China's Crypto Ban Makes North America One of the World's Leading Bitcoin Mining Zones — Who Is Poised To Take Advantage of That?

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

China’s war on cryptocurrencies took a new turn as the country announced another ban on crypto trading and mining in September. 

With this and their decision earlier in the year, China kicks out more than half of the world’s Bitcoin miners, prompting investors and stakeholders to wonder: Where will they go next?

A new report from the Cambridge Centre for Alternative Finance (CCAF) shows that North America, Kazakhstan and Russia are the most popular candidates. Since China’s ban, the U.S. has accounted for 35.4% of Bitcoin’s global hash rate, more than double the 16.8% it had four months prior. With Canada capturing 10% of the global hash rate, North America as a region has officially usurped China as the world’s Bitcoin mining leader.

As North America becomes the new global Bitcoin mining superpower, it might attract a wealth of Eastern crypto mining companies. For example, Bit Digital Inc. BTBT, a Bitcoin mining company that had more than 20,000 computers in China, relocated all of its mining rigs to North America, and Shenzhen-based Bit Mining Ltd. BTCM announced plans to invest $26 million in building a data center in Texas. 

Of course, widely regarded companies like Marathon Digital Holdings Inc. MARA and Hut 8 Mining Corp. HUT HUT may capture most of the public’s attention, but companies with a mix of an established physical presence and newly publicized equity might serve as a fresh gateway into the highly competitive Bitcoin mining space.

Mawson Infrastructure Group Inc. MIGI could be considered to be an example that fits that category.

Mawson Infrastructure Group: A Potential Bitcoin Play? 

Since its listing on the Nasdaq Stock Market three months ago, Mawson has amassed $45 million in funding for its Bitcoin mining initiatives.

Since then, Mawson reports it has expanded its flagship mining facility in Sandersville, Georgia, purchasing 17,000 additional mining machines and reaching a hash processing rate of 0.8 exahash per second (ex/s). Further expanding its North American presence, Mawson has signed a 100-megawatt facility in Pennsylvania, which now complements its established mining operations in Nebraska, Georgia and Australia

In an interview with Benzinga, Mawson Chief Commercial Officer Nick Hughes-Jones said the company was fully funded to increase its processing rate to 5 ex/s by early Q1 2023. This would entail a more than sixfold increase in total Bitcoins mined per day, a figure that currently stands at roughly 4.5. These future mining facilities could take shape in North America, where both governance and physical infrastructure provides a suitable environment for Mawson’s Bitcoin mining approach.

Owners and management of the company, who own 24% of Mawson, are reportedly vigilant about their operations’ energy sources. According to Hughes-Jones, 75% of Mawson’s 200 modular data centers, 100 transformers and 40,000 miners will be powered by non carbon-emitting sources (nuclear/wind/hydro). The 25% of fuel-based energy is countered with carbon-offset credits.

Mawson says it reiterates its commitment to environmentally efficient crypto mining operations through its subsidiary Luna Squares LLC. The subsidiary provides wholesale hosting solutions for medium- to large-scale mining operations throughout the U.S. As the “Great Mining Migration” shifts hundreds of Bitcoin initiatives to North America, Luna Squares becomes one route through which these companies can potentially get started.

For more information on Mawson, check out mawsoninc.com.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.