Opinion: American miners will gain market share and bitcoins on their balance sheets

Public mining companies from Canada and the United States are set to grow their combined hashrate share and the amount of Bitcoin they hold in 2022. Analysts at Arcane Research forecast this.

The Weekly Update: Week 10

🔹The highly correlated crypto markets are signaling a risk-averse sentiment.
🔹VIX index climbs to a 14-month high.
🔹The ambitious expansion plan from public bitcoin miners will likely enhance American hashrate dominance.https://t.co/SlmibFuk3d

— Arcane Research (@ArcaneResearch) March 15, 2022

Currently, the leader by hashrate in the Bitcoin network is Core Scientific. Its 8.2 EH/s accounts for 4.1% of total hashrate.

They are followed by Riot Blockchain, Marathon Digital Holdings and Northern Data with 3.9 EH/s, 3.8 EH/s and 3.5 EH/s respectively. Completing the top ten are Argo Blockchain and Bit Digital (1.6 EH/s each).

Arcane Research expects the balance of power to shift by year-end. Total hashrate will rise by 50% to 300 EH/s, and the top-10 American public companies’ aggregate computing power will be 4.7 times higher.

They would account for nearly a third of the total. For comparison, the shares of US and Canadian miners in August 2021 were 35.4% and 9.6%, respectively (data from the Cambridge Centre for Alternative Finance)

Marathon will benefit the most in this regard (up 513% to 23.3 EH/s) and will take the lead. Core Scientific with 20.5 EH/s (+150%) will drop to second place.

Mining companies are sticking to a bitcoin-holding strategy. They can cover operating costs by raising equity and debt capital.

Marathon’s balance sheet holds 8,956 BTC, while 4,813 BTC was acquired on the open market. According to Bitcoin Treasuries, the firm ranks third by bitcoins held in reserves, after Tesla (43,200 BTC) and MicroStrategy (125,051 BTC).

According to the resource, six of the ten companies in this ranking are mining companies. The top-3 also include Core Scientific (7,355 BTC) and Hut 8 Mining (6,155 BTC)

In February Bitcoin miners’ revenue fell by 13%, just over $1 billion.

Earlier, Compute North raised $385 million to expand mining infrastructure in the United States.

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