What are these two companies doing to lead Bitcoin mining in the US?

Key facts:
  • Riot and Marathon share prices are up 63.92% and 392.6% to date.

  • Marathon used a $ 100 million line of credit to cover costs and purchase mining equipment.

Bitcoin (BTC) mining companies Marathon and Riot are currently leading hash rate growth (hash rate) from the United States (USA), thanks to the boost given by China’s ban on the activity and the number of mining machines purchased so far this year.

This is what the firm suggests Compass Mining, a mining hardware company. As indicated, Marathon went from mining 50.4 bitcoins in January, to more than 340.6 BTC at the end of September. Riot, meanwhile, went from 91 BTC in September 2020 to more 406 BTC in the ninth month of 2021.

China’s ban on cryptocurrency mining has sparked a hash rate exodus in search of homes around the world. American mining companies, in particular, have welcomed this transition hash rate at their facilities and, at the same time, have rapidly deployed a new hash power of their own. These dynamics have created a dramatic shift in the geography of bitcoin mining.

Compass Mining, bitcoin mining analysis firm.

And, regarding the number of machines to mine Bitcoin, it is known, according to the company, that Marathon has received 26,960 new ASICs this year, while Riot, around 17,600, for a combined total of 44,560.

Both companies let it be known that they intend to expand their operating fleets for the next few quarters, in estimates of 526% for Marathon and 461% for Riot.

Actions demonstrate the growth of companies

The growth of both companies is reflected in the price of their shares, which have risen 63.92% in the last 12 months, in the case of Riot; and 392.6% for Marathon.

“With NASDAQ 12-month compound returns equal to 16.55%, both companies are vastly outperforming their equity benchmarks,” says Compass Mining.

They also indicate that the growing rally of Marathon, added to the rise in the price of BTC, responds to the recent acquisition of the company of a credit line of USD 100 million, with which it plans to cover operating costs and keep buying mining equipment.

«This allows the company holde their growing reserve of bitcoins without concerns of operational costs, “says the firm, which concludes by noting that both companies are mining three times more bitcoins than in 2020, so their future “looks bright.”

The United States concentrates more than a third of Bitcoin mining

In numbers, the United States has already displaced China on the issue of mining and is currently the country in the world that concentrates more than a third of that activity, according to the Cambridge Center for the Financial Alternative (CCAF) report.

The events in China and the migration of the hash rate, as explained by Compass Mining, caused the US to register in August a monthly average of 42.7 exahashes per second (EH / S) contributed to the Bitcoin network, according to the institution’s report.

And the impact seems to be so great that the Bitcoin hash rate has tripled in recent months, reaching current averages of 159 EH / S, very close to those registered in May, before the Chinese advance. against BTC, when it was at 170 EH / S.

The interesting thing is that all this growth of the hash rate of Bitcoin is due to less centralized mining, contrary to what happened months ago, since almost everything was concentrated in China.

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