Contents
About this Newsletter
Welcome to this first edition of our weekly Bitcoin Mining recap newsletter! This is a weekly journal where we digest for you the most important events in the Bitcoin mining space, together with some network statistics and other relevant topics. We will be publishing it every Friday, giving you insights into the latest trends, news, and developments affecting miners worldwide. Whether you’re an industry veteran or just starting your journey in Bitcoin mining, our goal is to keep you informed and up-to-date with everything you need to know. Stay tuned, and let’s dive into this week’s highlights!
Network Overview
The Bitcoin network continues to show resilience despite recent market volatility. Over the past week, network hashrate increased slightly, reaching a new all time high. Meanwhile, mining continued to rise, reflecting intensified competition among miners. These factors, combined with the downtrend in Bitcoin’s price, have diminished mining profitability over the last few months. This is well reflected in the daily miner revenue indicator, which experienced a 9.85% decrease compared to a week ago. Despite all of this, the increase in hashrate and mining difficulty suggests that miners are still confident in the long-term prospects of the network.
Find below a detailed breakdown of key figures:
Note: This newsletter was written on Friday, but published on Sunday due to the review process. The data shown below correspond to last Friday.
Ionic Digital Faces Shareholder Revolt
Ionic Digital, a Bitcoin mining firm that emerged from Celsius’ bankruptcy, is currently grappling with significant pressure from its shareholders. A group of disgruntled investors is mobilizing to force a board meeting to address their mounting concerns over mismanagement, conflicts of interest, and the company’s stalled IPO plans.
Shareholders argue that the current leadership is failing to prioritize their interests, instead engaging in actions that could be detrimental to the value and future of the company. Accusations of self-dealing and corporate mismanagement are at the forefront of this shareholder revolt, as the 86,000 investors—many of whom suffered substantial losses during Celsius’ collapse—demand accountability and a new direction.
Source: Decrypt.co
Wall Street Bitcoin Miners Report August Dip
Several major Bitcoin miners, including Argo Blockchain, HIVE Digital Technologies, and Marathon Digital, reported notable declines in Bitcoin production in August, highlighting the increase in competition in the industry. Argo Blockchain’s output fell sharply from 48 BTC in July to just 38 BTC in August, marking a significant 20.8% decrease. Others had smaller decreases, with only one company managing to increase their Bitcoin production in August.
The reduction in Bitcoin production across these companies can be largely attributed to increasing network difficulty, which reached record highs, and escalating power costs, particularly during the summer months when energy prices typically surge. The consistent rise in difficulty levels means miners must invest in more efficient equipment and infrastructure to maintain their output, while higher energy costs continue to squeeze margins.
Source: Financemagnates
Solo Miner Hits Jackpot with $200,000 Block Reward
In a rare twist, a solo Bitcoin miner hit the jackpot by solving block number 858,978, earning nearly $200,000 in rewards. Despite having just 0.012% of the network’s average hashrate, this miner, part of the Solo CK pool, managed to outshine industrial-scale mining operations. This success highlights the decentralized nature of the Bitcoin network. While large farms dominate in the number of blocks solved, some individual miners still remain and are able to occasionally achieve such incredible wins.
Source: Cointelegraph
Mining Profitability Hits Record Lows
A recent report from JPMorgan highlighted that Bitcoin mining profitability has reached record lows, with daily block reward revenue averaging just $43,600 per exahash in August. This represents a stark decline from the peak of $342,000 in November 2021. The drop in profitability is driven by increased competition, rising operational costs, and declining Bitcoin prices, pushing miners to seek alternative revenue streams such as high-performance computing (HPC) and artificial intelligence. More on this later.
Source: Coindesk
Illegal Mining Operations Discovered in Russia and Paraguay
Authorities in Russia and Paraguay have intensified efforts against illegal Bitcoin mining operations that have been disrupting local power infrastructures. In Russia’s Irkutsk region, officials confiscated 238 mining rigs from residents who were exploiting subsidized electricity intended for household use. Meanwhile, in Paraguay, an illegal mining operation was discovered hidden within an evangelical church. The setup was siphoning electricity through an unauthorized connection, leading to estimated damages of nearly $13,000. The crackdowns reflect broader efforts by governments to control unauthorized crypto mining.
Sources: Bitcoin.com
Thenewscrypto
Bitcoin Hashrate Reaches New All-Time High
The Bitcoin network’s hashrate hit an all-time high of 652 EH/s on September 3rd, underscoring the strength and security of the network. Despite declining profitability, miners remain committed to maintaining and expanding their operations, further solidifying Bitcoin’s long-term network security.
Source: Cointelegraph
Miners Explore AI and High-Performance Computing
As traditional Bitcoin mining revenues face growing pressure from rising costs and increased network difficulty, many mining companies are turning to alternative revenue streams, such as artificial intelligence (AI) and high-performance computing (HPC). Leading miners like TeraWulf, Iris Energy, and Hive Digital Technologies are repurposing their existing mining infrastructure to support AI workloads and HPC tasks, which can command significantly higher margins compared to Bitcoin mining.
This shift allows mining companies to leverage their extensive data centers, powerful computing equipment, and cooling systems to process complex AI algorithms and manage large-scale data analytics. VanEck, a global investment firm, estimates that this strategic pivot could unlock up to $38 billion in value for miners by 2027, presenting a crucial opportunity to offset declining mining revenues. As the demand for AI and HPC continues to surge, miners are well-positioned to diversify their operations, reduce their dependency on Bitcoin’s volatile market, and capitalize on new technological frontiers.
Source: Cointelegraph
Bitcoin Mining Reduces Methane Emissions
Recent research published in the Journal of Cleaner Production highlights how Bitcoin mining can play a significant role in reducing methane emissions, one of the most effective greenhouse gases. The study details how miners can utilize Landfill Gas-to-Energy (LFGTE) systems to convert methane from landfills into usable energy, thereby sequestering the gas and lowering its environmental impact. This approach provides miners with an alternative revenue stream while offering a scalable solution to methane mitigation without the need for government incentives.
Source: Cointelegraph
