Foundry Pool: The Bitcoin Mining Giant

Complete analysis of the world's largest Bitcoin mining pool

Introduction

In the Bitcoin mining ecosystem, Foundry USA Pool has established itself as the undisputed leader. With market dominance exceeding 36% of Bitcoin's total network hashrate, this US-based mining pool represents a major force in securing the Bitcoin blockchain. Founded in August 2020 by Foundry Digital, a subsidiary of Digital Currency Group (DCG), Foundry Pool embodies the growing institutionalization of Bitcoin mining in North America.

This article explores Foundry Pool in depth, its characteristics, its dominant market position, and what it means for the future of Bitcoin mining and network decentralization.

What is Foundry Pool?

History and Origins

Foundry USA Pool was launched in August 2020 by Foundry Digital LLC, a company created under the Digital Currency Group umbrella, one of the most influential investment firms in the cryptocurrency sector. Foundry's creation responded to a specific need: to offer North American institutional miners a professional, secure infrastructure that complies with US regulations.

Since its modest beginnings in 2020, the pool has experienced remarkable growth. At the beginning of 2024, Foundry displayed a hashrate of approximately 157 exahashes per second (EH/s). By December 2024, this figure had climbed to nearly 280 EH/s, demonstrating remarkable expansion in barely a year. This spectacular growth reflects the growing confidence professional miners have in Foundry's infrastructure and services.

Mission and Positioning

Foundry's stated mission is clear: "empowering a decentralized infrastructure." This approach may seem paradoxical given the pool's dominant size, but it reflects a desire to increase North America's share of hashrate control against the historical dominance of Asian pools, particularly Chinese ones.

Foundry positions itself as a pool "built by miners for miners," offering institutional-grade services focused on three fundamental pillars:

• Security: Secure infrastructure with firewalls, encryption, and SOC compliance
• Reliability: Stable and predictable payments via FPPS (Full Pay Per Share) mode
• Transparency: Detailed hashrate data by state, KYC compliance for members

Technical Features and Functionalities

FPPS Payment System

Foundry Pool exclusively uses the FPPS (Full Pay Per Share) payment model, an improved variant of the traditional PPS system. This system offers several major advantages for miners:

• Guaranteed payments: Miners receive a fixed payment for each valid share submitted, regardless of the pool's success in finding a block
• Transaction fee inclusion: Unlike standard PPS, FPPS also includes transaction fees in distributed rewards
• Income stability: Miners benefit from predictable revenue streams, facilitating financial planning and reducing variance exposure

The minimum payout threshold is set at 0.001 BTC, making the pool accessible even to medium-sized operations. Foundry absorbs the risk associated with block variance, providing miners peace of mind regarding their income.

Infrastructure and Security

Foundry emphasizes offering institutional-grade infrastructure. Security measures include:

• SOC Compliance: System and Organization Controls certification guaranteeing internal control reliability
• KYC Process: Mandatory identity verification for all pool members, meeting US regulatory requirements
• Secured Servers: Enterprise-level firewall protection and encryption technologies
• Data History: Complete preservation of hashrate data allowing miners to analyze their performance over time

Tools and Features

Foundry offers a complete ecosystem of tools to support miners throughout their journey:

• Mobile Application: Available on iOS and Android, offering a read-only view to monitor mining statistics on the go
• OptiFleet™: Fleet management solution maintaining high uptime and facilitating diagnostics
• FoundryX: Marketplace for buying and selling mining equipment, creating a reliable secondary market
• Foundry Donate: Program allowing miners to allocate a portion of their earnings to nonprofits supporting Bitcoin developers
• Foreman Integration: Third-party auditing tool for shares and pools for increased transparency

Market Dominance and Statistics

Current Market Position

Foundry USA Pool currently dominates the Bitcoin mining landscape with impressive figures:

• Hashrate: Approximately 277 EH/s in December 2024, representing over 36% of Bitcoin's total network hashrate
• Growth: Increase of over 75 EH/s between January and December 2024
• Position: Ranked number 1 globally ahead of AntPool (146 EH/s, ~18%) and ViaBTC (120 EH/s, ~13%)

This dominance places Foundry in a unique position where the pool mines approximately one-third of all Bitcoin blocks. For example, during recent periods, Foundry and AntPool collectively mined nearly 60% of blocks in 24 hours, raising legitimate questions about mining centralization.

Geographic Distribution

A notable characteristic of Foundry is its strong concentration in North America, particularly the United States. According to data published by Foundry itself, Texas represents a significant portion of the pool's hashrate, reflecting the general concentration of the American mining industry in that state.

The United States as a whole represents over 40% of Bitcoin's global network hashrate, and Foundry USA Pool is the main contributor to this dominant American presence. This geographic concentration contrasts with China's historical dominance in the mining sector, marking a significant geopolitical shift in the Bitcoin ecosystem.

Institutional Clients

Foundry has successfully attracted numerous institutional miners and publicly traded companies, including:

• Cipher Mining
• Bitfarms
• Hut 8 Mining (with over 14,400 machines and 0.81 EH/s deployed)
• MARA Holdings (via MARA Pool, which works in collaboration with Foundry)

This institutional clientele demonstrates the confidence professional industry players have in Foundry's infrastructure, regulatory compliance, and reliability.

Recent Innovations and Developments

Merge Mining with Rootstock

A major recent development for Foundry is the adoption of merge mining with Rootstock (RSK), the leading EVM-compatible smart contract platform on Bitcoin. This strategic decision means that:

• Over 740 EH/s now secures Rootstock, approximately 80% of Bitcoin's total mining power
• Foundry miners earn 79% of all Rootstock transaction fees paid in rBTC, creating an additional revenue stream
• This approach requires no additional energy consumption or hardware

Merge mining with Rootstock represents a smart strategy to diversify miners' income in a post-halving context where Bitcoin block rewards steadily decrease.

Goodwill Gesture: Fee Refund

In December 2024, Foundry demonstrated its integrity by refunding accidentally overpaid transaction fees. A user had mistakenly paid 8.18 BTC (approximately $777,000) in transaction fees on block 875475 - an amount 91,127 times higher than necessary. Foundry quickly identified the error, contacted the sender, and refunded the excess.

This gesture reinforces Foundry's reputation for transparency and ethics, essential values in a sector where trust is paramount.

Centralization Issues

The Hashrate Concentration Debate

Foundry's dominance inevitably raises concerns about Bitcoin network centralization. With over 36% of total hashrate, Foundry controls a significant portion of the network's computing power. Combined with AntPool (approximately 18%), the two pools collectively control over 54% of hashrate, raising several questions:

• 51% Attack Risk: Although theoretical, a pool controlling over 50% could theoretically manipulate the network
• Geopolitical Centralization: Mining concentration between the United States (via Foundry) and China (via AntPool) creates a potentially problematic geopolitical dynamic
• Regulatory Control: Strong US concentration exposes the network to potential American regulatory interventions

Important Nuances

It's crucial to nuance these concerns:

• Pools don't directly control hashrate: Individual miners contribute to the pool but can easily switch pools if they wish
• Economic Incentives: An attack on the network would be self-destructive, destroying Bitcoin's value and therefore the pool's revenue
• Hashrate Mobility: Unlike Bitcoin's early years, modern miners can quickly migrate between pools, reducing long-term control risk
• Geographic Decentralization: Even though Foundry is dominant, hashrate comes from multiple operations located in different US states

As Bob Burnett, founder of Barefoot Mining, emphasized, centralization in pools is concerning but doesn't represent the same risk as centralization at the individual miner level. A pool cannot force miners to participate in malicious activities.

Industry Responses

Facing these concerns, several positive developments are emerging:

• Pool Diversification: New pools like MARA Pool are gaining market share (currently 4.35%)
• Decentralized Protocols: Initiatives like Stratum V2 aim to give individual miners more control over transaction selection
• Community Awareness: Active discussions about centralization encourage miners to diversify their pool choices

Advantages and Disadvantages for Miners

Advantages

• Stable and predictable income: FPPS system eliminates variance for regular earnings
• Professional infrastructure: Institutional-level security, regulatory compliance
• Advanced tools: Mobile app, OptiFleet, FoundryX marketplace
• Transparency: Regular publication of hashrate and performance data
• Customer support: Ticketing system, comprehensive FAQ, responsive support team
• Additional revenue: Merge mining with Rootstock for extra earnings
• Established reputation: Proven track record since 2020, backed by Digital Currency Group

Disadvantages

• Contribution to centralization: Joining the dominant pool accentuates hashrate concentration problems
• Potentially higher fees: Although not publicly detailed, premium services may involve higher fees than some competitors
• KYC requirements: Some miners preferring anonymity may be deterred by identity verification processes
• Institutional orientation: Although Foundry welcomes miners of all sizes, the institutional focus may seem less accessible to small operators
• Geographic dependence: US concentration exposes to potential American regulatory risks

How to Join Foundry Pool

For miners interested in Foundry Pool, the membership process generally follows these steps:

1. Initial Contact: Visit the official website foundrydigital.com and click "Get in touch" to make contact
2. KYC Verification: Complete the Know Your Customer process required for regulatory compliance
3. Technical Configuration: Configure mining machines to connect to Foundry servers
4. Start Mining: Once approved and configured, begin contributing to the pool and receive regular payments

Foundry currently prioritizes institutional and medium-to-large-sized operations, although the pool is open to miners of all sizes as part of its decentralization mission.

Comparison with Competitors

AntPool

AntPool, the second-largest pool with approximately 18% of hashrate, is based in Beijing and owned by Bitmain, the largest ASIC manufacturer. Unlike Foundry, which emphasizes American compliance, AntPool offers a more international approach with fewer strict regulatory requirements. Both pools use similar payment systems (FPPS/PPS+), but Foundry distinguishes itself through its institutional orientation and increased transparency.

ViaBTC and F2Pool

ViaBTC (13% of hashrate) and F2Pool (approximately 9%) are other major players. These pools generally offer slightly lower fees and less strict membership requirements than Foundry, but without the same institutional infrastructure or level of professional services. They may be more attractive to individual miners or small operations seeking less bureaucracy.

Decentralized Pools

Alternatives like Braiins Pool (formerly Slush Pool) and Ocean Mining prioritize decentralization and give individual miners more control over transaction selection. Although these pools have smaller market shares, they represent a philosophically aligned option with Bitcoin's decentralized spirit for miners who value these principles over maximum income stability.

Ocean Mining: A Bitcoin Pool Focused on Decentralization

Ocean is a Bitcoin mining pool designed to reduce block construction centralization by separating hash rate coordination from block building.

Bitcoin BuilderNakamoto Builder

Future Perspectives

Post-Halving Challenges

The 2024 Bitcoin halving reduced block rewards from 6.25 BTC to 3.125 BTC, intensifying competition in the mining sector. In this context, Foundry's strategy of diversifying revenue through merge mining with Rootstock and other initiatives becomes crucial. Pools capable of offering multiple revenue streams and maximum efficiency will have a significant competitive advantage.

Industry Consolidation

Current trends suggest continued industry consolidation, with the strongest and most capitalized miners increasing their market share. Foundry, with its institutional backing from Digital Currency Group and robust infrastructure, is well-positioned to maintain or even increase its dominance. However, this consolidation could also catalyze decentralization movements if concerns about hashrate concentration intensify.

Regulatory Evolution

Regulatory developments in the United States and globally will have a major impact on Foundry's future. Foundry's proactive approach to compliance (KYC, SOC) could become a competitive advantage if regulations become stricter. Conversely, overly restrictive regulation could push part of the hashrate toward more permissive jurisdictions.

Emerging Technologies

Adoption of protocols like Stratum V2, which gives individual miners more control over transaction selection, could modify mining pool dynamics. If Foundry adopts these technologies, it could mitigate some centralization concerns while maintaining its dominant position.

DMND : A Stratum V2 Mining Pool for Decentralization

DMND is a Bitcoin mining pool built on Stratum V2, designed to give miners more security, and rewards through a decentralized mining model.

Bitcoin BuilderNakamoto Builder

Conclusion

Foundry USA Pool today represents the world's most powerful Bitcoin mining pool, controlling over 36% of the network's total hashrate. This dominant position results from a combination of factors: institutional-grade professional infrastructure, stable FPPS payment system, advanced miner tools, and rigorous regulatory compliance.

For miners, Foundry offers undeniable advantages in terms of income stability, security, and professional services. The pool's impressive institutional clientele demonstrates the confidence major industry players have in its services.

However, Foundry's dominance also raises legitimate questions about Bitcoin mining centralization. Although risks are mitigated by the nature of pools (where individual miners retain their autonomy), hashrate concentration among a few major players remains a concern for the Bitcoin network's long-term resilience.

The future will likely see Foundry maintain its leadership position while navigating the challenges of decentralization, regulatory evolution, and increased post-halving competition. Miners will need to balance the practical advantages of joining the dominant pool with their convictions about decentralization and power distribution in the Bitcoin network.

Ultimately, Foundry Pool embodies the fundamental tension of modern Bitcoin: between efficiency and professionalization on one hand, and ideals of decentralization and censorship resistance on the other. How this tension resolves will largely determine the future of Bitcoin mining and, by extension, the very nature of the Bitcoin network itself.

Article written for bitcoin-builder.com
Sources: Based on public data from mempool.space, Hashrate Index, and official Foundry Digital publications (December 2024)