Summary
- Bitcoin mining industry can see $20 billion over the next 5 years.
- BTC sees huge political support from Trump, Senator Lummis, RFK Jr., and more.
According to the latest predictions from analysts at the research and brokerage firm Bernstein, the Bitcoin mining industry can see a huge growth to $20 billion over the next five years.
The Bitcoin mining hardware market has been historically dominated by China-based firms such as Bitmain, with over 80% market share, note analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia.
The launch of new mining chips in the US by Block and Auradine offers an opportunity to diversify the supply chain and compete on advanced chip design.
Block which is co-founded by the former Twitter CEO, Jack Dorsey, revealed an agreement to supply Core Scientific with its 3-nanometer ASIC mining chips. This represents about 15 EH/s of hash rate and is more energy-efficient compared to current designs.
The deal is valued by Bernstein at $300 million and more US Bitcoin miners are expected to follow suit.
Auradine which is backed by Bitcoin miner MARA, has recently shipped its AAT1500 Teraflux miners (22J/TH) and revealed the new AT2880 and AI3680 models. The Teraflux 2800 series uses 3nm ASIC chips with 14J/TH efficiency. Auradine closed an $80 million Series B round in April.
The analysts said that they expected 15-30% growth in annual mining equipment demand led by increasing the network hash rate and replacing/upgrading the existing capacity to make mining more efficient post-halving.
Based on today’s rack rate prices and pre-contract mining capacity rates, the hardware revenue opportunity is $3 billion to $5 billion annually.
Bernstein analysts said that crypto is no longer a bipartisan issue, following Trump’s speech at The Bitcoin Conference.
Bitcoin Sees Huge Political Support
During The Bitcoin Conference last weekend, Trump’s keynote speech revealed massive support for the digital asset industry, with Trump promising to make the US the Bitcoin and crypto world capital.
It’s also worth noting that Trump’s campaign reportedly raised $21 million during the crypto event, according to the latest reports.
Another Bitcoin supporter at the conference was Senator Cynthia Lummis, who announced legislation for a Strategic Bitcoin reserve in the USA.
The bill is called the “Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024” or shorthand, the “BITCOIN Act of 2024,” according to a draft version.
According to her, establishing a strategic Bitcoin reserve to bolster the US dollar with a digital hard asset will secure the US’s place as the global financial leader for decades to come.