Public Bitcoin Miners Rise In Power

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The following is taken from a recent edition of Deep Dive, Bitcoin Magazine’s high-end market newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

The mining exodus from China this year has become the biggest opportunity for bitcoin miners to capitalize in the world. Not only have we seen the network hash rate continue its aggressive recovery in recent months, but we’ve also seen mega growth in public bitcoin miner production with major mining opportunities, especially in the United States. . Banning one country is hashing another country.

According to the Luxor Hashrate Index third quarter report, “Collective in the third quarter, these miners mined 79% more bitcoin than in the second quarter and 155% more than they mined in the first trimester “.

Luxor also expects the global hashrate to reach previous record highs of 185 exahashs per second in the fourth quarter (EH / s; 1 exahash equals 1 quintillion hash calculations), which would represent a 215% increase per second. compared to July lows. Currently we are around 143 pe / s.

Source: Luxor

These public bitcoin miners above are just six of the 24 now in the growing market with a market cap of $ 15.82 billion. Market cap does not include Core Scientific, valued at $ 4.3 billion which went public through SPAC this year, nor Bitfury, which announced plans to go public today valued at $ 1 billion.

Even without forecasting increases in current valuations or tracking smaller upcoming public mining deals (i.e. Stronghold Digital Mining valued at $ 100 million to go public this year), the state-owned mining industry is already valued at over $ 21 billion. North America’s state-owned bitcoin mining companies alone hold more than 20,000 bitcoins worth over $ 1.1 billion. A major increase in the price of bitcoin could double or triple the industry’s market capitalization in a matter of months. That’s incredible growth and benefits for an industry that didn’t have its first public miner until 2016.

Opportunity in the United States

Data from Foundry USA, one of the world’s largest mining pools with a 9-10% hash rate, shows the United States has almost a third of the world’s hash rate along with New York, Texas, Kentucky and Georgia among the major mining states in their mining pool. The latest data from Foundry, presented by Nic Carter and Castle Island Ventures at the Texas Blockchain Summit, roughly estimates a doubling of the U.S. hash rate using Cambridge Bitcoin Electricity Consumption Index data from April 2021. While these are estimates from different data and benchmarks, they give us a rough idea of ​​the picture of the US hash rate.

Source: Castle Island Ventures, Foundry USA

Source: Cambridge Bitcoin Electricity Consumption Index

The bitcoin mining exodus in China could become the catalyst that propels the United States to become a bitcoin mining powerhouse. Texas Senator Ted Cruz explained this weekend how he views bitcoin “as a way to strengthen our energy infrastructure” and how it has the “ability to unlock stuck renewables.”

This came in the same discussion where he spoke of a huge opportunity for Bitcoin to address the flaring natural gas issues in West Texas, which is home to 50% of the nation’s flared natural gas. Never have we seen an American politician talk about Bitcoin’s energy innovation so intelligently. The arguments for Bitcoin as a demand response innovation and controllable charging resource are becoming increasingly important to be ignored. Many are waking up to the idea that Bitcoin is as much an energy innovation as it is an economic one.

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