Bitcoin Mining Waste Heat Utilization: From Concept to Practice in Idaho

Author: Kevin Williams, CNBC

Translation: AididiaoJP, Foresight News

Original Title: Americans Are Using Bitcoin Mining to Heat Their Homes in Winter

Summary

• Entrepreneurs are actively experimenting with ways to convert the heat generated during cryptocurrency mining into valuable products.

• Analysis by digital asset brokerage K33 shows that the excess heat produced by bitcoin mining each year is enough to meet the heating needs of all of Finland, but most of this heat is simply released into the atmosphere.

• This situation has given rise to new products—such as a $900 space heater that also functions as a bitcoin miner. However, skeptics point out that this emerging crypto heating market is inefficient in providing warmth and controlling energy costs.

As cold waves sweep across the United States, electricity bills have become a major consideration in household budgets. While most Americans still rely on traditional heating methods (home heating oil, natural gas, and electric heaters), in some households, cryptocurrency mining is becoming a source of heat. According to pioneers in the crypto heating industry, this new form of heating could become commonplace in thousands of homes in the future.

The basic principle is that cryptocurrency mining generates a large amount of heat, most of which is ultimately expelled as waste. According to K33, bitcoin mining produces about 100 TWh of excess heat annually, enough to meet the heating needs of all of Finland. In this high-energy-consuming industry, such energy waste is driving entrepreneurs to explore new ways to utilize waste heat, especially in winter for homes, offices, and other spaces.

During this year’s cold wave, The New York Times tested the HeatTrio product, which is both a $900 space heater and a bitcoin miner. Some users even use the heat generated by home crypto miners to heat entire houses.

Jill Ford, CEO of Dallas-based sustainable bitcoin mining company Bitford Digital, said: “I’ve seen bitcoin miners running quietly in attics, channeling heat into the house through the ventilation system to offset heating costs. This is a very clever way to use waste heat.” She emphasized: “As long as you’re creative, utilizing miners’ excess heat is a typical example of crypto miners becoming energy partners.”

Although this solution may not directly save on electricity bills, as the actual economic benefit depends on local electricity prices and miner hash rates, it may be possible to offset some heating costs through mining revenue.

Ford did the math: “The heating cost is about the same as traditional methods, but the extra gain is the simultaneous bitcoin earnings.”

Even old miners can meet the demand. Individual miners can join mining pools to share computing power and receive stable returns proportionally, thus changing the cost-benefit equation.

Andrew Sobko, founder of Argentum AI, which is building a computing power sharing marketplace, analyzed: “The idea of using crypto mining or GPU computing to heat homes is clever, because almost all computing energy consumption ultimately turns into heat.” But he added that this model is more feasible in large-scale scenarios, especially in high-density buildings like data centers in cold regions, where industrial-grade waste heat recovery truly shows its potential.

The key to implementation is spatial matching, as heat cannot be transported by vehicles; computing equipment must be deployed where heat is needed, from industrial parks to residential areas—all are potential application scenarios.

Sobko revealed: “We are working with partners to channel computing heat into building heating systems and even agricultural greenhouses. These are the scenarios where true economic and environmental benefits can be realized.” He vividly described: “It’s not about transporting heat, but about making computing happen where heat is needed.”

Voices of Doubt: Why Crypto Heating Struggles to Take Off

There is no shortage of opponents.

Derek Mohr, Clinical Associate Professor at the Simon Business School, University of Rochester, believes that cryptocurrency is not the future of home heating, and even industrial applications have flaws.

According to his analysis, bitcoin mining has become highly specialized, and it is almost impossible for home computers or even home computer networks to successfully mine a block, as professional mining farms use custom chips with much higher computing power than home devices.

“A decade ago, home bitcoin mining might have yielded some returns, but those days are long gone,” Mohr said bluntly.

He dissected market products: “So-called bitcoin heating devices are essentially ordinary electric heaters, and using residential electricity rates for heating is far from efficient.” He emphasized the core contradiction: “Although bitcoin mining generates considerable heat, to use this heat for homes, you’re still ultimately consuming your own household electricity.”

Mohr also did the math: computers running continuously do generate heat, but the probability of successfully mining is extremely low.

“This is essentially a pseudo-proposition, leveraging the public’s perception of bitcoin waste heat and mining profits to create the illusion that individuals can profit from it,” he concluded.

A Ray of Hope: The Potential of Distributed Miners

However, experts point out that as plug-and-play standalone miners become more popular, this model may prove feasible in more scenarios. At the very least, the dual benefits based on the “mining inevitably produces heat” characteristic are worth further study.

Nikki Morris, Executive Director of the Ralph Lowe Energy Institute at Texas Christian University, explained: “The key is capturing and utilizing waste heat, whether for home heating, hot water production, or even swimming pool heating, all of which can improve energy efficiency.”

She pointed out that crypto heating is still in its infancy, and there is a public awareness gap. “This is exactly where the research value lies. Our university is working with industry partners to jointly build technical systems and business application models.”

Morris particularly emphasized the unique advantage of cryptocurrency: “Mining produces tradable digital assets, which is equivalent to creating a new revenue stream for electricity consumption.” She compared it to EV charging stations: “Imagine a mining device in an apartment building that simultaneously produces digital currency and usable heat—this will open a new window for distributed energy innovation.”

Although there are still challenges to overcome in efficiency optimization, multi-energy integration, and policy regulation, Morris predicts: “As technology evolves, crypto heating is not just a novel concept, but also heralds a future where the digital world and physical energy systems accelerate their integration.”

Practice Brings Insight: Heating Experiments in Idaho

The future of crypto heating is quietly taking shape in Challis, Idaho. Cade Peterson’s company Softwarm is using bitcoin waste heat to withstand the harsh winter.

Several local businesses are trialing Softwarm miners for mining and heating. TC Auto Truck RV Wash used to spend $25 a day heating the car wash to melt snow and heat water. The owner reported: “Traditional heaters purely consume energy, but now the revenue from bitcoin miners exceeds the operating costs.” An industrial concrete company even uses miner waste heat to heat a 2,500-gallon water tank, saving thousands of dollars in monthly expenses.

Peterson has been heating his own home with bitcoin miners for two and a half years, and he firmly believes that heat will drive the future: “In the near future, the water heaters people buy will come with data interfaces, and bitcoin will become a daily heat source.”