North American Mining Boom! U.S. Blockchain Service Provider Purchases 17,000 Bitcoin Mining Machines from Bitmain

U.S. blockchain service provider Core Scientific has purchased 17,595 Bitcoin mining machines from the mining giant Bitmain, marking not only the largest order in the U.S. since the launch of the Antminer S19, but also an example of North America challenging China's dominance in the mining industry.

Largest Order in the U.S. Region

According to Forbes, U.S.-based blockchain and artificial intelligence solutions provider Core Scientific has signed a new agreement with global mining giant Bitmain. Core Scientific has purchased 17,595 Bitcoin mining machines (Antminer S19) from Bitmain.

Core Scientific currently operates a total of 5 mining facilities, with four located between North Carolina and Georgia, and one in Kentucky. Some of the machines have already been installed in several of these facilities, while the rest will be gradually brought online by the end of September. The company claims this to be the largest order for Antminer S19 in the U.S. region since its release. The deal, which began in early 2020, is estimated to be worth around $50 million based on the official price of $2,860 per unit (the actual transaction price is likely lower).

Rising Interest in Mining in North America

Russell Cann, Chief Customer Success Officer at Core Scientific, mentioned in an interview that the computing power in North America is steadily increasing, indicating a growing interest in mining in the region. Cann claims this is largely due to the increasing acceptance of cryptocurrencies and/or digital assets as investment assets, as well as several favorable characteristics of the North American investment environment, such as stable geopolitical and regulatory conditions, suitable climate, and diversified energy supply.

Cann added that regulatory agencies in many regions worldwide have ambiguous attitudes towards mining regulations, often leading to sudden shifts, creating uncertainty for mining investors. In contrast, hosting mining equipment in North America is relatively advantageous due to the stability of the power system and friendly regulatory environment.

Threat to China's Dominance

Historically, the Bitcoin mining business has been highly concentrated in China. This is largely attributed to the cheap electricity provided by hydroelectric power plants in China, which often have excess power during the rainy season, creating a competitive mining environment for Bitcoin miners.

However, in recent years, Bitcoin mining operations in North America have been gaining momentum. Coupled with the launch of several major projects (such as Blockstream having its own mining facilities and Germany's Northern AG expanding into the U.S.), 2019 was a groundbreaking year for Bitcoin mining in North America. Industry professionals predict that at this rate of development, North America will continue to eat into China's global hash rate share, ultimately challenging China's dominant position in the Bitcoin mining industry.