A new week closes in the hectic world of cryptocurrencies and volatility played a predominant role. In this work, as usual, we present you a summary of the most important news in the Bitcoin Mining industry.
It is important not to lose sight of the fact that the mining business is fundamental to the stability of the entire digital currency market. In this sense, what happens in this industry will have an almost inevitable impact on the prices of BTC and the rest of the altcoins.
At the time of writing, the price of the pioneering digital currency is $58,202 per token. Meanwhile, the mining industry is struggling to get out of the worst of the post-halving scenario. If you want to know the state of the mining sector during the last 7 days, we invite you to continue reading this news summary.
Top 5 Bitcoin Mining News Stories of the Week
In this new edition (number 164) we present you a summary of the most important news in the world of Bitcoin mining. Among them, the progressive extinction of capitulation and the increase in computing power thanks to new massive connections of mining equipment stand out. These are the most important news of the week:
Digital mining does not benefit the employment sector in Paraguay
According to a report by the Social Security Institute, Paraguay’s mining industry does not offer any kind of advantages to the employment sector of the South American country. In the document presented to Congress, it is stated that all the companies together generate less than 400 jobs, specifically 383 jobs.
Meanwhile, there are about 40 mining companies that do not have any type of employment relationship registered with the authorities. In specific terms, the investigation found that 66% of the mining companies existing in Paraguay do not generate a single job, with zero contribution to the local social system. These companies are suspected of employing workers through third parties, which suggests precarious jobs that violate the country’s laws.
On the other hand, some 20 companies that contribute to the IPS have an insignificant proportion of workers compared to the energy they demand. The total ratio is 1.58 jobs for each megawatt they subscribe to.
Miners’ reserves increase
One positive piece of data that emerged this week about the Bitcoin mining sector has to do with reserves. According to data compiled by CriptoTendencia, miner reserves have reached a 6-week peak, suggesting that capitulation may be waning.
CryptoQuant analysts note that the mining hash price is improving, which is an indicator that the companies’ revenues are improving. In this way, the profitability of the business is gradually returning, which is shown by the increase in BTC reserves.
With improved profitability, companies have less need to sell their BTC to cover operating expenses. This is a clear sign that the outlook is improving for the mining industry, even though there are notable challenges ahead. Among them is the fact that the average cost of producing a BTC far exceeds the price of the coin.
Bitcoin hash price is improving, showing increased profitability of the mining business. Source: CryptoQuant
Iris Energy announces new massive ASIC purchase
As a sign that the prospects for the mining business are improving, some bold bets stand out, such as that of Iris Energy. This company announced a new massive purchase of mining equipment. In particular, the firm is buying 31,000 S21 XP machines from Bitmain.
The company’s purchase brings an additional 10 EH/s to its computing power. With this, the company is preparing to reach its goal of 30 EH/s by the end of this year 2024. In its most recent quarterly report, the firm showed several numbers that show its financial improvement despite the difficulties of that period.
On an annual basis, the firm recorded a record $184.1 million, reflecting the results of its expansion strategy. Moreover, this increase in profits is also related to the improvement in Bitcoin’s performance compared to fiscal year 2023.
IREN shares have improved, but it seems unlikely that they will recover the $10 they lost at the end of July. Source: Yahoo Finance
Rising difficulty creates problems for small miners
This week, Bitcoin mining news has highlighted the positive increase in network difficulty. This is considered positive because it is a response to the increase in the hash power of the global network, i.e. the number of equipment connections. The point is that this is proof that the profitability of the sector is constantly improving.
However, for small and medium-sized miners, the issue is much more pressing. The effects of the halving are still felt by most of this category of miners and an increase in difficulty does not benefit them at all. The latter is due to the low rate of connections that could allow them to balance their income.
As reported by this media, this is in addition to the poor performance of the Bitcoin price and high average production cost for each coin. In any case, the network difficulty reached 89.47 T (trillions) and was placed very close to its historical maximum of 90.67 T.
Cipher Mining acquires 300 MW site in Texas to boost its mining capacity
Cipher Mining announced the acquisition of a new 300 MW development site in West Texas, increasing its total portfolio to more than 2.5 GW across 10 locations. The agreement, valued at $67.5 million or $225,000 per MW, also includes a variable fee of $3 per MWh for the first five years thereafter.
Although the firm’s management did not provide details on construction and energization timelines, they highlighted the site’s potential for high-performance computing infrastructure and digital mining.
Analysts see the acquisition as a strategic move to secure low-cost power in West Texas, a region known for its attractive energy prices, likely between 2 and 3 cents per kWh. The full breakdown of the site could require an additional $67.5 million, assuming its use for BTC mining.
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