Deep Dive — Bitcoin Mining and Nuclear: The Baseload Partnership

Nuclear power generates 18.6% of U.S. electricity from just 93 operating reactors, running at 93% capacity factor—the highest of any power source. Yet these plants face an existential economic challenge: they produce the same output regardless of demand, and wholesale electricity prices increasingly turn negative during periods of renewable oversupply. Bitcoin mining, with its 138 TWh annual global consumption and ability to modulate demand in real-time, is emerging as the ideal customer for nuclear baseload power. TeraWulf's Nautilus facility secured $0.02/kWh fixed-rate nuclear power for five years, Talen Energy's 200 MW mining campus operates behind-the-meter at Susquehanna, and Standard Power has committed to 24 NuScale small modular reactors for crypto data centers—representing a potential $2 billion investment in nuclear-powered mining infrastructure through 2030.

Why It Matters

The nuclear industry faces a structural mismatch between its operating characteristics and modern grid economics. Nuclear plants are designed for baseload operation—continuous output at maximum capacity—because the physics of fission and the economics of capital-intensive infrastructure both favor steady-state production. Shutting down a reactor costs millions in lost revenue and operational complexity; cycling output strains equipment and shortens component lifetimes.

But the grid has changed. In 2024, California's CAISO curtailed 2.4 TWh of renewable generation in the first half alone—a 30% increase from 2023's full-year total of 3.4 TWh. During peak solar hours, wholesale prices regularly go negative: utilities must pay customers to consume electricity. Nuclear plants, unable to economically ramp down, either absorb these losses or face curtailment themselves.

Texas provides the clearest illustration of both the problem and the solution. ERCOT's large flexible load (LFL) program—dominated by Bitcoin miners—reduced demand by over 3,000 MW during the August 2024 heat emergency. Miners earned $71 million in power credits in 2023 by curtailing operations during peak demand, demonstrating the grid-stabilization value of interruptible load. For nuclear operators, miners offer something equally valuable in the opposite direction: guaranteed demand during oversupply conditions when electricity has zero or negative market value.

The economics are compelling. A 1 MW nuclear mining operation generates approximately $4.5 million in annual Bitcoin revenue at current network difficulty and prices. At nuclear's $0.02–0.03/kWh power costs, annual profit approaches $4 million with break-even in 6–15 months. Compare this to the alternative: selling electricity into a market offering $0 or less during surplus periods.

Key Concepts

Baseload Power: Electricity generated continuously at constant output, designed to meet minimum grid demand around the clock. Nuclear plants are the quintessential baseload generators—their fuel costs are negligible per MWh, but capital costs are enormous, making high utilization essential for economic viability. A 1 GW nuclear plant operating at 93% capacity factor produces 8.1 TWh annually; anything less degrades returns on the $10+ billion construction investment.

Behind-the-Meter Connection: An industrial load connected directly to a power plant, bypassing the transmission grid entirely. Behind-the-meter customers avoid transmission charges ($15–30/MWh in many regions), capacity payments, and grid interconnection queues that can delay projects by 4+ years. For nuclear plants, behind-the-meter arrangements also sidestep regulatory complexity: the power never enters the grid, so wholesale market rules don't apply.

Small Modular Reactors (SMRs): Nuclear reactors designed at 50–300 MW scale, factory-manufactured for standardized deployment. SMRs address nuclear's primary challenge—construction cost overruns and delays—through modular fabrication and reduced on-site assembly. NuScale's 77 MW modules, the only NRC-certified SMR design, can be configured in multi-unit plants up to 924 MW. The economics require anchor customers committed to long-term power purchase agreements, a role Bitcoin mining is uniquely positioned to fill given its geography-agnostic load requirements.

Demand Response: Programs where large electricity consumers reduce or shift consumption during grid stress events in exchange for payments or credits. Bitcoin miners are ideal demand response participants: mining operations can curtail in seconds, the equipment suffers no damage from shutdown cycles, and the opportunity cost (lost mining revenue) is quantifiable and predictable. Texas miners participating in ERCOT's LFL program demonstrated this value, curtailing over 1,500 MW during emergency conditions in 2024 winter storms.

What's Working and What Isn't

What's Working

TeraWulf's Nautilus Model: From 2023 through October 2024, TeraWulf operated 50 MW of Bitcoin mining capacity at the Nautilus Cryptomine, directly connected to Talen Energy's 2.5 GW Susquehanna nuclear plant. The economics proved exceptional: $0.02/kWh fixed power costs for five years, 100% zero-carbon electricity, and near-perfect uptime. TeraWulf contributed approximately 20% of its total Bitcoin production from this facility before selling its stake to Talen for $92 million—a 3.4x return on investment in under two years.

Talen Energy's Full Integration: Following the TeraWulf acquisition, Talen now operates the full 200 MW Nautilus facility, with expansion capacity to 300 MW. The company has demonstrated that nuclear-powered mining can achieve institutional-grade returns while satisfying ESG requirements. Talen's subsequent $650 million sale of the adjacent Cumulus Data campus to Amazon Web Services validated the behind-the-meter nuclear model for hyperscale loads.

Grid Stabilization Credentials: In Texas, Bitcoin miners have established credibility as grid assets rather than liabilities. The August 2024 heat emergency saw miners curtail 3,000+ MW within minutes of ERCOT's emergency call—equivalent to three large nuclear plants. This demonstrated reliability has shifted regulatory sentiment: miners are increasingly viewed as the flexible demand that enables higher renewable penetration without grid instability.

What Isn't Working

FERC Regulatory Uncertainty: The Federal Energy Regulatory Commission's November 2024 rejection of Talen's request to expand behind-the-meter capacity from 300 MW to 480 MW at Susquehanna created significant uncertainty. FERC's 2-1 decision cited concerns about cost-shifting to ratepayers and potential grid reliability impacts. Utilities including American Electric Power and Exelon had argued that behind-the-meter arrangements shift approximately $140 million in transmission costs to remaining grid customers. This ruling has a "chilling effect" on future nuclear + data center co-location deals across PJM territory.

SMR Timeline Delays: Despite Standard Power's 2023 announcement of 24 NuScale reactor purchases for Bitcoin mining data centers, the timeline remains distant. NuScale's first demonstration reactor at Idaho National Labs isn't expected until 2029, and commercial SMR deployment for mining likely extends into the early 2030s. The economics of announced deals remain theoretical until first-of-a-kind construction validates cost projections.

Emissions Verification Gaps: While nuclear power generates virtually zero operational carbon emissions, the Bitcoin mining industry lacks universal verification standards. The Cambridge Bitcoin Electricity Consumption Index covers only 48% of global mining activity through self-reported data. Claims of "zero-carbon mining" remain difficult to independently verify at scale, limiting the ESG premium that nuclear-powered miners might otherwise command from institutional investors.

Key Players

Established Leaders

Talen Energy — Owns and operates the 2.5 GW Susquehanna nuclear plant and the 200 MW Nautilus Cryptomine, the largest operational nuclear-powered Bitcoin mining facility in the U.S. Demonstrated the viability of behind-the-meter nuclear mining.
TeraWulf — Pioneer of nuclear-powered Bitcoin mining through the Nautilus joint venture. Currently operates 195 MW at Lake Mariner (NY) powered by 91% zero-carbon electricity from hydro and nuclear sources. Achieved industry-leading power costs.
Energy Harbor (Vistra) — Operates nuclear-powered Bitcoin mining in Coshocton, Ohio since December 2021, drawing power from its Beaver Valley and Perry nuclear plants. Partner to Standard Power's existing grid-connected mining operations.
Standard Power — Ohio-based Bitcoin mining operator with nuclear power purchase agreements from Energy Harbor. Announced commitment to 24 NuScale SMRs (1.85 GW) for future mining and data center operations in Ohio and Pennsylvania.

Emerging Startups

NuScale Power — Only SMR provider with NRC design certification (approved 2024). Partnered with ENTRA1 Energy on exclusive commercialization rights backed by up to $25 billion in investment capital. Standard Power deal represents first announced SMR-for-mining commitment.
Cumulus Coin (Talen subsidiary) — Originally the joint venture vehicle for Nautilus development. Model proved viable enough that Talen consolidated 100% ownership and expanded the concept to hyperscale data center applications.
CleanSpark — While not nuclear-specific, CleanSpark's 987 MW contracted capacity across 30+ U.S. sites prioritizes low-carbon sources. Achieved first 50+ EH/s hashrate among public miners with $35,000 marginal cost per Bitcoin.
Oklo — Sam Altman-backed SMR developer partnering with Meta on 1.2 GW deployment by 2030. Aurora microreactor design could enable distributed mining at remote sites unsuitable for grid connection.

Key Investors & Funders

ENTRA1 Energy — Exclusive commercialization partner for NuScale SMRs. Announced January 2025 framework agreement for up to $25 billion in investment capital to deploy SMR fleets across U.S. industrial and data center applications.
Tennessee Valley Authority (TVA) — Announced August 2025 commitment to up to 6 GW of NuScale SMR capacity for data centers and critical mining—the largest SMR order in U.S. history. Federal backing de-risks SMR economics.
Department of Energy — Provided up to $2 billion through Advanced Reactor Demonstration Program for TerraPower's Natrium reactor in Wyoming. DOE funding addresses first-of-a-kind cost premiums that limit private investment.

Examples

1. TeraWulf Nautilus — The Nuclear Mining Proof of Concept

TeraWulf's Nautilus facility established the template for nuclear-powered Bitcoin mining. Launched in February 2023, the operation deployed nearly 8,000 mining rigs drawing 50 MW directly from Susquehanna's 2.5 GW nuclear output. The behind-the-meter connection eliminated transmission costs, while the five-year fixed $0.02/kWh power purchase agreement insulated operations from wholesale market volatility.

By September 2024, Nautilus contributed approximately 1.65 EH/s hashrate, roughly 20% of TeraWulf's total production. When Talen acquired TeraWulf's stake for $92 million in October 2024—representing a 3.4x return—the transaction validated nuclear mining economics at scale. TeraWulf used proceeds to expand AI/HPC capacity at Lake Mariner, demonstrating how nuclear mining generates capital for facility diversification.

The implementation lesson: behind-the-meter nuclear connection transforms power from variable operating expense to predictable fixed cost, enabling mining profitability across wider Bitcoin price ranges than fossil-fueled competitors.

2. Standard Power + NuScale — The SMR Anchor Customer Model

Standard Power's October 2023 announcement of 24 NuScale SMR modules for Ohio and Pennsylvania data centers represents the largest committed SMR deployment for digital asset infrastructure. The 1.85 GW total capacity—delivered through 77 MWe factory-manufactured units—would power both Bitcoin mining and high-performance computing workloads.

The strategic logic reflects SMR economics: first-of-a-kind nuclear construction carries substantial cost uncertainty, and developers need committed anchor customers to secure financing. Bitcoin mining provides guaranteed demand independent of location, eliminating the chicken-and-egg problem of building nuclear capacity without confirmed offtake.

Standard Power's existing operations in Coshocton, Ohio—already mining with grid-connected nuclear power from Energy Harbor—demonstrate proof of concept while awaiting SMR deployment likely in the early 2030s. The timeline remains the primary challenge: NuScale's demonstration reactor isn't expected until 2029, and commercial deployment adds several years beyond that milestone.

3. Cumulus Data/AWS — Behind-the-Meter Goes Hyperscale

Talen Energy's development of the Cumulus Data campus adjacent to Susquehanna demonstrated that behind-the-meter nuclear connection works at hyperscale. The 1,200-acre site, directly connected to the nuclear plant, was acquired by Amazon Web Services for $650 million in March 2024—validating the premium value of zero-carbon, ultra-reliable power for compute-intensive loads.

AWS plans to develop 15+ data centers at the site over the next decade, potentially consuming up to 960 MW of nuclear power. The transaction established Susquehanna as the template for nuclear-powered digital infrastructure: direct connection eliminates grid constraints, nuclear provides 24/7 carbon-free power, and the economics pencil out even at hyperscale investment levels.

The November 2024 FERC rejection of capacity expansion from 300 MW to 480 MW introduced regulatory uncertainty, but Talen's pending rehearing request and the June 2025 restructured Amazon deal—moving to "front of the meter" framework worth up to $18 billion through 2042—demonstrates adaptive strategies for navigating regulatory constraints.

Action Checklist

Assess nuclear proximity for mining sites: Map operational and planned nuclear plants within 50 miles of potential mining locations; prioritize sites with behind-the-meter connection potential to avoid transmission costs and grid interconnection queues.
Model power economics across scenarios: Calculate mining profitability at nuclear power costs ($0.02–0.04/kWh) versus grid alternatives; stress-test against Bitcoin price volatility and network difficulty increases to validate economic resilience.
Evaluate demand response revenue potential: For grid-connected nuclear mining in ERCOT or PJM territories, model curtailment credit revenue from emergency demand response programs; incorporate ancillary service payments into project returns.
Monitor FERC regulatory developments: Track rehearing outcomes for Talen's behind-the-meter expansion request; assess implications for future nuclear co-location projects across regulated markets.
Engage SMR developers for anchor customer discussions: Contact NuScale/ENTRA1, TerraPower, and Oklo regarding anchor customer requirements for planned deployments; evaluate timeline alignment with mining hardware refresh cycles.
Develop emissions verification framework: Establish third-party auditable documentation of nuclear power sourcing; position for ESG-conscious institutional capital increasingly requiring verified zero-carbon operations.

FAQ

Q: How does nuclear-powered mining compare to renewable-powered mining on emissions? A: Nuclear power generates virtually zero operational carbon emissions—comparable to wind and approximately four times cleaner than solar on a lifecycle basis according to European Commission analysis. The Cambridge Centre for Alternative Finance reports nuclear now provides 9.8% of global Bitcoin mining electricity, up from negligible share in 2020. The key difference from renewables: nuclear provides 24/7 baseload power regardless of weather, enabling consistent mining operations without backup fossil generation. TeraWulf's Lake Mariner facility achieves 91% zero-carbon electricity from combined hydro and nuclear sources.

Q: Why would nuclear plants accept Bitcoin miners as customers instead of selling to the grid? A: During periods of renewable oversupply, wholesale electricity prices can go negative—utilities must pay customers to consume power. Nuclear plants cannot economically curtail output during these periods due to the physics of reactor operation and high fixed costs. Bitcoin miners provide guaranteed demand that absorbs otherwise-wasted generation, converting negative-margin hours into positive revenue. The Nautilus operation's $0.02/kWh fixed rate likely exceeds nuclear plants' marginal production cost, generating profit during hours when grid sales would produce losses.

Q: What are the main risks of nuclear mining investments? A: Three primary risks dominate: (1) Regulatory uncertainty—FERC's 2024 rejection of behind-the-meter expansion demonstrates that co-location arrangements face scrutiny over cost-shifting to ratepayers; (2) Bitcoin price volatility—while nuclear's low power costs provide buffer, extended price declines below $30,000 would stress profitability even at $0.02/kWh; (3) SMR timeline delays—announced projects like Standard Power's NuScale deployment depend on first-of-a-kind reactor completion, which historically faces multi-year delays and cost overruns. Investors should assume 2030s commercial operations for SMR-dependent projects.

Q: Can existing nuclear plants add Bitcoin mining capacity, or does this require new construction? A: Existing plants can add behind-the-meter mining through direct interconnection—Nautilus at Susquehanna demonstrates this model. The primary constraints are: available plant capacity (many nuclear sites already sell maximum output to grid), site space for mining infrastructure, utility willingness to negotiate power purchase agreements outside regulated frameworks, and regulatory approval for industrial co-location. Standard Power's arrangement with Energy Harbor shows that grid-connected mining from existing nuclear plants is also viable, though it foregoes behind-the-meter transmission cost savings.

Sources

Cambridge Centre for Alternative Finance. (2025). "Cambridge Bitcoin Electricity Consumption Index: Global Mining Data Survey." Cambridge Judge Business School.
Talen Energy. (2024). "Talen Energy Purchases TeraWulf's Minority Share in Nautilus Cryptomine." Investor Relations Press Release.
NuScale Power. (2025). "NuScale Power Supports ENTRA1 Energy's $25 Billion Agreement for SMR Deployment." Corporate Press Release.
U.S. Energy Information Administration. (2025). "Data Centers and Cryptocurrency Mining in Texas Drive Strong Power Demand Growth." Today in Energy Analysis.
Federal Energy Regulatory Commission. (2024). "Order on Proposed Amendment to Large Generator Interconnection Agreement: Talen Energy Marketing, Docket No. ER24-2834." FERC Decision.
ScottMadden Energy Consulting. (2024). "Mining Bitcoin with Nuclear Power: Economic Analysis and Grid Integration Considerations." ScottMadden Insights.
World Nuclear Association. (2025). "Small Modular Reactor Global Project Tracker." WNA Information Library.
Data Center Dynamics. (2024). "Blockchain Firm Standard Power to Procure 24 Small Modular Reactors from NuScale for Two US Data Center Sites." DCD News.