Americans are Mining Bitcoin to Heat Their Homes This Winter

As winter tightens its grip across the U.S., and escalating electricity costs put a strain on household budgets, most Americans will turn to conventional heating solutions like heating oil, natural gas, and electric furnaces. However, a growing niche is exploring cryptocurrency mining as a source of heat, with proponents envisioning a future where this technology becomes a widespread heating solution for homes and buildings.

The core concept is straightforward: cryptocurrency mining, particularly Bitcoin mining, requires immense computational power, which in turn generates substantial heat – most of which is typically wasted by being vented into the atmosphere. According to data from digital asset research firm K33, the Bitcoin mining industry produces an estimated 100 TWh of heat annually. This is a considerable amount of wasted energy considering how energy-intensive the industry is.

The New York Times recently reviewed HeatTrio, a $900 space heater that doubles as a Bitcoin mining rig. Others have adopted in-house cryptocurrency mining, channeling the generated heat to warm their homes.

“I’ve observed Bitcoin mining rigs operating discreetly in attics, their generated heat cleverly redirected through the home’s ventilation system to partially offset heating expenses. This demonstrates an innovative utilization of what would typically be wasted energy,” says Jill Ford, a specialist in sustainable bitcoin mining.

Ford underscores that the primary benefit might not be direct savings on electricity bills. The financial viability varies considerably depending on factors such as local electricity rates and the computational speed of the mining hardware. This could make a huge impact on how well this technology would work. However, this could offset the overall heating expenses.

“It is the same cost as heating the house, but the perk is that you are mining bitcoin,” Ford said.

Even a single mining machine can be surprisingly effective, particularly when solo miners join mining pools. These pools allow them to collectively share computing power and receive proportional payouts, making returns more consistent and altering the economic picture.

Andrew Sobko, founder of Argentum AI, emphasizes the potential of repurposing computational heat. “The idea of using crypto mining or GPU computing to heat homes is theoretically appealing since almost all the energy used for computation is released as heat.” He argues that this approach makes the most sense for data centers, where recapturing computational heat is an industrial-scale opportunity.

The challenge lies in efficiently directing the heat to where it’s needed. This involves strategically co-locating GPUs in environments where the heat can be effectively utilized, from industrial parks to residential buildings.

“We are working with partners that are already redirecting heat into building heating system as well as agricultural greenhouse warming. Instead of trying to move the heat physically, move the compute closer to where that heat provides value,” Sobko said.

Skepticism Surrounds Crypto Home Heating

Despite the enthusiasm of proponents, many remain skeptical about the widespread adoption of crypto-based home heating.

Derek Mohr, clinical associate professor at the University of Rochester Simon School of Business, expresses strong doubts about the long-term viability of crypto heating, even on an industrial scale.

Mohr points out that Bitcoin mining has become highly specialized, requiring dedicated hardware designed for maximizing computational power. Consequently, home computers or even networks are unlikely to contribute significantly to mining a Bitcoin block. He argues that the specialized chips used in modern mining farms far outpace the capabilities of home computers.

“The bitcoin heat devices I have seen appear to be simple space heaters that use your own electricity to heat the room … which is not an efficient way to heat a house,” he said. “Yes, bitcoin mining generates a lot of heat, but the only way to get that to your house is to use your own electricity,” Mohr said.

He added that while running your computer non-stop would generate heat, it has a very low probability of successfully mining a bitcoin block.

“In my opinion, this is not a real opportunity that will work. Instead it is taking advantage of things people have heard of — excess heat from bitcoin mining and profits from mining — and is giving false hope that there is a way for an individual to benefit from this,” Mohr said.

Others suggest that plug-and-play mining rigs could make crypto heating more viable over time. A key aspect to consider is the potential economic and environmental benefits resulting from the heat generated as a byproduct of crypto mining.

“How can we capture the excess heat from the operation to power something else. That could range from heating a home to warming water, even in a swimming pool. As a result, your operating efficiency is higher on your power consumption,” said Nikki Morris, the executive director of the Texas Christian University Ralph Lowe Energy Institute.

Morris notes that crypto heating is at an early stage, and many still lack a clear understanding of its workings and broader implications. “At Texas Christian University, we see opportunities to help people build both the vocabulary and the business use feasibility with industry partners,” Morris said.

The potential for generating tradable digital assets broadens economic opportunities. She sees possibilities in varied settings, from the electric vehicle charging facilities within mixed-use buildings to apartment complexes that support the crypto mining environment.

“Picture a similar scenario where an apartment complex’s crypto mining setup produces both digital currency and usable heat energy. That opens the door to distributed energy innovation to a broader stakeholder base, an approach that could complement existing heating systems and renewable generation strategies,” Morris said.

She mentions that there are many questions to explore, including efficiency at different scales, integration with other energy sources, regulatory considerations, and overall environmental impact, “but as these technologies evolve, it’s worth viewing crypto heating not just as a curiosity, but as a small window into how digital and physical energy systems might increasingly converge in the future,” Morris said.

Real-World Application: Testing the Waters in Idaho

The concept of crypto-heated environments is unfolding in Challis, Idaho, where Cade Peterson’s company, Softwarm, is redirecting bitcoin heat in order to combat winter conditions.

Shops and businesses are experimenting with Softwarm’s rigs to mine and heat. Paterson reports that at TC Car, Truck and RV Wash, using traditional heaters would consume energy with no returns. Now, “they installed bitcoin miners and it produces more money in bitcoin than it costs to run,” Peterson said. Meanwhile, an industrial concrete company is offsetting its $1,000 a month bill to heat its 2,500-gallon water tank by heating it with bitcoin.

After heating his own home with Bitcoin mining equipment for two and a half years, Peterson anticipates that heat will power nearly everything in the future. “You will go to Home Depot in a few years and buy a water heater with a data port on it and your water will be heated with bitcoin,” Peterson said.