Network Overview

The Bitcoin network has continued its impressive growth this week, as the price nears the critical $100,000 milestone. This surge in market activity has driven further increases in the network’s hash rate and led to a positive difficulty adjustment. At the same time, the rapid price appreciation has significantly boosted miners’ daily revenue, which rose by 13.24% to $45.83 million, reflecting the profitable environment for mining operations.

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However, some metrics indicate a slight cooling compared to last week, likely due to the diminishing impact of the recent US election results. Network activity has eased slightly, as evidenced by a reduction in estimated transaction value and a clearing mempool. High transaction fees, which have remained above $4 since last week, may have also contributed to this decline in activity, discouraging smaller or lower-priority transactions. Despite this, the network remains robust, supported by strong miner participation and growing market optimism.

BIT Mining Pays $10M to Settle Bribery Allegations in Japan Resort Scandal

BIT Mining, a prominent Bitcoin mining company, has agreed to pay $10 million in penalties to settle allegations of bribery involving Japanese government officials. The company admitted to conspiring with its former CEO, Zhengming Pan, to pay $1.9 million in bribes between 2017 and 2019 in an attempt to secure a bid for an integrated resort license in Japan. These payments, disguised as legitimate business expenses, included cash, gifts, and entertainment provided through intermediaries. Despite their efforts, BIT Mining ultimately failed to secure the resort license.

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The settlement includes a three-year Deferred Prosecution Agreement (DPA) with the U.S. Justice Department and the SEC. Initially facing a $54 million criminal penalty, the fine was reduced to $10 million due to the company’s financial struggles. Former CEO Pan has been indicted on multiple charges, including conspiracy and violations of the Foreign Corrupt Practices Act (FCPA). U.S. Attorney Philip R. Sellinger noted the role of BIT Mining’s leadership in orchestrating and concealing the illicit activities.

Source: CryptoPotato

Bitcoin Hashrate Hits Historic High Amid $99K Price Milestone

Bitcoin’s network hashrate has reached an unprecedented high of 776 EH/s as of November 21, coinciding with a surge in Bitcoin’s price to a record $99,121. This recent rise in hashrate is attributed to mining equipment upgrades that began in July, following a post-halving dip in April. As miners ramp up operations to capitalize on favourable market conditions, the hashprice has climbed from $42.86 to $63.07 per PH/s in November, reflecting improved mining profitability.

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This heightened activity aligns with bullish developments in the broader market, including a significant $6.8 billion inflow into Bitcoin ETFs in the U.S. and the cryptocurrency’s resilience as it edges closer to the $100,000 mark. Enhanced mining infrastructure and growing adoption reinforce Bitcoin’s position as the most secure and decentralized digital asset. In the past month, miners have generated $778.13 million in revenue, primarily from block subsidies.

The surge in hashrate has also impacted network efficiency, reducing block intervals to just over nine minutes. However, this growth comes with challenges, as an estimated 10.9% increase in mining difficulty looms, which will reduce margins for miners.

Source: U.Today

Source: Bitcoin.com

Miners Turn to Nuclear Power in a New Era of Crypto-Energy Partnerships

Bitcoin mining is forging a new path with nuclear energy as miners and energy producers establish mutually beneficial partnerships. Recent acquisitions, like Talen Energy’s purchase of TeraWulf’s Nautilus Cryptomine, exemplify this trend. The Nautilus operation, powered by Talen’s Susquehanna nuclear facility, demonstrates how miners can benefit from consistent and affordable energy while providing nuclear plants with a steady revenue stream. This symbiotic synergy is gaining attention on Wall Street as Bitcoin’s record highs and declining energy costs make mining increasingly profitable.

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In Washington, nuclear energy is receiving overwhelming bipartisan support, highlighted by legislation like the ADVANCE Act, which paves the way for the deployment of 200 GW of new nuclear capacity by 2050. This political momentum aligns with the growing acceptance of Bitcoin, creating opportunities for miners and energy producers alike.

Source: CoinDesk

Compass Mining Expands U.S. Operations with New Iowa Facility

Compass Mining has unveiled plans to establish a 30 MW Bitcoin mining facility in Iowa, beginning with an initial 8 MW of capacity set to go live by January 2025. This new five-acre site represents a shift in the company’s strategy toward self-operated infrastructure, which reduces reliance on third-party operators and mitigating counterparty risks. Customers purchasing mining equipment through Compass will have the option to deploy their hardware at the Iowa facility in order to improve their operational control.

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This expansion adds to Compass Mining’s growing footprint across the U.S., which includes nearly 50 MW of energized capacity in states like Indiana, Ohio, Kentucky, and Texas. With plans to add another 20 MW across its facilities by early 2025, Compass Mining is positioning itself to meet the increasing demand for Bitcoin mining infrastructure.

Source: Bitcoin.com

Russia to Ban Crypto Mining in Occupied Ukraine Territories

Russian authorities have announced plans to prohibit crypto mining in territories of Ukraine currently under occupation, including Donetsk, Lugansk, Zaporizhia, and Kherson, as well as six regions in Russia’s North Caucasus. The move comes as Deputy Prime Minister Alexander Novak commented on the challenges posed by energy shortages during the autumn-winter months, a concern exacerbated by the ongoing war, which has now reached its 1,000th day. While Russia legalized crypto mining on November 1, this proposed ban marks a rapid shift in policy within just 18 days.

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The partial ban will also extend to regions like Irkutsk and Zabaikalsky Krai, where mining activities will be restricted during peak demand periods until 2031. These measures reflect the energy strains faced by the country as it balances war-driven resource demands and domestic energy requirements.

Source: Protos

Global Climate Tax on Crypto Mining Gains Momentum

A proposal to tax cryptocurrency mining as part of a broader effort to combat climate change gained significant attention during this month’s United Nations climate summit in Baku, Azerbaijan. The plan, outlined by the Global Solidarity Levies Task Force, suggests a levy of $0.045 per kilowatt-hour (kWh) of electricity used by crypto miners, potentially raising $5.2 billion annually. The goal is twofold: to reduce emissions by incentivizing miners to adopt cleaner energy sources and to fund climate initiatives in less affluent nations. The proposed tax could rise to $0.085 per kWh to account for the broader environmental impacts of fossil fuel use in mining operations.

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While the details of how the tax would be implemented remain unclear, the task force plans to present concrete proposals at next year’s IMF and World Bank spring meetings. Examples of similar initiatives include Kazakhstan’s $7 million tax revenue from crypto miners in 2022 and the Biden administration’s proposed 30% tax on U.S. mining electricity consumption. However, political support may vary, particularly as President-elect Donald Trump is unlikely to endorse such measures.

Source: The Verge

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