By the end of 2024, the United States had strengthened its position as the top Bitcoin mining nation. It now controls over 40% of the global hashrate, which represents the computing power securing the Bitcoin network.
Role of Foundry USA and MARA Pool
U.S.-based mining pools, Foundry USA and MARA Pool, played key roles in this success. Together, they contributed to more than 38.5% of all Bitcoin blocks mined. Foundry USA, for instance, significantly increased its hashrate. It grew from 157 exahashes per second (EH/s) at the start of the year to 280 EH/s by December.
Foundry USA’s Rise to Dominance
Thanks to this remarkable growth, Foundry USA became the largest mining pool globally. It now controls 36.5% of the Bitcoin network’s total hashrate. In addition, MARA Pool also made notable progress. Currently, it operates with 32 EH/s, contributing around 4.35% of the global hash power.
China’s Ongoing Influence in Mining
Despite the U.S. growth, China-based mining pools still hold considerable power. As of September 2024, these pools control 55% of the global hashrate. Notably, the influence continues despite China’s 2021 cryptocurrency mining ban. Miners circumvent restrictions using virtual private networks (VPNs) and peer-to-peer apps to bypass the national firewall.
Challenges in Tracking Mining Power
Tracking the true distribution of mining power across the globe is difficult. Many mining pools are comprised of international contributors, even if the pool is based in a specific country. This decentralized participation complicates efforts to accurately measure hashrate dominance.
Concerns About Bitcoin’s Centralization
The concentration of mining power in large pools raises concerns about Bitcoin’s decentralization. As mining profitability declines, only large companies with the resources to invest millions can afford to continue mining. Moreover, the high cost of ASIC rigs and electricity prices makes it even harder for smaller miners to compete.
National Security and Bitcoin’s Decentralization
Rajiv Khemani, CEO of mining chip manufacturer Auradine, expressed concern over Bitcoin’s centralization. He referred to it as a national security issue. Khemani emphasized the importance of diversifying critical infrastructure, such as ASICs, to avoid any single country controlling the majority of Bitcoin’s network hashrate.
Bitmain’s Expansion to the U.S.
In response to growing geopolitical tensions, Bitmain expanded its Bitcoin mining hardware production to the United States. This strategic move aims to improve supply chain efficiency amid escalating trade tensions between China and the U.S. Bitmain currently controls as much as 90% of the global Bitcoin mining hardware market.
Block’s Bitcoin Mining Expansion
Jack Dorsey’s Block also increased its investment in Bitcoin. The company plans to ramp up its Bitcoin mining initiative and self-custody Bitcoin wallets. This expansion will involve reallocating resources from the canceled “Web5” project and reducing investments in Tidal, the music-streaming service.
Texas Considers Strategic Bitcoin Reserve
At the North American Blockchain Summit, the Satoshi Action Fund revealed that Texas lawmakers are exploring legislation for a Strategic Bitcoin Reserve. This initiative aims to strengthen Texas’ position within the growing Bitcoin mining industry.
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