Bernstein See Bitcoin Mining in the US as a $20B Opportunity, Back RIOT and CLSK

Bernstein analysts see a significant opportunity in the U.S. Bitcoin mining sector, estimating a $20 billion revenue potential for mining chips and hardware over the next five years.

A Bernstein analysis team has identified a substantial opportunity within the U.S. Bitcoin mining sector, projecting a $20 billion revenue potential for mining chips and hardware over the next five years.

The firm acknowledges that this market has been largely dominated by Chinese enterprises, with Bitmain notably holding over 80% of the market share.

However, Bernstein highlights the emergence of U.S.-based companies like Block and Auradine, presenting an opportunity to diversify the mining supply chain.

According to the analysis, several benefits could arise for U.S. Bitcoin miners from this shift. These include improved fleet efficiency, reduced capital expenditures due to lower chip prices, and the potential to repurpose power capacity for AI and high-performance computing (HPC) opportunities.

The analysis also touches upon the U.S. election season and former President Trump's campaign slogan, "Make Bitcoin in America," suggesting that this diversification could provide a significant boost to the sector.

The report delves into the evolution of Bitcoin mining chips, discussing the progression from CPUs and GPUs to ASICs. It further details the current competitive landscape, highlighting the dominance of Chinese players and emphasizing the advantages offered by new U.S. entrants.

These advantages include innovation through open-source and customizable software, as well as closer partnerships with U.S.-based miners to enhance fleet efficiency.

In the note, Bernstein maintained its Outperform ratings on RIOT, CLSK, IREN, and CORZ, expressing an expectation that they will benefit from lower chip prices and increased competition in the mining hardware market.

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