Bernstein: Mining Hardware a $20 Billion Opportunity Amidst Trump’s US Bitcoin Push

According to Bernstein analysts, the Bitcoin mining hardware sector is set to become a $20 billion market over the next five years.

US Companies Challenge Chinese Dominance

Historically, the industry has been dominated by Chinese firms such as Bitmain, which holds over 80% of the market. However, the introduction of new mining chips by US companies Block and Auradine offers a chance to diversify the supply chain and enhance competition.

New Developments in Mining Technology

Block, co-founded by former Twitter CEO Jack Dorsey, recently secured a deal to supply Core Scientific with its 3-nanometre ASIC mining chips. This agreement, valued at $300 million, is expected to drive further interest from US Bitcoin miners.

Auradine, supported by Bitcoin miner MARA, has also made strides with its Teraflux miners and new models like the AT2880 and AI3680. These utilise advanced 3nm ASIC chips and represent a significant technological advancement in mining efficiency.

Growth Projections

Bernstein forecasts a 15-30% annual increase in demand for mining equipment. This growth is attributed to the rising network hashrate and the need to replace or upgrade existing equipment. The annual hardware revenue opportunity is estimated between $3-5 billion.

Bitcoin mining hardware industry revenue. Image: Bernstein.

Impact of US Policy and Innovation

With Donald Trump's recent push to boost Bitcoin mining in the US, including promises to enhance electricity generation for the industry, Bernstein views this as a positive development for US miners. This policy could improve mining efficiency and reduce costs due to increased competition and innovation in chip design.

Future of US Mining Companies

Bernstein highlights four major US mining firms—Riot Platforms, CleanSpark, IREN, and Core Scientific—as well-positioned to benefit from these trends. The analysts suggest that the growing focus on domestic innovation and competitive technology will likely favour these large-scale mining operators.