Donald Trump and New York Governor Kathy Hochul advocate that nuclear power generation will lower Bitcoin mining costs

Former President Donald Trump and New York Governor Kathy Hochul are advocating for nuclear energy as a solution to diverse challenges.

Governor Hochul believes that nuclear power can help New York meet its ambitious climate targets by 2030, which were initially set in 2019.

Trump, on the other hand, focuses on nuclear energy's potential to support the high energy demands of artificial intelligence (AI).

In a recent interview, Trump pointed out the limitations of renewable energy sources like wind and solar, emphasising the importance of nuclear power in maintaining America’s lead in AI development.

He likened AI's future importance to that of oil, noting its potential as a key driver of global power.

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Global Shift Toward Nuclear Power

The interest in nuclear energy extends beyond the United States.

In August, Poland allocated $1.2 billion for its first nuclear energy plant, while Sweden considers a $28.5 billion investment in nuclear reactors.

China has also approved a plan to build 11 new nuclear reactors, totalling $31 billion.

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Impact on Bitcoin Mining

For Bitcoin miners, energy costs are a significant concern.

Compared with wind, solar and other renewable energy sources, nuclear power provides almost unlimited energy and significantly reduces capital expenditures, which will greatly reduce the cost of Bitcoin mining.

Renewable energy vs nuclear energy metrics. Source:SMR Nuclear

As prices rise, alternative energy sources become increasingly attractive.

Nuclear energy, with its potential for low-cost and high-capacity output, could reduce expenses for Bitcoin mining operations.

According to a Bitfufu report, the average cost to mine a single Bitcoin reached $51,887 in Q2 2024, raising concerns about profitability, especially post-halving.

A January report from Cantor Fitzgerald of mining costs for top Bitcoin mining firms. Source:S. Matthew Schultz

Access to nuclear energy could lower these costs, making mining more accessible and potentially decentralising the industry.

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Conclusion

As nuclear energy gains traction globally, its role in addressing climate goals and supporting technological advancements like AI and Bitcoin mining becomes increasingly significant. However, the broader implications and challenges of this shift remain to be fully understood.