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Network Overview
This week, the Bitcoin network experienced a slight recovery, with the hashrate increasing by 1.60%, bringing it to 571 EH/s. This modest rise might reflect miners resuming operations as Bitcoin’s profitability improves. However, mining difficulty continued its downward correction, dropping by 4.61% to 88.404 T. This adjustment is likely in response to the lower hashrate over recent weeks.
Bitcoin’s price climbed further this week, rising by 2.36% to $63,138, and continues to go up today. This price increase, combined with a significant rise in transaction fees—up by 27.80% to $1.77—helped drive miner daily revenues higher. The total mempool size shrank by 16.12%, while the estimated daily transaction value also saw a notable decrease. This is usually a sign of reduced blockchain activity. Overall, while miner profitability is up, the dynamics of the network continue to adjust following the recent market downturn.
Minnesota Bitcoin Mining Plans Cancelled Over Noise and Energy Concerns
Plans for a Bitcoin mining facility in Windom, Minnesota, have been withdrawn by Revolve Labs due to concerns about potential noise pollution. The mining operation, which promised to generate $35,000 in monthly service fees for the town and stabilize energy rates for the next three years, faced strong opposition from residents worried about noise and the impact on property values. Despite efforts by Revolve to address these concerns, particularly regarding noise from cooling fans, local opposition remained firm.
While critics emphasize the environmental and noise pollution associated with mining operations, proponents argue that Bitcoin miners can contribute to energy stability by utilizing excess energy and balancing the grid, particularly in areas with stranded or surplus power. The situation in Windom reflects a growing tension between the economic benefits of hosting Bitcoin mining facilities and the quality-of-life concerns from residents, many of whom question whether the advantages outweigh the drawbacks.
Source: Theblock.co
Bitdeer Successfully Tests SEAL02 Mining Chip, Achieves Major Efficiency Milestone
Bitdeer Technologies Group announced the successful testing of its latest Bitcoin mining chip, the SEAL02, which promises great increases in mining efficiency. Developed in partnership with semiconductor giant TSMC, the SEAL02 chip achieved a power efficiency of 13.5 joules per terahash (J/TH). This achievement is part of Bitdeer’s SEALMINER technology roadmap, with the SEAL02 chip set to be integrated into the company’s upcoming SEALMINER A2 machines, expected to enter mass production in November 2024.
The SEAL02 chip’s success comes amid Bitdeer’s broader push to advance Bitcoin mining technology and improve operational efficiency. The company, which has seen an 8% increase in stock value following the announcement, is also working on the development of its next mining chip, SEAL03.
Source: Crypto.news
Bill Maher Slams Cryptocurrency Mining for Undermining Green Energy Progress
Prominent American television host Bill Maher recently criticized the environmental impact of cryptocurrency mining during an episode of his show “Real Time with Bill Maher.” He claimed that cryptocurrency mining consumes a significant portion of global electricity—around 8%—and likened its energy use to putting 15.7 million gas-powered cars back on the road. Maher expressed frustration, arguing that cryptocurrency mining undermines efforts to transition to green energy, stating, “All the progress we’re making with green energy is being sucked away by crypto.”
Maher’s criticism comes amid ongoing debates about the environmental consequences of Bitcoin and other cryptocurrencies. While environmental activists often highlight the large electricity consumption of crypto mining, proponents argue that mining operations are increasingly relying on renewable energy, positioning the industry as a potential driver of sustainable power. This isn’t the first time Maher has voiced his distaste for crypto, having previously mocked both its investors and its environmental footprint.
Source: U.today
Underground Crypto Mining Thrives in Russia’s Dagestan Despite National Push for Regulation
Despite Russia’s recent embrace of cryptocurrency at the governmental level, illicit and unregulated mining operations continue to thrive underground—quite literally. A recent report revealed a hidden cryptocurrency mining facility, dug into the ground in the Republic of Dagestan. This unorthodox method comes as scrutiny over energy usage intensifies, with operations needing to comply with government regulations and registrations. In Dagestan, crypto miners have already been blamed for energy grid instability and even a substantiation fire in the capital, Makhachkala, prompting calls from the region’s Prime Minister for tighter control over such activities.
While these underground operations are not tolerated, the Russian Federation as a whole has moved toward more favourable policies on cryptocurrency. In July 2024, the Russian Parliament approved the use of digital assets for international trade, a move seen by many as part of the country’s strategy to circumvent international sanctions. However, even as Russia shows growing institutional support for crypto, the high costs of mining—exacerbated by the recent Bitcoin halving—continue to put pressure on miners. With profitability margins already slim, a market downturn could have significant consequences for mining operations.
Marathon Digital CEO Predicts Energy Market Disruption as AI and Data Centers Drive Innovation
Fred Thiel, CEO of Marathon Digital, has predicted significant disruption in energy markets, driven by the increasing involvement of AI and data center companies in energy generation. Thiel points to the revival of older energy sources, including nuclear plants, as data centers seek energy self-sovereignty. He specifically referenced the recent announcement of the Three Mile Island nuclear plant’s return to operation in 2028, spurred by a deal with Microsoft to fuel its AI data centers. Thiel believes this shift will bring positive changes to energy markets, benefiting consumers by encouraging innovation and investment in new energy generation projects.
Amid the declining profitability of Bitcoin mining following the latest halving, companies like Marathon Digital have shifted strategies to boost revenue. In August, Marathon followed MicroStrategy’s lead by issuing convertible notes to purchase Bitcoin instead of investing in more mining equipment. This move reflects the challenging environment for miners as reduced rewards pressure profit margins. While Marathon’s share price is down over 30% year-to-date, the company believes buying Bitcoin directly offers more value to shareholders than expanding mining operations in the current climate.
BTC.com Rebrands as CloverPool, Expands into Hardware Trading Services
BTC.com, a prominent blockchain and mining pool service provider, has announced a significant brand upgrade and rebranding under the name CloverPool. Set to launch this September, the rebrand includes a new look, logo, and website, and will gradually unify all services under the new CloverPool identity. In addition to its rebranding, CloverPool plans to introduce hardware trading services, allowing users to buy, sell, or trade mining equipment, including power supplies and ASIC miner GPUs. This expansion aims to grow CloverPool’s user base and provide miners with access to the latest hardware.
Founded in 2015, BTC.com has long offered a range of services, including a multi-currency mining pool, block explorer, and data services. With the rebrand, CloverPool hopes to further streamline its services and address the challenges faced by the mining industry, providing up-to-date equipment that enhances sustainability and security for miners. As the new identity rolls out, CloverPool seeks to maintain its standing as a leading mining pool while offering new tools to support the mining community.
Riot Platforms Withdraws Bitfarms Acquisition Bid Following Settlement Agreement
Riot Platforms and Bitfarms have reached a settlement agreement, ending Riot’s bid to acquire the cryptocurrency mining company. As part of the deal, Riot has withdrawn its request for a special shareholder meeting and maintains its 19.9% stake in Bitfarms, which consists of over 90 million common shares. The settlement also led to changes in Bitfarms’ leadership, with the resignation of Andrés Finkielsztain from the Board of Directors and the appointment of Amy Freedman. Freedman, with 25 years of experience in corporate governance and public capital markets, will join the board and several key committees.
The agreement concludes Riot’s months-long attempts to take over Bitfarms, which had included a $950 million acquisition offer earlier in 2024. Bitfarms had resisted Riot’s takeover efforts by planning to sell discounted shares to shareholders and calling a special meeting to address the situation. With the settlement in place, the two companies have avoided further conflict, but Riot Platforms has stated it will continue to evaluate its investment in Bitfarms based on market conditions and other opportunities.
Fractal Bitcoin Captures 226 EH/s of Bitcoin’s Hashrate, but FB Token Drops 61% from All-Time High
Fractal Bitcoin continues to harness around 226 EH/s of Bitcoin’s hashrate via merged mining, alongside an additional 18.1 EH/s of permissionless mining supporting the network. As a result, mining pools like Antpool, F2pool, and Spiderpool are reaping extra rewards by mining Fractal Bitcoin alongside Bitcoin. So far, over 40,000 blocks have been mined on the Fractal Bitcoin network, producing 2 million FB tokens currently valued at $12.91 per token, giving the asset a total market cap of $26.8 million. Despite these metrics, the FB token experienced a sharp drop of 61.9% just six days after hitting an all-time high of $38.80.
While mining pools are earning extra income through Fractal Bitcoin, the distribution of FB tokens shows a high level of concentration. The top five wallets control 32.3% of the circulating supply, with the largest wallet alone holding 15.7%. This added income has been a welcome boost for miners as BTC mining profitability remains challenging. With Fractal Bitcoin’s block rewards currently ranging between 32 and 34.5 FB, miners can earn just under $495 per block. Despite the recent volatility in FB’s price, the sidechain continues to offer a lucrative opportunity for miners as the supply of FB gradually increases toward its max cap of 200 million tokens.
Bitcoin Mining Race Heats Up Between U.S. and China as AntPool Gains Ground
The competition between China and the United States for dominance in Bitcoin mining has intensified, with China’s AntPool recently taking the lead. On September 22, AntPool mined nearly a third of all newly issued BTC within 24 hours, producing 42 out of 135 blocks. Meanwhile, Foundry USA, the second-largest mining pool, mined 36 blocks during the same period. While these two major players maintain a significant lead, other pools like ViaBTC and F2Pool have struggled to keep pace, contributing to concerns about the growing centralization of Bitcoin mining.
This centralization trend has sparked alarm among experts and developers, who worry about its impact on the Bitcoin network’s security. Bitcoin Core developer Luke Dash Jr. has warned that the centralization of mining power could delay BTC transaction confirmations, raising concerns about the safety of relying on the current standard of 30 to 60 minutes for confirmation. Research by pseudonymous analyst b10c suggests that AntPool’s influence extends beyond block discovery, with several other pools sharing the same custodian and block template, further consolidating control.
