US BTC Miners Will Dominate Global Market

• The Bernstein Research states that US miners have easier access to capital.
• The report states that US BTC miners will dominate the crypto-mining market.
• It also declared that combining Bitcoin mining with AI data centers is challenging.

The Bitcoin miners based in the U.S. are well-positioned compared to unlisted miners. U.S.-based BTC miners have more funding sources than private companies or firms that trade in other markets. According to the latest Bernstein research note published on Monday, this is a new finding.

It is thus a natural advantage to raise debt/equity in the world’s deepest capital markets, the U.S crypto miners, especially those in a capital-intensive industry, set to consolidate the market, the analysts, led by Gautam Chhugani, penned down.

Each point of the argument is realized in the case of fundraising, as evidenced by last week’s incident. For instance, Marathon Digital said it intended to do a private placement that would enable it to buy bitcoins as a treasury. 

Riot Platforms also established the availability of 57,150k common stocks through underwriters to fund its $750 million. With a similar purpose, Core Scientific (CORZ) and Bitdeer (BTDR) announced their intentions of offering convertible debt.

New Findings From Bernstein Research

Bernstein Research pointed out that it squares with the long thesis of publicly listed US bitcoin miners as consolidators in the space. 

Conversing with his audience, the broker then questioned if he was right in arguing that they can subdivide the mining industry into companies involved in BTC mining and those planning to move to AI data centers. 

According to the report, they are both realistic possibilities, and the idea that recurs here is acquisition because size matters. 

Yet, in terms of power requirements, they associate with power demand and may have high-density power requirements; mining for bitcoins and artificial intelligence data centers are vastly different, according to the report. 

According to Bernstein’s research, the leading miners should look at the share of the bitcoin mining market and the rise of the hashrate while avoiding the sale of mined bitcoins at a loss. 

The report disclosed that Bernstein Research affirmed its bullish stance on BTC and said it expects it to record highs of $200,000 in 2025 due to higher institutional adoption and ETF adoption.

Our Take on the Bernstein Research

The Bernstein research note points out that currently publicly held U.S.-based Bitcoin miners have an important competitive edge over private and/or those listed in other markets. 

They are able to link up with deeper capital markets in the U. S, for they can easily float their organic papers through debt or otherwise. This access to capital is, however, quite significant in the capital-intensive Bitcoin mining industry, placing these companies in an advantageous place to capture this market.

Some companies such as Marathon Digital, Riot Platforms, Core Scientific, and Bitdeer already align with this thinking as these firms are increasing their cash war chests in order to fund their expansion. Bernstein’s research report states that publicly listed U. S. Bitcoin miners will form part of the industry’s consolidation, and the report hints at this trend.

Furthermore, the report reveals that some firms may be moving towards integrating AI and data center industries, but these two industries have different power consumptions and other constraints.

Yet, he maintains that because of institutional use and ETFs, the price of Bitcoin by 2025 will be around $200k. Promising as such a view might be, it upholds the forecast of how miners based in the U. S would be in a position to claim a large share of the global market and access to funds.