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A new week closes in the dynamic world of cryptocurrencies and one of the characteristic elements was volatility. The entire crypto market experienced strong variations in its prices and several sectors such as Bitcoin Mining were part of this context.
In this work, as usual, we present you a summary of the 5 most notable news of the week in the mining industry. It is important to emphasize that miners, like whales, are among the most important actors in the Cryptocurrency universe.
Miners not only play a fundamental role in the liquidity of the crypto market, but also maintain the security of the network. Thus, the operation of the Bitcoin blockchain is closely linked to these actors, especially large mining companies.
If you want to know the highlights of this industry during the last 7 days, we invite you to continue reading this news review.
Top 5 Bitcoin Mining News of the Week
In this edition (number 180) of our classic summary, we present you an analysis of the top 5 news of the week in the Bitcoin mining industry.
Marathon offers heating to 80 thousand homes in Finland
The usefulness of digital mining to improve people’s quality of life is a factor that is no longer in doubt. Previously, the business was criticized for consuming too much energy and offering few jobs compared to other sectors that demand less energy.
However, things change as the business expands. The largest publicly traded mining company, Marathon, is currently one of the benchmarks. As such, the company offers heating services to around 80,000 homes in Finland.
Thus, the heat generated from the intense activity of ASICs is redirected towards the homes of that country. This is an example of how mining activity can be used for social benefit.
This holiday season, we’re excited to bring the gift of warmth to even more homes with the addition of our second district heating project warming a city of 67,000 residents with #Bitcoin mining. We now proudly provide heat to nearly 80,000 residents across Finland. ❄️🏠♨️ pic.twitter.com/s5Vvz0ps5v
— MARA (@MARAHoldings) December 20, 2024
Mining business will be profitable in December, says Jefferies
After several months of trouble, Bitcoin mining companies finally reached profitability in December. The latter is confirmed by analysts from the Jefferies firm. Likewise, they highlight that November’s numbers were remarkably good.
The miners’ exit from the bad moment is a direct consequence of the boost in the price of BTC after Trump’s victory in the US. In any case, “the average daily revenue per exahash was $55,649, which represented a month-on-month increase of 20.7%,” says analyst Jonathan Petersen of the aforementioned firm.
The bank ensures that large companies mined less BTC in November compared to previous months. Despite this, the rise in the price of Bitcoin allowed them to enjoy acceptable income.
The new crisis in digital mining could be an ASIC shortage
According to recent reports, the outgoing United States government plans to sanction the Chinese company Sophgo. The reason for this would be an alleged smuggling of TSMC chips to the technology giant Huawei. The latter is under the sanctions regime due to fears related to its rapid growth.
In any case, the point is that the co-founder of Sophgo is Micree Zhan, the founder of the largest mining equipment manufacturer in the world, Bitmain. If it is proven that the latter company was also involved in the unauthorized sale of semiconductors to Huawei, the mining business could suffer a shortage crisis.
A possible sanction against Bitmain would slow down the growth of the Bitcoin hashrate, given that its competitors would not satisfy the demand. The result would be a sharp increase in equipment prices and a consequent drop in profitability.
Cango announces massive purchase of digital mining equipment
Automotive transaction services company Cango announced the diversification of its business into Bitcoin mining. This company, which is listed on the New York Stock Exchange, reported this week about a million-dollar purchase of ASIC equipment from Bitmain.
In a notification to the SEC, the company detailed that the purchase is equivalent to $256 million dollars. The latter makes it one of the largest digital miners in the world, with 36 EH/s. On the other hand, the firm agreed to purchase 18 EH/s of equipment from Golden TechGen.
As you can see, the native Chinese company is close to becoming one of the largest in the mining sector, with these 54 EH/s. This is an approximate amount of the hashrate that Marathon expects to reach in December.
Mining is the best ally of the energy transition in Europe
Despite unfounded criticism of pollution, Bitcoin mining becomes one of the most important ESG drivers in the world. According to a recent work by Forbes, the mining business will solve the energy crisis on the European continent.
“By helping to stabilize grids, utilize surplus energy, and integrate with renewable sources, this technology is becoming an unexpected and vital part of the energy conversation,” the portal explains.
At this point, countries such as Germany stand out, a nation that leads projects to merge the Bitcoin mining sector with clean generation. The enormous demand for energy from mining companies generates enormous income for generators, since they sell all the surplus that is generally lost.
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