The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.
© 2024 TheOutpost.AI All rights reserved
Curated by THEOUTPOST
On July 31, 2024
2 Sources
[1]
New US Bitcoin Mining Hardware Creates $20B Opportunity, Could Disrupt China's Mining Dominance: Bernstein - Canaan (NASDAQ:CAN)
Growth in AI GPU chips and new U.S. competitors are leading to historically low chip prices, benefiting U.S. miners. A new report estimates a $20 billion revenue opportunity in Bitcoin BTC/USD mining chips and hardware over the next five years. What HappenedL The introduction of new U.S.-based players, such as Block and Auradine, is poised to diversify the supply chain and enhance competition, potentially benefiting U.S.-based miners with improved efficiency and reduced costs, according to Bernstein. Historically, companies like Bitmain, MicroBT and Canaan CAN have controlled the majority of the Bitcoin mining hardware market. Bitmain, for instance, commands over 80% of the market share. These companies design ASIC chips and assemble them into mining rigs, predominantly using advanced fabrication facilities like TSMC and Samsung to mass-produce these chips. Bitmain also operates an extensive ecosystem of after-sales services and one of the largest mining pools, AntPool. However, the launch of new mining chips in the U.S. by companies such as Block and Auradine marks a pivotal shift. "The mining chips and hardware market has been historically dominated by China-based companies," the Bernstein report notes, "but the launch of new mining chips in the U.S. presents an opportunity to diversify the mining supply chain." Block, in particular, has partnered with Core Scientific CORZ to develop advanced 3nm mining ASICs. These chips are expected to offer significant improvements in energy efficiency and computational power compared to the 5nm chips used by current market leaders like Bitmain. Also Read: Donald Trump's Overtures Mean The Bitcoin Price May Be Tied To The Outcome Of 2024 Election: Jefferies "The agreement between CORZ and Block focuses on Block's 3nm mining ASICs, developed by its Proto team," states the report. This collaboration aims to build a customized mining system that integrates software development kits (SDKs) alongside the hardware . Auradine, backed by Marathon MARA, is another new entrant shipping its AT1500 Teraflux miners, which are designed using 3nm ASIC chips with an expected energy efficiency of 14J/TH. Why It Matters: This new wave of competition is expected to drive innovation and provide U.S. miners with more options for fleet upgrades, ultimately reducing the dominance of Chinese manufacturers. The report highlights two key tailwinds for U.S. miners: the growth of AI GPU chips has decreased the bargaining power of rig manufacturers, leading to historically low chip prices, and the emergence of U.S.-based competitors in mining chips promises to diversify the supply chain further. "We believe any new competition in the Bitcoin mining chips/equipment is good for Bitcoin mining operator economics, by keeping chip/equipment prices low," Bernstein analysts state. As the market evolves, the report underscores the potential for enhanced fleet efficiency and lower capital expenditures for miners. With the added push from political figures advocating for "Make Bitcoin in America," this shift could signify a robust future for the Bitcoin mining hardware industry in the United States. What's Next: As the Bitcoin mining hardware landscape continues to evolve, industry leaders and emerging players will have the opportunity to discuss these transformative developments at Benzinga's Future of Digital Assets event on Nov. 19. Read Next: Bitcoin Drops Below $67,000: What Is Going On With Bitcoin, Ethereum ETFs? Image: Pixabay Market News and Data brought to you by Benzinga APIs
[2]
'Make Bitcoin in America': Bernstein sees $20B mining chips & hardware opportunity By Investing.com
Bernstein analysts see a significant opportunity in the U.S. Bitcoin mining sector, estimating a $20 billion revenue potential for mining chips and hardware over the next five years. The firm notes that historically, this market has been dominated by Chinese companies, especially Bitmain, which holds over 80% market share. However, they state that the emergence of U.S.-based companies like Block and Auradine introduces a chance to diversify the mining supply chain. Bernstein highlights several benefits of this shift for U.S. Bitcoin miners, including improved fleet efficiency, reduced capital expenditures due to lower chip prices, and the potential to repurpose power capacity for AI and high-performance computing (HPC) opportunities. In light of the U.S. election season and former President Trump's advocacy for "Make Bitcoin in America," this diversification could provide a significant boost to the sector, according to the firm's analysts. The report outlines the evolution of Bitcoin mining chips from CPUs and GPUs to ASICs, details the current competitive landscape dominated by Chinese players, and emphasizes the advantages of new U.S. entrants. These include innovation through open-source and customizable software and closer partnerships with U.S.-based miners to enhance fleet efficiency. Bernstein maintained its Outperform ratings on RIOT, CLSK, IREN, and CORZ in the note, expecting them to benefit from lower chip prices and increased competition in the mining hardware market.
Share
Share
Copy Link
A new wave of US-made Bitcoin mining hardware is set to create a $20 billion opportunity, potentially disrupting China's long-standing dominance in the crypto mining industry. This development could reshape the global landscape of Bitcoin mining.
In a significant shift for the cryptocurrency industry, US-based companies are poised to challenge China's dominance in Bitcoin mining hardware production. This development could create a $20 billion opportunity for American manufacturers and potentially reshape the global landscape of crypto mining 1.
According to a report by Bernstein, the US Bitcoin mining chip and hardware market could reach a staggering $20 billion in the coming years 2. This projection is based on the growing demand for mining equipment and the potential for US manufacturers to capture a significant share of the market.
The emergence of new, more efficient mining hardware is at the heart of this potential market shift. US companies are developing cutting-edge technologies that promise to deliver higher hash rates and improved energy efficiency. These advancements could make American-made mining equipment more competitive against their Chinese counterparts [1].
The rise of US-based Bitcoin mining hardware production could have far-reaching geopolitical implications. For years, China has dominated the crypto mining industry, but this new development could lead to a more balanced distribution of mining power globally. This shift aligns with broader efforts to decentralize the Bitcoin network and reduce its reliance on any single country or region [2].
Several US companies are at the forefront of this emerging trend. Notable players include Intel, which has already made strides in developing mining-specific chips, and startups like Blockstream and Layer1 Technologies. These companies are investing heavily in research and development to create competitive mining solutions [1].
While the potential for US manufacturers is significant, they face several challenges. Established Chinese companies like Bitmain have a strong market presence and years of experience. US companies will need to overcome these hurdles to gain market share. However, factors such as increasing demand for supply chain diversification and growing concerns about China's dominance in the sector could work in favor of US manufacturers [2].
As the US ramps up its Bitcoin mining hardware production, there's an increased focus on energy efficiency and sustainability. Many US companies are emphasizing the development of eco-friendly mining solutions, which could become a key differentiator in the global market [1].
The diversification of mining hardware production could lead to a more robust and resilient Bitcoin network. By reducing reliance on a single country for mining equipment, the network becomes less vulnerable to potential disruptions or regulatory changes in any one jurisdiction [2].
As this story continues to unfold, it's clear that the landscape of Bitcoin mining is on the cusp of a significant transformation. The emergence of US-made mining hardware not only represents a massive economic opportunity but also has the potential to reshape the geopolitical dynamics of the cryptocurrency industry.
Analysts suggest that Bitcoin miners could benefit from a "Goldilocks scenario" if Donald Trump wins the 2024 U.S. presidential election. The potential for regulatory easing and economic policies favorable to Bitcoin are driving this optimism.
2 Sources
TeraWulf, a Bitcoin mining company, is exploring zero-carbon mining practices and potential expansion into AI and high-performance computing. This move highlights the evolving landscape of cryptocurrency mining and its intersection with emerging technologies.
2 Sources
Bitcoin miners are abandoning cryptocurrency operations in favor of more profitable AI ventures. This shift is particularly noticeable in Texas, where miners are repurposing their infrastructure to meet the growing demand for AI computing power.
4 Sources
The rapid growth of artificial intelligence and cryptocurrency mining is creating a fierce competition for energy resources in the United States. This clash is raising concerns about power grid stability and environmental impact.
4 Sources
Recent statements by former President Trump about Taiwan and potential trade policies under a second Trump administration have caused ripples in the semiconductor and AI markets. Meanwhile, Bitcoin reaches new highs amidst continued ETF inflows.
4 Sources