Estimating Bitcoin’s Hashprice and ASIC Market Growth
From its humble beginnings of at-home mining in 2009 to today’s industrial-scale facilities powered by gigawatts of capacities worldwide, Bitcoin mining has transformed into a multi-billion-dollar industry with growing institutional interest.
At the heart of this exponential growth lies the evolution of application-specific integrated circuit (ASIC) chips, purpose-built for Bitcoin’s SHA-256 algorithm. Canaan’s launch of the first-ever Avalon ASIC miner in January 2013 marked the dawn of a new era, revolutionizing Bitcoin mining after the network’s first halving in 2012.
Since then, the Bitcoin ASIC miner market has been largely dominated by Chinese chip design and manufacturing firms, leveraging their proximity to semiconductor foundries and low production costs. While Bitmain retains a dominant market share, its primary competitor, MicroBT, has posed significant challenges since 2019. Moreover, a slowdown in chip processing advancements has allowed new players to enter the market. Since 2022, teams such as Jack Dorsey’s Block, MARA-backed Auradine, and Jihan Wu’s Bitdeer have sought to disrupt Bitmain’s dominance.
As the industry anticipates another cyclical bull run, key questions remain: How much will Bitcoin’s hashrate and hashprice grow, and what opportunities await ASIC manufacturers in a market increasingly defined by compressed margins and rising competition?
TheMinerMag’s latest research report explores the historical development of the Bitcoin ASIC marketplace and assesses the network’s potential growth leading up to the next halving in 2028. Download the report above to view more.
