Stay up to date with the CriptoTendencia WhatsApp channel: Instant news about Bitcoin, Altcoins, DeFi, NFT, Blockchain and Metaverse. Subscribe!
A new week closes in the world of cryptocurrencies amid strong price volatility. Particularly, BTC experienced significant swings that led to huge losses in the leveraged derivatives market. Amidst this enormous volatility, the Bitcoin Mining industry also experienced notable events.
It is important to take into consideration that the digital mining sector represents a factor of great interest in the crypto market. The large companies in this industry have enormous capacity to keep prices stable. The latter is because they are responsible for sending or withdrawing liquidity from the market with new currencies.
This fact makes investors have special interest in events in the mining industry. In this work, as usual, we review the main news of the week within the Bitcoin mining industry.
If you want to know the most important events of the last 7 days in this sector, we invite you to continue reading this work.
Top Bitcoin Mining News This Week
In this new edition (number 179) of our classic mining summary, we present you the 5 most relevant news of the week. This installment highlights information of great interest such as the increase in profits and the cumulative approach of some of the large mining firms listed on the stock market.
1. Cumulative mining profits reach $71 billion milestone
One of the most notable news this week has to do with the revelation of the accumulated profits of the mining companies. Since this industry began operating, profits amount to $71.49 billion dollars. On December 5, the largest Cryptocurrency established a new all-time high at $103,613 per coin. This allowed a huge boost to mining companies’ profits.
According to data shared by Glassnode, this allowed miners to take a leap in productivity. In that sense, the $71.49 billion milestone was achieved much faster than expected. In one publication In X, Glassnode details that these profits are divided into $67.31 billion for block processing and $4.18 billion in transaction fees.
So far, miners have moved 19.79 million BTC out of the total supply of 21 million from the network. The more than $71 billion represents the reward the network pays to operators who decide to keep it secure by contributing their hash power.
2. Marathon and Riot prioritize BTC accumulation
From being constant injectors of liquidity to the market, Bitcoin mining companies are adopting another strategy. Currently, an accumulating trend is emerging among mining companies, which could give enormously positive results, both for them and for BTC investors.
Recently, giants in the sector such as Marathon Digital and Riot Platforms (first and third largest in market capitalization), reinforced their reserves in BTC. The boards of both companies announced the issuance of convertible notes to raise a combined approximate $1 billion.
With these funds, the companies carried out massive purchases of Bitcoin. It is expected that other mining firms will join this trend called the Bitcoin pattern.
3. Iranian authorities blame digital mining for blackouts in the country
Authorities in the Islamic Republic of Iran are facing power outage issues and some point to digital mining as to blame. And it’s no wonder. The cost of electricity in the Persian country is the lowest in the world, making it one of the favorite destinations for Bitcoin miners.
The problem with this is that some people take advantage of the low costs of subsidized energy to mine BTC illegally. In this way, clandestine mining centers appropriate a large part of the limited generation capacity dedicated to civil purposes. The result of this is constant blackouts in the country.
It is important to highlight that energy generation is one of Iran’s big problems. This is not due to a lack of energy sources, which are abundant, but rather to a lack of generation technology. It must be remembered that the country faces strong sanctions that prevent it from developing its electrical infrastructure at an acceptable pace.
4. Cleanspark raises capital, but not to buy Bitcoin
Cleanspark is another of the publicly traded Bitcoin mining companies that decided to issue debt to raise funds. This week, the company announced the issuance of 0% convertible notes to raise at least $550 million.
According to information collected by CriptoTendencia, unlike MARA and RIOT, these funds will not be used to purchase Bitcoin. Contrary to this, the firm will inject these capitals into various financial commitments of the company.
Likewise, another part of the funds will be used to purchase more digital mining equipment. It should be noted that Cleanspark is the fourth largest company in market cap of those listed on the US stock market.
5. Paraguay makes efforts to stop the proliferation of illegal digital mining
Just as in Iran, Paraguay authorities have a huge problem with illegal digital mining centers. Government entities face a desperate situation in this sense, which they seek to remedy in different ways. This year the authorities even reformed the penal code to impose severe punishments on illegal miners.
However, the measures do not seem to stop the proliferation of illegal activity. Apparently, the risks of capture, fines and prison are worth it. The rise of clandestine centers causes an enormous energy deficit, especially subsidized energy.
According to reports from the authorities of the South American country, losses related to stolen energy amount to 28%. As the popularity and price of Bitcoin grows, the business becomes more profitable and illegal mining activity increases.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
