Bitcoin Mining: United States Leads as the Largest Producer, Miners' Income Continues to Rise

According to a report by BanklessTimes, China's dominance in the Bitcoin mining industry has long been replaced by the United States. European Union countries only account for 6% of the global Bitcoin mining hashrate. Despite the decreasing profitability of Bitcoin mining due to the annual increase in mining difficulty, Bitcoin miners' income and transaction fees hit an annual high in December 2023, fueled by the frenzy around BRC-20 and Ordinals.

The U.S. Leads Bitcoin Mining Production, EU Accounts for Only 6%

In the Bitcoin mining industry, the dominance of China has long been replaced by the United States, which ranks first with 38%, followed by China at 21%, Kazakhstan at 13%, Canada at 7%, Russia at 5%, and Germany at 3%. Surprisingly, the EU, known for its renewable energy mining, accounts for less than 6% of the global Bitcoin mining hash rate combined.

Bitcoin mining has long raised concerns about environmental damage due to its high energy consumption. The cost of electricity varies among EU member states. In most countries, high electricity prices make implementing energy-intensive projects less feasible. Additionally, most EU countries still need to establish regulatory frameworks, leading to uncertainty that discourages miners.

However, the report suggests that the future of Bitcoin mining lies in renewable energy. The growth and adoption of solar energy are growing exponentially. By 2025, solar energy costs are expected to decrease by 15% to 25%. The rise of wind power will also help fill the electricity gap.

Bitcoin Miners' Income Reaches $1.5 Billion in December, Mining Stocks Outperform Bitcoin

According to The Block's statistics, while Bitcoin's profitability has decreased over the years due to rising mining difficulty, Bitcoin miners' income reached $1.51 billion in December 2023, setting a record for the highest single-month revenue in 2023. Additionally, transaction fees in December amounted to $324 million, also setting a record for the highest monthly transaction fees of the year.

Benefiting from the 2023 BRC-20 and Ordinals craze, Bitcoin transaction fees increased. Several mining companies quickly expanded their equipment and production to grow their operations. Stablecoin issuer Tether and the bankrupt Celsius have also started or are preparing to enter the Bitcoin mining industry.

In 2023, mining stocks also saw remarkable gains due to the rise in Bitcoin prices, with Marathon and Bitfarms leading the pack with gains of 628% and 577%, respectively, alongside Argo Blockchain's 162% increase on par with Bitcoin. The rest of the mining companies saw gains far exceeding that of Bitcoin.

Mining stocks outperform Bitcoin, Marathon and Bitfarms have surged over 500% this year