Bitcoin Mining Infrastructure Boom: Strengthening the Network and Hasrate Dominance

Bitcoin Mining Infrastructure Boom: Strengthening the Network and Hasrate Dominance

The latest Miner Weekly report by BlocksBridge Consulting suggests that a new wave of Bitcoin (BTC) infrastructure boom is on the horizon. This boom could potentially further strengthen the network and increase the hashrate dominance in North America. The report indicates that China’s 2021 Bitcoin mining ban has resulted in a “massive infrastructure buildout” in other countries, particularly in North America, with Texas, USA at the forefront. Several major mining companies have recently announced their plans for near- and long-term site expansions, signaling a significant growth in the industry.

The report highlights the expansion plans of various mining companies, showcasing their commitment to growing their operations in North America. Iris Energy, Riot, and Northern Data, for instance, are expecting to add a combined capacity of 580 MW in Texas alone by Q2. Iris Energy’s Texas site also has an additional 500 MW of available power that will be expanded in five additional phases after Q2. Additionally, the company has signed another new site in Texas, which has the potential to offer 1.4 gigawatts beyond 2026.

Northern Data plans to fully energize a newly purchased 30 MW site in North Dakota in Q1, while Core Scientific aims to expand its operations by 172 MW in Texas in Q2 following its emergence from Chapter 11 bankruptcy protection. Cipher Mining has also made a significant move by acquiring a new Texas site with a capacity potential of 300 MW. Moreover, Bitfarms plans to install 11 MW in Quebec during the second half of 2024, and Hut 8 successfully bid for four power plants totaling 310 MW in Canada.

Marathon Digital Holdings, a prominent Bitcoin mining company, has set its sights on acquiring rival miners and related infrastructure in the next two years. The company’s CEO, Fred Thiel, stated that they intend to expand considerately in 2024 and 2025. Thiel believes that an approval from the US Securities and Exchange Commission (SEC) for a US exchange-traded fund (ETF) that directly invests in Bitcoin would significantly benefit miners. Such an approval would boost the overall demand for BTC, promoting growth in the industry. Marathon Digital Holdings has experienced substantial success this year, with its shares surging over 400%.

A survey conducted by Binance, one of the largest crypto exchanges, reveals that nearly half (45%) of the respondents listed earning extra income as their primary use for crypto. Among these respondents, 23% aim to supplement their primary income, while another 23% use crypto to save for a home, and 21% for investing in other digital assets. The survey also highlights that more than a third (36%) of the respondents see achieving financial security and independence as the primary motivation for using crypto for savings. It is worth noting that high fees and slow transaction times continue to be significant challenges when dealing with traditional financial systems and services.

PancakeSwap, a decentralized exchange on the Binance Smart Chain, has expanded its popular gaming experience, “Pancake Protectors.” This player-versus-player (PvP) game with on-chain rewards is now available on Polygon zkEVM and Base networks as well. The game allows players to deposit and withdraw CAKE tokens, the primary in-game currency, on these platforms. “Pancake Protectors” has attracted over 25,000 daily active users during peak times, with features catering to the GameFi community, CAKE collectors, Pancake Squad, and Bunnies NFT holders. The gaming marketplace of PancakeSwap currently features “Pancake Protectors,” developed in partnership with Mobox in May 2023, and the new “Pancake Mayor,” developed in collaboration with Binary X.

The Bitcoin mining infrastructure is set to witness significant growth with a focus on North America. The expansion plans of various mining companies and Marathon Digital Holdings’ acquisition strategies reflect the increasing interest and confidence in the industry. Furthermore, the survey by Binance indicates that earning extra income remains a primary motivation for crypto usage. Lastly, PancakeSwap’s expansion into different networks and its incorporation of popular games highlight the continuous development and innovation within the cryptocurrency world.

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