Coinbase Invests In US-Based Mining Company As Part Of Industry Diversification Efforts

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Coinbase Ventures, the investment arm of the leading cryptocurrency exchange, has invested an undisclosed amount in Titan, a developer of software and services for industrial Bitcoin mining (BTC).

According to Titan’s announcement, the investment will help further develop the company’s products and improve the efficiency and profitability of Bitcoin mining companies.

Ryan Condron, co-founder and CEO of Titan, said that “mining has moved from hobby to industry, to critical global IT infrastructure, and Titan is ready to help world-class miners to meet these challenges.

Titan offers advanced pooling and mining software specifically for professional miners based in the United States. Its network of mining nodes and dashboards allows miners to better compete globally, according to the company.

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Previously, Titan launched the Titan Pool in collaboration with CoinMint and CoreScientific, two major providers of mining infrastructure in the U.S. Among the benefits offered by the pool, Titan cites better transparency and, most importantly, resolving some mining issues. jurisdiction for American minors.

China currently accounts for the vast majority of Bitcoin hashrate. The relative dominance can be attributed to a combination of attractive electricity costs and a localized supply chain.

The Sichuan region is particularly attractive to miners because of its cheap hydroelectric power. Its importance is so pronounced that the local seasons have a big effect on Bitcoin’s hash rate. But cheap electricity is not unique to China, with parts of the United States, Canada, and Europe being equally competitive.

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The mining supply chain, on the other hand, sees a much stronger dominance of Chinese companies. Manufacturers of mining equipment are almost exclusively based in China. This gives local miners a powerful advantage in the field, as there may be difficulties in exporting and importing certain chips and devices. Although the United States is catching up in terms of mining hash rates, accounting for 14% of the total, local companies are still using devices made in China.

This can be particularly problematic in today’s geopolitical environment, where the United States actively bans Chinese-made products and services and goes so far as to ban investments in Chinese companies. The mining industry has already started to react, with some operators repatriating the hash rate. While President Trump’s departure may help ease tensions somewhat, some analysts believe that there may not be a reset in sight for US-China relations.

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Titan primarily focuses on the software side of the mining supply chain, providing a nationwide pool for miners. There have also been developments in the local maintenance infrastructure, with Bitmain offering technician certification courses in the United States in May 2020.

Interest in diversifying the mining industry away from China’s dominance appears to be high, but full independence is unlikely to be achieved until ASIC makers in other countries step in.