• Bitcoin Mining in the United States: Which States Attract the Most Miners?

  • According to Foundry data, four states in the United States have the highest Bitcoin hash rate distribution. According to the data, many Bitcoin miners are heading to New York, Kentucky, Georgia, and Texas.

    Foundry US is North America’s largest mining pool and the world’s fifth-largest. The hash rate is a measure of the aggregate mining power. A mining pool allows miners to pool their hashing power with miners from all over the world.

    Bitcoin Mining in the United States

    According to the data, New York accounts for 19.9 percent of bitcoin’s hash rate in the United States, Kentucky accounts for 18.7 percent, Georgia accounts for 17.3 percent, and Texas accounts for 14 percent.

    Nic Carter, co-founder of Castle Island Ventures, presented Foundry’s data at the Texas Blockchain Summit in Austin on October 8, 2021. “Unless you want to go cobble through all the public filings and try to figure it out that way, this is the first time we’ve actually had state-level insight on where miners are,” says the author.

    “This is a much more efficient way of determining where mining occurs in America,” he added.

    Carter, on the other hand, pointed out that the Foundry dataset does not include all U.S. mining hash rates because not all U.S.-based mining farms use its services. Riot Blockchain, one of America’s largest publicly traded mining companies with a significant presence in Texas, does not use Foundry. As a result, the dataset does not take its hash rate into account. Texas’ mining presence is likely understated and could be higher than the 14 percent reported.

    Many of the states with the highest Bitcoin hash rates also have high renewable energy proportions. This fact may have begun to change the narrative that bitcoin is harmful to the environment.

    Many miners are migrating to these states because they have cheap and renewable energy sources. According to the US Energy Information Administration (EIA), renewable energy accounts for one-third of New York’s in-state generation. Kentucky, the state with the second-highest hash rate, is also known for its hydroelectric and wind power. The state legislature recently passed legislation exempting crypto mining operations from certain taxes.

    Carter also stated that the migration of miners to the United States is beneficial because it means lower carbon intensity.

    Texas is the Bitcoin mining leader.

    Despite ranking fourth in the data, experts believe Texas is the top mining destination in the United States. The state is home to mining behemoths such as Riot Blockchain and the Chinese mining service platform Bitdeer.

    According to a report from earlier this year, large orders for mining ASICs are also being delivered to Texas.

    Texas is appealing to miners due to crypto-friendly lawmakers, a deregulated power grid with real-time spot pricing, and access to significant renewable energy as well as stranded or flared natural gas.

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