Crypto

energy access and deregulation key for Bitcoin mining growth

3Views



Ben Gagnon, Bitfarms’ Chief Executive Officer, shared his thoughts on how new geopolitical challenges from the Trump administration would impact the Bitcoin mining industry.

Gagnon said during a Bloomberg TV interview on March 11 that both the US and Canada have been energy-driven economies for more than 200 years. Blessed with easy access to affordable power has been a key driver of economic growth over the past two centuries.

However, he explained that the ongoing trade tensions and tariffs could have downstream effects on the energy markets, which are critical for Bitcoin mining.

“All of our sites are based in Quebec,” Gagnon said. “The largest sites are going to be in Quebec and Alberta, followed by British Columbia. Ontario, on the other hand, isn’t as attractive due to its weaker energy market and reduced capacity.”

Despite the political tension between Washington and Ottawa showing no immediate signs of easing, Gagnon believes that greater access to electricity markets and regulatory support will be crucial for the mining sector’s long-term success. He emphasized the need for deregulation and smooth market operations to allow miners to continue expanding their businesses.

Strategic acquisitions strengthen market position

Bitfarms has been busy in strengthening its market position through strategic acquisitions that allows for better geographical diversity that takes advantage of access to energy.

“We’ve transitioned from being 40% based in North America with 6% in the US, to becoming 80% based in North America with 66% in the US,” Gagnon stated. “This shift opens up a world of opportunities for us, improving both the quality and cost structure of our operations.”

Gagnon also explained that the shift in energy infrastructure from industrial use to Bitcoin mining is creating new growth opportunities.

“For the last four or five years, Bitcoin miners have been investing in energy infrastructure that was previously used for industries like aluminum smelting. As the pendulum swings back toward North America, those assets are now in high demand,” he said.

Regulatory uncertainty remains a challenge

While Gagnon remains bullish on the future of the Bitcoin mining industry, he noted that current regulatory uncertainty remains an ongoing concern, although prospects are indeed improving. He noted that President Trump’s recent moves, including discussions about a strategic Bitcoin reserve, signal at the very least growing recognition of Bitcoin’s role in the economy.

But, greater clarity on energy and crypto regulations are key to creating even greater opportunities for growth.

“We need greater access to electricity markets and a supportive policy framework to drive long-term success,” he added.



Source link

Leave a Reply

Exit mobile version