Bernstein: US Bitcoin mining business may usher in new business opportunities due to halving and Trump’s new policies

BlockBeats news, July 30, according to The Block, research and brokerage firm Bernstein analysts said that the total potential market for the mining chip and hardware industry will reach $20 billion in the next five years.

Analysts said that the Bitcoin mining hardware market has historically been dominated by companies such as Bitmain, with a market share of more than 80%. However, the launch of new mining chips by Block and Auradine in the United States provides an opportunity to diversify the supply chain, compete in advanced chip design, and obtain global foundry capacity.

Analysts expect that with the increase in network hash rate and the replacement/upgrade of existing production capacity, the demand for mining equipment will grow by 15-30% annually, because the income from Bitcoin mining will be halved after the halving, and the business opportunities in hardware revenue are expected to be about $3-5 billion per year in the future. Coupled with Republican presidential candidate Donald Trump's recent push to "make Bitcoin in the U.S.," promising to turn the U.S. into a "bitcoin mining superpower" and provide more power generation capacity to the industry, analysts see this as a "tailwind" for U.S. bitcoin miners, potentially improving mining machine efficiency and reducing capital expenditures (by lowering chip prices).