As Bitcoin miners departed from China, North American miners saw an increase of nearly 60% in the number of Bitcoin mined in July. The tightening of Chinese regulations around the country’s crypto mining industry as well as the market as a whole may have contributed to such a significant increase.
Five North American listed Bitcoin mining companies namely Marathon Digital, Riot Blockchain, Argo Blockchain, Bitfarm, and Hut8 reported to mine over 1,802 Bitcoins in the month of July, a 58% increase from June.
For example, Riot blockchain mined about 444 Bitcoins in July as compared to 243 in June. Similarly, Bitfarm saw a growth rate of over 47% after it produced 391 Bitcoins in the month of July as compared to 265 in June.
The month of July was a productive one, however, there wasn’t a significant improvement in the hash rate.
The block crypto reported that it was largely due to a massive mining difficulty drop after Chinese miners shut down their operations at once. However, US miners who had their operations situated in China suffered significant losses due to the clampdown. They are currently looking to shift their operations to regions like Kazakhstan, Russia, and the US.
Marathon Digital and Riot Blockchain are Nasdaq-listed mining companies that arranged additional machinery in July. However, both companies saw a growth rate of 50% month-on-month.
As mentioned above, US mining companies like BIT Mining, BIT Digital, and The9 City who were operating in China were notably affected by the ban.
Chinese authorities’ crackdown on cryptocurrencies may have benefited the North American economy but there’s no guarantee for any long-term benefits. Founder and CEO of crypto exchange Sam Bankman-Fried pointed out that the US Infrastructure Bill, which was recently passed by the Senate without any amendments, could drive the miners out of the country.