Contents
Network Overview
This week, the Bitcoin network experienced a contraction, with the hashrate falling by 13.14%. This is likely the result of the low Bitcoin mining profitability of the last few months, forcing some miners to shut down. The difficulty has also started correcting, with a fall of 5.12% this week. Despite these network changes, Bitcoin’s price recovered, following the 0.5% interest cut announced by the Federal Reserve. The price was up by +7.57% on Thursday, reaching $61,684, and continues rising today.
Miners’ daily revenue was falling over the last week, but seems to be starting a sharp recovery now. Nevertheless, the Thursday value was still down by -12.23% with respect to last week. Transaction fees are also on the rise, which will also positively affect miners’ revenue. The mempool size stayed relatively stable with a small reduction of -7.87%, dropping to 101.192 MB and indicating a partial clearing of backlogged transactions.
Meanwhile the daily Estimated transaction value has experienced a huge increase of 50.16%. This could lead to higher mempool sizes and transaction fees next week. All in all, next week could be a good one for Bitcoin miners, if these trends are maintained and no large downturn occurs.
Bhutan Surpasses El Salvador in Bitcoin Holdings, Becoming a Major Global Player in Crypto Mining
Bhutan has emerged as a significant player in the Bitcoin world, with on-chain data revealing that the Himalayan kingdom holds 13,029 BTC, valued at approximately $755 million. These holdings make Bhutan the fourth largest government Bitcoin holder, trailing only behind the United States, China, and the UK. Unlike some countries, Bhutan’s Bitcoin stash is not related to asset seizures, but rather the result of its state-owned investment arm, Druk Holdings and Investments (DHI), mining the cryptocurrency.
Bhutan’s Bitcoin mining activities, which began as early as April 2019, are powered by the country’s abundant hydroelectric resources, making its operations eco-friendly. Although El Salvador’s Bitcoin strategy is better known, Bhutan holds significantly more Bitcoin than El Salvador, which holds around 5,875 BTC.
While El Salvador started purchasing Bitcoin in 2021 at much higher prices, Bhutan quietly built up its holdings through mining. Although Bhutan’s BTC represents about 25% of its projected 2024 GDP, they have plans to continue expanding their mining operation. Thanks to their partnership with Bitdeer Technologies, Bhutan plans to achieve 600 megawatts of mining capacity by mid-2025.
Source: Cointelegraph.com
Source: Cryptoslate.com
Early Bitcoin Miner Wallets Move Funds After 15 Years
Five Bitcoin wallets, which have remained dormant since receiving block rewards in the early days of Bitcoin’s launch in 2009, have recently begun moving their funds. These wallets, each holding 50 BTC, earned as mining rewards shortly after Bitcoin’s genesis block, have not seen any activity for over 15 years. The movement of these 250 BTC, now valued at approximately $15.9 million, has sparked speculation within the crypto community regarding the identity of the wallet owners.
Some users have humorously suggested the possibility of someone finding an old hard drive, while others wonder if the coins could belong to the mysterious creator of Bitcoin, Satoshi Nakamoto, or early adopter Hal Finney. Given that these wallets mined Bitcoin mere weeks after the blockchain went live in January 2009, the funds likely belong to individuals involved in the very beginning of Bitcoin’s development.
Source: Cointelegraph.com
Bitcoin Miners Rely Heavily on Block Subsidies as Fees Decline
Bitcoin miners are increasingly reliant on block subsidies for revenue, with transaction fees contributing only a minor portion of their earnings. On September 13, of the $25.35 million in daily miner revenue, just $398,860 came from transaction fees, accounting for a mere 1.6%. This marks a significant shift from previous periods when fees made up over 40% of miner income, as the popularity of innovations like Ordinals and Runes, which once spurred on-chain activity, has diminished.
The recent Bitcoin halving, which reduced the block reward to 3.125 BTC, has placed additional pressure on miners by further reducing their primary income source. As transaction fees dwindle, concerns are growing about the long-term sustainability of Bitcoin’s security model. With block subsidies set to halve approximately every four years, some argue for changes like larger block sizes or Layer 2 solutions to increase transaction throughput and help secure the network.
Source: Theblock.co
Hut 8 and Bitmain Partner to Launch Advanced Liquid-Cooled Bitcoin Miner
Hut 8 has expanded its partnership with Bitmain to introduce the Antminer U3S21EXPH, an advanced ASIC miner featuring direct liquid-to-chip cooling technology. Scheduled for deployment in Q2 2025, this new model represents a significant leap in mining hardware, boasting an impressive hashrate of 860 TH/s—over three times the power of current top models. The U3S21EXPH utilizes a rack-mounted U form factor, allowing high-density deployments of up to 180 kilowatts per rack, optimized for both performance and energy efficiency.
This collaboration between Hut 8 and Bitmain goes beyond mere procurement, with Hut 8 contributing to both the technical and commercial aspects of the miner’s development. The partnership also includes a flexible hosting agreement, allowing Hut 8 to purchase some or all of the hosted machines within six months of activation.
Source: Crypto.news
Source: Cryptoslate.com
Bitcoin Mining Shutdown in Norway Triggers 20% Spike in Electricity Bills
The closure of a Bitcoin mining facility in the Norwegian town of Hadsel has caused a 20% increase in electricity bills for residents. The mining operation, run by Kryptovault, had been contributing approximately 20% of the revenue for the local power company, Noranett. Following noise complaints from locals, the municipality declined to renew the mine’s permit, forcing it to shut down. As a result, Noranett raised electricity rates to offset the revenue loss, leaving households with up to $300 more in annual energy costs.
While many residents were initially relieved to see the noisy mining operation closed, the price hikes have caused some to question the decision. With growing calls for restrictions on energy-intensive mining operations in Norway, further closures could exacerbate price increases for residents, potentially pushing mining businesses to relocate abroad.
Source: Cointelegraph.com
Source: Bitcoinmagazine.com
Bitcoin Mining Thrives in Ukraine Despite War Impacting Power Grid
Despite the ongoing conflict with Russia, Bitcoin mining continues to flourish in Ukraine. A recent study by OSINT agency Molfar revealed that miners in Ukraine consumed up to 616 MW of electricity per hour, equivalent to or surpassing the consumption of large industrial enterprises. In March 2024, miners accounted for 6.7% of the country’s total electricity consumption, a figure that is notable given Ukraine’s current power deficit of 9 GW.
Although mining contributes to the electricity burden, it also offers potential economic benefits. If Ukraine can improve power generation and establish clearer regulations, mining may become a valuable post-war industry. Analysts suggest that alternative energy sources, such as solar or wind power, could mitigate the strain on the grid, making mining more sustainable. While the country faces challenges like power outages and underdeveloped legislation, the low cost of electricity and growing interest in cryptocurrencies position Ukraine as a potential global hub for crypto mining in the future.
Source: Crypto.news
Research Reveals Bitmain’s Influence Over Bitcoin Mining Pools
Recent research by pseudonymous analysts Mononaut and 0xB10C confirms long-held suspicions about Bitmain’s significant influence over Bitcoin mining operations. The follow-up study found that a large number of mining pools, which are supposed to operate independently, are heavily reliant on Bitmain-led templates for transaction ordering and block creation. A detailed analysis across 37% of Bitcoin’s hashrate revealed that mining pools such as Poolin and BTC.com show a 99% and 98% similarity, respectively, to Bitmain’s AntPool. This could indicate that much of their mining work follows Bitmain’s operational guidance.
While miners technically have the freedom to switch pools or create independent block templates, the study shows that many continue to rely on Bitmain’s defaults out of convenience, not due to direct control. Even other pools, like Ultimus, Braiins, Binance, and Spider, display over 80% correlation to the Bitmain-led trio. While the researchers caution that this doesn’t necessarily mean Bitmain controls these miners, the high level of coordination raises concerns about centralization in Bitcoin mining.
Source: Protos.com
Bitcoin Mining CEOs Predict $250K Bitcoin Price by 2028 Halving
At the HC Wainwright Bitcoin Mining Panel on September 10, executives from leading mining companies such as Marathon Digital, Bitfarms, and CleanSpark discussed the future of Bitcoin mining and shared their predictions for Bitcoin’s price. Moderated by Anthony Scaramucci, the panelists addressed key industry challenges, including energy consumption and environmental concerns, while also providing a long-term outlook on Bitcoin’s value.
The CEOs were optimistic about the future, with predictions for Bitcoin’s price ranging from $100,000 to $250,000 by the next halving in 2028, if historical patterns hold. The discussion also focused on the role of Bitcoin miners in energy grid management, with Marathon Digital’s CEO, Fred Thiel, highlighting how mining operations can help balance supply and demand fluctuations, potentially reducing consumer energy costs. The panelists also emphasized the growing shift toward sustainable mining, with Bit Digital’s fleet being 85% carbon-free and other companies adopting energy-first approaches.
Source: Cryptoslate.com
