America's Grip on Bitcoin Mining Slips, Despite Trump's Ambitions for Dominance
The share of Bitcoin blocks mined by North American pools has declined, dropping from over 40% in January 2024 to 35% by December, as U.S. firms shift resources toward rapidly growing AI infrastructure. Despite former President Trump’s call for increased domestic mining, profitability has plummeted due to rising energy costs and intense competition, incentivizing firms to diversify into sectors like data centers and AI. Companies like Hut 8 are rebranding as energy infrastructure providers and collaborating with AI companies. Meanwhile, China, despite its official ban on Bitcoin mining, is increasing its electricity generation and has seen a resurgence in mining activity, particularly in Xinjiang, exploiting regional enforcement gaps. This shift suggests that global mining is tracking the expansion of energy infrastructure, not just regulatory climates. Equipment manufacturers like Bitmain face reduced demand for mining hardware, so they are using their own inventory to conduct mining themselves across multiple regions. Overall, the U.S. dominance in Bitcoin mining is waning as global competition and AI sector demands reshape the industry’s landscape.
