Contents
Network Overview
This week has been very positive for Bitcoin and its network. The overall hashrate continued its rise of the last few months, reaching now 718 EH/s. However, this week mining difficulty didn’t change, as no difficulty adjustment took place yet. But the biggest news for Bitcoin this week is the huge price increase, at least in part explained by the public’s expectations regarding the elections in the United States, which will take place in a few weeks.
This excellent Bitcoin performance has boosted network activity, greatly increasing transaction fees which are now around $6 per transaction. For miners this has been very positive, as they have seen their revenue increase by 23.48%. The estimated daily transaction value also reflects the rise in activity with an increase of 11.72% with respect to last week.
Bitcoin Hashprice Surges, Bringing Relief to Miners Amid Rising Network Activity
Bitcoin’s hashprice—representing the revenue generated from one unit of hashrate—surged to its highest level in two months, reaching $53.64 on October 17. This is a notable recovery from September’s slump when it fell below $40. This increase is attributed to a mix of factors, including Bitcoin’s price rally back to $68,000, and a surge in network fees, driven by increased activity from the Runes protocol. With Bitcoin’s market dynamics improving, digital mining expert Nico Smid suggests that miners are seeing much-needed relief, though the hashprice still remains below last year’s levels.
The recovery also coincided with a temporary 5% drop in Bitcoin’s global hashrate, possibly linked to power grid issues caused by recent hurricanes in the U.S. Interestingly, U.S.-listed miners have significantly expanded their dominance, now controlling nearly 29% of the global hashrate—a record high—according to JPMorgan. As Bitcoin prices climb, mining stocks have also rallied, drawing further interest from companies looking to leverage high-performance computing in strategic partnerships.
However, despite these positive developments, Bitcoin miners may face increased volatility with the upcoming 2024 U.S. presidential election between Kamala Harris and Donald Trump. Major political events often influence financial markets, and the crypto space is no exception. While October, commonly referred to as “Uptober” by crypto enthusiasts, has historically been a good month for Bitcoin, the approaching election introduces a level of uncertainty that could affect future market performance.
Source: bitcoin.com
Source: CryptoSlate
Bitcoin Miners Face Tight Deadline to Secure AI Data Centre Partnerships, Says JPMorgan
Bitcoin miners in the U.S. have a shrinking window of approximately nine months to capitalize on the booming demand for high-performance computing (HPC) and AI data centre services, according to a new JPMorgan report. With major hyperscalers and AI startups looking for scalable hosting solutions, the backlog in U.S. infrastructure planning provides an opportunity for miners to secure lucrative contracts while data centre applications await grid connections.
JPMorgan analysts emphasize that Bitcoin mining facilities, with their extensive power infrastructure, are increasingly seen as ideal candidates for AI-driven GPU hosting centres. However, the pool of potential partners remains small, and the costs of outfitting such centres with next-gen GPUs can reach up to $3 billion. This limited timeframe is crucial, as the U.S. power grid faces an ongoing strain, with 12 GWs of data centre capacity still in planning or construction phases, which may take up to six years to complete.
Source: TheBlock.co
Russia Moves Towards Regulating Crypto Mining with New Taxes and Legal Framework
Russia is taking significant steps to regulate its crypto mining sector, as expressed at the Industrial Mining Association (IMA) forum held in Moscow. Leaders and government officials, representing 70% of Russia’s crypto mining farms, discussed plans for a two-tier tax system that would exempt miners from VAT but impose personal income taxes. The proposed system suggests that miners pay taxes both when cryptocurrencies are received and when they are sold or transferred. While no final decisions have been made, these discussions indicate a move toward formalizing the legal and tax framework for crypto mining.
In addition, Russia is exploring the use of mined cryptocurrencies for cross-border payments through an Experimental Legal Regime (ELR). This regime aims to enable international crypto transactions while maintaining confidentiality about participants to protect competitiveness. The forum also proposed the creation of a national registry for crypto miners to increase transparency and ensure compliance. Despite uncertainties, industry leaders like Igor Runets, CEO of BitRiver, expressed optimism, and predicted new opportunities for the sector in the coming years, driven by clearer regulations and market transparency.
Source: coingape.com
WhitePool by WhiteBIT Mines Six Bitcoin Blocks, Earning $1.2 Million in a Day
WhitePool, the mining arm of European crypto exchange WhiteBIT, achieved a significant milestone on October 8, 2024, by mining six Bitcoin blocks in a single day, earning $1.2 million (19.36 BTC). Launched just a few months ago in August 2024, WhitePool has quickly risen to become one of the top 15 global mining pools. With a hash rate exceeding 7 EH/s, the pool consistently mines 2-3 blocks daily, and its monthly output has surpassed 300 blocks.
A key differentiator for WhitePool is its Full Pay-Per-Share (FPPS) system, which guarantees miners a fixed payout for each share of work, offering consistent daily income without having to wait for new blocks to be discovered. Payouts are automatically credited to users’ balances on the WhiteBIT exchange, with no additional fees. WhitePool’s success is an example of the fast growth taking place in the global Bitcoin mining market, now valued at over $20 billion with 500,000 daily transactions.
Source: coingape.com
Google’s Nuclear Power Plan Could Revolutionize Cryptocurrency Mining
Google’s partnership with Kairos Power to develop Small Modular Reactors (SMRs) by 2030 could transform cryptocurrency mining. SMRs, with their compact size and cost-effective nature, offer a promising alternative to traditional energy sources. Unlike large nuclear reactors, these reactors are smaller, easier to deploy, and designed for cleaner, more efficient power generation. As crypto mining’s energy needs grow, this collaboration might be a game-changer, helping facilities move toward greener, sustainable operations.
However, the upfront investment required remains a hurdle. While Google’s deep pockets enable it to push forward, smaller companies may face financial challenges before SMRs become more accessible. Over time, as the technology matures and costs decrease, SMRs could present a feasible, eco-friendly solution for both crypto mining and other energy-intensive industries like AI and data centres.
Source: Cointelegraph.com
From Hydro to Solar: UAE’s Rise in Crypto Mining
The United Arab Emirates (UAE) is emerging as a key player in global Bitcoin mining, holding 4% of the world’s mining capacity. With its ambitious move toward renewable energy sources like solar and nuclear power, the UAE aims to achieve carbon neutrality by 2050. This shift to cleaner energy is helping reduce the operational costs of Bitcoin mining, setting the UAE apart as a competitor to traditional mining powerhouses like the US, China, and Russia. The nation’s regulatory framework, coupled with its innovative energy strategies, is creating a favourable environment for blockchain development and Bitcoin mining.
One of the key drivers of the UAE’s crypto mining boom is its unique free zones, which provide regulatory flexibility for businesses. Ras al Khaimah and Abu Dhabi are two of the locations offering differing levels of oversight to attract entrepreneurs. Additionally, strong government regulations, established under the Emirates Blockchain Strategy 2021, ensure that crypto mining activities align with environmental and security standards. As the UAE continues to foster a robust legal framework while investing in energy projects, its role in global Bitcoin mining is likely to grow even further.
Source: cryptonewsland.com
How Bitcoin Miners Are Tapping Into the AI Gold Rush
Bitcoin miners are increasingly diversifying into high-performance computing (HPC) and artificial intelligence (AI) cloud services to offset the challenges of the post-halving era. Companies like Core Scientific, Bit Digital, and Iris Energy are leading the charge, dedicating substantial resources to HPC infrastructure. Bit Digital, for instance, reported $12.497 million in revenue from HPC hosting in Q2 2024, making up over 43% of its total revenue. Meanwhile, Core Scientific has secured long-term contracts to host CoreWeave’s HPC operations, with plans to expand up to 200 MW of capacity in the coming years.
Other players such as Hut 8 and Hive are also generating significant revenue from HPC hosting. Although these contributions remain a smaller part of their total earnings, the potential for growth is evident. The adoption of cutting-edge Nvidia GPUs and strategic partnerships are key to these ventures. As more Bitcoin miners tap into AI and HPC services, it will be intriguing to see how these investments shape the future of the mining industry.
Source: news.bitcoin.com
Bitcoin-Backed Loans Gain Traction Amid Mining Sector Growth
As Bitcoin’s price surged past $68,000 this week, the mining industry is seeing an uptick in Bitcoin-backed loans. Notably, Marathon Digital Holdings (MARA) secured a $200 million line of credit backed by Bitcoin collateral. This trend follows earlier moves by CleanSpark and Canaan, which secured similar loans in August and September, respectively. Bitcoin-backed credit facilities are becoming essential tools for miners to manage liquidity, especially as lenders and borrowers approach these agreements more cautiously than during the 2020 bull run.
With loan-to-value (LTV) ratios providing a buffer for lenders, many agreements are designed to mitigate risk. For example, Hut 8’s $65 million credit line with Coinbase set an LTV ratio at 50%, requiring $200 in collateral for every $100 borrowed. If Bitcoin’s value drops, miners must top up their collateral to maintain the LTV and avoid a default. This renewed focus on careful financial structuring reflects the new market dynamics, where surviving lenders such as Galaxy Digital and NYDIG are able to dominate after previous market leaders such as Genesis Capital and BlockFi went under during last cycle.
Source: blocksbridge.substack.com
