In Canada, Bitcoin Mining Is Thriving

There’s been plenty of jibber-jabber about how much the United States stands to benefit from the great hash rate migration from China, but what about the U.S.’s continental cousin, Canada?

A few months ago, a news report surfaced that said Bitfarms, one of Canada’s largest bitcoin miners, was quitting Quebec on account of rising energy prices and stringent regulations. In fact this isn’t true; Bitfarms is expanding in Quebec, but it’s just moving moving part of its fleet to South America in a bid to diversify its operations.

Still, the news peg painted Canada as a poor jurisdiction for miners to set up shop, but lest we paint the entire country with broad strokes, we should take a look at other jurisdictions to get the full picture, as well as examine Quebec’s large hash rate footprint despite the industry being tied up by red tape.

Figures from the University of Cambridge’s latest mining report factor that Canada currently represents 3% of the network’s hash rate. This is skewed due to the fact that the report relied on IP login data to pinpoint mining operations (so if a firm operates machines in Canada but it managed its machines from the U.K., then its hash rate would be registered in the U.K.). Luxor Technologies estimates that a more accurate figure is 7.8%, based on the size of the ASIC fleets of key players in the region and the current network hash rate.