Cryptocurrency investment firm Paradigm claims that policymakers are unfairly grouping Bitcoin mining with AI data centers. The two industries use electricity in very different ways, according to the company’s recent analysis.
Paradigm explains that Bitcoin miners act as flexible grid users. It can react to price signals and quickly reduce electricity usage during peak demand periods. In contrast, AI data centers operate non-stop, putting steady pressure on the power grid.
Flexible energy use and constant demand
Bitcoin mining operations adjust their activities based on electricity prices. If prices rise or demand increases, miners can shut down their machines within minutes. This reduces the strain on the grid.
However, AI data centers cannot easily scale down operations. Their systems require a certain amount of uptime to handle the workload. As a result, they expend large amounts of energy around the clock. Paradigm says this distinction is important and should determine how regulators view both areas.
Paradigm highlights the limited energy share of mines
The company also highlights that Bitcoin mining consumes only about 0.23% of the world’s electricity. The company points out that many mining operations use renewable energy, especially during off-peak hours when excess power is wasted.
By absorbing excess renewable energy, miners can support grid stability. Texas, for example, reported a 74% drop in ancillary service prices between 2023 and 2024 due to miner participation. This suggests that mining may play a beneficial role in balancing supply and demand.
Paradigm prompts policymakers to rethink comparisons
The debate comes at a time when energy use is under intense scrutiny. AI-powered infrastructure expansion contributed to a 2.4% increase in U.S. greenhouse gas emissions in 2025. Against this backdrop, some critics classify Bitcoin mining as a high-energy industry.
But the paradigm urges policymakers to think about mining differently. The company claims that Bitcoin mining can serve as a grid asset rather than a burden. By curbing excess renewable waste and responding to market signals, miners could actually improve energy efficiency in specific areas.
As the energy and technology debate continues, Paradigm’s analysis adds nuance to how digital industries will impact the global power system.