Tag: Mining

Riot Platforms’ Major Expansion: Acquiring 66,560 Bitcoin Mining Rigs from MicroBT

by Blockchain News

Recently, Riot Platforms, a big participant in the Bitcoin mining market, made a huge move by purchasing 66,560 Bitcoin mining rigs from MicroBT. This acquisition was a significant move with substantial implications. One of the most significant expansions in the history of the corporation is represented by this acquisition, which is estimated to be worth around $290.5 million. Riot Platforms has shown its dedication to expanding its mining capabilities by the announcement of this contract, particularly in light of the forthcoming Bitcoin halving that is slated to take place in April of 2024.

The acquisition of these mining rigs by Riot Platforms is a strategic move that the company is making in order to strengthen its position in the cryptocurrency mining business. Riot has extended its original arrangement with MicroBT, whereby the firm had previously committed to purchase 33,280 machines in June, and this current order is an extension of that agreement. Riot’s mining capacity has significantly increased as a result of this most recent purchase, which increases the total number of rigs bought from MicroBT to another 100,000.

It is anticipated that the freshly purchased mining machines, which include the most recent generation of M66S models, would offer a total of 18 EH/s (exahash per second) in mining power. With this new addition, Riot Platforms’ operating capacity has been significantly increased, and the company is working towards achieving a total hashrate capacity of one hundred EH/s. It is possible that Riot Platforms will become one of the most powerful entities in the world in terms of mining power as a result of the growth in its hashrate.

Because it takes place before the Bitcoin halving event that is slated to take place in April 2024, the timing of this purchase is very important. In the Bitcoin ecosystem, the halving event is an important event that takes place about every four years. During this event, the reward for mining new blocks is cut in half, which results in a decrease in the pace at which new bitcoins are created. Because miners anticipate changes in the value of the cryptocurrency and the profitability of mining, this occurrence often results in an increase in interest and investment in mining operations.

The most recent investment made by Riot Platforms in Bitcoin mining rigs manufactured by MicroBT was a significant milestone in the company’s growth and preparedness for the forthcoming half of the Bitcoin supply. Riot is positioned itself to become a strong participant in the cryptocurrency mining sector by dramatically boosting its mining capacity. This might possibly have an impact on the dynamics of Bitcoin mining after the halving of the supply.

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Bitdeer Reports Robust Operational Performance for October 2023

by Blockchain News

Singapore-based Bitdeer Technologies Group (NASDAQ: BTDR), a global frontrunner in the cryptocurrency mining industry, has released its unaudited operational metrics for October 2023, showcasing sustained robust performance and strategic advancements. Throughout the month of October, both the hash rate and the electrical capacity remained stable, which was praised by the CEO Linghui Kong. He brought out the fact that the Gedu Datacenter in Bhutan had contributed 3.3EH/s to the overall hash rate as well as 211 Bitcoins, which accounted for more than half of the entire Bitcoin production for the month. The ongoing construction of the Tydal Datacenter in Norway, which is anticipated to be completed in the year 2025, serves as an instance of the company’s devotion to the advancement of technology as well as the rise in shareholder value.

Bitdeer is a firm that operates in three key business areas, including self-mining for the goal of directly acquiring bitcoin, hash rate sharing including cloud hash rate plans, and complete hosting services for the maintenance of mining rigs. These three business sectors are all part of Bitdeer’s overall operations.

The most significant operational figures for the month of October 2023 indicated an unchanged total hash rate of 21.2 EH/s, with 221,000 mining machines under administration and an aggregate electrical capacity of 895MW across six datacenters. Despite the fact that Bitcoin mining slowed down somewhat from September to October, year-over-year production of the cryptocurrency increased by a significant 173.4%.

On the infrastructure front, Bitdeer is advancing its 175MW immersion cooling datacenter in Norway and will be actively participating in upcoming industry conferences, reinforcing its position in the digital assets landscape​​.

The fact that Bitdeer has operating presences in a variety of nations, including the United States of America, Norway, and Bhutan, is evidence of the company’s commitment to provide all-encompassing solutions for the mining of digital assets. Bitdeer is responsible for handling all aspects of the mining process, from procurement to day-to-day operations.

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Bitmain Commits $54 Million Investment in Core Scientific, Inc. Amid New Supply Contract

by Blockchain News

At the World Digital Mining Summit, Core Scientific, Inc. (OTC: CORZQ), a North American leader in blockchain computing data centers and software solutions, disclosed a significant investment from Bitmain, the globally recognized manufacturer of digital currency mining servers. Bitmain’s commitment amounts to $53.9 million, further cementing the bond between the two industry giants.

This collaboration will see Bitmain furnishing Core Scientific with 27,000 of its latest Bitmain S19J XP 151 TH bitcoin mining servers. The transaction involves a $23.1 million cash payment and an equity exchange worth $53.9 million in Core Scientific common stock. The equity’s per-share value will be finalized following a chapter 11 plan of reorganization, anticipated to gain approval in the upcoming fourth quarter.

Max Hua, Bitmain’s CEO, expressed his optimism about the strengthened ties with Core Scientific, praising their “professionalism, integrity, and commitment” to the Bitcoin Network’s growth. He emphasized the shared vision of both companies in fostering the expansion of the Bitcoin Network, especially as global bitcoin adoption surges.

Core Scientific’s history with Bitmain is deep-rooted. Since its inception in 2017, Core Scientific has managed over 600,000 Bitmain miners across its data centers. Presently, a staggering 99% of the 200,000 miners they operate, both owned and hosted, are Bitmain S19 models. Bitmain has also been a loyal hosting customer for nearly half a decade, entrusting Core Scientific with a significant portion of its mining equipment.

Adam Sullivan, CEO of Core Scientific, acknowledged the pivotal role Bitmain plays in their operations, stating, “Bitmain’s product quality, attention to service, and responsiveness are critical to our success.” He further highlighted the anticipated efficiency boost the new miners would bring, especially in light of the upcoming halving event.

By the close of 2023’s fourth quarter, Core Scientific aims to integrate and activate the 27,000 units, potentially adding 4.1 exahashes to its self-mining hash rate. Additionally, both parties have consented to upgrade older Bitmain miners at Core Scientific’s facilities to the newer S19J XP models, promising an even greater hash rate increment.

As of the end of August 2023, Core Scientific boasted an impressive energized hash rate of 22.0 exahashes per second, spread across its data centers in five U.S. states. Their self-mining operations yielded 965 bitcoins in August alone, with a cumulative 9,755 bitcoins mined year-to-date, surpassing any other publicly listed bitcoin miner in North America.

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Coinbase Addresses Zcash Mining Centralization Concerns

by Blockchain News

Coinbase’s Blockchain Security Team recently identified a significant shift in the Zcash network’s hash power distribution. A single mining pool, ViaBTC, was found to control over 51% of the network’s computational power, raising concerns about potential security vulnerabilities.

In Proof-of-Work (PoW) blockchain networks, miners compete to validate transactions by solving complex mathematical problems. However, if a single miner or mining pool gains over 51% of the network’s hash power, it can introduce risks such as executing double-spend attacks or censoring transactions. Such centralization can jeopardize user and exchange funds.

Coinbase, committed to ensuring security, decentralization, and compliance with digital asset listing standards, has taken several steps in response:

Increased Confirmation Requirement: Coinbase has increased the Zcash confirmation requirement to 110 blocks. This move aims to reduce the risk of double-spending or fraudulent transactions, extending the deposit time from approximately 40 minutes to around 2.5 hours.

Limit-Only Trading Mode: To minimize the impact of potential volatility, Coinbase has transitioned its Zcash trading markets into a limit-only state.

Engagement with Stakeholders: Coinbase has initiated discussions with the Electric Coin Company, the organization behind Zcash, and ViaBTC. The dialogue centers around the risks associated with mining centralization. Coinbase has offered recommendations for strategies that could be implemented to reduce the risk of a 51% attack.

Coinbase’s Blockchain Security Team conducts thorough security assessments before adding any blockchain to its exchange. A primary criterion is ensuring that no single entity has centralized control over the network. The team also continuously monitors existing blockchain networks for significant changes that might affect their security evaluations. For PoW networks, specialized hash power heuristics are employed to detect notable shifts in mining power.

Coinbase remains hopeful for a decentralized Zcash mining future. While the current mitigations are believed to be sufficient in protecting users, the company emphasizes its ongoing collaboration with external partners to ensure the security of all participants in the cryptoeconomy. Coinbase commits to continuously monitoring the situation and adjusting its risk mitigations as necessary to safeguard its customers.

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Intel to Discontinue Blockscale Bitcoin Mining Chips

by Blockchain News

Major United States-based technology company Intel has announced plans to discontinue its Blockscale Bitcoin mining chips. According to a Reuters report on April 18, Intel will stop taking orders for the Blockscale 1000 Series ASICs by Oct. 20 and end shipping roughly in April 2024. The move is aimed at cutting overall costs as part of a strategy of prioritizing the manufacturing of certain chips to outside customers.

Intel launched the Blockscale mining chips in April 2022, touting the ASIC hardware’s hash rate of up to 580 gigahash per second. Each chip could be combined and merged into a single mining unit, making it a popular choice for mining firms. Argo Blockchain, Block, Hive Blockchain Technologies, and GRIID Infrastructure were among the first companies to integrate the technology into their operations.

However, with the new announcement, Intel is discontinuing the Blockscale line of chips. The move is part of a broader effort by the company to cut costs and improve efficiency. Intel CEO Pat Gelsinger reportedly took a 25% pay cut in February, and the company is projecting annual cost reductions of up to $10 billion due to cost-cutting initiatives and efficiency gains by 2026.

While Intel plans to discontinue the mining chips, the company said it would continue monitoring “market opportunities” in the crypto space. This suggests that Intel remains interested in the cryptocurrency industry and could potentially launch new products or services in the future.

The Blockscale line of chips was a significant offering for Intel, but the company’s decision to discontinue them is not entirely surprising. The cryptocurrency industry is highly competitive, and mining firms are always looking for ways to improve efficiency and reduce costs. Additionally, the recent drop in Bitcoin’s price has made mining less profitable for many miners, leading some to scale back or even exit the industry altogether.

Overall, Intel’s decision to discontinue the Blockscale line of chips reflects the broader trends in the cryptocurrency industry. As the market continues to evolve, it is likely that we will see further consolidation and changes among industry players. However, with Intel’s continued interest in the crypto space, it is also possible that the company will launch new products or services that cater to the needs of the industry.

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BTC Mining Report Draws Criticism

by Blockchain News

The New York Times’ recent report on Bitcoin mining, “The Real-World Costs of the Digital Race for Bitcoin,” has been met with criticism from BTC proponents. The article claims that Bitcoin mining has a “voracious” appetite and uses as much energy as all residences in New York City. However, some analysts have pointed out that the article cherry-picks data and neglects the increasing use of renewable energy in the mining sector.

Bitcoin environmental, social, and governance (ESG) analyst, Daniel Batten, said that the article exaggerates the fossil fuel use of BTC miners and uses incomplete datasets to support its thesis. He also noted that some Bitcoin miners in the United States and Canada use 90% sustainable energy to fuel their mining activities, but the NYT article focuses on the sites least backed by renewable energy.

Bitcoin proponent, Troy Cross, criticized the article for using “marginal emissions accounting” and selectively applying it only for carbon emissions, not generation. Dennis Porter, CEO of the Satoshi Act Fund, also noted an error in the article’s initial reporting, where the wrong town was named for a BTC mining facility in Texas.

BTC mining firm Riot’s vice president of research, Pierre Rochard, accused the NYT of using “fictitious fractional-reserve carbon accounting” and “cooking the books to fabricate emissions.” Meanwhile, another Twitter user believed that the article was fear-mongering.

Despite the debate on Bitcoin mining’s energy consumption, it remains significant for the blockchain. Mining is used to verify transactions, make it decentralized, and add a layer of security. According to the Bitcoin Mining Council’s Q4 2022 report, the Bitcoin network is already a leader in sustainable energy use, with 58.9% of its energy coming from renewable sources.

While some mainstream outlets criticize Bitcoin mining for its environmental impact, many BTC proponents see these reports as hit pieces and offer opposing perspectives. Some are even campaigning to change Bitcoin’s mining consensus to the more environmentally friendly proof-of-stake. Despite the criticism, Bitcoin mining’s importance to the blockchain makes it an essential area for continued development and research into sustainable energy solutions.

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Bitcoin Hash Rate Spikes to All-Time Highs

by Blockchain News

Bitcoin has been making headlines lately, as its price continues to rise, and the hash rate of the network has reached all-time highs. According to data aggregator YCharts, Bitcoin’s network hash rate hit 398 terahashes per second (TH/s) on March 23, a significant increase from 335.32 TH/s on March 26. This surge in hash rate is being attributed to various factors, including unused mining inventory coming online, new facilities going live, and entrepreneurs finding cheap sources of mining.

Sam Wouters, a research analyst at Bitcoin financial service provider River Financial, believes that the recent spike in hash rate is linked to the inventory of mining hardware that was brought online last year. He notes that while Bitcoin’s price was low, miners brought as much inventory online as possible, and the network reached maximum capacity. However, with the recent price surge and some time passing, more inventory has been able to go online, leading to the spike in hash rate.

Wouters also suggests that Hydro models are starting to enter the market, with “250+ TH/s per machine, which adds tremendous hash rate.” Similarly, a March 20 analysis from investment banking company Stifel shared a similar sentiment, speculating that miners are bringing hardware back online, which is leading to the increase in hash rate.

One company that is benefitting from the recent surge in hash rate is TeraWulf, a US-based Bitcoin mining company. According to its CEO, Ammar Khan, TeraWulf has been able to continue mining Bitcoin at lower price levels due to its efficient mining fleets. Khan explains that some have speculated that lower prices forced miners to shut down their rigs and wait for the BTC price to improve, but TeraWulf has been able to continue mining due to their low-cost energy sites.

Khan also notes that TeraWulf has the opportunity to expand its capacity by 80 MW at LMD and 50 MW at Nautilus. He believes that the recent price movement is an indication of the long-term value of the ability to expand at low-cost energy sites. However, he does not expect the network hash rate to continue to increase through the first half of the year, as there is a lag between when investment decisions are made and when that capacity comes online.

In conclusion, while the exact reason for the recent spike in hash rate is unclear, it is evident that Bitcoin mining is becoming increasingly profitable, and miners are taking advantage of the current market conditions. As more companies enter the market, and more inventory comes online, it will be interesting to see how the hash rate continues to evolve and how it impacts the price of Bitcoin.

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Solo Bitcoin Miner Wins Rare Block Reward Worth Over $150,000

by Blockchain News

Bitcoin mining is the process by which miners add new blocks to the Bitcoin blockchain. Miners must use computational power to solve complex mathematical equations to create a valid block hash. When a miner successfully creates a valid block hash, they receive a block reward of new bitcoins as well as transaction fees.

Solo mining, where a miner attempts to mine a block on their own, is becoming increasingly difficult as the network hash rate and the power of mining machines continue to rise. It is rare for a solo miner to solve a block on their own, and it typically takes them several months to do so.

However, the solo miner behind the recent block reward was able to achieve this feat in just two days. It is speculated that they may have rented hashing power to increase their chances of producing a valid hash quickly.

The miner used the Solo CK Pool mining service, which allows solo miners to create a mining pool with just one mining rig. This enables solo miners to increase their chances of earning block rewards by combining their hashing power with that of other solo miners.

The Solo CK mining pool has a history of producing solo-mined Bitcoin blocks. In January 2022, the pool was responsible for two solo-mined blocks, occurring just two weeks apart.

While solo mining is becoming increasingly difficult, there are still many miners who prefer to mine on their own rather than joining a mining pool. Solo mining allows miners to have complete control over their mining operations and to keep all of the rewards for themselves.

However, as the difficulty of mining solo continues to increase, more miners are likely to join mining pools to increase their chances of earning block rewards. Despite this, there will always be solo miners who are willing to take on the challenge of mining Bitcoin on their own.

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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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