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Mining companies hope that the new president will generate a favorable context for their industry.
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For the first time in history, the US Congress has a majority of pro-Bitcoin officials.
Managers, advisors and companies dedicated to Bitcoin (BTC) mining in the United States have welcomed Donald Trump’s victory in the presidential elections in this country with optimism. Their expectation is placed on favorable policies for the industry and a possible relief in energy regulations that affect the mining of cryptoactives.
As reported CriptoNoticias, Trump, during his campaign, stated that will boost the right to Bitcoin miningwhich will increase the production of various energy sources and reduce the cost of electricity consumption, among other amendments.
These three measures would be an explosively favorable combo for those who dedicate themselves to this task.
In this sense, after knowing the winner of the elections, express Anthony Pompliano, advisor to the US-based mining company Hut 8 Corp, who demonstrated his enthusiasm for Trump’s arrival at the White House and its possible impact on the Bitcoin mining.
“One thing people aren’t talking about yet is how optimistic a Trump presidency will be for bitcoin miners. Deregulation in the energy industry will bring more abundance and lower prices. A pro-bitcoin president will give the asset a boost. Combine those two things and you could see bitcoin miners becoming an even more attractive opportunity.”
Anthony Pompliano, advisor to the mining company Hut 8 Corp.
In this way, Pompliano’s statements refer to the growing demand to reduce energy costs. BTC miners seek to locate in the regions with access to cheaper electricity in order to enhance its profitability.
Riot Platforms speaks out on mining and Trump
Along these lines, Pierre Rochard, vice president of research at the United States mining company Riot Platforms, held on November 6, after Trump’s victory, that the elections in the electoral elections expressed the people’s interest in the expansion of BTC mining.
“Voters made it clear last night that they want more Bitcoin mining in the United States, to create jobs and balance the networks.”
Pierre Rochard, VP of Research at Riot Platforms
Riot Platforms is currently the second largest Bitcoin mining company by market capitalization, with more than 4 billion dollars.
It is currently building a new center in Corsicana, the State of Texas, for Bitcoin mining. According to announcedwill be completed in 2025 and will have a maximum capacity of 1 gigawatt (1,000 megawatts).
Riot Platforms’ new bitcoin mining plant already has 400 megawatts. Fountain: x.
During a campaign event, the current president emphasized that he wants to reduce consumers’ energy costs by 50%. Besides, assured which aimed to increase energy production in the US to make it an energy “independent” nation. Consequently, with Trump’s victory, Riot Platforms estimates that electricity costs at this new plant will decrease.
Especially in the state of Texas, which already attracts miners because it is the region of the country with lower electricity prices. This is a key piece for these companies that have their teams constantly connected. Here, the price per kilowatt per hour is 0.8 dollars for shops or businesses (38% cheaper than the US average).
In other words, Donald Trump’s promises linked to increasing energy sources such as natural gas, oil and coal and reducing electricity prices would turn BTC mining into a more profitable job, and Texas into a even more economical region.
To get an approximate idea of the expenses incurred by these giant mining companies, see the following hypothetical scenario: if the Corsicana plant operated at maximum capacity permanently for a month (a fact that would be extremely rare), Riot Platforms would spend more than 500 million dollars in electricity monthly.
Although this account is hypothetical, it is useful to have a clearer notion of the enormous investment that miners must sustain to compete in bitcoin mining.
However, it would also be valid to remember that Riot Platforms faced during 2023 questions by US senators and congressmen, including Elizabeth Warren and Edward Markey, due to its high energy consumption and its alleged negative impact on the environment. Therefore, and for better or worse, the company would be hoping that the arrival of Donald Trump will establish a less severe scrutiny framework for its activity.
Like Riot Platforms, HIVE Digital Technologies, the Canada-based mining company, also alluded to Trump’s victory over Kamala Harris.
In a publication in xFrom HIVE they stated that Trump will include “clear regulations and a drastic increase in energy production.” While this company does not currently have mining operations in the US, this could change, perhaps, after the election.
The search for these sites with cheap electrical power drives mining companies to remote regions. Such is the case of Ethiopiathis African country where many have settled miners expelled from China. These moves highlight the ongoing challenge of finding strategic locations where production is cheaper and more sustainable. Given the energy policies that Donald Trump intends to implement, the United States could be that strategic place for companies that still operate outside that country.
The pro-Cryptocurrency Congress: a sign of hope for miners
Another important player in the sector that made its complacency known about Trump’s inauguration was TeraWulf, the US mining company. This company is currently the fifth of this industry with the highest market capitalization, with a figure of almost 3,000 million dollars.
TeraWulf Bitcoin mining center in New York. Fountain: CFO Dive.
In this case, the optimism expressed by TeraWulf, according to his publication in X, it is linked to the fact that for the first time in history the United States Congress will have a majority of pro-crypto Senators and officials.
“Yesterday’s election results were a significant, bipartisan step forward for legislation and regulation of digital assets and cryptocurrencies.”
Publication in X by the TeraWulf company.
Like TeraWulf, the CEO of the American exchange, Brian Armstrong, stood out this formation of Congress as an incentive: “Welcome to the most pro-crypto Congress in the history of the United States”
The United States system of government prevents the president from enacting laws without the approval of Congress. But Trump will begin his second term as the US presidency with a Congress that, in principle, aligns with ideas in favor of this industry of Bitcoin and cryptocurrency mining, and cultivated by the newly elected president during his campaign.
Trump will govern with a Congress that, a priori, is mostly favorable to the adoption of cryptoassets. Fountain: Stand with crypto.
This circumstance could Easing the way for Bitcoin mining companies in their search to achieve the maximum possible profitability, in a country that provides them with adequate regulations. From TeraWulf they closed the statement with a sign of hope.
“We look forward to seeing where this new level of leadership takes us and hope that this election will lead both the nation and the world towards improved information, acceptance and adoption of Bitcoin.”
Publication in X by the TeraWulf company.
Bitcoin miners eagerly await Trump
Samir Tabar, CEO of Bit Digital Inc., a Bitcoin mining company based in New York, United States, opined on November 5, hours before the US presidential election was decided, that “whether you like it or not, a Trump victory is good for the cryptocurrency industry.”
Tabar anticipated that more than “40,000,000 US citizens participating in the Bitcoin, Ethereum and other cryptocurrency ecosystem would likely vote for Trump because they want to see this ecosystem grow.”
On the other hand, from China, the ViaBTC bitcoin mining pool, pointed out that Trump “made bold promises for the industry.” The pool closed its post on
After 11 complex months for the cryptocurrency mining industry, the assumption of the new administration, according to the promises, foresees a positive context for the bitcoiner community.
The possible prosperity of Bitcoin mining in the United States gains momentum after the arrival of Trump, who desire that “all remaining Bitcoin is mined in the United States.” This hopeful approach opens up prospects for the country to “become” what Trump called “the crypto capital of the world”.
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