Bitcoin Mining Industry Highlights for the Week
Overall, the sector’s revenues improved somewhat. The latter is related to the rise in the price of BTC and the increase in transaction fees.
A new week closes in the agitated world of cryptocurrencies with a strong dose of volatility. As such, the price of BTC dropped from $73,500 to the current $68,250 per coin. All this climate that occurred during the week had a sensitive impact on the Bitcoin mining sector, where proactivity dropped.
Other news of interest in this industry also attracted attention. Among them is the one related to CleanSpark’s plans to boost productivity. As can be seen, the dynamics within the mining sector continues despite the bad times it has been going through for months.
Mining Profitability Drops for Fourth Straight Month, JPMorgan Says
The profitability of digital mining declined in October, according to US bank JPMorgan Chase. This is the fourth month in a row that mining companies have seen a decline in profits. The bank notes that the daily gross profit per block fell to its lowest level in recent history, as quoted by CoinDesk.
Thus, the profit of the miners fell to an average of $41,800 per EH/s in October, a decrease of 1% compared to September. Meanwhile, the revenue from commission fees has increased to 60% of the reward per block of transactions.
All of this happened while the hash rate of the bitcoin network and the difficulty of processing blocks reached new records. For example, the average monthly hash rate in October was 702 EH/s.
CleanSpark Aims to Improve Efficiency Through Cooling
Bitcoin mining company CleanSpark made another major industry news this week. In this regard, the management of the company is ready to move forward with a new plan to increase the efficiency of its mining operations through the use of cooling.
This would involve the use of liquid cooling technology on some 3,800 mining machines produced by Canaan. This involves immersing the ASICs in dielectric oil. This prolongs the life of the equipment by keeping it cool, which has tremendous benefits. It also improves power consumption by a significant percentage.
Canaan’s equipment is a perfect fit for CleanSpark’s new strategy, said Canaan CEO Nangeng Zhang. In this case, the equipment is the Avalon A1566I.
Bitfarms and Stronghold Sign New Hosting Agreement for 10,000 Mining Rigs
Mining companies Bitfarms and Stronghold have signed a new hosting agreement. The agreement covers approximately 10,000 ASICs. This is the second similar agreement between these companies. This agreement will allow the company to significantly increase its valuation in the short term, according to Bitfarms management.
The company’s 10,000 ASICs will be used at Stronghold’s Scrubgrass facility. It was expected that they would be located at the Paraguay farm. However, plans have apparently changed.
Russian Authorities Track Growing Home-Based Mining Business
Home bitcoin mining is one of the booming businesses in the Russian Federation. The latter is due to numerous factors, such as low temperatures and low household energy costs in the Eurasian country. However, the national authorities do not seem very comfortable with the rise of this practice.
As a result, they are waging a campaign to neutralize private mining, along with the law legalizing mining on industrial terms. Some modalities are difficult to neutralize, although there have been some arrests and dismantling of infrastructure.
In Siberia, for example, some miners carry out their operations in vehicles. Basically, they assemble equipment in vans that they move from place to place when they have suspicions that they are under investigation.
By Audy Castaneda