How bitcoin mining is growing Industrial America
6 min read
- Bitcoin
- Mining
As an investor, you’re always on the lookout for the next big thing – an emerging industry or technology that could deliver outsized returns. Bitcoin mining is one of them: it has had a major impact on the American power industry in recent years and has established itself as a contributor to economic growth and revitalization. What began as a hobby for tech enthusiasts has evolved into a booming industry, breathing new life into abandoned industrial sites and rural communities across the United States.
Bitcoin Mining: A Booming Industry
Bitcoin mining, the process of generating computing power to solve complex mathematical problems on the Bitcoin blockchain network, has rapidly evolved from its humble beginnings into a booming business marked by large-scale, structured operations and the emergence of big players.
The numbers are impressive. The growth of this sector is evident in the increasing number of Bitcoin mining sites across the country: 48 sites operated by major players in January 2024, a 23% increase in just the past three years[1].
But the growth of this industry goes far beyond just the proliferation of new facilities: the global power capacity of the leading bitcoin mining companies has increased significantly as well, and while an increase in new facilities tells a part of the story, the real magnitude in mining growth is best captured through the increase in power draw.
Similarly to other raw material refining like steel or aluminum smelting, Bitcoin miners use significant amounts of energy. The total available megawatts (MW) for Bitcoin mining in the U.S. has skyrocketed from 1,945 MW in January 2022 to 4,815 MW in January 2024[2] – US-based miners have grown their energy capacity usage by ~3x over the last 2 years. Not only have they increased the number of sites, but also multiplied the power draw of each of them.
U.S. Economy Revitalization
This voracious appetite for electricity is fueling a resurgence in industrial activity and job creation across the country. Bitcoin miners have found clever ways to revive old, abandoned industrial sites or set up shop in remote rural areas – places where other major industries might struggle due to infrastructure challenges.
Bitcoin mining is playing a notable role in revitalizing the U.S. economy, particularly in rural areas and regions with abandoned industrial sites. The mining industry is effectively subsidizing the buildout of new energy production and infrastructure without relying on American taxpayer money.
Several states have become hotbeds for Bitcoin mining due to favorable regulations, ample space for facilities, and cheap electricity. Texas has emerged as the epicenter of this transformation, accounting for 28.5% of the computing power fueling the Bitcoin network in 2023. But other states like Georgia, New York, and Pennsylvania are also seeing significant growth in their bitcoin mining footprints. These regions are benefiting from the influx of capital investment and infrastructure development that the industry brings.
Take Childress County, Texas for example – a town of just 7,000 people. Iris Energy[3] built a 600MW capacity facility on 420 acres, expected to support 56 higher-than-median pay, full-time local jobs to this rural community. The story is similar in Sandersville, Georgia, Cleanspark[4] as expanded its largest mining operation by adding 100MW of capacity.
And in Dickens County, Texas, Galaxy Digital[5] owns a 180MW capacity facility spanning 125,000 square feet.
These operations are not just utilizing new spaces; they’re also revitalizing formerly active industrial facilities. For example, a coal/natural gas power plant in Dresden, New York, which sat offline for seven years, was brought back to life by Bitcoin mining and has since expanded. The direct consequences of these reconversions on their local economies are material.
Job Creation and Economic Impact
The job creation potential of Bitcoin mining is substantial and growing. Public data from miners show that direct employment by major Bitcoin mining companies in the U.S. has nearly doubled in two years, from 1,016 jobs in January 2022 to 1,684 in January 2024.
The impact on local communities can be transformative. In Rockdale, Texas, for instance, Bitcoin mining operations have rejuvenated the local economy following the closure of an Alcoa plant that had previously employed 1,700 people and contributed 30% of the county’s tax revenue.
However, these figures only scratch the surface. According to PwC[6], the indirect employment impact is likely around 10,700 jobs in the U.S in 2024 – that’s a significant figure for an industry that is barely 5 years old in the United States. This is based on a datacenter jobs multiplier, which suggests that each mining job supports an additional 6.4 jobs elsewhere in the economy in areas like transportation, supplies, construction, and electrical engineering.
Conclusion
Bitcoin mining is emerging as a powerful force for industrial growth and economic revitalization in America. By repurposing abandoned industrial sites, creating jobs, and injecting capital into local economies, the industry is breathing new life into rural communities and struggling regions, and makes a tangible difference in the lives of everyday Americans.
[1] Quarterly reports from mining companies
[2] Quarterly reports from mining companies
[3] Iris Energy, https://iren.com/childress
[4] Eleni Stylianou, Cleanspark Exceeds 14 EH/s as Sandersville Expansion Comes Online, 2024,
[5] Argo Blockchain, https://argoblockchain.com/our-operations
[6] PwC, Economic, Environmental, and Social Impacts of Data Centers in the United States, 2023, https://static1.squarespace.com/static/63a4849eab1c756a1d3e97b1/t/65037be19e1dbf4493d54c6e/1694727143662/DCC-PwC+Impact+Study.pdf
Published onJul 30th, 2024
