Coinbase Ventures, the investment arm of the major crypto exchange, has invested an undisclosed amount in Titan, a developer of software and services focused on industrial Bitcoin (BTCmining.
According to Titan Announcementthe investment will help continue the development of the company’s products and improve the efficiency and profitability of Bitcoin mining businesses.
Ryan Condron, Titan co-founder and CEO, said that “mining has evolved from hobby, to industry, to critical global computing infrastructure, and Titan is ready to help world-class miners meet these challenges.”
Titan offers advanced pooling and mining software specifically for professional US miners. The network of nodes and mining dashboards allows miners to better compete on a global scale, the company said.
Formerly Titan launched the Titan Pool in partnership with CoinMint and CoreScientific, two major mining infrastructure providers in the US Among the benefits the pool offers, Titan cites improved transparency and, crucially, solving some jurisdiction problems for US miners.
China is currently good for the vast majority of Bitcoin hashrate. 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 hydropower. Its importance is so pronounced that local seasons have a strong effect on Bitcoin’s hash rate. But cheap electricity is not unique to China, as some regions in the US, Canada and Europe are just as competitive.
The mining chain, on the other hand, sees a much stronger dominance of Chinese companies. Mining hardware manufacturers are almost exclusively based in China. This gives local miners a powerful home advantage as there can be issues exporting and importing certain chips and devices. While the US is catching up on mining hash rate, good for 14% of the totallocal companies are still using Chinese-made devices.
This can be particularly problematic in today’s geopolitical environment, where the US is actively banning Chinese products and services and going as far as prohibiting investments in Chinese companies. The mining industry has already started to respond, with some operators who repatriate hash rate. While President Trump’s departure may help ease tensions somewhat, some analysts say to believe that there may not be a reset for US-China relations.
Titan focuses primarily on the software side of the mining supply chain, providing a national pool that miners can join. There have also been some developments in the local maintenance infrastructure, with Bitmain offers technician certification courses in the US in May 2020.
Interest in diversifying the mining industry away from China’s dominance seems high, but full independence is unlikely until ASIC manufacturers from other countries step in.