The surprising connection between Bitcoin and cannabis

These 2 prominent assets have one increasing similarity with each other.

| More on:
drawings of a phone with a bitcoin logo in one hand and a cannabis plant in the other hand

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Bitcoin (CRYTP: BTC) miners and cannabis growers may not appear to share much in common at first glance.

But there's a surprising connection between the 2 emerging assets.

An electric connection, to be precise. As British police discovered last week.

How much electricity do we need?

Indoor cannabis cultivation requires quite a bit of electricity, mainly to power the high wattage lights which are intended to mimic the sun.

In the world's fast-growing legal cannabis markets, cultivators tend to toe the line when it comes to tapping into the grid. Meaning they do so legally. And they pay their utility bills just like any other business.

Illicit cannabis growers, on the other hand, sometimes do an end run around the utilities by illegally tapping into power sources they're not monitored for.

Now, with the electric usage of Bitcoin mining skyrocketing, it would seem that some Bitcoin miners are following that same illegal path.

As Bloomberg reports, police using drones in West Midlands, England discovered a warehouse throwing off an unusual amount of heat. "When British police raided a warehouse, they were expecting to find a cannabis farm. Instead they found banks of computers illegally siphoning the electricity needed to mine for Bitcoin."

All up there were about 100 computers illegally tapped into the grid.

Police Sergeant Jennifer Griffin admitted, "It's certainly not what we were expecting. It had all the hallmarks of a cannabis cultivation set-up."

While Bitcoin mining is perfectly legal in the UK, stealing electricity isn't, and charges may be pending.

So, just how much electricity does Bitcoin mining require?

According to Citigroup Inc (NYSE: C), the world's largest cryptocurrency by market value uses 66 times more electricity today than it did back in 2015. And, as Bloomberg noted, the University of Cambridge "estimates it uses more electricity globally in a year than the Netherlands".

Bitcoin price snapshot

The Bitcoin price is up 1% over the past 24 hours. One Bitcoin is currently trading for US$34,940 (AU$45,377).

Although the token is now well off its all-time high of US$64,829, set in mid-April, it's still up 19% year-to-date. And lest we forget, only 12 months ago crypto investors could have picked up a Bitcoin for US$9,423.

Should you invest $1,000 in Nuix Pty Ltd right now?

Before you buy Nuix Pty Ltd shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Nuix Pty Ltd wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

Bitcoin coins in a pile.
Cryptocurrencies

What's happening with the Bitcoin price amid the Trump tariff market panic?

You may have heard Bitcoin referred to as ‘digital gold’. But is it really a haven asset?

Read more »

A graphic picture of gold Bitcoins with the Bitcoin symbol lying on a desk with arrows shooting higher and one arrow lifting off the flat surface pointing to the sky.
ETFs

Dip your toes into cryptocurrency with these 2 ASX ETFs

Interested in cryptocurrency?

Read more »

Bitcoin symbol with a rising green arrow.
Cryptocurrencies

Bitcoin surges: How to invest through the ASX

Wanting to gain exposure to the cryptocurrency? Check out these two options.

Read more »

Bitcoin coins in a pile.
Cryptocurrencies

Here's what owning Bitcoin for 7 years has taught me

Bitcoin has been a fantastic investment for me, but not without its pitfalls.

Read more »

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.
Cryptocurrencies

Bitcoin price surges on Donald Trump's cryptocurrency strategic reserve update

The Bitcoin price hit all-time highs of US$109,115 on the day Trump was sworn into office.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

The Bitcoin price soared 120% in 2024. Could it repeat that performance in 2025?

Bitcoin soared by 150% in 2023 and 120% in 2024, so many crypto investors are expecting it to once again…

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Cryptocurrencies

Why Bitcoin, Ethereum, and Dogecoin just surged

Today's CPI report turns out to mean a great deal to crypto investors.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

Bitcoin price smashes new record highs as market value tops US$2.1 trillion

Bitcoin just soared to new all-time highs. But why?

Read more »