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Network Overview
This week, the Bitcoin network experienced strong growth, with the hashrate rising by an impressive 9.98% to 628 EH/s. It seems like the positive market conditions are bringing some more miners online. Mining difficulty remains unchanged at 88.404 T, as there has been no adjustment since last week. Either way, as the hashrate has been increasing, once the difficulty adjustment takes place it is probably going to be an increase.
Bitcoin’s price continued to climb, rising by 1.77% to $64,253. However, prices started crashing yesterday due to the general market fear following Iran’s attack on Israel and Israel’s retaliation. Miner daily revenues edged up slightly by 0.92% to $29.71 million, benefiting from the price increase and stable difficulty.
Meanwhile, the mempool size expanded by 12.98%, with more pending transactions building up, and the estimated daily transaction value surged by 29.24%, pointing to increased usage of the Bitcoin network. Overall, the network is showing signs of recovery, though miner profitability remains stable at low levels for now.
Relm Insurance Introduces Bitcoin-Denominated Policy for Miners
Relm Insurance, based in Bermuda, has launched a first-of-its-kind insurance policy denominated in Bitcoin (BTC), offering financial protection specifically for Bitcoin miners. The policy covers operational interruptions caused by physical damage to mining equipment or facilities, allowing miners to receive indemnification in the very cryptocurrency they mine. This innovative policy aims to address eventualities such as power outages, wear and tear of machines, and even broader pressures such as those following a halving event.
Licensed under Bermuda’s Class Innovative Insurer General Business (IIGB) regulation, Relm Insurance is now able to underwrite and settle claims in Bitcoin. This policy provides much-needed security for mining operations, which often face business interruptions that can affect their profitability. By offering coverage in Bitcoin, Relm is providing miners with a new level of financial flexibility tailored to their industry needs.
Source: CoinDesk
TeraWulf Sells $92 Million Stake in Nautilus Cryptomine for AI and Mining Expansion
Bitcoin mining firm TeraWulf has sold its stake in the 200-megawatt Nautilus Cryptomine facility to its partner, Talen Energy, for $92 million. This deal, comprising $85 million in cash and mining equipment valued at $7 million, represents a 3.4x return on TeraWulf’s original investment. The company plans to reinvest the funds into expanding its AI and high-performance computing infrastructure, with the construction of a new 20-megawatt facility at its Lake Mariner site in New York. Additionally, TeraWulf will upgrade its Bitcoin mining fleet through a miner purchase agreement.
TeraWulf’s CEO emphasized the strategic importance of the sale, agreeing with the firm’s commitment to improving operational efficiency, cost management, and shareholder value. By focusing on infrastructure improvements, TeraWulf aims to increase its operating hashrate to 13 exahashes per second by March 2025. Despite the sale, the company remains dedicated to its goal of utilizing zero-carbon energy to power its mining operations.
Source: Cointelegraph
BitRiver Predicts Russia to Surpass U.S. in Bitcoin Mining by 2027
Sanctioned crypto mining firm BitRiver forecasts that Russia could outpace the U.S. in Bitcoin mining by 2027, driven by favorable regulations. CEO Igor Runets pointed at recent Russian legislation, including President Putin’s approval of crypto mining laws that benefit low-energy operations, as key factors contributing to the nation’s growing dominance in the industry.
According to BitRiver, Russia’s crypto mining capacity now consumes over 2.5 GW of energy, narrowing the gap with the U.S., which consumes over 7 GW. Runets expects this trend to accelerate as Russian oil and gas companies collaborate with crypto miners, leveraging flare gas for mining operations.
Source: Crypto News
NewRays Sues Over Noise Ordinances
Bitcoin mining company NewRays has filed a lawsuit against a judge and a prosecutor, alleging that they selectively enforced noise laws specifically targeting the firm. The lawsuit claims that despite other businesses generating more noise, local ordinances were introduced to disproportionately affect NewRays, which began its mining operations in Arkansas before the laws were enacted.
In the complaint, NewRays argues that the noise ordinance, labelled Ordinance 23-20, was intended to apply only to them, causing harm to their business. This legal action follows complaints from neighbours about the noise generated by the mining operations, which the firm attempted to mitigate by installing sound barriers.
Source: Decrypt
Russia to Tighten Energy Rules for Crypto Miners
Russia’s Ministry of Energy is introducing new regulations aimed at controlling the rapid growth of cryptocurrency mining, which has been linked to regional power shortages. The proposal would create a new energy consumer category, allowing authorities to manage power distribution and cut off electricity to miners during peak demand periods. This move follows Russia’s recent legalization of cryptocurrency mining.
The Ministry’s Deputy Minister, Evgeny Grabchak, suggests that these rules will first be applied in regions like Irkutsk, where illegal mining has been prevalent. The government also plans to allow individual mining without registration, but larger operations will need to sign up with authorities. The new rules are part of a broader effort by the Russian government to legitimize mining while preventing further energy crises.
Source: CCN
Auradine CEO Urges Bitcoin Decentralization for National Security
Rajiv Khemani, co-founder and CEO of mining chip manufacturer Auradine, emphasized that decentralizing Bitcoin’s entire infrastructure is critical for national security. He warned that third-party firmware could be used to disrupt mining operations or even facilitate a 51% attack on the network. Malicious code within firmware could potentially shut down mining activities in specific regions, weakening Bitcoin’s security and making it vulnerable to attacks. Khemani also pointed out the supply chain risks posed by over-reliance on foreign-made mining hardware, which could lead to export restrictions or other vulnerabilities.
Khemani called for the U.S. to support domestic manufacturing of mining hardware, especially ASIC chips, to reduce dependence on foreign producers and protect the integrity of the Bitcoin network. He also addressed concerns about hashrate centralization, noting that no single country should control the majority of the global mining power or hardware supply. This aligns with growing concerns about the concentration of hashrate among a few mining pools, particularly those based in China.
Source: Cointelegraph