The Decline of Bitcoin Mining in the United States
America’s dominance in Bitcoin mining is slipping as new global players emerge, particularly China, which is rapidly expanding its energy infrastructure. Despite former President Donald Trump’s call to centralize Bitcoin mining efforts in the U.S., North American mining pools have experienced a notable decline in block share over the past year. According to a report by BlocksBridge Consulting, these pools accounted for 35% of all Bitcoin blocks mined in December, down from 40% the previous January.
AI Infrastructure Boom Competing with Bitcoin Mining
One of the major factors contributing to the U.S.’s declining Bitcoin mining presence is competition from the booming artificial intelligence (AI) infrastructure sector. AI data centers require extensive energy resources, forcing many U.S.-based mining operations to shift their focus. Nick Hansen, CEO of Luxor Technology, noted that the high demand for AI dwarfs Bitcoin mining in scale and potential. Mining firms are now repurposing energy assets meant for Bitcoin to fuel AI growth instead.
China’s Surge in Power Generation and Bitcoin Mining
China’s energy build-out is another contributing factor, enabling the country to increase its Bitcoin hash rate despite a 2021 nationwide ban on mining. Areas like the Xinjiang province, though technically restricted, are reportedly still active in mining operations due to the region’s abundant fossil-fuel-generated power and distance from Beijing’s oversight.
Analysts believe that the proliferation of Bitcoin mining in China serves as a proxy for its energy infrastructure growth. This resurgence in mining efforts has positioned China to capitalize on the U.S.’s waning dominance.
Challenges for U.S. Bitcoin Miners
Bitcoin mining profitability has reached record lows, with global energy price increases and fierce competition pushing smaller and less efficient miners out of the market. JPMorgan reported that average daily revenue for miners decreased 32% year-over-year as of December 2025. Some U.S. miners have shifted to high-performance computing (HPC) and AI projects to offset losses, highlighting the changing priorities in this competitive industry.
Bitcoin Mining Hardware Companies Facing Pressure
China-based companies like Bitmain, which control approximately 80% of the global Bitcoin mining hardware market, are also facing declining demand. To navigate the downturn, Bitmain has mined Bitcoin itself using its own inventory. However, it risks losing wafer allocations from Taiwan Semiconductor Manufacturing Company (TSMC) due to oversupply and production cuts.
What the Future Holds
As the U.S. grapples with these challenges, countries like Russia and various Middle Eastern nations are also emerging as notable players in the Bitcoin mining landscape. North America’s diminished block share, coupled with shifting economic priorities, indicates how competitive and dynamic the global Bitcoin mining industry has become.
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