Bitmain Caught in Regulatory Crossfire, and other Bitcoin Mining News
After a strong rally last week, prices faced challenges, also affecting the mining sector.
The Taiwanese semiconductor manufacturer TSMC is said to have stopped the supply of components to its Chinese partner Xiamen Sophgo. This is because chips designed by TSMC for Sophgo were found to be used in Huawei’s AI processors. The latter company is currently under heavy sanctions imposed by the United States of America.
Where Bitmain comes into this equation is that its president and cofounder, Micree Zhan, is linked to Sophgo. Therefore, the US has no direct evidence that this company traded chips with Huawei. However, the chips discovered are similar to those that TSMC supplies to Sophgo.
Bitmain’s president could be implicated if component trading between the two companies is confirmed. This would likely affect Bitmain’s relationship with TSMC. Meanwhile, in the worst case scenario, the company would have problems supplying the powerful U.S. mining companies, which are its main customers.
Russia Announces New Mining Control Measures
Another important Bitcoin Mining news has to do with the Russian authorities and regulating the sector. New laws have been announced that will give the authorities more control over the digital mining sector, according to the TASS news agency.
One of the abilities that these laws will give to the Russian government is the ability to ban the mining business in a number of specific areas. Authorities described conditions that will allow the government to declare some regions prohibited. According to the agency, this regulation will come into force on November 1.
Another peculiarity of this regulation expands access to digital address identifiers. Previously, only the Federal Service for the Monitoring of Financial Transactions had access to such data. Now, all federal investigative agencies will have it.
Bitcoin Breaks Hashrate Record This Week
Another interesting fact this week has to do with the total computing power, or hashrate, of the bitcoin network. This metric hit a new all-time high of 736.81 EH/s this week, according to data from the hashrate index. With almost 70 EH/s added in just 9 days, this is an impressive jump.
At this rate, the measurement in Exahashes per second (EH/s) will soon become a secondary reference point. The computing power of the BTC network will reach 1,000 EH/s, which is equivalent to 1 Zettahash per second or ZH/s, sometime in 2025.
Beyond this detail, which marks a milestone in increasing the security of the network, it is worth noting that mining continues to expand. Despite the bad moment in terms of productivity this year 2024, especially after halving April.
BitFuFu Expands to Ethiopia in Search of Low Energy Costs
Finally, it should be noted that US mining company BitFuFu is preparing to establish its infrastructure in Ethiopia. According to a statement, the mining company has acquired a mining center with a capacity of 80 MW in the African country.
This geographical shift is in response to the increase in production costs that the mining industry as a whole is facing. According to the company, the costs they are facing have reached a growth of 170%. This makes their current business model virtually unsustainable.
The company’s profits have been reduced by 70% due to this increase. The board is seeking access to cheap energy sources such as Ethiopia to prevent this gap from widening. “This acquisition is an important milestone as we work to vertically integrate and transition to a more diversified and resilient portfolio of bitcoin mining sites,” said BitFuFu CEO Leo Lu.
By Leonardo Pérez