Maximizing Return on Investment in Cryptocurrency Mining Through Energy Optimization

Mohammad Nasrinasrabadi, Maryam A. Hejazi (), Arefeh Jaberi, Hamed Hashemi-Dezaki and Hossein Shahinzadeh ()
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Mohammad Nasrinasrabadi: Department of Electrical and Computer Engineering, University of Kashan, Kashan 8731753153, Iran
Maryam A. Hejazi: Department of Electrical and Computer Engineering, University of Kashan, Kashan 8731753153, Iran
Arefeh Jaberi: Department of Electrical and Computer Engineering, University of Kashan, Kashan 8731753153, Iran
Hamed Hashemi-Dezaki: Department of Electrical and Computer Engineering, University of Kashan, Kashan 8731753153, Iran
Hossein Shahinzadeh: Department of Electrical Engineering, Amirkabir University of Technology (Tehran Polytechnic), Tehran 3715879817, Iran

Energies, 2025, vol. 18, issue 22, 1-65

Abstract: Cryptocurrencies utilize blockchain technology to ensure transparency, decentralization, and immutability in financial transactions. It is expected that blockchain applications will significantly impact renewable energy markets. However, there is a lack of studies addressing the energy requirements of digital currencies. This research proposes optimizing a hybrid energy system consisting of distributed renewable and non-renewable energy sources, focusing on cryptocurrency mining. Although previous studies have not yet addressed energy system optimization considering cryptocurrency mining farms, the increasing prominence of such farms highlights the growing need for research in this area. The primary renewable sources in the proposed hybrid system include photovoltaic (PV) panels and wind turbines. We employ diesel generators as backup systems to compensate for the intermittent nature of solar and wind energy production. Besides meeting the demands of urban loads, cryptocurrency mining devices will be considered a major energy consumer. In this article, the optimal configuration of the energy system will be determined based on technical and economic indicators. Additionally, economic evaluations will be conducted to assess the income generated from cryptocurrency mining farms, and appropriate approaches will be identified from both technical and financial perspectives, focusing on return on investment (ROI).

Keywords: hybrid energy systems; renewable energy; distributed generation sources; cryptocurrency mining farms; energy system optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2025
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