Contents
Network Overview
This week, the Bitcoin network continued to face challenging conditions. The network hashrate slightly decreased by -1.07% to 647 EH/s, following a sharp dip in mining activity towards the end of the week. Mining difficulty continued its growing trend surging by +9.17% to a new all-time high of 97.672 T, which will further tighten margins for miners.
Bitcoin’s price dropped by -2.18% to $57,345, adding pressure on miners, who nevertheless managed to increase their daily revenue by +2.86% to $28.45 million. This boost is likely attributed to a significant rise in transaction fees, which jumped by +20.59% to $0.855 per transaction. The increased transaction fees can be explained by heightened network activity, as seen in the mempool size swelling by +80.10% to 109.820 MB and the estimated transaction value rising by +7.07% to 87,206 BTC.
With mining difficulty at record highs and Bitcoin prices under pressure, miners must continue to innovate and adapt to maintain profitability in the evolving landscape.
Bitfarms and Riot Platforms Clash Over Board Changes
Tensions between two prominent mining firms, Bitfarms and Riot Platforms, escalated this week as Riot continues to push for changes in Bitfarms’ board composition. Riot, the largest shareholder in Bitfarms, has been vocal about its concerns over the company’s governance, particularly after recent leadership changes involving former Bitfarms co-founders. Riot is advocating for additional independent directors, arguing that these changes are necessary to better reflect shareholders’ interests.
In response, Bitfarms postponed its special shareholder meeting to November 6 to allow further review of Riot’s demands. Both companies have accused each other of pushing personal agendas, but the outcome of this proxy contest could significantly influence Bitfarms’ future strategy and governance. Riot has also continued to increase its stake in Bitfarms, now holding 18.9% of the company, underscoring its influence and determination to effect change.
Source: Cointelegraph.com
Japan’s Green Energy Mining Initiative
Japan’s largest grid operator, Tokyo Electric Power Grid (TEPCO), through its subsidiary Agile Energy X, is exploring innovative ways to utilize surplus green energy for Bitcoin mining. The initiative aims to monetize the nation’s excess renewable energy, which often goes to waste. Mining machines have been installed near solar farms in Gunma and Tochigi prefectures as part of this pilot project.
Agile Energy X projects that if Japan reaches its goal of 50% renewable energy by 2050, up to 240,000 gigawatt-hours could be unused. By dedicating just 10% of this surplus to Bitcoin mining, Japan could generate an estimated $2.5 billion annually. This approach not only provides a potential new revenue stream for renewable energy producers but also supports Bitcoin mining’s shift toward sustainability, with 56% of miners already using renewable energy sources.
Source: Beincrypto.com
Russia’s Energy Priorities and Mining Regulations
In Russia, the Ministry of Energy emphasized that the country will prioritize using its power resources for social development over Bitcoin mining. Although Russia’s recent regulatory changes have positioned it as a potential mining powerhouse, Energy Minister Sergei Tsivilev stated that surplus energy would only be provided to legally registered miners operating outside the “gray” zone.
While miners can still access surplus energy from specific power plants, they must comply with legal requirements, including tax obligations, to avoid operating in unregulated spaces.
Source: news.bitcoin.com
Three-Phase Power Systems: The Next Step in Mining Efficiency
The ongoing evolution of Bitcoin mining infrastructure continues, with a growing focus on power setup optimization as hardware efficiency gains plateau. Three-phase power systems, particularly the 480v configuration, are emerging as a preferred choice for large-scale mining operations. These systems offer higher power density, reduced energy losses, and significant savings on electrical infrastructure costs, making them ideal for scaling up mining capabilities.
As miners increasingly adopt three-phase power, this shift is expected to enhance the reliability and efficiency of mining farms. By integrating three-phase power, mining operations can support the higher energy demands of advanced ASICs, ultimately boosting profitability through improved operational uptime and reduced power costs.
Source: Bitcoinmagazine.com
Empty Block Mined at Height 860932
Foundry USA recently mined an empty block at height 860932, containing only the coinbase transaction and earning the miner 6.25150821 BTC. Empty blocks like this occur when miners, aiming to maintain speed and efficiency, validate a block without waiting for new transactions to fill it. This allows miners to continue earning rewards promptly, even if no transactions are ready.
Although empty blocks do not help clear transaction backlogs, they are a normal part of Bitcoin mining. Historically more common, the frequency of empty blocks has dropped to between 0.5% and 0.15% today, thanks to better mining software and faster protocols.
Source: Coingape.com
August Mining Updates: Rising Difficulty and Operational Pressures
August was a particularly tough month for Bitcoin miners, marked by a combination of rising network difficulty, declining Bitcoin prices, and intense summer heat, especially in mining hubs like Texas. According to Jefferies, the average daily revenue per exahash dropped by 11.8%, driven by a 4% decline in Bitcoin’s price and a 2.7% increase in network hashrate. Major mining companies, including Marathon Digital, CleanSpark, and Bitfarms, reported mixed results in their production updates, with many attributing performance fluctuations to higher operational costs and increased competition.
Despite these challenges, miners are focusing on boosting operational efficiency and strategic management of electricity costs to stay competitive. Marathon Digital reported an 88% uptime in August, up from 75% last year, and the ten largest miners tracked by Jefferies averaged 83% uptime. As for amount of Bitcoin mined, Marathon led the sector with 673 BTC mined, followed by CleanSpark with 478 BTC. Public mining companies contributed 19.9% of the total network in August.
With the next difficulty adjustment expected later this month, miners are refining their operations and adapting their strategies to navigate declining margins, preparing for ongoing challenges in the months ahead.
Source: Coindesk.com
Source: Decrypt.co
Source: Theblock.co
Miners Invest in New Hardware Amid Rising Costs
Bitcoin miners continue to invest in new, efficient hardware despite shrinking revenues and rising costs, showing confidence in the network’s future. A Glassnode report noted the hash rate remains near all-time highs, even as revenues decline. Miners face growing challenges with increased difficulty and reduced transaction fees, which push up operational costs.
To combat this, miners are upgrading to more efficient ASICs, which reduce energy consumption per coin mined. CEX.IO’s Illia Otychenko noted that hardware efficiency has more than doubled since 2018, helping miners manage costs in tough market conditions.
Some miners, like Marathon Digital, are also shifting strategies, retaining more mined Bitcoin in reserves rather than selling, betting on future price gains. However, this carries risks if market downturns force them to sell reserves.
Miners are also diversifying into areas like AI computing to bolster revenues. Strategic acquisitions, such as CleanSpark’s purchase of GRIID, show the industry’s adaptive approach to staying profitable amid increasing competition.
Source: Decrypt.co
Mining Pools Back Fractal Bitcoin Merge Mining
Top mining pools Antpool and f2Pool have announced support for merge mining with Fractal Bitcoin, a new sidechain launching its mainnet on Monday. This setup will allow Bitcoin miners to earn Fractal Bitcoin (FB) rewards alongside their usual Bitcoin mining.
Fractal Bitcoin uses a “Cadence Mining” mechanism, enabling Bitcoin miners to merge-mine Fractal Bitcoin blocks every third block. The sidechain also supports BRC-20 tokens and Ordinals, aiming to shift some transaction load off the main Bitcoin network. With 50% of Fractal Bitcoin’s supply allocated for mining, Antpool, f2Pool, and others like Spiderpool are leveraging this opportunity to diversify miner revenue and boost profitability while maintaining their core Bitcoin operations.
Source: Theminermag.com
