MARA Holdings Inc. (NASDAQ:MARA) exhorted the incoming Donald Trump administration to expand domestic Bitcoin (CRYPTO: BTC) mining operations, emphasizing the significance of the U.S. controlling a larger portion of the global hash rate for economic sovereignty.
What Happened: In an X post on Tuesday, the company highlighted the increasing competitiveness of Bitcoin mining and the potential economic implications of not securing a significant share of the global hash rate.
The company stressed that by controlling a larger portion of the hash rate—the computational power used to validate transactions and add new blocks to the blockchain—the U.S. can protect its transactions from foreign interference.
“By controlling hash rate, a nation can prioritize access to block space, preventing adversarial nations from censoring or manipulating its transactions,” MARA added.
For the uninitiated, Bitcoin’s blockspace represents the finite capacity available in each block to include transaction data.
Access to block space is vital for participating in the Bitcoin economy, and miners or mining pools with a higher hash rate can prioritize transactions in a block.
Why It Matters: Mara’s recommendation follows President Trump’s assured support to the industry, with a vision to mine all remaining Bitcoins in the U.S.
The pledge, aligning with his “America First” policy, seemed to be directed against China, which, despite a ban on cryptocurrency trading and mining, still controls over 50% of the global Bitcoin hash rate.
According to Bitbo data, miner revenue in November increased by 3.4% from the previous month, primarily driven by the jump in Bitcoin’s price following Trump’s election victory.
The broader corporate Bitcoin mining sector has seen gains since the event, with CoinShares Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) rising 18%.
Price Action: At the time of writing, Bitcoin was exchanging hands at $93,388.09, up 0.57% in the last 24 hours, according to data from Benzinga Pro. Shares of MARA were up 3.04% in pre-market trading hours.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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