Trump and Hochul Advocate for Nuclear Energy Transition

According to data from SMR Nuclear, nuclear energy plants have the capacity to generate approximately 441,398,880 megawatt-hours of energy over their operational lifetime.

Overview of the Proposal

Former President Donald Trump and New York Governor Kathy Hochul have urged a shift towards nuclear energy as a strategy to achieve climate objectives and fulfill the substantial energy requirements for high-performance computing and artificial intelligence applications.

Governor Hochul pointed out that nuclear energy could aid in overcoming deficiencies in New York’s ambitious climate initiative announced in 2019, helping the state to meet its 2030 environmental targets.

In a discussion with podcast host Shawn Ryan, Trump, who is running for the 2024 Republican presidential nomination, articulated his reasons for advocating nuclear energy, emphasizing the need for significant electricity production to support the AI sector.

Trump highlighted the challenges associated with renewable energy options like wind and solar, underlining the critical necessity for the U.S. to take the lead in AI innovation:

“We will create tremendous electricity for our country and that will allow AI to compete. And you’re right, whoever gets that it’s going to be a big advantage, you know, that’s going to be sort of the oil of the future.”

Many others share interest in nuclear energy. For instance, Poland has allocated $1.2 billion for its inaugural nuclear energy plant. Similarly, officials in Sweden are considering a $28.5 billion investment to develop nuclear reactors, while China’s government has approved plans for 11 new reactors in a $31 billion initiative deal.

Implications for Bitcoin Miners

Bitcoin (BTC) miners are continually on the lookout for alternative and underutilized energy sources for their mining operations. These innovative sources range from converting natural gas runoff from oil fields—usually wasted through “flaring”—to utilizing geothermal energy from volcanic activity.

Energy expenses significantly represent the primary cost for Bitcoin miners. A report from Bitfufu indicated that the average expense to mine a single Bitcoin rose to $51,887 during the second quarter of 2024. Furthermore, a January 2024 forecast from Cantor Fitzgerald identified challenges that Bitcoin mining firms might face post-halving, highlighting 11 companies at risk of losing profitability if Bitcoin’s price dropped below $40,000.

Access to nuclear energy, which offers near-limitless power generation with considerably lower capital costs compared to wind, solar, and other renewables, has the potential to significantly reduce operational expenses for Bitcoin mining.

Lowering the substantial energy costs involved in mining could also foster democratization and decentralization within the industry, enabling smaller independent miners to more viably participate in the sector.