Hosting Sites for Bitcoin Mining

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Hosting Sites for Bitcoin Mining

Key Takeaways


Below are details regarding the size of the “Proof-of-Work” cryptocurrency mining market in the U.S., the growth rate of the cryptocurrency mining industry in the U.S., and two examples of private U.S. bitcoin mining hosting companies that have recently gone public.


Market Size in Revenues ($)
  • As of 2016, Proof of Work (PoW) “powered blockchains accounted for over 90% of the total market capitalization of existing digital cryptocurrencies,” according to a research paper by ACM Digital Library.
  • An October 2021 Fortune Business Insights report estimated North America's cryptocurrency market at $273 million, a slight increase from $250.9 million in 2019.
      • Thus, to determine the PoW cryptocurrency mining market in the U.S.:
      • Percentage of PoW powered blockchains X the North America cryptocurrency market size
      • 90% X $273 million = $245.7 million
  • To estimate the U.S. size of the market, the percentage of U.S. GDP contribution to North America GDP is used.
  • According to research, the U.S. accounts for about 86.3% of the GDP in North America. So, the PoW cryptocurrency mining market size in the U.S. will be equivalent to 86.3% X $245.7 million = $212.04 million.
  • Calculations based on the most recent data in the public domain estimate the “Proof-of-Work” cryptocurrency mining market in the U.S. to be about $212.04 million. However, a recent report by CNBC notes that Foundry, a digital currency company helped to bring over "$400 million of mining equipment into North America."
  • In this regard, the current cryptocurrency market reports have not accounted for the impact of the mass migration of Chinese cryptocurrency miners to foreign nations, including the U.S.
Market Size by Megawatts of Energy Consumption
  • According to Quartz, bitcoin miners in the U.S. consume an estimated 35 terawatt hours a year.
  • One terawatt hour is equal to 1,000,000 megawatt hours, therefore, U.S. bitcoin miners consume over 35 million megawatt hours of electricity annually.
  • Assuming a 90% rate for PoW powered blockchains, then U.S. bitcoin miners consume over (90% of 35 million megawatt hours) = 31.5 million megawatt hours.
Total Hash Produced
  • According to the latest statistics shared by Cambridge Centre for Alternative Finance (CCAF), the U.S. has overtaken China in terms of the global hashrate share.
  • CCAF data estimates that the "U.S. is responsible for 35.4% of the mining activity, based on an analysis of 44% of the market's hash rate."
  • Assuming a 90% rate for PoW powered blockchains, then U.S. PoW powered blockchains are responsible for (90% of 35.4%) = 31.86% (hashrate) of U.S. mining activity.


Market Size and Growth Rate Estimates
  • PR Newswire reported market growth estimates by three different market research companies. According to all reports, the cryptocurrency mining market is anticipated to continue growing.
  • A Data Bridge Marketing report expects the cryptocurrency mining market to grow at a rate of 11.5% from 2021 to 2028: while a Market Study Report expects the industry grow at a CAGR of 16.1% from 2020 to 2025 to reach $1.61 billion from $888.2 million in 2019.
  • However, a report by Industry Research expects the global Cryptocurrency Mining market size to reach $2.58 billion by 2026, from $1.01 billion in 2020, at a CAGR of 16.8%.
  • Different reports share varying growth rates but all point towards an expanding market. Most of the most recent reports provide a global overview, which includes segmentation based on regions.
Pre-China and Post-China Crypto Shut Down Era


Griid Infrastructure LLC
  • On November 30, 2021, Griid Infrastructure LLC announced that it had agreed to go public with special purpose acquisition company (SPAC) — Adit EdTech Acquisition Corp.
  • The merger deal was valued at $3.3 billion, including debt. The combined company will be trading on the NYSE under the new ticker symbol “GRDI.”
  • GRIID expects to generate a revenue of $1.6 billion in fiscal year 2023. About $246 million of anticipated net transaction proceeds and an existing $525 million credit facility will fund GRIID’s growth and accelerate scale.
  • At closing, "GRIID equity holders were to own approximately 90%, Adit EdTech public stockholders (8%), and Adit EdTech’s sponsor (2%) of the outstanding shares of voting stock."
  • Some reasons for going public include the assertion “We are building an American infrastructure company with the largest pipeline of committed, carbon-free power among public bitcoin miners at the lowest cost of scaled production,” by Trey Kelly, chief executive of GRIID.
  • Other reasons include GRIID's "large pipeline of low-cost, carbon-free power, distinctive access to next generation application-specific integrated circuits (ASICs), and market-leading execution that positions the company to generate attractive profitability and growth."
Core Scientific Inc.

Research Strategy

The research team reviewed news articles, market, and industry reports, including Fortune Business Insights, Finance Online, Statistics Times, The Block Crypto, PR Newswire, Bloomberg, Market Watch, Industry Research, Cambridge Bitcoin Electricity Consumption Index (CBECI), Reuters, CNBC, and Globe News Wire, among others to determine the U.S. cryptocurrency mining market size, its growth rate and forecast, and examples of private bitcoin hosting companies that recently went public. While there was no exclusive report focusing on the U.S. market individually, the research team used global reports to triangulate the market size of North America and further substituting the U.S. GDP to the North American cryptocurrency mining market to determine the U.S. market size.

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