Contents SUMMARY Page: 6 1 WHY AND HOW DOES BITCOIN USE ENERGY? Page: 14 1.1 ENERGY CONSUMPTION IS A FUNDAMENTAL AND IMPORTANT PROPERTY OF BITCOIN Page: 14 1.2 BITCOIN MINERS ARE UNIQUE ENERGY CONSUMERS Page: 18 2 STRENGTHENING ELECTRICITY GRIDS WITH BITCOIN MINING 23 2.1 FLEXIBLE ELECTRICITY CONSUMERS CAN PROVIDE DEMAND RESPONSE Page: 25 2.2 BITCOIN MINING IS THE BEST ALTERNATIVE FOR DEMAND RESPONSE Page: 29 2.3 EXAMPLES OF BITCOIN MINERS STABILIZING THE GRID Page: 32 2.4 BITCOIN MINING PROVIDES THE DEMAND FLEXIBILITY NEEDED TO INTEGRATE RENEWABLE ENERGY SAFELY Page: 34 3 IMPROVING THE ECONOMICS OF RENEWABLE ENERGY WITH BITCOIN MINING .35 3.1 ENERGY WASTE THREATENS THE ECONOMICS OF RENEWABLE ENERGY Page: 37 3.2 BITCOIN MINERS CAN ADJUST THEIR CONSUMPTION AFTER RENEWABLE ENERGY PRODUCTION Page: 42 3.3 THREE BITCOIN MINING OPERATIONAL MODELS IN HIGH WIND AND SOLAR GRIDS.44 3.4 HOW BITCOIN MINING IMPACTS THE POWER MARKET Page: 46 3.5 BITCOIN MINING COMPARED TO BATTERIES AND HYDROGEN Page: 47 3.6 BITCOIN MINING IMPROVES THE ECONOMICS OF RENEWABLE ENERGY Page: 48 4 MITIGATING NATURAL GAS FLARING WITH BITCOIN MINING .49 4.1 GAS FLARING IS A SIGNIFICANT POLLUTER Page: 49 4.2 BITCOIN MINING CAN HELP MITIGATE NATURAL GAS FLARING Page: 51 5 REPURPOSING WASTE HEAT FROM BITCOIN MINING .56 5.1 BITCOIN MINING GENERATES A LOT OF HEAT Page: 57 5.2 BITCOIN MINERS CAN REPURPOSE THEIR WASTE HEAT FOR DISTRICT HEATING OR FOOD PRODUCTION.58 5.3 REPURPOSING WASTE HEAT FROM BITCOIN MINING LOWERS HEATING COSTS AND REDUCES CARBON EMISSIONS60 6 THE FUTURE OF BITCOIN MINING Page: 62 NUMBERED FOOTNOTES Page: 63