The Venezuelan National Power Ministry announced a special operation to disconnect all bitcoin mining farms from the grid. Authorities have seized over 11,000 bitcoin miners as the government seeks to reduce the power usage from high-power customers siphoning energy from the national electric system. Venezuelan Authorities Seize and Disconnect Over 11,000 Bitcoin Miners Amidst Energy […]
Bitcoin News
Mining Rig Producer Canaan’s Q1 Unrealized Gains Narrow Net Loss to $39.4 Million
In the first quarter of 2024, Canaan Inc. generated .1 in revenues versus the .4 million in costs incurred in the same period which resulted in the company recording a gross loss of .3 million. Nangeng Zhang claimed that Canaan’s revenues in the last quarter exceeded expectations due to the company’s persistent sales efforts and […]
Bitcoin News
Mining Rig Producer Canaan’s Q1 Unrealized Gains Narrow Net Loss to $39.4 Million
In the first quarter of 2024, Canaan Inc. generated .1 in revenues versus the .4 million in costs incurred in the same period which resulted in the company recording a gross loss of .3 million. Nangeng Zhang claimed that Canaan’s revenues in the last quarter exceeded expectations due to the company’s persistent sales efforts and […]
Bitcoin News
Crypto Mining Surge and Erratic Weather Strain Laos’ Power Grid
A report released on May 16 highlights how increased electricity consumption due to crypto mining and inconsistent rainfall have led to power shortages in Laos, challenging its goals as a hydropower exporter in Southeast Asia. Reuters: Increased Crypto Mining Strains Laos’ Hydropower Grid Laos, often called the “battery of Southeast Asia” for its extensive hydropower […]
Bitcoin News
Enegix Global Launches New Bitcoin Mining Brand 21pool After Halving
PRESS RELEASE. Dubai, UAE – Enegix Global, a leading player in the digital mining infrastructure industry based in the UAE, is excited toannounce the launch of its new brand, 21pool. The brand’s flagship product is a bitcoin mining pool that specializes in aggregating the computational power of miners to increase payouts. 21pool utilizes the most […]
Bitcoin News
Biden Orders Chinese-Backed Crypto Mining Firm to Divest Land Near US Missile Base
President Joe Biden has issued an order that blocks Mineone Partners Ltd., a Chinese-backed cryptocurrency mining company, from owning land near Wyoming’s Francis E. Warren Air Force Base, which is a strategic missile base. This measure requires the divestment of land used for crypto mining and the removal of surveillance-capable equipment, citing national security risks. […]
Bitcoin News
Bitcoin’s Significant Adjustment: Mining Difficulty Hits 18-Month Low – What’s Next For Miners?
The Bitcoin mining difficulty has experienced a significant decrease, the largest drop observed in the last 18 months. This change is directly tied to fluctuations in the network’s hash rate, which has dipped below 600 EH/s following the recent halving event.
The adjustment, which marks a 5.7% fall in mining difficulty, brings the level down to 83.1 trillion, according to data from Bitbo.
This most substantial adjustment since December 2022 reflects broader shifts within the Bitcoin mining landscape. At that time, Bitcoin’s price hovered around ,000, contrasting sharply with current levels.
Notably, the mining difficulty, a metric that determines how challenging it is to find a new block, adjusts approximately every two weeks, or every 2016 blocks. This system ensures that block discovery remains consistent at around every 10 minutes, irrespective of the number of miners.
Impact On Miners And Market Dynamics
The recent decline in mining difficulty came after a 10% drop in the network’s hash rate from a seven-day moving average of 639.58 EH/s to 581.74 EH/s.
This decrease in hash rate led to longer average block times of about 10 minutes and 36 seconds, up from the standard 10 minutes, before the difficulty adjusted downward at block height 842,688.
The reduced hash rate also contributed to a new low in the hash price, which fell to roughly .049 per TH/s per day.
This decline impacts miners’ profitability, as the hash price, a term introduced by Bitcoin mining firm Luxor, represents the earnings a miner can expect per unit of hashing power per day.
However, today’s negative difficulty adjustment may provide some relief for miners, making it easier to mine blocks than in the previous two weeks.
Bitcoin Market Reactions And Investment Trends
The adjustments in mining difficulty and hash rate come when Bitcoin’s price also shows signs of volatility. After reaching a peak above ,000 in March, the price has fallen by 16% and is now trading around ,376.
This decline mirrors the broader trend in the mining difficulty, suggesting a possible correlation between these metrics.
Furthermore, the market has observed subdued activity in the spot Bitcoin exchange-traded funds (ETFs). Data from Soso Value indicates minimal net inflows or outflows, with Bitwise Bitcoin ETF being the only issuer that experienced inflows yesterday.
On May 8, the total net inflow of Bitcoin spot ETF was .5409 million. Grayscale ETF GBTC has no inflows and outflows. Bitwise ETF BITB saw a single-day net inflow of .5409 million. The total net asset value of Bitcoin spot ETFs is .504 billion. https://t.co/OkjFkXsACa
— Wu Blockchain (@WuBlockchain) May 9, 2024
This trend could signify a cooling interest in Bitcoin investments or a shift in investor strategy following the recent price and mining adjustments.
Feature image from Unsplash, Chart from TradingView
Genesis Digital Assets to Launch Flare Gas Powered Bitcoin Mining Site in Argentina
Genesis Digital Assets, a leading digital miner, has partnered with YPF Luz, an Argentine power company, to receive power from a flare gas installation to operate a bitcoin mining site in Argentina. The data center facility, in the Bajo del Toro thermoelectric plant, will host 1,200 bitcoin miners. Genesis Digital Assets to Operate Flare Gas […]
Bitcoin News
Core Scientific Posts $210.7M Profit in Q1 2024, Boosted by Bitcoin Mining Surge
Core Scientific announced a significant recovery in its financial performance for the first quarter of 2024, reporting a net income of 0.7 million, a stark contrast to the net loss of .4 million from the same period last year, driven by an increase in Bitcoin mining and hosting services. The company mined 2,825 bitcoins in […]
Bitcoin News
GoMining Secures Bitscale Capital Backing to Accelerate Its NFT-Based Bitcoin Mining Operation
PRESS RELEASE. British Virgin Islands / Wednesday / GoMining, the infrastructure company easing access to Bitcoin mining with its Liquid Bitcoin Hashrate protocol, has raised million through a direct investment from Bitscale Capital, a top international VC fund. The agreement will see Bitscale Capital acquire equity worth million, in the shape of GOMINING, […]
Bitcoin News