DailySun
Ben Gagnon, the CEO of Bitfarms, shared his insights on how the recent geopolitical challenges brought about by the Trump administration may impact the Bitcoin mining industry.
In a Bloomberg TV interview on March 11, Gagnon pointed out that both the United States and Canada have depended on energy-centric economies for over two centuries. The ready availability of affordable energy has played a crucial role in driving economic progress throughout this period.
However, he also noted that the ongoing trade tensions and tariffs could have indirect effects on the energy markets, which are essential for Bitcoin mining operations.
“All of our facilities are situated in Quebec,” Gagnon mentioned. “Our largest sites will be built in Quebec and Alberta, with British Columbia following suit. Ontario, on the other hand, is less attractive due to its weaker energy market and limited capacity.”
While the ongoing political discord between Washington and Ottawa shows little indication of easing, Gagnon argues that enhanced access to electricity markets and supportive regulations will be crucial for the long-term viability of the mining sector. He emphasized the need for deregulation and efficient market functioning to foster the growth of mining enterprises.
Strategic acquisitions enhance market presence
To solidify its position in the market, Bitfarms has pursued strategic acquisitions that not only increase its geographical diversity but also leverage energy accessibility.
“We’ve transitioned from being 40% based in North America, with only 6% in the US, to now being 80% based in North America with 66% in the US,” Gagnon elaborated. “This shift creates numerous opportunities for us, enhancing both operational quality and cost-effectiveness.”
Gagnon also pointed out that the transformation of energy infrastructure from traditional industrial uses to Bitcoin mining is opening up new growth prospects.
“In the last four to five years, Bitcoin miners have been investing in energy infrastructure that was previously used by industries such as aluminum smelting. As focus returns to North America, these assets are becoming increasingly desirable,” he remarked.
Regulatory uncertainty remains a significant hurdle
While Gagnon expresses optimism about the future of the Bitcoin mining industry, he recognizes that existing regulatory uncertainty is still a significant concern, even though conditions are gradually improving. He noted that President Trump’s recent actions, like discussions regarding the establishment of a strategic Bitcoin reserve, indicate a growing recognition of Bitcoin’s economic importance.
Nonetheless, greater clarity surrounding energy and cryptocurrency regulations is crucial for unlocking further growth potential.
“We need improved access to electricity markets and a supportive policy environment to ensure long-term success,” he concluded.
