Luxor: Direct impact of oil shock on BTC mining is limited

Bitcoin mining software and services firm Luxor has analyzed in a new report that the direct impact of an oil price shock on mining costs is limited, though it noted that broader macroeconomic fallout is likely to pressure the industry. According to CoinDesk, Luxor stated that approximately 8–10% of the global Bitcoin hashrate operates in power markets with prices closely tied to crude oil. This activity is primarily concentrated in Gulf countries such as the United Arab Emirates and Oman, where power grids are fueled by natural gas derived from oil production. The remaining 90% of miners operate in regions where electricity prices are determined by natural gas, coal, hydropower, or nuclear energy, meaning crude oil price fluctuations have little direct effect on their costs. However, Luxor added that if a geopolitical shock were to push oil prices above $100 per barrel, mining operations would be more affected by the resulting impact on the price of Bitcoin itself rather than by electricity rates.