Cryptocurrency Mining Market Growing at 28.5% CAGR
The cryptocurrency hosting and mining industry is growing at breakneck speeds. According to a report from Brandenessence Market Research, the market is growing at a compound annual growth rate (CAGR) of 28.5% and will be worth nearly $5.3 billion by 2028.
That’s nearly double the CAGR of the red-hot video game industry.
Gaming, a blistering investment sector, has been growing at a compound annual growth rate of roughly 14.5%. When compared to the crypto hosting and mining market’s growth, the growth rate in gaming is relatively small.
However, even at half the growth rate, the gaming industry has seen some massive investment deals this year.
Microsoft announced its $69 billion acquisition plans for Activision Blizzard, Sony acquired Bungie for $3.6 billion, and Take-Two Interactive acquired Zynga for $12.7 billion. All these deals came at big premiums.
The question now is, will crypto soon undergo the same type of consolidation?
Well, with a growth rate double that of gaming, it sure could.
In 2021, a year where the United States became the world’s top Bitcoin miner by hashrate, the cryptocurrency hosting/mining market was worth about $2.3 billion.
By 2028, the value of the market will more than double, and the US could increase its hashrate share from roughly 33% to over 50%…
And because of this, M&A deals in crypto may become common.
With this in mind, investors in the space have turned from simple cryptocurrency holdings, to buying stock in publicly traded cryptocurrency hosting and mining companies, and others involved in the space.
According to the Brandenessence report, the cryptocurrency mining market can be broken into several different segments, including breakdown by:
Component – Hardware, Software, Graphics processing units, Application specific integrated circuits.
Revenue Source – Block rewards and Transaction fees
Mining Enterprise – Large miners, Medium and Small miners
Application – Cloud Mining, Remote Mine Hosting Services and Self-mining
Massive demand for cryptocurrencies like Bitcoin and decentralized finance blockchains are a major factor driving this industry growth.
While the consolidation we’re seeing in the gaming industry may not have yet hit cryptocurrency hosting and mining companies, a CAGR of 28.5% is sure to entice big deals down the line.
Read more of the Brandenessence Market Research report, HERE