US Bitcoin Mining Dominance Reaches 75.4%

The United States has solidified its position as the global leader in Bitcoin mining, accounting for 75.4% of the reported hashrate, according to the latest Cambridge survey. This dominance underscores the country's commitment to advancing the Bitcoin mining industry, which has seen significant growth and investment in recent years.

The findings were published in the Cambridge Digital Mining Industry Report, which was conducted by the Cambridge Centre for Alternative Finance between June and September 2024. Out of 97 companies that registered for the survey, 49 completed it, resulting in a response rate of 50.5%. The report highlighted that the US significantly outpaced all other countries in terms of Bitcoin mining dominance, with Canada coming in second at 7.1%, followed by Paraguay, Norway, and Kazakhstan with 3.4%, 2.8%, and 2.6% respectively.

However, it is important to note that the survey's findings may not fully reflect the global distribution of Bitcoin mining due to the US-dominated sample of respondents. The latest data from the Hashrate Index showed that the US only accounts for 36.0% of the global hashrate, suggesting that the survey may overrepresent US activity and underrepresent activity in other countries.

Despite this, the US is looking to expand its dominance in the industry further. Recently, Commerce Secretary Howard Lutnick shared the nation’s vision to boost the mining industry. Lutnick highlighted the Commerce Department’s investment accelerator initiative as a key resource to help miners gain greater autonomy over their energy needs. On March 31, President Trump signed an executive order establishing the “United States Investment Accelerator.”

The initiative seeks to streamline regulatory processes and facilitate investments above $1 billion. In a recent interview, Lutnick explained the investment accelerator’s benefits for miners. “We’re going to make it if you want to mine Bitcoin and you find the right place to do it. You can build your own power plant next to it,” he stated. Secretary Lutnick envisions that this could help Bitcoin mining companies become more independent from traditional energy grids. A notable aspect of this vision is using waste gas from gas fields to power mining operations. This could lower energy costs and reduce environmental impact. By controlling their energy supply, miners would have the flexibility to manage costs more effectively, potentially boosting Bitcoin mining in America.

“The next generation of miners in America will be able to control their destiny, control the cost of power, and I think that is going to turbocharge Bitcoin mining in America,” Lutnick added. As Lutnick’s vision materializes, companies are already positioning themselves to capitalize on the favorable conditions. Cleanspark, a Bitcoin mining company, is nearing approval for a new facility in Tennessee. This project is expected to strengthen the US mining sector, capitalizing on favorable regulations and access to energy resources.

Interestingly, the sector has also attracted attention from high-profile figures. Last month, the President’s son partnered with Hut 8 to launch American Bitcoin Corp. This new venture focuses on large-scale Bitcoin mining and building a strategic reserve. The firm has also outlined its ambition to go public in the future.

Meanwhile, this rapid scaling of mining operations could significantly impact the global hashrate, which has already shown rapid growth in Q4 2024. The Bitcoin mining industry has largely shrugged off halving-related concerns, with network hashrate accelerating sharply in Q4 2024. This surge was driven by a combination of favorable political developments and a strong price rally, propelling the hashrate to a record high of 900 Eh/s.

Notably, market analysts project that the global Bitcoin hashrate could surpass 1 zettahash per second (ZH/s) by July 2025. Moreover, by 2027, the number is expected to increase to 2 ZH/s. Nonetheless, concerns remain. Tariffs on Southeast Asian countries, where most mining equipment is sourced from, increase costs. This could lead to higher operational expenses, threatening profitability and US market dominance. Given this, analysts also project that Q1 and Q2 2025 results may be less favorable.

“Q1 results could disappoint as hash price continued its decline due to Bitcoin trading in a narrow range between US$80,000 and US$90,000. Q2 results may show deterioration, as tariffs on imported mining rigs range from 24% (Malaysia) to 54% (China). Miners relying on older or less efficient rigs face higher exposure to these tariffs,” they remarked. Despite the challenges, analysts are optimistic about Bitcoin’s future. It is gaining traction as a reserve asset among several US states. Furthermore, inflation and currency devaluation could strengthen Bitcoin’s role as a hedge against economic uncertainty.