Foundry’s dataset shows that four states in the United States have the highest Bitcoin hash rate distribution. The dataset shows that many Bitcoin miners are heading to New York, Kentucky, Georgia, and Texas.
Foundry US is the largest mining pool in North America and the fifth in the world. The hash rate is a measure of collective mining power. A mining pool allows miners to combine their hash power with other miners around the world.
Bitcoin mining in the United States
According to the data, in the United States, New York accounts for 19.9% of the bitcoin hash rate, 18.7% in Kentucky, 17.3% in Georgia and 14% in Texas.
Source: Foundry U.S.
At the Texas Blockchain Summit in Austin on October 8, 2021, Nic Carter, co-founder of Castle Island Ventures, presented the data from Foundry. “This is the first time that we have had any state level information on the whereabouts of the minors, unless you want to go through all the public documents and try to understand it that way,”
He added that “it’s a much more efficient way to determine where mining is going on in America.”
However, Carter pointed out that the Foundry dataset does not take into account all US mining hash rates because not all US-based mining farms use his services. One of the largest publicly traded mining companies in America,
Riot Blockchain, which has a strong presence in Texas, does not use Foundry. Therefore, the dataset ignores its hash rate. Texas’ mining presence is underestimated and could potentially be higher than the 14% cited.
BTC trading at over $55K | Source: BTCUSD on TradingView.com
Many states with the highest Bitcoin hash rates also have high proportions of renewable energy. This fact may have started to change the narrative that bitcoin is bad for the environment.
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According to CNBC, many miners move to these states because they have cheap and renewable energy sources. Data from the US Energy Information Administration (EIA) shows that one-third of New York State’s production comes from renewable sources. Kentucky, which has the second highest hash rate, is also known for its hydroelectric and wind power. The state government recently passed a law that grants certain tax exemptions to crypto mining operations.
Carter also said that the migration of miners to the United States is positive because it means much lower carbon intensity.
Texas leads Bitcoin mining
Although Texas ranks fourth according to data, experts believe it is the number one mining destination in the United States. The state is home to mining giants like Riot Blockchain and China’s Bitdeer mining services platform.
A report from the start of the year shows that large mining ASIC orders are also being delivered to Texas.
Related reading | Bitcoin Mining Moves To Texas, Bitmain Announces Partner For New Massive Installation
Crypto-friendly lawmakers, a deregulated power grid with real-time spot pricing and access to important renewables, as well as stranded or flared natural gas, are what make Texas attractive to miners, according to CNBC.
Featured image by Finance Magnates, Chart from TradingView.com