Tag: Bitcoin Miner

Bitcoin Miner Canaan Reports $73.9M Revenue in Q2

by Blockchain News

Canaan Inc. (NASDAQ: CAN), a leading provider of high-performance computing solutions, unveiled its unaudited financial metrics for the second quarter of 2023 on August 29. In the face of market headwinds, the company saw a notable 44.2% sequential growth in total computing power sold, hitting 6.1 million Thash/s. Yet, the organization is contending with regulatory shifts in Kazakhstan and an ongoing legal battle in the United States, factors that may affect its future operations.

Financial Overview

For the second quarter of 2023, Canaan reported revenues of $73.9 million, a rise from the first quarter’s $55.2 million but a decline from $245.9 million in the corresponding quarter of 2022. Mining-related revenue experienced a substantial surge, climbing to $15.9 million, up 43.3% from $11.1 million in the previous quarter. Despite these revenue increases, the company logged a net loss of $110.7 million, largely due to non-cash charges such as inventory write-downs, which amounted to $54.7 million.

Regulatory Challenges

In July 2023, Kazakhstan introduced new licensing rules for digital mining activities. Canaan has temporarily shut down approximately 2.0 Exahash/s of its mining computing power in the country and is in the process of obtaining a specialized license. The company expects this suspension to continue into Q3 2023, affecting its bitcoin generation capabilities.

U.S. Legal Dispute

Canaan U.S. Inc., a subsidiary, is embroiled in a legal dispute with a U.S.-based partner over a breach of their Joint Mining Agreement. The disagreement involves issues ranging from installation failures to unreturned deposits and profits. With mediation proving unsuccessful, Canaan U.S. plans to proceed to arbitration.

Business Outlook

For Q3 2023, Canaan expects total revenues to be around $30 million, citing challenging market conditions. As of June 30, 2023, the company held cryptocurrency assets primarily comprising 1,125 bitcoins with a total carrying value of $28.8 million.

Analyst Take

Canaan’s Q2 results show resilience in a volatile market, but the firm is not without its challenges. Regulatory changes and legal disputes could hamper its growth trajectory. Investors should keep an eye on how the company navigates these hurdles, especially as it holds a conference call to discuss these financial results today at 8:00 A.M. U.S. Eastern Time.

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Bitcoin Miner Bitfarms Mined 1,223 BTC but with $25 Million Net Loss in Q2 2023

by Blockchain News

Bitfarms Ltd. (NASDAQ: BITF // TSX: BITF), a vertically integrated global bitcoin company, has released its financial results for the second quarter ended June 30, 2023.

Bitfarms successfully mined 1,223 BTC in the second quarter of 2023, bringing its total holdings to 549 BTC, an increase of 114 BTC. The corporation set a future aim of 7.0 EH/s for Q1 2024 when its hashrate as of June 30, 2023, hit 5.3 EH/s, an increase of 10% from March 31, 2023. According to reports, Q2 2023 revenue increased from the prior quarter’s $30 million to $35 million. Despite the rise in sales, the company’s net loss increased significantly from $2 million in Q1 2023 to $25 million, a huge loss. Compared to the prior quarter’s adjusted EBITDA of $7 million, the current quarter’s adjusted EBITDA was $8 million. From $12,500 in Q1 2023, the average direct cost to generate one BTC climbed to $15,700. As of June 30, 2023, Bitfarms has $549 BTC, worth an estimated $17 million, and $31 million in cash on hand. In addition, the business revealed plans to build a new 50 MW farm in Paraguay and obtained contracts for 150 MW of cheap, ecologically friendly hydropower there in July….

Bitfarms’ revenue growth reflects higher hashrate and average BTC prices, partially offset by a decrease in total BTC produced. The net loss of $25 million includes $10 million in impairment charges. The company’s gross mining profit and gross mining margin were $14 million and 42%, respectively, consistent with Q1 2023. General and administrative expenses were $9 million, up 10% from Q1 2023, and total cash costs of production per BTC were $21,800 in Q2 2023, up from $17,600 in Q1 2023.

Bitfarms continued to invest in infrastructure and fleet upgrades, increasing its hashrate by 10% during Q2 2023. The company also acquired contracts for hydropower in Paraguay, a market with low build-out costs and quick project timelines. The company’s expansion strategy includes becoming a self-importer of miners in Argentina and purchasing new high-efficiency miners for deployment in Argentina and Canada.

Bitfarms is projecting 20% sequential growth in its hashrate in Q3 2023 and expects further growth with the commissioning of the Paso Pe farm in Q1 2024. The company’s focus on sustainable, locally based energy infrastructure and ongoing investments in geographic expansion positions it for continued development across multiple jurisdictions.

Bitfarms’ Q2 2023 results reflect a strategic focus on growth and efficiency, with investments in infrastructure and expansion into new markets. While the company reported a net loss for the quarter, its revenue growth and consistent gross mining margin indicate a positive trajectory. Bitfarms demonstrates a progressive stance through its dedication to sustainable energy and the setting of assertive goals for hashrate expansion. This approach resonates with current industry movements and potential market prospects.

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Bitcoin Miner Bitfarms Mined 378 BTC and Sold 333 in July

by Blockchain News

Bitfarms Ltd., a global vertically integrated Bitcoin mining company, has released its Bitcoin (BTC) production and mining operations update for July 2023. The report, published on August 1, 2023, provides detailed insights into the company’s recent activities, performance metrics, and future plans.

Mining Performance and Expansion

In July 2023, Bitfarms mined 378 BTC, a decrease of 1.8% compared to 385 BTC in June 2023. The reduction was attributed to a 3.3% increase in network difficulty and disruptions caused by extreme weather events, including record temperatures and wildfires in Quebec. A direct lightning strike that disabled the primary electricity transformer at the Magog farm also contributed to the temporary reduction in production.

Despite these challenges, Bitfarms initiated an expansion plan to nearly double its hydropower capacity to 350 MW by acquiring 150 MW of under-utilized hydropower in Paraguay. Construction on the first 50 MW facility is planned to commence in Q3 2023.

New Developments and Operational Highlights

Production at the 11th Farm: Bitfarms started production at its 11th farm in Baie-Comeau, aiming to reach 11 MW of production in Q3 2023, with an additional 11 MW targeted for 2H 2024.

BTC Price Rise: The average BTC price rose to $30,100 in July, up 9.1% from $27,600 in June.

Treasury Increase: Of the 378 BTC mined, 333 BTC were sold, and 45 BTC were added to the treasury, reaching 594 BTC at July 31, 2023.

Paraguay Expansion: The company acquired two Power Purchase Agreements for up to 150 MW of hydropower in Paraguay, marking a significant step in its expansion strategy.

Upgrades and Installations: Various upgrades and miner installations were carried out in Quebec, Argentina, and Washington State, enhancing production efficiency.

Financial Update

Bitfarms sold 333 BTC of the 378 BTC mined in July, generating total proceeds of $9.9 million. The company also reduced its total outstanding indebtedness by $1.8 million, resulting in a remaining balance of $13.7 million at July 31, 2023. Additionally, 45 BTC were added to the treasury, increasing custody to 594 BTC, representing approximately $17.3 million based on a BTC price of $29,200 at July 31, 2023.

Future Prospects

Bitfarms’ CEO, Geoff Morphy, emphasized the company’s disciplined growth strategy, focusing on securing low-cost power and investing in highly efficient operations. The expansion in Paraguay and the initiation of new farms reflect the company’s commitment to leveraging industry knowledge and economies of scale.

The company also plans to attend various conferences and events in the coming months, including Bitfarms Analyst Day on September 14th in New York City.

Bitfarms’ July 2023 report showcases a robust strategy for growth and expansion, coupled with a commitment to sustainable energy utilization. Despite temporary setbacks due to weather and technical issues, the company’s focus on hydropower capacity, geographic diversification, and operational efficiency positions it as a significant player in the global Bitcoin mining landscape. The report also highlights Bitfarms’ financial stability and readiness to leverage future opportunities in the ever-evolving cryptocurrency market.

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Bitcoin Miner Marathon Mined 979 BTC and Liquidated 700 in June 2023

by Blockchain News

Marathon is a digital asset technology company that focuses on supporting and securing the Bitcoin ecosystem, and it is in the process of becoming one of the largest and most sustainably powered Bitcoin mining operations in North America as it claims.

In June 2023, Marathon Digital Holdings created 979 Bitcoin (BTC), increasing the year’s total to 5,120 BTC.

The installed hash rate climbed by 8% to 21.8 EH/s, while the operational hash rate increased by 16% to 17.7 exahashes per second (EH/s).With the start of mining activities, the joint venture in Abu Dhabi is on schedule to achieve 7 EH/s by the end of the year.

The joint venture in Abu Dhabi began mining operations and is on track to reach 7 EH/s by the end of the year.

The company reported unrestricted cash and cash equivalents of $114 million and increased unrestricted Bitcoin holdings to 12,538 BTC (approximately $382 million) as of June 30, 2023.

The decrease in bitcoin production compared to the previous month was due to weather-related curtailment in Texas and a significant decrease in transaction fees.

Marathon‘s operating fleet increased to approximately 149,900 Bitcoin miners, theoretically capable of producing approximately 17.7 EH/s, as of July 1, 2023.

Marathon sold 700 BTC during June and plans to sell a portion of its bitcoin holdings in future periods to support monthly operations, manage its treasury, and for general corporate purposes.

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Bitcoin Miner Ault Alliance Regains NYSE Compliance

by Blockchain News

Ault Alliance, Inc., a diversified holding company, has successfully regained compliance with the NYSE American’s continued listing standards, according to a statement released by the company. The NYSE American had previously notified Ault Alliance of its non-compliance due to the low trading price of the company’s common stock.

The company’s return to compliance was achieved through management’s efforts, including a potential reverse stock split, which was suggested as a means of demonstrating sustained price improvement. As a result of these efforts, the NYSE American has confirmed that Ault Alliance is now in full compliance with its continued listing standards. The “.BC” designation will be removed from the “AAI” trading symbol effective from the commencement of trading on July 5, 2023, and the company will also be removed from the list of NYSE American noncompliant issuers on the exchange’s website.

Ault Alliance, Inc. is a diversified holding company that seeks growth by acquiring undervalued businesses and disruptive technologies with a global impact. The company owns and operates a data center where it mines Bitcoin and provides mission-critical products that support a diverse range of industries. These include the metaverse platform, oil exploration, crane services, defense/aerospace, industrial, automotive, medical/biopharma, consumer electronics, hotel operations, and textiles. Ault Alliance also extends credit to select entrepreneurial businesses through a licensed lending subsidiary.

On June 26, Ault Alliance provided an update on its Bitcoin production and mining operations. The company reported that approximately 19,000 miners are now active, delivering an operational hash rate of 2.1 exahashes per second. 

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Bitcoin Miners Move 54,000 BTC to Binance as Liquidity Drops

by Blockchain News

Recently, significant Bitcoin transactions have been observed in the market. According to Ki Young Ju, the CEO of CryptoQuant, Bitcoin miners have reportedly transferred a whopping 54,000 BTC to Binance over the last three weeks.

This dramatic shift was announced via a series of tweets by Ki Young Ju, which rises speculation about potential implications on Bitcoin’s market dynamics.

Despite the major transfer of Bitcoin to Binance, the leading cryptocurrency exchange, there hasn’t been a significant change in the Bitcoin-USD open interest. The CEO’s tweets suggest that this hints towards a reduced likelihood of using these funds to create new long positions. Instead, it points more towards the possibility of spot selling.

A broader look at the market reveals a diminishing crypto liquidity on both ends of the spectrum. CryptoQuant’s data showcases a decline in the sell-side liquidity for cryptocurrencies, albeit accompanied by an even sharper fall in the buy-side liquidity.

Crypto exchange reserves have also seen a downward trend, further corroborating the liquidity squeeze. In the span of a year, Bitcoin’s exchange reserve has decreased by 20%, while Ethereum (ETH) and stablecoins experienced a more drastic decline of 40% and 52% respectively.

This liquidity crunch in the crypto market, coupled with the significant transfer of Bitcoin to Binance, may be setting the stage for potential price volatility. Market stakeholders and investors are closely watching these unfolding developments to gauge their impact on Bitcoin and other cryptocurrencies’ pricing and trading behavior.

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Canaan’s Q4 2022 Revenue Declines by 82.1% YoY to $56.8M

by Blockchain News

Chinese Bitcoin miner and manufacturer of application-specific integrated circuit (ASIC) mining machines, Canaan, has reported an 82.1% YoY revenue decline to $56.8 million in Q4 2022, according to a new filing with the U.S. Securities and Exchange Commission on Mar. 7. This represents a significant drop in revenue for the company, which sold 1.9 million terahash per second worth of computing power for Bitcoin mining during the quarter. However, this figure does not account for lower ASIC prices and represents a 75.8% decline from Q4 2021.

Despite the decline in revenue, Canaan’s mining revenue improved by 368.2% YoY to $10.46 million. Nangeng Zhang, Chairman and CEO of Canaan, said that the company had been “diligently improving and developing our mining business” to mitigate demand risks during the market downturn. This effort yielded more progress in early 2023, with 3.8 EH/s hash rate installed for mining as of the end of February. Accordingly, the company has made decisive investments in bolstering its production capacity and expanding its mining operations to more varied geographic regions that offer advantageous conditions.

However, the company’s net income swung to a $63.6 million loss in Q4 2022 compared to a profit of $182.0 million in Q4 2021. According to Jin Cheng, Chief Financial Officer of Canaan, the loss was due to inventory write-downs and research expenses related to its new fleet of ASICs. He said, “Considering very soft market demand and low selling price, we incurred an additional inventory write-down of RMB205.3 million, which also dampened our gross margin. In conjunction with one-time higher research and development expenses relating to the tape-out for our A13 series, our bottom line suffered losses during the quarter.”

 For the full year, Canaan’s revenue decreased by 13.8% to $634.9 million, mainly due to better industry conditions in Q1 and Q2 2022. Despite the decline in revenue, the company has a strong balance sheet, with $706 million in total assets compared to $67 million in total liabilities.

Looking ahead, Canaan expects to face continued market challenges and volatility, but remains committed to developing its mining business and investing in new technology to drive long-term growth. The company’s recent investments in production capacity and geographic expansion suggest that it is well-positioned to capitalize on any future recovery in the Bitcoin market.

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‘Bitcoin Rush’: Small-Time Solo Miners Strike Gold With Full BTC Blocks

by NEWSBTC

Small-time bitcoin miners are making headlines for essentially hitting the jackpot by mining full blocks all on their own. In what has become a modern-day ‘gold rush’, bitcoin enthusiasts are now taking to booting up small USB miners will tiny hash rates to try their luck in what is eerily similar to buying lottery tickets. Among the miners who have rushed to this, a few have hit the ultimate prize.

Solo Bitcoin Miner Gets Full Block

In an unlikely event, a solo miner was able to mine a full bitcoin block with a low hash rate. This was made public by Dr. Kolivas, a software engineer that contributed to the development of the Cgminer. He revealed that the solo bitcoin miner had been able to solve a full block by themselves using only 86TH. This took place at a block height of 270,175.

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Related Reading | Bitcoin Leverage: Lack Of Liquidations Could Indicate Another Wave Of Selling 

The miner who is part of a mining pool that allows solo miners pool their hash rates together to increasing their chances of solving a block was able to get the full block reward after solving. The miner had gotten the full block reward of 6.25 BTC, netting them a total of more than $220,000 at current prices, in addition to the transaction fee paid to the block miner.

With such low computational power as the one possessed by this miner, it makes it near impossible for them to be able to mine a block by themselves. They would not be the first to get lucky.

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Two weeks ago, another solo miner from the same mining pool had hit the same jackpot, mining a block and earning the full block reward plus transaction fees.

The BTC Rush

One thing about proof of work mechanisms is the high computation power required to mine bitcoin blocks. As more players enter into the mining space, armed with millions of dollars in institutional backing, being a small-time miner is nearly unprofitable. This is why mining pools like the ckpool exist.

Bitcoin price chart from TradingView.com

BTC recovers above $36,000 | Source: BTCUSD on TradingView.com

In these pools, solo miners are able to bring their low computational power together to increase their chances of finding a block. Dr. Kolivas explained that while this miner had fluctuated in their mining power, they were able to solve the block with only 8.3 terahashes.

Related Reading | Anthony Scaramucci Urges Bitcoin Holders To Think Long-Term As Downtrend Won’t Last

Laying out the math, he explained that by pooling their hashes, miners were able to increase their chances of solving a block to a 1 in 5 chance or a 20% chance. As more miners join the pool, the chances to go solve a block go up. In a reply to another user, Dr. Kolivas explains that if the current hashrate were to increase by 4, then the chances of mining a block jump to 63%.

Featured image from Pinterest, chart from TradingView.com

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Tiny Bitcoin miner defies massive odds to solve a valid block

by Cointelegraph

A single Bitcoin miner from the Solo CK mining pool has defied the odds after successfully adding a new block on the Bitcoin blockchain, taking home 6.25 BTC ($266,000) for their efforts.

The lucky miner, who may have been mining on just one or two machines, solved a block with their modest hashrate capacity of 126 TH/s. According to a Jan 11 tweet from Solo admin, Dr. Con Kolivas it’s equivalent to about 0.000072% of the total Bitcoin (BTC) network hashrate — which is 175,000,000 TH/s (175 EH/s).

Bitcoin mining expert and member of the Bitcoin Mining Council (BMC) Hass McCook told Cointelegraph that he has never heard of anything like it, adding that “to say this is very rare is an understatement.”

“Usually, having 0.000072% of the hashrate means that, on average, Solo CK will win 0.000072% of the blocks, or, about 1 in 1,400,000,” he explained.

“Everything in Bitcoin is probabilistic, even transaction settlement. The more confirmations you have on your tx, the less likely it will be reversed.”

Related: How to mine Bitcoin: A beginners guide to mine BTC

According to McCook, the miner could’ve been using a single machine. “The Antminer S19 is a 110TH/s machine, so Solo CK could have even been mining with just one overclocked rig! More likely it was 5 or 6 Antminer S9 units. Either way, it could very easily be a home miner,” he said.

A machine’s hashrate refers to how many hashes, or mathematical equations, it can solve per second. On average, a new BTC block is mined every ten minutes. Dr. Con Kolivas estimated the chances weren’t quite so high,  with a 1 in 10,000 chance of finding a block per day with that hasbut added the miner probably wouldn’t repeat the feat.

“For the miner involved it’s a once in a lifetime chance,” Kolivas wrote.

“It’s usually larger miners that solve blocks statistically but there is no reason even the smallest miner can’t solve one.”

He noted a small miner in his pool had solved a block about one year ago.

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