New York and Texas are Winning the Battle Bitcoin miners. A battle between states is brewing to recruit bitcoin miners. And new data suggests that a large number of them are heading to New York. Also in Kentucky, Georgia, and Texas.
According to Foundry USA, the largest mining pool in North America and the fifth-largest internationally. New York has 19.9 percent of bitcoin’s hashrate, which is the collective processing power of miners. Kentucky has 18.7 percent, Georgia has 17.3 percent, and Texas has 14 percent.
A mining pool enables a single miner to pool his or her hashing power. Together with the efforts of thousands of other miners around the world. And there are hundreds to select from.
Nic Carter, co-founder of Castle Island Ventures, who presented Foundry’s data. At the Texas Blockchain Summit in Austin on Friday, said, “This is the first time we’ve actually had state-level. Insight on where miners are, unless you wanted to go cobble through all the public filings and try to figure it out that way.” “This is a far more efficient method of determining where mining takes place in America.”
The country’s domestic mining market
However, as Carter points out, the Foundry dataset does not include all U.S. mining hashrate. Because not all U.S.-based mining farms use its services. Riot Blockchain, for instance, is one of America’s largest publicly traded mining companies. With a significant presence in New York and Texas. Because they don’t use Foundry, their hashrate isn’t included in this statistic. Which is one of the reasons why Texas’ mining activity is underreported.
Though the data only represents a small percentage of the domestic mining market in the United States. It does reveal national tendencies that are altering the discussion about bitcoin’s carbon footprint.
Many of the top-ranking states are hotbeds of renewable energy. A fact that has already started to change the narrative among critics. Who believe bitcoin is terrible for the environment.
While Carter concedes that mining in the United States isn’t entirely green. He claims that miners here are doing a better job of selecting renewables and purchasing offsets.
“Overall, migration has been a net good,” he said. “Moving hashrate to the United States will result in a significant reduction in carbon intensity.”
Where did all the miners go?
When Beijing banned all crypto miners this spring, over half of the bitcoin network fell black. While the network itself unaffected, the incident triggered the largest ever bitcoin miner migration.
The Foundry data reveals the biggest bitcoin mining operations are in states. With the most renewable energy sources, reshaping the environmental argument.
In a low-margin business where the sole variable cost is energy, miners encouraged to shift. To the world’s cheapest sources of electricity, which are usually renewable.
Consider the top-ranked city, New York and Texas. Energy Information Administration records show that a third of its in-state generation is renewable.
New York’s nuclear power plants count toward its zero-carbon electricity objective. And the state produces more hydroelectricity than any other state east of the Rockies. It was also the country’s third-largest hydroelectric producer.
New York’s frigid environment and repurposed industrial infrastructure make it perfect for bitcoin mining.
Crypto mining company
Coinmint, for example, has facilities in New York, including one in a former Alcoa aluminum smelter in Massena. Which uses cheap electricity generated by the St. Lawrence River dams. In fact, with 435 megawatts of transformer capacity. It is one of the largest bitcoin mining operations in the US.
New York was considering legislation this year to restrict bitcoin mining for three years. To examine its greenhouse gas emissions. It has since been largely reversed.
“Bitcoin mining in New York is actually relatively low in carbon intensity, considering its hydro power,” Carter added. “It would be the exact opposite.”
Kentucky and Georgia also have a substantial share of the US bitcoin mining sector.
Aside from the governor’s pro-industry stance, Kentucky noted for its hydroelectric and wind power resources.
Another power source is connecting rigs to stranded energy like natural gas wells. While coal is still a major energy source, many mining businesses there favor renewables.