Foundry USA, a New York-based crypto mining service provider, has taken over a 15.42% stake in the network to make it the second-largest Bitcoin (BTC), mining pool.
BTC.com data shows that Foundry USA, owned by Digital Currency Group, stands behind AntPool. It has a hash rate just 4,000 PH/s which contributed to a 17.76% network sharing at the time this article was written.
China’s recent blanket ban against crypto trading and mining activities can be blamed for the rise in American entities participating. This ban prompted a large-scale migration by local Bitcoin miners to crypto-friendly countries like the United States, Russia and Kazakhstan.
According to https://t.co/1YRYr4QCmY, DCG’s mining pool Foundry has become the second largest Bitcoin mining pool. The main reasons are China’s strict crackdown on Bitcoin mining, and the transfer of the mining industry to the United States. https://t.co/VjtWgD9Hsp pic.twitter.com/XK9Y19QDrg
— Wu Blockchain (@WuBlockchain), November 20, 2021
Foundry USA is the most expensive of all the top five mining pool in terms of distribution of hash rates. It charges a total of 0.09418116 BTC per block, which is close to $5,500. American businesses are also picking up the crypto ATM distribution slack from China.
Coin ATM Radar data shows the Georgia-based Bitcoin Depot has become the largest crypto ATM operator in the world, surpassing its Chinese counterparts. Surprisingly, the majority of crypto ATM operators are owned by American companies. This trend is more apparent after China’s proactive ban against crypto activities.
The Chinese Communist Party, despite its clear intention to pursue an internal central bank digital currency (CBDC), has sought public opinion about the Bitcoin mining ban of Oct. 21. This has sparked discussions around the modification of the government’s negative position on Bitcoin and cryptocurrency mining.
Statista data shows that China’s contribution has been steadily declining since September 2019. China was responsible for more than 75% of Bitcoin’s original mining hash rate 20 years ago. This figure dropped to 46% in April 2021, just before the ban on cryptocurrencies.
Related: US legislators introduce bill to “fix” crypto reporting requirement from infrastructure law
The United States is moving closer to Bitcoin mainstream adoption. Regulators seek clarification in relation to new reporting requirements set forth by the Biden administration.
Members of the Democratic party and the Republic have both appealed to the government to modify the crypto tax reporting reforms. They also asked for a definition of “broker” in crypto transactions.
The bipartisan infrastructure bill, which is sponsored by both Democrats and Republicans, requires that the public declare digital asset transactions exceeding $10,000 to the Internal Revenue Service starting in 2024. The bill currently includes miners, validators and protocol developers as brokers.
Eileen Wilson –Technology and Energy
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