Asia Morning Note: Groundbreaking Report Pits AI Against BTC on Emissions — Debate Likely to Intensify

New environmental data has reignited debate over the energy demands of artificial intelligence versus Bitcoin, spotlighting their drastically different operational footprints.

Mistral AI has taken the rare step of publicly disclosing the environmental impact of its large language model, Mistral Large 2. According to the report, training and running the model over 18 months resulted in 20.4 kilotonnes of CO₂ emissions, consumed 281,000 cubic meters of water, and depleted 660 kilograms of minerals. A single chatbot reply used just 1.14 grams of CO₂, 45 milliliters of water, and 0.16 milligrams of minerals—tiny in comparison to blockchain energy demands.

By contrast, Bitcoin’s proof-of-work mechanism remains vastly more resource-intensive. Each BTC transaction is estimated to emit 600–700 kg of CO₂, use 17,000+ liters of water, and create over 130 grams of e-waste. In 2023, the network as a whole emitted 48 million tonnes of CO₂, consumed more than 2 billion liters of water, and produced 20,000+ tonnes of e-waste, according to the Cambridge Centre for Alternative Finance.

Context Shapes Impact

These raw comparisons, however, require nuance. Mistral benefits from Europe’s cleaner power grid, with nuclear energy contributing over 22% of the EU’s electricity. Meanwhile, a 2023 survey by BTC fund Batcoinz showed Bitcoin’s energy mix includes hydro (23.1%), wind (13.9%), solar (5%), and nuclear (7.9%), amounting to more than 40% from low-emission sources.

AI’s energy profile varies depending on location and grid composition. A model trained in coal-heavy areas of the U.S. could have a much larger environmental footprint than one based in the EU.

Energy Use by Design

Bitcoin’s environmental cost is fixed and time-based: mining continues every 10 minutes regardless of demand. In contrast, AI’s costs are usage-based—heavy at the training phase but light at the point of interaction. That makes AI more efficient at scale when looking at marginal usage.

Mistral’s transparent report marks a turning point in environmental accountability for AI. Still, Bitcoin advocates point to the network’s decentralization, transparency, and utility in financial sovereignty as justifications for its energy use.

As AI and crypto evolve into digital infrastructure, both industries face growing pressure to adopt cleaner energy and improve efficiency.

Market Snapshot – July 23, 2025

• Bitcoin (BTC): Trading at $119,500, down from an all-time high of $123,100. Retail-driven selling on Binance has dragged Net Taker Volume below $60M, suggesting a bearish shift.
• Ethereum (ETH): Pulled back 3.1% to $3,696, with technical indicators signaling potential short-term correction despite sustained institutional accumulation.
• Gold: Rose nearly 1% to $3,430.41, hitting a five-week high on safe-haven demand amid falling U.S. bond yields.
• Nikkei 225: Gained 1.71% at the open after the U.S. and Japan struck a new trade deal, reducing tariffs on Japanese goods.
• S&P 500: Edged up to a record 6,309.62, as investors digested a mixed batch of earnings reports.