is in the grip of a major cold snap that has resulted in high electricity demand. The combined effects of increased crypto mining and stressed electricity systems create heightened uncertainty in electric power markets, which could result in demand peaks that affect system operations and consumer prices,” it added. “Given the emerging and rapidly changing nature of this issue and because we cannot quantitatively assess the likelihood of public harm, EIA feels a sense of urgency to generate credible data that would provide insight into this unfolding issue.”

Pierre Rochard, VP of Research at bitcoin miner Riot Platforms, disagreed with the EIA’s assessment, pointing to a recent report on the impact of crypto mining on power grids. “The science is clear, experts agree that bitcoin stabilizes the grid thanks to demand-response. There's no ‘emergency’ to collect data.”

Earlier this month, Bitcoin BTC +0.62% ’s network hashrate fell by an estimated 25% amid curtailment requests from the Texas grid regulator following the cold snap. "Many Bitcoin miners in Texas, Marathon included, have curtailed operations over the past few days to support the Texas grid and the state's citizens during the current cold outbreak, and that's exactly how this should be working," Marathon VP of Corporate Communications Charlie Schumacher told The Block at the time.