United States Dominates Bitcoin Mining with Over 40% Global Hashrate Share

The United States has emerged as the global leader in Bitcoin mining, commanding over 40% of the world’s hashrate by the end of 2024. This surge is primarily driven by Foundry USA, the largest mining pool globally, with a hashrate of 280 EH/s, and contributions from other U.S. pools like MARA Pool.

• U.S. over 40% of global Bitcoin hashrate
• Foundry USA leads with 280 EH/s
• Chinese pools still control 55% of hashrate
• Concerns about Bitcoin mining centralization
• Bitmain expands U.S. operations

The U.S. has solidified its position as a powerhouse in Bitcoin mining, with the term “hashrate” referring to the total computational power used to mine and process transactions on the Bitcoin network. Foundry USA’s impressive growth from 157 EH/s to 280 EH/s within the year has enabled it to mine a significant portion of Bitcoin blocks, contributing to over 38.5% of all blocks mined in 2024. MARA Pool, another U.S. player, boasts a hashrate of 32 EH/s and a 4.35% share of the total network hashrate. The higher the hashrate, the more secure the network is supposed to be, but it also raises questions about centralization.

Meanwhile, in China, despite the 2021 ban on cryptocurrency mining, Chinese mining pools have cleverly circumvented restrictions, maintaining a robust 55% of the global hashrate. They use Virtual Private Networks (VPNs) and direct computer-to-computer connections (peer-to-peer technologies) to keep mining, adding a layer of complexity to the global mining landscape. This persistence raises questions about the potential centralization of Bitcoin mining power and whether it’s a cause for concern or just another twist in the crypto saga.

Centralization in mining means fewer entities control the network, which can lead to manipulation and reduced security. The concentration of mining power in the hands of a few large pools has sparked a debate about the decentralization and security of the Bitcoin network. Industry leaders like Rajiv Khemani, CEO of Auradine, stress the importance of diversifying the infrastructure to maintain network security and global neutrality. In his words,

Avoiding dependency on a single country for these technologies is crucial for maintaining the network’s security and global neutrality.

In response to these dynamics, major hardware manufacturers are making strategic moves. Bitmain, a leading name in mining hardware, has expanded its operations to the United States. This move is driven by geopolitical tensions and potential tariff hikes, as Bitmain seeks to mitigate risks and increase efficiency. Foundry USA’s growth can be attributed to strategic partnerships and investments in energy-efficient mining facilities.

Jack Dorsey’s Block has also increased its investments in Bitcoin mining initiatives, further bolstering the U.S. position in the global mining landscape. These developments signal a broader trend of infrastructure expansion and supply chain diversification in the crypto space. However, it’s worth noting that North American mining firms like IREN and Bitfarms have reported issues with Bitmain’s Antminer T21 units, including downtime and performance problems, indicating ongoing challenges in mining hardware reliability.

Amidst these shifts, the crypto community remains vigilant. The rise of U.S. mining pools and the expansion of hardware manufacturing to new shores are steps towards a more decentralized and secure Bitcoin network. However, the persistence of Chinese mining pools despite the ban highlights the complexities of global mining dynamics. Is U.S. dominance a good thing for Bitcoin? Some say it’s a double-edged sword, potentially increasing network security while raising concerns about centralization.

While Bitcoin maximalists might celebrate this dominance as a sign of strength and stability, it’s important to consider how this might affect altcoins and other blockchain networks. The concentration of mining power in the U.S. could push other cryptocurrencies to seek their own niches, potentially fostering greater innovation across the board. Yet, the challenge of centralization remains a critical issue that the entire crypto ecosystem must address to ensure true decentralization and security.

Key Takeaways and Questions

• How has the United States achieved over 40% of the global Bitcoin hashrate?
  Through the growth of major mining pools like Foundry USA and MARA Pool, which together mined a significant portion of Bitcoin blocks in 2024.
• What is the current status of Bitcoin mining in China despite the ban?
  Chinese mining pools continue to dominate with 55% of the global hashrate, using VPNs and direct computer-to-computer connections to circumvent the ban.
• Why are there concerns about centralization in Bitcoin mining?
  The concentration of hashrate in a few large pools raises concerns about the decentralization and security of the Bitcoin network, as fewer people controlling the network can lead to manipulation and reduced security.
• What steps are being taken to address these centralization concerns?
  Industry leaders advocate for the diversification of critical infrastructure like ASICs (specialized mining hardware), and companies like Bitmain are expanding operations to reduce dependency on any single jurisdiction.
• How are supply chain shifts affecting Bitcoin mining?
  Manufacturers like Bitmain are expanding to the U.S. to increase efficiency and reduce jurisdictional dependence, reflecting broader geopolitical dynamics in the crypto space.