S&P Global Commodity Insights Launches First-of-Kind Platts Bitcoin Quarq Spreads

Cryptocurrency Mining-to-Power Price Spreads for 30+ Locations a Helpful Cost-of-Currency Tool

LONDON (May 19, 2022) – S&P Global Commodity Insights, the leading independent provider of information, analysis and benchmark prices for the commodities and energy markets, today announced the launch of a first-of-kind global suite of Bitcoin mining and electric power price spreads for 31 local electrical grids in the US, Germany, UK and Scandinavia.

The new Platts Bitcoin Quarq Spreads measure the margin of digital Bitcoin miners, taking into account their electricity costs. Platts Bitcoin Quarq Spreads reflect how mining profitability changes over time and in different locations. Because the economics of public digital currency mining favor use of the most economically priced electricity, miners are drawn to using renewable capacity at times of relative oversupply. The new cryptocurrency mining-to-power spreads therefore complement the existing Platts Renewable Penetration Index (RPI), Platts Renewable Curtailment Index and the Platts Renewable Capture Price Index by adding insight into the relative value between renewable electricity and the value of digital currency.

Amy Gasca, Manager of Americas and European Power Pricing, S&P Global Commodity Insights, said: "Bitcoin mining is developing into a significant new source of energy consumption for the power grid and its impact on electricity pricing is evolving globally. Bringing more transparency to this new player in the grid is important. There has been a lack of instruments to measure digital mining economics globally. We are pleased to offer the marketplace a new power pricing information solution."

Accompanying the daily Platts Bitcoin Quarq Spreads, will be a calculated cost of buying renewable certificates to match the power consumption, using the most appropriate Platts Renewable Energy Certificate (REC) or Platts Guarantee of Origin (GOs) assessments.

Platts Bitcoin Quarq Spreads provide an innovative information solution to renewable developers, utilities and regulators regarding the possible impacts of digital mining to respective grids, as well as better inform Bitcoin miners of the range of operating cost environments.

In the US, the Bitcoin Quarq Spreads will include 14 baseload locations in the Texas power grid ERCOT and two in the Southwest Power Pool SPP. In Europe, spreads will include one baseload location in the UK, one in Germany and 13 Nordic locations.

For details of the Platts Bitcoin Quarq Spreads methodology, access the Electricity methodology and specifications guide.

Media Contacts

Global/EMEA: Paul Sandell, + 44 (0)7816 180039, paul.sandell@spglobal.com
Americas: Kathleen Tanzy, +1 917-331-4607, kathleen.tanzy@spglobal.com
Asia: Melissa Tan, +65-6597-6241, melissa.tan@spglobal.com

About S&P Global Commodity Insights

At S&P Global Commodity Insights, our complete view of global energy and commodities markets enables our customers to make decisions with conviction and create long-term, sustainable value.

We’re a trusted connector that brings together thought leaders, market participants, governments, and regulators and we create solutions that lead to progress. Vital to navigating commodity markets, our coverage includes oil and gas, power, chemicals, metals, agriculture, shipping and energy transition. Platts® products and services, including the most significant benchmark price assessments in the physical commodity markets, are offered through S&P Global Commodity Insights.

S&P Global Commodity Insights is a division of S&P Global (NYSE: SPGI). S&P Global is the world’s foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world’s leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information visit https://www.spglobal.com/commodityinsights

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