US pushes for 'crypto' ambition amid environmental crisis
The United States has solidified its position as the global leader in block reward mining, commanding over 40% of the world's hash rate as of May 2025. The 2021 China's crypto ban drove miners to the United States, where affordable energy, supportive policies, and robust infrastructure create an ideal environment. States like Texas, Wyoming, and Georgia offer electricity rates as low as $0.08 per kilowatt-hour and business-friendly regulations, attracting major players like Riot Platforms (NASDAQ: RIOT) and Core Scientific (NASDAQ: CORZ).
The Trump administration's pro-crypto stance has accelerated the digital mining industry's growth, with relaxed environmental regulations and streamlined permitting processes spurring the development of new mining facilities.
Texas, with its deregulated energy market and abundant natural gas, is a prime destination for block reward mining. It hosts some of the largest operations globally, including Argo Blockchain (LSE: ARB), which acquired 320 acres of land in West Texas in 2021.
However, the proposed 36% tariffs on imported mining equipment announced on April 2 threaten profitability by increasing operational costs.
For the block reward mining sector, which heavily depends on imported hardware from Southeast Asia and China, these tariffs present immediate challenges and create a transformative opportunity. Energy availability remains a critical but challenging factor. While competitive rates provide an advantage, grid strain during peak demand periods can lead to outages or price spikes, disrupting operations. Miners are mitigating these risks by securing long-term energy contracts or investing in renewable sources like solar and wind, aligning with growing environmental concerns. Bitcoin mining's estimated 150 TWh annual consumption has drawn scrutiny from climate advocates, pushing the industry toward sustainable practices.
Institutional investors, including firms like BlackRock (NASDAQ: BLK), are exploring stakes in mining companies, driving consolidation as larger players acquire smaller operations to boost efficiency. However, local communities, particularly in Texas, are resisting mining's environmental and noise impacts, with lawsuits over cooling fan noise escalating. In October 2024, Citizens Concerned About Wolf Hollow filed a lawsuit at the District Court for Hood County, accusing Marathon Digital (NASDAQ: MARA) of failing to reduce excessive noise pollution caused by its mining operations. These tensions could lead to stricter local regulations, challenging the industry's expansion.
'In such a short time, Bitcoin mining has completely altered our community, for the worse. The around-the-clock mining isn't just driving up our electricity bills — it's costing us our health. We feel trapped. Day and night, we are subjected to relentless noise that is physically harming us. We aren't asking for much — just for Marathon to take responsibility and restore our peace and well-being,' one Granbury resident said.
The U.S.'s dominance in Bitcoin mining will likely persist, but miners must navigate tariff risks, energy volatility, and community concerns to maintain their global edge. Strategic adaptation and investment in sustainable practices will be key to sustaining leadership in this dynamic market.
Watch: Bitcoin mining in 2025: Is it still worth it?
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