Bitcoin has found a new home – For the past few weeks, we have seen an exodus of Chinese miners. Long before China decided to evict its bitcoin (BTC) miners, they were already leaving en masse, and new data from Cambridge University shows they are likely headed for the United States. Prior to the start of China’s mining ban, the country accounted for 46% of the global hashrate, which was already a 75% decrease in its market share from September 2019.
US miners, big winners of the China Ban
5 provinces, including Inner Mongolia, Xinjiang, Qinghai, Yunnan and Sichuan, have either banned bitcoin mining purely or have strictly regulated it. And now, for the first time since the advent of ASICs in 2013, the bitcoin mining industry is looking for a new home.
Marathon, future world number 1 in BTC mining?
The Marathon Patent Group is number 1 in BTC mining in the United States. During October 2020, the company ordered 10,000 Antminer S19s from Bitmain. In February 2021, Marathon then added a few thousand ASICs to its arsenal. In addition, the latter has indicated its intention to produce bitcoins that meet the requirements of the Office of Foreign Asset Control (OFAC) in the fight against money laundering.
In its first attempt to produce a block of only “clean” bitcoin, however, Marathon bumped into the crypto community. Indeed, the participants of the bitcoin network voluntarily polluted the OFAC compiling block of Marathon, by sending there transactions related to black markets.
Marathon Patent Group price in daily unit showing strong correlation with Bitcoin
Finally, the Marathon Patent Group also wants to achieve carbon neutrality for its Texas site. The new 300 megawatt mining farm is expected to accommodate 73,000 ASICs. The site will be operational in the first quarter of 2022 with a hashrate of 10.4 EH / s with a carbon neutrality of 70%. Ultimately, the goal is to achieve 100% carbon neutrality. Nonetheless, Marathon has not communicated on how it measures said neutrality.
Riot Blockchain Multiplies Its Bitcoin Production Year-Over-Year
Between December and August 2020, Riot Blockchain also ordered several thousand ASICS Antminers from Bitmain. However, the shortage of semiconductors slowed down shipments which spread throughout 2021.
In April 2021, Riot carried out 2 major operations aimed at strengthening its mining capacities. First, the BTC miner struck a second deal with Bitmain to deliver 42,000 Antminer S19s for a whopping $ 138 million. Deliveries of these thousands of ASICs are due to begin in November 2021 and extend over the period 2021-2022.
At the same time, the company acquired a new data center located in Whinstone, Texas. This operation was the subject of mixed internal financing. The miner paid $ 80 million in fiat currency and sold 12% of its shares to the former data center operator. Once operational, this farm will be the largest bitcoin mining facility in the United States.
According to data from Riot, its hash power increased 460% in 2020, and growth continues into 2021. Indeed, in March 2021, the company was reporting an 80% increase in production compared to March 2020. Then, in June 2021, Riot reportedly mined 243 BTC, an increase in production of 406% from June 2021.
Canadian bitcoin miners are also doing well, thanks to renewable energy
US-based companies aren’t the only major players in bitcoin mining in North America. Hive Blockchain and Hut 8, 2 Canadian miners, are also well positioned to take advantage of the forfeiture of Chinese miners.
Hut 8, Canada’s BTC stingy miner
Until 2018, Hut 8 was North America’s largest hashrate miner. However, the collapse of prices and changes in laws have had a major impact on the company. Indeed, Hut 8 was forced to sell its Norwegian site for regulatory reasons in 2018. This combination of negative factors led the company to report losses of $ 136 million in 2019.
Hut 8 course in daily unit showing a course evolution similar to that of its US peers.
Nonetheless, Hut 8 corrected things in 2021. The company successfully listed on NASDAQ in June. Hut 8 was already listed on the Toronto Stock Exchange, but this new listing allowed it to raise more funds, in order to keep its war chest. Indeed, Hut 8 has a rather specific policy. The company seeks to retain the majority of the BTC it mines. To date, Hut 8 is the company with the most self-mined bitcoin with a target of 5,000 BTC on these wallets by 2022.
Hive Blockchain, leader in eco-responsible mining
Finally, the last major player in North America is Hive Blockchain, specializing in green mining. The company mainly operates sites powered by green energy. From Canada to Sweden to Iceland, it uses all forms of green energy in its operations. In May, Hive was also forced to separate from its Norwegian site. However, the company made up for this decrease in hashrate, purchasing 3,000 ASIC M30S for one of its Canadian sites.
Hive Blockchain price in daily units showing better resilience than Riot or Marathon with only a 40% drop in the heat of the action.
The growing dominance of North America is a simple mixture of chance and preparation. Before bitcoin miners started coming to the United States, companies across the country made a bet that one day if the right infrastructure was in place, miners would move to the United States, which appears to be paying. The country’s economic, legal and geopolitical stability make it a prime location for this sector.
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