It has become fairly obvious that Bitcoin mining activity in the United States has exploded as of late, with the US having emerged as one of the world’s top mining hubs. Following the China crypto ban in mid-2021, the US share of global hashrate has risen, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI), from 21.8% in June 2021 to 37.8% by January 2022 (its most recent data) and is almost certainly even higher by now. Some states, like Texas and Georgia, have been actively courting the crypto mining booms unfolding inside their borders with high-profile endorsements, legislation, and tax incentives. Plenty of other states have meanwhile flown a bit more under the radar despite offering similarly hospitable settings for mining.
Among the various factors that make a state especially suitable for Bitcoin mining, the cost and availability of electricity remains a crucial variable. But there are other vital considerations to account for as well, including state income tax rates, state political conditions, and state cryptocurrency regulations, as well as real estate prices, cost of living, and fast and reliable internet access. On the whole, the states with the most favorable Bitcoin mining conditions along with the most widespread mining activity tend to offer both abundant, low-cost power and loose or even crypto-incentivized regulation.
Since Bitcoin mining remains a highly mobile industry, any given assessment offers a mere snapshot of the current situation. As such, the following list of states attempts to account for both where mining activity is currently happening now, as well as where it might be headed moving forward. Some states, like California, weren’t included despite carrying a large share of the US hashrate because the crypto climate there appears actively headed in a less mining-friendly direction. Others, like North Dakota, contribute a much smaller share of total US hashrate, but seem already well on their way to a more crypto-driven future.
For many existing miners, particularly those using mobile mining containers, the wide spectrum of opportunity across the US right now could offer reason enough to consider moving mining operations to a more favorable location. For many other prospective miners, however, ideal mining conditions may have been much closer than they had realized all along, and perhaps right in their home state. Wattum also currently provides hosting, buildout, and joint-venture opportunities in many of the states listed below – and for many of the same reasons that they were included and make them ideal places to mine.
Here they are – for now, anyway: the best US states for Bitcoin mining:
Georgia has quickly become the leader in US hashrate share. According to the CBECI, the Peach State was responsible for 30.8% of total US hashrate by January 2022, nearly three times the share of Texas. In addition to relatively low electricity rates, Georgia provides a robust supply of solar and nuclear power, cheap land, and mining-friendly regulation that includes “day-ahead” energy prices, so miners can curb their operations if rates are about to spike.
Texas gets plenty of Bitcoin exposure, and for good reason. Bitcoin has been embraced by some of its most powerful elected officials, including Governor Greg Abbott and Senator Ted Cruz, and some of the world’s largest mining companies have set up shop within its borders. The Lone Star State offers no state income tax burden, relatively cheap electricity prices from an abundance of wind and solar power, and a deregulated energy grid.
Kentucky remains a sleeper among the mining heavyweights. The Bluegrass State was responsible for 10.9% of US hashrate by January 2022 — right behind Texas’s 11.2% but with far less fanfare along the way. Kentucky provides an ideal location in proximity to regional energy grids and a low cost of living, and the state also recently passed a series of tax incentives for crypto mining specifically, which has helped further attract miners to the area.
Nebraska receives much less mining notoriety than certain other states, despite being in the top ten in both hashrate share (4.7% by January 2022) and lowest electricity rate. Notably, the Cornhusker State also offers very favorable crypto regulation, including crypto banking programs, in addition to its central access to a wide array of energy sources.
5. North Carolina
North Carolina, also responsible for 4.7% of US hashrate by January 2022, makes for another quiet mining powerhouse, although one currently on the rise. In addition to favorable electricity rates and a low cost of living, the Tarheel State also has a blanket sales and use tax exemption, which has made it additionally attractive for miners and mining companies alike.
Florida stands as a state that has been highly visible (and vocal) in terms of embracing crypto mining as well, although overall mining activity in the Sunshine State has yet to fully catch up to its crypto-friendly reputation. In addition to high-profile state and local political support, Florida offers no state income tax burden, relatively low electricity costs, and high internet access and speed.
7. South Carolina
South Carolina is yet another low-profile mining hotbed that is just getting started. The Palmetto State offers relatively low electricity rates from an abundance of solar and nuclear energy, as well as relatively cheap land. The state also has plenty of underutilized manufacturing infrastructure, which has further contributed to increased political support for crypto mining.
Louisiana provides a natural destination for Bitcoin mining for similar reasons as Texas, though the former has been slower to embrace the mining industry than its neighbor. The Pelican State offers very low electricity rates, an abundance of oil and natural gas power, and an excess of stranded energy and underutilized infrastructure that could ideally be used for mining.
Tennessee has yet to truly take off in terms of large-scale mining activity, but it offers some of the most favorable mining conditions in the country (so it’s arguably only a matter of time). The Volunteer State has no state income tax burden, very low electricity rates, and a low cost of living, along with reliable access to a variety of clean energy sources.
10. North Dakota
North Dakota is a state on the rise in terms of crypto mining activity, though still a minor one in terms of total hashrate share. The Peace Garden State offers a very low state income tax burden, very low electricity rates, and a low cost of living. In addition, North Dakota has recently passed friendly crypto tax breaks and regulation, which will help entice new miners.
And there you have it. Of course, though the above list contains one fifth of all US states, there are still plenty of other states that also offer suitable places to mine. One of the best things about mining Bitcoin is that you can follow wherever the market conditions lead, and the US as a whole offers a vast landscape of opportunity for miners, especially those whose operations are mobile. With Wattum’s mobile mining containers, you can choose an ideal location to set up your operations, wherever it may be. Through our buildout division, we can help you locate, design, and build out your very own facility as well. To learn more about how to launch or expand Bitcoin mining operations in your state or others, reach out to a Wattum sales representative today.