Bernstein analysts see significant opportunity in the U.S. mining sector, estimating $20 billion in revenue potential for mining chips and hardware over the next five years.
The firm notes that historically, this market has been dominated by Chinese companies, especially Bitmain, which holds more than 80% of the market.
However, they say the emergence of US-based companies such as Block and Auradine presents an opportunity to diversify the mining supply chain.
Bernstein highlights several benefits of this shift for U.S. bitcoin miners, including increased fleet efficiency, lower capital expenditures due to lower chip prices, and the potential to repurpose power capacity for ai and high-performance computing (HPC) opportunities.
In light of the US election season and former President Trump's advocacy of “Make bitcoin in America,” this diversification could provide a significant boost to the sector, according to the firm's analysts.
The report outlines the evolution of bitcoin mining chips from CPUs and GPUs to ASICs, details the current competitive landscape dominated by Chinese players, and emphasizes the advantages of new American entrants.
These include innovation through open source and customizable software and closer partnerships with US-based miners to improve fleet efficiency.
Bernstein maintained its Outperform ratings on RIOT, CLSK, IREN and CORZ in the note, expecting them to benefit from lower chip prices and increased competition in the mining hardware market.
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