Miner Weekly: Hashprice Squeeze 🥲
Here's our estimation on the all-in mining costs of 12 public bitcoin mining companies.
Hashprice 📉
As expected, bitcoin mining difficulty shot up 9.25% this week, reaching close to the ATH level set earlier this year. Effectively, bitcoin's hashprice has again dropped to just above $0.08 per TH/s. It further squeezes the profitability of mining participants and puts mounting capitulation pressure over those who are operating inefficient equipment or paying high energy prices.
All-in Mining Costs 📈
With several more public mining companies releasing Q2'22 earnings, we have compiled an estimated breakdown of their all-in bitcoin mining costs, based on our analysis of their respective financial statements. Most public miners were able to keep their costs of mining revenues (power, site maintenance, relocation, etc.) below $20,000.
But adding general expenses alone could already paint a different picture as several companies would exceed a cost of as much as $30,000 per BTC. There's a caveat, though. Mining companies that have revenue streams besides self-mining don't break down general expenses by business segments. We took a fair-share of revenues approach to estimate general expenses on self-mining – hence it may not be perfect. Nonetheless, the pain is being felt for those who have higher production costs but don't have a solid margin from other revenue streams or healthy liquidity to weather through the crypto market downturn.
Regulation News
EU Lawmakers Vote Down Green Crypto Mining Study — www.coindesk.com
The Green Party had pushed for research into mining techniques after failing to impose restrictions on bitcoin-style proof-of-work.
Paraguay's President Vetoes Crypto Mining Law, Citing 'Massive' Energy Cost The Paraguayan president rejected a crypto mining bill on Tuesday because the energy costs outweigh any employment benefits.
Hardware News
Applied Blockchain Broadens Digital Ambitions — www.forbes.com
It sold all of its mining gear for a $1.6 million profit and got out of that business entirely.
Bitcoin Miners' Profitability May Narrow as Mining Difficulty Hits Second-Biggest Increase This Year Bitcoin miners are stepping up production as the weather cools down, so the network automatically adjusted to increase the difficulty of mining a block.
Finance News
Bitcoin Mining Execs Make Serious Bank Versus Other Industries — blockworks.co Riot Blockchain shareholders refused to award five bitcoin mining executives with a $90 million compensation package, despite the board.
Northern Data Considers Proposal to Buy Back Shares — www.bloomberg.com
German Bitcoin miner Northern Data AG is considering a proposal to buy back shares in a program valued in the tens of millions of euros.
Adit Edtech, Griid Infrastructure Extend Deadline to Finalize $3.3B Deal
On Aug 26, bitcoin mining firm GRIID and its SPAC entered into a waiver agreement where each party agreed to waive, until Oct 1, its right to terminate the merger plan announced in 2021.
Infrastructure News
Compute North Bringing Data Center Near McCamey Wind Farm Online — www.mrt.com Compute North is bringing its new data center co-located in a wind farm near McCamey online, utilizing the power generated by the wind farm to power operations.
Bitcoin Mining Middleman Compass' Georgia Facilities to Close as Energy Prices Soar — www.coindesk.com The company is offering to move approximately 5,000 machines to Texas.
TeraWulf Announces Amendments to its Nautilus Joint Venture Agreement with Talen Energy
Under the amended agreement, TeraWulf will retain a thirty-three percent (33%) ownership interest in the Nautilus JV.
General News & Features
Texas Crypto-Mining Rush May Need as Much Power as Entire State of NY
Crypto currency miners are accelerating their push to expand in Texas far beyond what authorities had initially expected, threatening to send the state's electricity use skyrocketing.
The End of the Texas Bitcoin Mining Gold Rush — www.coindesk.com
The new era for mining in the state might look more like a slog than a boom — but it could also be better for the electric grid.
Oil and Gas and Crypt Miners Are Colorado's New Odd Couple. And They’re Making Quite a Bit of Coin — coloradosun.com Colorado won't let drillers flare excess natural gas, so they've found a way to convert methane into bitcoin mining.
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