Global Crypto Mining News ( Dec 27 to Jan 2）
Hashrate Index: Data from North American listed mining companies in November shows that the profit window from China’s mining crackdown has closed: average BTC earnings per T were 0.00000904 BTC/TH in July, 0.00000882 BTC/TH in August, 0.00000693 BTC/TH in September, 0.00000643 BTC/TH in October and 0.00000574 BTC/TH in November. 0.00000643 BTC/TH in September, 0.00000693 BTC/TH in October, 0.00000574 BTC/TH in November and 0.00000574 BTC/TH in November.
Marathon Digital Holdings has ordered new machines worth $879.06 million.The order was announced last week, but its purchase price has been disclosed on Tuesday. The order includes 78,000 units of Bitmain’s Antminer S-19 XP mining machines, to be delivered through 2022.
The dispatch is divided into six batches, with 13,000 units to be delivered each month from July to December 2022.
Marathon will pay Bitmain in batches as well. “35% of the total amount within two days of execution of the purchase contract, 35% of each single shipment price at least six months prior to each such shipment, and the remaining 30% of each single shipment price at least one month prior to each such shipment,” said Marathon.
Nasdaq-listed Angao Group Holdings Inc. (AGMH.US) announced that it has delivered 1,335 cryptocurrency miners to Midland International Education Group (METx.US).. AGMH.US claims to be one of the few companies engaged in the production of crypto chips and complete crypto miners.
Malaysian authorities have seized 1,720 Bitcoin mining machines worth RM3.5 million ($836,920) as the result of a raid, according to Malay-language daily newspaper Sinar Harian. Previous videos of Malaysian police crushing and destroying mining machines went viral on the internet, on the other hand there is a large amount of electricity theft mining in Malaysia.
The Gaotang County People’s Court in Shandong province recently ruled in its first instance that a service contract dispute caused by the mining of Chia was invalid and rejected the plaintiff’s claim for the refund of service fees. It is reported that the case is the city’s first case of finding the network “mining” contract invalid.
Expecting energy needs across the country to increase with low temperatures in the coming months, authorities in Iran have again told licensed miners to suspend their activities in the face of electricity shortages during the cold winter months. Tavanir, the Iran Power Generation, Distribution and Transmission Company, has recently instructed authorized cryptocurrency mining centers to unplug their power-hungry hardware.
Iran’s Ministry of Energy has been trying to reduce the use of liquid fuels in power plants since last month, Tavanir’s spokesman Mostafa Rajabi Mashhadi said. Cutting power supply to licensed crypto farms is part of a list of actions that also include turning off lampposts in safer areas at night and strict supervision of consumption, the official detailed.
The utility believes these measures will help to prevent potential blackouts in winter when electricity is in higher demand. Mashhadi added that Iranian power plants have managed to save some fuel for the next few months but also emphasized that consumers should exert caution regarding the volume of their gas and electricity usage.
Glassnode data shows Ethereum Miner Revenue just reached a 1-month low of $2,657,771.42.
In the past two years, miner behavior has undergone a transformation. Newer, more powerful chips have enhanced operational efficiency, and the expansion of miners into North America has given many of them access to operating capital by exercising cheap debt and corporate equity. The typical miner in 2021 is more resilient than past generations.
What once was a reliable outflow of spending from miner wallets has shifted since 2019, and miners are now depositing more minted supply into their treasuries than before. The chart below shows the 90-day sum of Miner Netflow Volume (in USD) as a percentage of Market Cap, and the multi-year rise is evident.
If miners evolve into being HODLers, a group who are naturally incentivized to spend, then acquiring new Bitcoin into the future could become exceedingly difficult.
Brendler sees upside in all six mining companies covered in his research, as he expects better returns from such stocks than through bitcoin itself. However, MARA is his top pick. The stock has been one of the hardest hit, largely due to what he calls “misplaced concerns” about the SEC investigation in the U.S. Brendler has a buy recommendation on MARA’s stock and a 12-month price target of $65.
Other miners Brendler sees as Buy rated include Core Scientific, Riot Blockchain (RIOT), Stronghold Digital Mining (SDIG), Hut 8 Mining (HUT) and Argo Blockchain (ARGO).
GEM Mining, the bitcoin mining company headed by former South Carolina Gov. candidate John Warren, has increased its deployed fleet by over 4,000 machines and now houses 13,118 active mining rigs.
GEM Mining has produced over 560 BTC since February and with the new miners is now boosting about 1.25 EH/s of hash rate capacity. The company said it expects to add 19,000 more machines to its fleet during the next year as purchase agreements get fulfilled and orders are received.
In previous news, John Warren launched Gem Mining after raising over $200 million in institutional capital, a 92% carbon-neutral, institutional-grade bitcoin mining company based in Greenville, South Carolina.
The government of Kazakhstan is debating a plan to build a nuclear power plant that could help the country to strengthen its Bitcoin (BTC) and crypto mining sector in the longer term.
The Minister of Energy, Magzum Mirzagaliyev stated: “We have created a [projection] of the nation’s production and consumption of electricity until 2035. We clearly see the need to build a nuclear power plant in order to provide electricity to our population and our economy.”
Although the minister did not make direct mention of BTC and crypto mining, his colleagues have previously done so when speaking about expanding the grid in the wake of power disruptions linked to mining. The government sees this sector as a growth engine, but as the national grid is still 70% dependent on coal-powered stations, it has conceded that nuclear expansion may be the only way forward.
The energy minister warned that the proposed nuclear power plant “will be able to cover the country’s future electricity needs,” but added that construction will take builders up to 10 years to complete.
Regulated companies mining cryptocurrency in Iran will gain access to green energy, local media reported. The Ministry of Energy in Tehran has adopted new rules allowing plants generating electricity from renewable sources to supply coin minting enterprises that operate within the law.
“Legal miners can enter into agreements with renewable power plants at negotiable terms and rates,” Mohammad Khodadadi, who heads the Tavanir department responsible for the mining industry, told the ISNA news agency. He also emphasized that the energy ministry will play a role in establishing the exact tariffs.
Cipher Mining CEO Tyler Page has said 2021 remains a historical year for Bitcoin mining, and the industry should build on the gains made moving into 2022.
“2021 was a historic one in terms of capital coming into our sector. The overall market caps of the companies have grown quite a bit, and the total revenue paid to miners is tracking in the neighbourhood of $16 billion. With the pretty big profit margins projected in the space, lots of capital has flown in, and folks have ambitious plans, so 2022 is going to be a year of execution,” said Page.
On Dec 31, Bitcoin miner Bitfarms secured a $100 million credit facility with blockchain and cryptocurrency financial services provider Galaxy Digital Holdings. The facility is backed by the company’s bitcoin holdings. The Toronto-based miner has already drawn down $60 million at an interest rate of 10.75% per year with a six-month term and expects to draw more over the next few months, according to a statement.
“Our new $100 million BTC credit facility adds another component to our diversified financing strategy and contributes significant non-dilutive capital to fund our global growth initiatives, which include four farms with 298 Megawatts mining capacity under construction,” CFO Jeff Lucas said. Bitfarms intends to use the funds to reach a hashrate of 3 exahashes per second (EH/s) by March 31 and 8 EH/s by Dec. 31 of next year.