Bernstein analysts see a significant opportunity in the U.S. mining sector, estimating a $20 billion 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 over 80% market share.
However, they state that the emergence of U.S.-based companies like Block and Auradine introduces a chance to diversify the mining supply chain.
Bernstein highlights several benefits of this shift for U.S. Bitcoin miners, including improved fleet efficiency, reduced 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 U.S. election season and former President Trump’s advocacy for “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 U.S. entrants.
These include innovation through open-source and customizable software and closer partnerships with U.S.-based miners to enhance 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.
