Tag: Bitcoin Mining

Coinbase Executives Visit UAE to Explore Potential for Crypto Operations

by Blockchain News

Executives from the US-based cryptocurrency exchange Coinbase, including CEO Brian Armstrong, have visited the United Arab Emirates (UAE) to explore the potential for crypto operations in the region. The visit comes as Coinbase seeks to expand its international presence and establish strategic hubs in key locations around the world.

During the visit, Armstrong met with policymakers and spoke at the Dubai FinTech Summit, highlighting the growing interest in the region as a destination for crypto-related businesses. The UAE has become increasingly attractive to firms in the crypto industry due to its favourable regulatory environment and abundant sources of energy, which can be used to power energy-intensive operations such as crypto mining.

Coinbase’s visit coincides with a partnership between Marathon Digital Holdings and Zero Two to create a large-scale immersion Bitcoin-mining facility in Abu Dhabi. The joint venture, called the Abu Dhabi Global Markets JV Entity, will comprise two mining sites with a combined 250-megawatt capacity and will be powered by excess energy from Abu Dhabi’s grid.

Marathon Digital’s experience in developing a custom-built immersion solution for cooling mining rigs will be key to the success of the project, particularly given the challenges posed by the desert climate in Abu Dhabi, where temperatures can reach up to 28 degrees Celsius (82 degree Fahrenheit).

The joint venture between Marathon Digital and Zero Two aims to take advantage of Abu Dhabi’s excess energy to power the mining facilities, with a view to increasing sustainability and base load. The use of liquid cooling solutions will help to overcome the challenges of the desert climate, where high temperatures make traditional air cooling methods infeasible.

Overall, the partnership between Marathon Digital and Zero Two represents a significant step forward in the development of the crypto mining industry in Abu Dhabi, as the two companies look to capitalize on the region’s excess energy and overcome the challenges of the desert climate. Coinbase’s visit to the UAE highlights the growing interest in the region as a destination for crypto-related businesses, and could pave the way for further expansion in the Middle East.

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Marathon Digital and Zero Two Partner for Abu Dhabi Bitcoin-Mining Facility

by Blockchain News

Marathon Digital Holdings and Zero Two have announced a partnership to create a large-scale immersion Bitcoin-mining facility in Abu Dhabi. The joint venture, called the Abu Dhabi Global Markets JV Entity, will be based in Mina Zayed and Masdar City in the United Arab Emirates, and will comprise two mining sites with a combined 250-megawatt capacity. Marathon and Zero Two plan to power the facilities with excess energy from Abu Dhabi’s grid, claiming it will increase its base load and sustainability.

According to Marathon Digital, crypto mining in the desert climate of Abu Dhabi, where the average annual temperature is roughly 28 degrees Celsius (82 degree Fahrenheit), was often “infeasible.” However, the company said it had helped develop a “custom-built immersion solution” to cool mining rigs at the proposed facilities, suggesting a liquid-cooling solution.

The two firms expect both Abu Dhabi facilities to be online by 2024 and produce a combined hash rate of roughly 7 EH/s. Ownership of the project will be split between Zero Two and Marathon Digital, with the two companies controlling 80% and 20%, respectively.

The move comes as executives from United States-based crypto exchange Coinbase visited the UAE to test the potential of the region as a “strategic hub” for its international operations. Coinbase CEO Brian Armstrong met with policymakers and spoke at the Dubai FinTech Summit.

The joint venture between Marathon Digital and Zero Two aims to take advantage of Abu Dhabi’s excess energy to power the mining facilities, with a view to increasing sustainability and base load. The use of liquid cooling solutions will help to overcome the challenges of the desert climate, where high temperatures make traditional air cooling methods infeasible.

Marathon Digital’s experience in developing a custom-built immersion solution for cooling mining rigs will be key to the success of the project. The two firms plan to have both facilities up and running by 2024, with a combined hash rate of roughly 7 EH/s.

Meanwhile, Coinbase is exploring the potential of the UAE as a strategic hub for its international operations. The visit by the company’s executives, including CEO Brian Armstrong, highlights the growing interest in the region as a destination for crypto-related businesses.

Overall, the partnership between Marathon Digital and Zero Two represents a significant step forward in the development of the crypto mining industry in Abu Dhabi, as the two companies look to capitalize on the region’s excess energy and overcome the challenges of the desert climate. With the backing of both firms, the joint venture is well-positioned to succeed and could pave the way for further expansion in the Middle East.

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Block’s 5nm Bitcoin Mining Chip Prototype

by Blockchain News

The financial services and technology business Block, which is controlled by Jack Dorsey, has just finished the prototype design of its new 5nm Bitcoin mining chip. This was done with the intention of decentralizing the supply of Bitcoin mining rigs. The business noted that the development of Bitcoin mining ASIC rigs is both financially and technically hard, which has led to an excessive concentration of the ownership of specialized mining silicon in the hands of a few number of enterprises. It is believed that miners and the Bitcoin network as a whole would suffer from the negative effects of this concentration.

In response, Block intends to make Bitcoin mining technology open source wherever it is feasible by selling standalone ASICs and other hardware components. This move is intended to enhance the size of the Bitcoin mining hardware ecosystem while also maximizing the amount of innovation that may occur inside it. Because of the actions taken by the firm over the previous few months, it will now be able to experiment with new designs, which will help the company bring Bitcoin mining chips to market that are both more efficient and less expensive.

As a means of accelerating this development drive, Block has made a significant purchase of ASIC chips from Intel, prompting the latter to stop accepting new orders for its Blockscale 1000 Series ASICs. This move was made in order to shorten the development cycle. Block expects that by purchasing these ASICs from Intel, it would be able to speed up the development of its own 3nm chip, which, upon its eventual release, the company says will be the most technologically sophisticated semiconductor to date.

The significance of ASIC development to the Bitcoin mining process is reflected in Block’s concentration on the development of these devices. ASICs are computerized devices that are tailored to accomplish a particular computational function. They are commonly used for mining proof-of-work cryptocurrencies like Bitcoin, which need a specific computational task to be completed. When individual components of a chip get smaller, it becomes possible to pack more transistors into a silicon die of the same size. This results in increased overall efficiency and a reduction in the amount of heat that is generated.

Although 5nm ASIC chips have been available for some time, the first 5nm ASIC was not released until 2021 by the Chinese mining company Canaan. Despite this, no company has yet made the ASIC chip designs that they produce open source. It is anticipated that Block’s dedication to open source technology will have a substantial influence on the Bitcoin mining business. This will result in additional alternatives being available to miners and will contribute to the network’s efforts to become more decentralized.

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Bhutan Embraces Bitcoin Mining with Green Energy

by Blockchain News

Bhutan, the small Himalayan kingdom, has been quietly accumulating and mining Bitcoin since April 2019. The country of less than 800,000 people is leveraging its abundant hydroelectric power to power its Bitcoin mining operations. Known for its focus on “Gross National Happiness” and picturesque landscapes, Bhutan has found ways to harness its immense hydroelectric potential, which accounts for 30% of its gross domestic product.

According to an exposé in local Bhutanese news and inquiries from Forbes, Bhutanese officials have confirmed that mining began when the price of Bitcoin was around $5,000 in April 2019. The price per Bitcoin has since soared to roughly $28,000 per coin at the time of writing. While the scale of Bhutan’s mining operations remains a mystery, some Druk Holding and Investments (DHI) employees have listed “crypto mining” as their tasks and skills on their LinkedIn profiles.

It is worth noting that the state-owned holding company DHI has invested millions of dollars in cryptocurrency holdings, with the funds managed on behalf of its people. The government is reportedly exploring partnerships to expand its mining operations further. One such partnership is with Nasdaq-listed mining company Bitdeer to secure 100 megawatts of power for a Bitcoin mining data center in Bhutan. This partnership would increase Bitdeer’s mining capacity by about 12%.

It is unclear why the government chose not to disclose this project to its citizens or international partners. However, Bhutan’s focus on green energy and sustainability makes it an ideal destination for mining Bitcoin. Bitcoin mining is the world’s cleanest industry, with more than 50% of its energy sources being renewable or clean energy. Due to cheap, abundant hydroelectric power, DHI reported that Bhutan is an ideal destination for mining Bitcoin.

Bhutan adds to a long list of regions from East Africa to Scandinavia mining Bitcoin with hydropower, one of the cheapest clean energy sources. The country’s commitment to green energy and sustainability is commendable, and it sets an excellent example for other countries looking to adopt Bitcoin mining. With its vast hydroelectric potential, Bhutan has the potential to become a significant player in the Bitcoin mining industry.

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CleanSpark Buys 45,000 Bitmain Antminer S19 XPs for $144.9 Million

by Blockchain News

CleanSpark, a crypto miner, has announced the purchase of 45,000 Bitmain Antminer S19 XPs for $144.9 million, which will nearly double its current computing power. This is the latest in a series of acquisitions of distressed assets by the miner, which started in the summer of 2022. The acquisition announcement comes as bitcoin crossed $30,000 for the first time in nearly a year, which could reinvigorate the bitcoin mining space.

The 45,000 Antminers will add over 6.3 exahash/second (EH/s) of computing power to CleanSpark’s fleet of 6.7 EH/s, once delivered and installed. The first batch of 25,000 rigs will be ready for delivery in August from Bitmain, and the rest are scheduled for September. They will be installed at a site in Sandersville, Georgia, which CleanSpark acquired from Mawson Infrastructure (MIGI) in September.

CleanSpark aims to have 16 EH/s of computing power by the end of the year. It lowered its 2023 guidance in December 2022 from 22.4 EH/s, citing delays in construction by one of its partners, Lancium. Another 2.44 EH/s of machines that it acquired at a discount in February are expected to be online at a Washington state facility later in Q2.

“As bitcoin’s halving draws closer, our focus on operational efficiency, our technical expertise, and our treasury management strategy, will all play a crucial role in solidifying CleanSpark’s position among the top bitcoin mining companies in America,” said Zach Bradford, CEO of CleanSpark.

CleanSpark’s purchase of the Bitmain Antminer S19 XPs represents a significant investment in bitcoin mining infrastructure. The Antminers are known for their high hashrate and energy efficiency, making them popular among miners looking to increase their computing power while minimizing energy costs.

CleanSpark’s strategy of acquiring distressed assets has allowed the company to quickly expand its mining operations and increase its computing power. The company’s acquisition of the Sandersville site in Georgia, where the new Antminers will be installed, demonstrates its commitment to expanding its mining operations in the United States.

Bitcoin’s recent price increase could provide a significant boost to CleanSpark’s mining operations. As the price of bitcoin increases, so too does the reward for mining it. This could lead to increased demand for mining equipment and infrastructure, which would benefit CleanSpark and other mining companies.

CleanSpark’s focus on operational efficiency and technical expertise will be key to its success in the competitive bitcoin mining industry. By minimizing energy costs and maximizing computing power, the company can increase its profitability and solidify its position as one of the top bitcoin mining companies in America.

In conclusion, CleanSpark’s purchase of 45,000 Bitmain Antminer S19 XPs represents a significant investment in bitcoin mining infrastructure. The company’s strategy of acquiring distressed assets has allowed it to quickly expand its mining operations and increase its computing power. 

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Arkansas passes Bitcoin mining regulation bill

by Blockchain News

Arkansas has become the latest state in the United States to pass a bill seeking to regulate Bitcoin mining activity within its borders. The bill, which has been named the Arkansas Data Centers Act of 2023, will now move to the governor’s office for final approval. If passed, the legislation would create guidelines for miners and protect them from discriminatory regulations and taxes.

The bill was proposed by Senator Joshua Bryant on March 30 and quickly passed by Arkansas’ state legislators. The legislation recognizes the value of data centers to local communities and acknowledges that they create jobs and pay taxes. As such, it seeks to regulate the Bitcoin mining industry in the state.

One of the key provisions of the bill is that digital asset miners must pay applicable taxes and government fees in acceptable forms of currency. Additionally, they must operate in a manner that causes no stress on an electric public utility’s generation capabilities or transmission network.

Under the legislation, crypto miners will have the same rights as data centers. The bill outlines that Arkansas’ government should not impose different requirements for digital asset mining businesses than those that apply to data centers.

The move by Arkansas follows a similar initiative in Montana, where the state’s Senate passed a bill to protect crypto miners operating within the state. The legislation is designed to protect miners against taxes on digital assets used for payments and eliminate energy rates discriminating against home crypto miners and digital asset businesses.

In contrast, in November 2022, New York’s Governor Kathy Hochul signed the proof-of-work mining moratorium into law, banning crypto-mining activities in the state for two years. On a federal level, President Joe Biden introduced a budget proposal on March 9 that could subject crypto miners in the United States to a 30% tax on electricity costs aimed at reducing mining activity.

The regulation of Bitcoin mining in the United States is gaining momentum, with individual states proposing legislation to govern the industry. The Arkansas Data Centers Act of 2023 is just the latest in a series of bills designed to create guidelines for miners and protect them from unfair treatment.

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Argo Blockchain Increases Daily Bitcoin Production Despite Network Difficulty Spike

by Blockchain News

Publicly-listed Bitcoin (BTC) mining firm Argo Blockchain has reported an increase in its daily Bitcoin production for the month of February, despite a significant spike in network difficulty. According to the operational update released on March 7, Argo mined 162 Bitcoin or BTC equivalents during the month, translating to a daily production rate of 5.7 BTC. This is a 7% increase from the 5.4 BTC per day produced in January.

Bitcoin mining difficulty is a measure that defines how hard it is to mine a BTC block. It requires more hash rate or additional computing power to verify transactions and mine new coins. In February, the BTC network difficulty surged to new all-time highs, hitting a difficulty rate of 43 trillion on Feb. 25, as per data from Blockchain.com.

Despite the network difficulty spike, Argo’s production rate has increased, thanks to the company’s investment in new mining equipment and a focus on increasing efficiency. The news comes amid the industry anticipating the next Bitcoin difficulty adjustment expected to occur on March 10. According to data from BTC.com, the next difficulty is estimated to reach 43.4 trillion.

Argo Blockchain sold its flagship mining facility Helios to Mike Novogratz’s crypto investment firm Galaxy Digital amid the tough crypto market of 2022. However, despite the sale, Argo has continued to mine using Galaxy’s facility, and its production rate has been steadily increasing. Months before the transaction, Argo’s monthly BTC mining generated more than 200 BTC.

Argo is not the only mining firm that seems unaffected by the BTC difficulty spike in February. Other miners like Cipher Mining produced 16% more Bitcoin over January, and Marathon Digital increased its average daily Bitcoin produced by 10% compared to January. However, Hut 8 mining firm saw its daily Bitcoin production rate drop from 6 BTC in January to 5.6 BTC in February.

Argo Blockchain has been focusing on expanding its operations to capitalize on the increasing demand for Bitcoin mining services. The company recently announced plans to establish a Bitcoin mining facility in West Texas, which is expected to have a capacity of up to 200 megawatts and is slated to begin operations in Q4 2022.

In conclusion, despite the network difficulty spike, Argo Blockchain’s focus on increasing efficiency and investment in new equipment has led to an increase in its daily Bitcoin production rate. The company’s expansion plans and investment in new facilities suggest that it is well-positioned to capitalize on the growing demand for Bitcoin mining services.

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Former facilities worker who allegedly set up a secret cryptocurrency mining operation

by Blockchain News

After skipping a planned court appearance to respond to accusations, a former facilities worker who is accused of setting up a covert bitcoin mining operation inside a Massachusetts school’s crawl space is slated to be arrested. The hearing was to answer to the allegations.

According to several sources in the media, Nadeam Nahas’ arraignment on the allegations of vandalizing a school and making fraudulent use of power was due to take place on February 23.

A form of warrant known as a default warrant is the kind of warrant that courts issue when a person fails to appear in court or comply with an order. This type of warrant gives law enforcement officials the authority to arrest the individual in question.

It is alleged that Nahas, who is said to have previously worked in the facilities department for the town of Cohasset, Massachusetts, United States, stole electricity worth almost $18,000 in order to power his cryptocurrency mining operation in 2021, between April 28 and December 14, specifically between the dates of April 28 and December 14.

According to the reports, the local authorities were notified about the operation for the first time in December 2021. This occurred after the director of facilities at Cohasset noticed computers, wiring, and ductwork that appeared to be out of place given that they were located in a crawl space close to the school’s boiler room.

There were a total of 11 computers discovered at the location, and after a three-month investigation, Nahas was determined to be a suspect in the case.

In March, Nahas handed in his resignation from his job with the municipality of Cohasset.

It is very unlikely that this is the first time someone has been accused of stealing energy for the purpose of mining cryptocurrencies.

Officials in Malaysia destroyed Bitcoin (BTC) mining rigs worth $1.2 million in July 2021 after seizing them from citizens who were stealing energy to mine Bitcoin. The rigs had been taken from citizens who were mining Bitcoin illegally.

A year earlier, in August of 2019, Bulgarian police made the arrest of two individuals for unlawfully siphoning off more than $1.5 million in energy to run two cryptocurrency mining farms.

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A cryptocurrency mining rights bill prohibit the discrimination of crypto

by Blockchain News

Following its victory in the state Senate, a piece of legislation pertaining to cryptocurrency mining rights and regulations that would prohibit discrimination against crypto miners is one step closer to becoming a reality.

The proposed laws would protect mining that takes place “at home” and strip local governments of the power to use zoning laws to stop crypto mining operations. They would also enshrine a “right to mine digital assets” and prohibit “discriminatory” electricity rates from being charged to cryptocurrency miners.

In addition to this, it forbids the imposition of additional taxes on the use of cryptocurrencies as a method of payment and proposes classifying “digital assets,” which include cryptocurrencies and nonfungible tokens, as “personal property,” in the same category as other financial products like stocks and bonds.

On February 23, the measure received a vote of 37 in favor and 13 against in the state Senate. It will now be considered for passage in the House of Representatives. In the event that it is also approved there, the last stage would be for it to be signed into law by Governor Greg Gianforte, who has the option to either sign the measure into law or veto the bill.

Mining “provides good economic value” and has the ability to “stabilize the grid and provide income for infrastructure enhancements,” as stated in the law, which outlines that Montana wants to “protect the right to mine” cryptocurrency and “provide legal clarity” for miners.

The text of the law was drafted with the assistance of the Satoshi Action Fund, which is an organization that advocates for Bitcoin (BTC).

In April of 2019, the county of Missoula in the state of Montana established regulations that forced miners to operate only in light and heavy industrial areas and compelled miners to solely utilize renewable energy. These regulations were enacted. The zoning regulation of the county would be overturned if the bill were to be enacted.

A similar law that seeks to protect crypto miners from discrimination was approved by the Mississippi state Senate at the beginning of February and is now making its way to the Mississippi House of Representatives.

In the meanwhile, the Digital Asset Mining Protection Act of Missouri was submitted to the state legislature in the middle of January with the intention of safeguarding the legal rights of cryptocurrency miners.

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CleanSpark Buys 20000 New Bitcoin Miners to Boost

by Blockchain News

CleanSpark, a Bitcoin miner, is expanding its mining capacity in the United States by purchasing 20,000 additional Antminer S19j Pro+ machines for a total cost of $43.6 million. It is anticipated that the acquisition would increase the processing capacity of the firm by 37%. Additionally, the transaction will bring the total number of miners acquired during the bear market up to 46,500 units.

After applying coupons for a discount of 25%, CleanSpark will pay $32.3 million for the machines. This comes out to a total price per terahash (TH) of around $13.25, as stated in a statement released on February 16th. It is anticipated that the Pro+ rigs would be delivered in batches between the months of March and May, and they are 22% more productive than their prior versions.

The firm is increasing its mining capacity by taking advantage of the market’s decreasing rig pricing in order to do so while the price of Bitcoin (BTC) is on the rise. According to information provided by Hashrate Index, the price per TH of ASICs with the same Bitcoin mining effectiveness is presently at $15.09, which is a significant drop from the price of $90.72 that was witnessed one year ago. In comparison to other computers of the same ASIC generation, the Antminer S19j Pro+ model, according to CleanSpark, provides a higher return on investment.

According to the business, “Once they are fully operational, it is projected that they will add 2.44 EH/s to CleanSpark’s current 6.6 EH/s of bitcoin mining processing capacity (for a total of 9 EH/s),” which would represent an increase of 37%.

CleanSpark asserts that the acquired models continue to be more appealing to its operations in the present market circumstances and that this trend will likely continue in the foreseeable future. “The S19j Pro+ delivers 122 terahashes per machine and saves an average of 2 joules of energy per terahash when compared to the S19j Pro model of the same generation,” the company said, adding that a total of 15,000 of the new machines will be shipped to the company’s locations in the city of Washington, Georgia. It was announced in January by CleanSpark that the site will be receiving an extension costing $16 million. This expansion is expected to result in an increase in the hash rate of 2.2 exahashes per second (EH/s), bringing the overall hash rate to as high as 8.7 EH/s. Before moving into the premises that was previously occupied by Mawson Infrastructure Group in Sandersville, the firm bought the building in August of the previous year.

According to a research conducted by Hashrate Index, publicly traded mining businesses had an increase in their mining output as well as their hash rates in January, after a challenging year in 2022 that was marked by falling Bitcoin prices and rising power costs. The amount of Bitcoin that was mined by CleanSpark throughout the month increased by a whopping 50 percent, hitting a new monthly production high of 697 BTC. Since December, when it was 6.2 EH/s, its hash rate has increased to 6.6 EH/s.

Other public mining companies, such as Core Scientific, Riot, Marathon, and Cipher, have seen significant increases in Bitcoin production over the course of the past month. This was made possible by consistent increases in the cost of electricity in the United States as well as improved weather conditions.

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Bitcoin (BTC) $ 27,095.26 2.65%
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