Top U.S. miners mined an additional 50% of Bitcoin (BTC) in July

Non-Chinese miners are rubbing their hands

The top 5 North American miners, Marathon Digital, Riot Blockchain, Argo Blockchain, Bitfarm and Hut8 all had a particularly positive July.

For all that, these companies did not increase their hashing power with additional hardware. So how do we explain this increase in profitability? A lot of it has to do with the fact that the network saw the biggest drop in mining difficulty in its history in July after China’s policy on mining was tightened.

After years of threats, authorities took action in June by cutting off power supplies to miners in Sichuan province. Since then, China has continued its crackdown, targeting Yunnan province, as well as Inner Mongolia and the provinces of Xinjiang and Qinghai. By the beginning of July, an estimated 90% of Chinese miners were shut down.

As a result, the market shares of non-Chinese Bitcoin mining companies have increased significantly. For example, the top 5 North American miners mined 1802 BTC in July which is 667 BTC more than in June.

However, not everyone benefited from this. Other US miners such as BIT Mining, The9 City, which had operations in China, were also affected by the restrictions. They have started shipping machines to Kazakhstan, Russia and the US.

Very good news?

The shutdown of Chinese miners is obviously a good short-term move for other miners who can enjoy a bigger slice of the network reward pie.

But, this migration could prove to be especially good news in the long term regarding the environmental impact of Bitcoin. It will allow for less concentration of mining in China and thus reduce the use of non-renewable energy sources.

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Related story: About 90% of Chinese Bitcoin (BTC) miners would be shutdown

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About the author: Florent David

Top U.S. miners mined an additional 50% of Bitcoin (BTC) in July

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Engaged in the crypto ecosystem since 2017. I am particularly interested in the finance ofecentralized (DeFi), Ethereum 2.0 and non-fungible tokens (NFT).
All articles by Florent David.