Economic research firm Perryman Group has revealed that Bitcoin mining has contributed more than $4 billion to the US gross domestic product (GDP) in 2024. The firm disclosed this in its new report, noting that it created 31,000 jobs.
The report, which was commissioned by crypto industry advocacy groups, the Digital Chamber of Commerce, and the Texas Blockchain Council, dispels some myths about the Bitcoin mining industry and shows how it benefits the economy.
While most mainstream reports on Bitcoin mining have focused on its environmental impact, the new report casts the industry in a new light as a direct contributor to local and national economies.
The report states:
“Bitcoin mining companies serve as important employers and taxpayers in their local communities, which are often relatively small and rural, as well as providing peripheral benefits to the areas in which they operate.”
The report relied on public and private data collected from various sources, including several mining firms. Perryman conducted the analysis using the US Multi-Regional Impact Assessment System (USMRIAS) and US Multi-Regional Econometric Model (USMREM), enabling the firm to determine the economic effects of Bitcoin mining and its related industries.
It was found that Bitcoin mining’s economic impacts extend beyond job creation and personal income; it also benefits other operations, such as warehouses and logistics businesses. Their benefits are even more pronounced because many of these miners operate in small towns.
This makes them crucial to the communities where they operate, as they directly stimulate growth through investments and contribute to social development with donations and other community programs.
Texas dominates Bitcoin Mining output
Meanwhile, the report shows that Texas enjoys the most benefits from Bitcoin mining, with the industry contributing $1.7 billion to its GDP and creating 12,200 jobs.
This is unsurprising, given that the state hosts several Biggest Bitcoin miners. Texas is responsible for a sizable percentage of the 40% Bitcoin global hashrate that the US controls due to miners such as MARA Holdings, Iris Energy, Cipher Mining, Bitdeer, Hut 8, Core Scientific, and Riot Platforms all having facilities in the state.
Another factor in Texas’s dominance is the relationship between Bitcoin miners and the Electricity Reliability Council of Texas (ERCOT), responsible for 90% of the state’s electricity load. ERCOT partners with miners to maintain the grid’s stability and ensure optimal energy use.
However, other states also generate economic activity from Bitcoin mining. Georgia sees $316 million in contributions to its annual GDP, while New York sees $225.9 million. Other states, including North Dakota and Pennsylvania, also see sizable benefits.
BTC plunge could impact miners’ revenue
Meanwhile, Bitcoin mining’s contribution to the US economy could increase in the coming years as the industry continues to see expansion. Although it is still a relatively niche space, several miners have increased their capacity while diversifying into AI hosting.
However, miners have seen a decline in revenue in recent weeks as Bitcoin price fell below $100,000 and remained stuck in that range. Following BTC’s recent drop to $93,000, Bitcoin hash price has also fallen to $52.54, showing that miners are not making as much money.
Nevertheless, some miners adapt to the rising costs and declining revenue by expanding their operations to reduce costs. MARA Holdings recently completed the acquisition of a wind farm in Texas to increase its capacity by 114 megawatts and lower the cost of mining.
