Welcome to Bitdeer’s Mining Industry Report, September 2021 edition. Our monthly report provides an overview of the biggest news in the cryptocurrency mining industry and an analysis of the latest mining metrics.
Bitcoin Mining Currently Extremely Profitable
A combination of factors, resulting from China’s ban on mining back in May, has seen Bitcoin mining become one of the world’s most profitable industries. As Chinese hashrate switched off and the mining difficulty dropped, it became easier to mine blocks and less competitive while the price remained relatively high. Unaffected miners, with operations in regions such as Quebec, Texas, and Kazakhstan, have benefited greatly. A report published on August 16th by Glassnode Insights showed that miner revenue, in terms of BTC, had grown to 8.8 BTC per Exahash. An increase of 57% since the 2021 lows. If you’re interested in seizing this opportunity, Bitdeer offers Cloud Hashrate Plans that enable you to start mining Bitcoin within 24 hrs. It is the easiest way to start mining and requires 0 technical expertise. Acquire Bitcoin below market rate and enjoy daily payouts to your wallet!
Chinese Miners Migrate Enmass to Texas
The state of Texas, in the United States, has welcomed Bitcoin miners with open arms in light of China’s ban on mining. In addition to having an abundance of energy resources, a primary reason for Chinese miners relocating to Texas is because it has an open power grid that allows anyone to bid for demand and supply. In recent months the Texas Governor, Greg Abbott, has repeatedly tweeted his support for crypto businesses relocating to the state. The state government has also passed legislation that further legitimizes cryptocurrency as a method of payment.
Malaysian Authorities Crush Over 1,000 Antminer S9
A surreal video has emerged out of Malaysia which shows a steamroller destroying more than 1,000 Antminer S9 machines. While the S9 model is somewhat obsolete in 2021, they are still widely in use and seeing them destroyed may bring some Bitcoin enthusiasts discomfort. The mining rigs were seized by police after discovering their operators had stolen more than $2,000,000 USD worth of electricity over the course of 3 months. The stunt was filmed with the goal of deterring others who might consider stealing electricity, a growing problem for authorities in recent times.
Warning: The following video contains graphic scenes that some miners may find disturbing.
BlackRock Holds 384M USD in Bitcoin Mining Company Shares
Documents submitted by BlackRock, a multinational investment company worth $9 trillion USD, revealed that it has major investments in cryptocurrency mining operations through ETFs. The documents show that Blackrock owns 6.71% of Marathon Digital Holdings and 6.61% of Riot Blockchain, both publicly traded companies. Combined, these investments are worth $384 million USD. Earlier in August Coindesk reported that Marathon had signed a contract with Bitmain for the purchase of 30,000 Antminer S19J Pro machines, a deal worth $120.7 million USD, to be hosted at Compute North’s 300 MW data center in Texas. BlackRock’s investments are further proof that Bitcoin and cryptocurrency are increasingly being recognized as legitimate assets by the mainstream.
Bitcoin (BTC) Metrics
China’s ban on mining during June was truly a black swan event. It resulted in the largest single drop in Bitcoin hashrate ever recorded, decreasing 65% from 197 EH/s to lows of 68 EH/s. These hashrate levels had not been seen since August of 2019. Hashrate has since partially recovered, as miners migrating from China came back online at the start of July, rising as high as 142.53 EH/s on the 24th of August.
Shortly after the collapse in hashrate, Bitcoin’s difficulty adjustment algorithm kicked in and it saw a similarly historic decrease. From highs of 25.04T, it fell 45%, reaching a low of 13.65T before rebounding to 17.61T.
The last time we saw difficulty this low was in June of 2020, the difference being that price was $7,000 back then compared to about $30,000 now. This has presented an excellent opportunity for miners to increase their margins, with profits being magnitudes higher now than it was back then. This is clearly illustrated in the Hashprice Index, which has since climbed as high as $0.4/TH/Day with Bitcoin’s price surging to $50,000 USD. Bringing it back above the pre-China ban levels.
This month we were very excited to debut the Inside Mining Podcast, hosted by C. Edward Kelso, on Spotify. As the name implies, Inside Mining is a mining-focused Bitcoin podcast that aims to delve deeper into this exciting field through interviews and commentary on recent events. There are already 3 episodes available for listening which hosted different guests and covered topics from China’s mining ban to eco-friendly mining.
At the end of June Bitdeer began presales of Antbox, a plug-and-play mobile mining farm. In light of China’s mining ban, Antbox came at the right time and provided Chinese miners with the perfect solution for efficiently relocating their miners and getting them back online. Antbox allows miners to reduce farm construction periods by 3 months and save up to 50% on construction costs. For these reasons and other factors, it has revolutionized the way that mining farms are built. Prior to being made publicly available, Antbox has already been used extensively by Bitdeer in our self-operated mining farms. The Bitdeer farms in North America and Norway are 100% comprised of Antbox units. If you are interested in Antbox, please get in touch with our team.
Bitdeer.com is the world’s leading cryptocurrency mining and cloud services platform. We provide the ability to mine cryptocurrency in a transparent, reliable, and convenient way. On behalf of our customers, we handle the purchasing, installing, and hosting of mining machines. Individual miners can enjoy our services with just one click.