Original title: (Bit Deer October Mining Information: Ethiopia Becomes a Mining Hub; BTC Mining Costs Reach $49,500, etc.)
Original source: Wu Says Blockchain
1. Bit Deer announced the specifications for the SEALMINER A2 series bitcoin mining machines, with the SEALMINER A2 air-cooled mining machine having a hash rate of 226 TH/s and an energy efficiency ratio of 16.5 J/TH. The SEALMINER A2Hyd water-cooled mining machine reaches a hash rate of 446 TH/s with an energy efficiency ratio of 16.5 J/TH, built on a 2U standard server, easy to deploy, and seamlessly compatible with Shennma's water cooling infrastructure.
2. Bitcoin mining company Terawulf has sold 25% of its stake in the Pennsylvania nuclear-powered Nautilus bitcoin mine to its joint venture partner Talen Energy for $92 million. Terawulf announced that it completed this transaction 'before the expiration of the $0.02/kWh power contract and land lease in June 2027.' The company plans to reinvest the proceeds into building a 20 MW facility named CB-1 at its flagship Lake Mariner site in New York, specifically for high-performance computing (HPC) and AI data centers. Terawulf stated that the construction of CB-1 'is expected to commence operations in the first quarter of 2025.'
3. Bitcoin mining company Marathon Digital (MARA) incubated the Layer2 network Anduro, which launched the tokenization platform Avant to issue and invest in real-world assets (RWA) on the Bitcoin network. Avant was developed in collaboration with the tokenization platform Vertalo and is planning a pilot project to tokenize whiskey barrels. (CoinDesk)
4. More than twenty residents in Granbury, Texas, have sued crypto mining company Marathon Digital, claiming that the noise from its nearby mining site is 'unbearable.' The lawsuit states that some locals have experienced symptoms such as fatigue, headaches, memory loss, hearing loss, migraines, and tinnitus. The existing health conditions of some residents, such as hypertension, have also worsened. The residents are requesting the court to issue a permanent injunction against the mining company to prevent it from 'creating, causing, or allowing any unreasonable noise.' They are also seeking 'any reasonable compensation' as well as litigation costs.
5. Luxor co-founder and COO Ethan Vera revealed that bitcoin mining in Ethiopia has consumed 600MW of electricity and is expected to add hundreds of megawatts of mining machines by the end of the year. Vera stated that miners primarily use Antminer S19J Pro and Avalon A1346 models, and thanks to the local low electricity costs, Ethiopia has become an ideal location for such mining machines. It is estimated that this mining capacity accounts for about 2.5% of the global bitcoin network's hashing power.
6. Bitmain announced the release of the ANTMINER S21+ series of mining machines, with the S21+ Hyd having a single-machine hash rate of 319 T and an energy efficiency ratio of 15.0 J/T, while the S21+ has a single-machine hash rate of 216 T and an energy efficiency ratio of 16.5 J/T. Bitmain also showcased the air-cooled mining machine ANTMINER S21 XP, the oil-cooled mining machine ANTMINER S21 XP Imm, and the water-cooled container ANTRACK.
7. Cryptocurrency mining company Compass Mining announced a partnership with South Korean digital asset service provider Mindshift to expand bitcoin mining operations in South Korea. This collaboration aims to address challenges like high electricity costs and provide more convenient bitcoin mining services for South Korean residents. Additionally, Mindshift plans to launch a new product that allows South Korean customers to purchase bitcoin mining equipment and have it maintained at Compass's data centers.
8. The cryptocurrency mining company IREN (formerly Iris Energy) is facing a class action lawsuit from investors, accusing it of misleading investors regarding its high-performance computing business. On October 7, a class action led by Paul Williams-Israel was filed in a federal court in New York, claiming that IREN's facility in Childress, Texas, was falsely advertised as a data center available for high-performance computing (HPC) and exaggerated its computing capacity. The lawsuit also pointed out significant misinformation regarding IREN's expansion plans and HPC strategy released in a statement in June 2023.
9. The city of Thorndale in Texas passed a resolution supporting local residents, opposing the establishment of a 15 MW bitcoin mining facility in the area. The project was proposed by Data Factory Austin, planning to build near Milam County, Thorndale. However, local residents expressed concerns about the project and initiated a petition to try to stop its development. The petition highlighted that bitcoin mining consumes a significant amount of electricity, equivalent to the daily electricity usage of 10,500 households, while bitcoin itself has no intrinsic value and should not burden uninvolved residents with high electricity costs.
10. Bitcoin mining company Bit Digital (BTBT) announced the acquisition of the Enovum data center located in Montreal, Canada, for $46 million, which is a Tier 3 high-performance computing (HPC) facility. The acquisition was financed through the company's cash reserves and approximately 1.62 million newly issued BTBT shares.
11. Digital asset broker FalconX launched an automated liquidation service aimed at improving the capital efficiency of cryptocurrency mining companies in the Asia-Pacific region. FalconX stated that this service can automatically convert cryptocurrency mining rewards, including Bitcoin, Litecoin, and other proof-of-work tokens, into US dollars. This service will simplify the operations of mining enterprises, allowing them to reinvest in their businesses more quickly without manual trading or relying on third-party providers. (Decrypt)
12. Bitcoin infrastructure development company Blockstream announced the completion of a $210 million convertible note financing, led by Fulgur Ventures. Blockstream co-founder and CEO Adam Back stated that this round of financing will be used to accelerate market adoption of its Layer 2 technology, expand its mining business, and increase its bitcoin reserves. Blockstream's Layer 2 solutions include Liquid Network and Core Lightning. The company claims that to date, over $1.8 billion in assets have been issued on Liquid, including stablecoins, tokenized bonds, and securities, with approximately 3,844 bitcoins (about $250 million) locked on-chain. Furthermore, Blockstream plans to position Liquid as the 'de facto infrastructure' for the tokenization of physical assets within the bitcoin ecosystem.
13. Bitcoin mining company MARA announced that it has obtained a $200 million line of credit from an undisclosed counterparty, using part of its bitcoin holdings as collateral. The company stated it will use this funding to seize strategic opportunities and for other general corporate purposes. Although MARA did not disclose specific details about the terms of the line of credit, recent agreements by industry competitors had a loan-to-value ratio of about 70% and a weighted average interest rate of 4.2%. Assuming a 70% loan-to-value ratio, MARA would need to pledge approximately 4,000 BTC as collateral for this $200 million credit. This line of credit was issued two months after MARA issued $300 million in convertible bonds, with a bond interest rate of 2.125%. The company subsequently used $250 million of that to purchase 4,144 BTC. As of September 30, MARA held a total bitcoin reserve of 26,842 BTC.
14. Bitcoin mining hosting provider Revolve Labs plans to establish an AI data center in central Minnesota, having previously withdrawn a mining expansion proposal due to community opposition. Revolve Labs held a meeting with the Glencoe Economic Development Authority in September to plan the expansion of its facilities in the city to accommodate one or two AI data centers, along with cooling systems and backup generators. The project is expected to have a capacity of 10 MW, employ about 10 people, and cost between $40 million and $60 million. As part of Revolve Labs' proposal, they intend to purchase two parcels of land totaling 6.2 acres and build a substation for the expansion. Currently, Revolve Labs operates a bitcoin mining facility in Glencoe with a capacity of about 20 MW and a hash rate of 537 PH/s. Previously, the company attempted to increase its mining capacity in Minnesota but withdrew its application after community opposition due to noise issues.
15. The Russian government and the country's crypto miner BitRiver announced plans to build mining data centers in BRICS countries. The plan involves the Russian Direct Investment Fund (RDIF), and both parties released related news on October 18 at the BRICS Business Forum in Moscow. BitRiver CEO Igor Runets stated that the focus will be on building infrastructure based on cryptocurrency mining to enhance global computing power to support the development of artificial intelligence projects. Currently, BitRiver has 21 data centers in Russia and is building 10 new centers.
16. Northern Data, headquartered in Germany, is considering divesting its bitcoin mining subsidiary to transition to a pure AI strategy. Northern Data announced it has initiated 'negotiations with relevant parties regarding a potential divestiture of its crypto mining business, Peak Mining.' In a subsequent announcement, the company stated that the potential proceeds from this sale will be invested in acquiring more data centers, purchasing GPUs, and developing its AI product platform.
17. BitFuFu, a cloud mining company affiliated with Bitmain, announced that it will acquire an 80 MW bitcoin mining facility in Ethiopia, with average electricity costs below $0.04 per kWh. After this transaction is completed, BitFuFu's hosting capacity will exceed 600 MW. Most of BitFuFu's mining infrastructure is currently located in the United States.
18. Bitcoin mining company Hut 8 announced that it has fully converted its subsidiary's approximately $38 million outstanding loan with Anchorage Lending CA into company common stock, with a conversion price of $16.395 per share, which is a 51% premium over the weighted average price of the 20 days before September 26. Hut 8's CEO Asher Genoot stated that this loan conversion enhances Hut 8's balance sheet, reduces debt, and allows the company to better advance discussions with potential partners and execute plans for the development of next-generation mining and AI data centers.
19. Bitcoin mining company Terawulf announced plans for a stock buyback of up to $200 million through the issuance of $350 million in convertible notes, expected to be completed by December 2025. The company also offered initial purchasers an option to add $75 million within 13 days after the issuance. Terawulf stated that the notes will mature in 2030.
20. Tether is discussing the possibility of issuing boron mining tokens through blockchain technology with the Turkish government and has proposed establishing a digital asset exchange in Istanbul. Tether believes that tokenizing boron mining can help modernize market operations. Turkey is the world's largest boron supplier, with boron sales expected to reach $1.3 billion in 2024. Currently, the proposal is still in its early stages, and officials from Turkey's energy department state that it cannot be implemented immediately.
21. Bitdeer launched the second round of second-hand mining machine auction activities on its official website. The auction targets 1,000 Shennma mining machines M30S++ from its Gedu mining farm in Bhutan, which will be auctioned in two batches of 500 units each, starting at a price of $1.8/T. The two batches of mining machines were finally sold at $3.09/T and $2.15/T.
22. The decentralized protocol Prosper announced that Bitmain's affiliated company Metalpha has invested in its native token PROS to support the project's new strategic focus on bringing institutional-grade bitcoin mining hashing power on-chain. Previously, Prosper announced a strategic shift focusing on bitcoin mining and the related bitcoin ecosystem. After the transition, Prosper's token foundation will possess a significant number of bitcoin miners, and members of the token foundation will directly contribute to the operation and production of bitcoin's underlying mining capacity. Additionally, Prosper plans to leverage Metalpha's expertise in digital asset derivatives to customize BTC hedging products for Prosper's mining business.
23. Russian Deputy Energy Minister Yevgeny Grabchak announced that due to energy shortages in some regions, Russia will limit cryptocurrency mining activities in areas with scarce electricity resources, including the Far East, southwestern Siberia, and the south, with power shortages expected to continue until 2030. On October 28, Russian police arrested a cryptocurrency miner in the Novosibirsk region suspected of electricity fraud, who illegally profited approximately $120,000 from mining. Previously, a digital asset regulatory law signed by Putin will take effect on November 1, granting the government the authority to restrict or prohibit mining in certain areas to alleviate the burden on the power grid and strengthen oversight of crypto activities.
24. Bitcoin mining company Riot Platforms reported a net loss of $154.4 million in the third quarter, exceeding expectations, and lowered its future hash rate forecast. Total revenue for the third quarter was $84.8 million, with bitcoin mining contributing $67.5 million, and the gross margin fell sharply from 181% to 42% year-on-year. The company produced 1,104 bitcoins in the third quarter, nearly the same as the 1,106 bitcoins mined in the same period last year. (The Block)
25. CoinShares' latest third-quarter mining report shows that bitcoin mining costs have soared to record levels. If only cash expenditures are considered, the production cost of each bitcoin is about $49,500; when including additional expenses like depreciation and stock compensation, the average cost rises to as high as $96,100. Chief researcher James Butterfill pointed out that despite high costs, miners are still expanding infrastructure and planning further investments in anticipation of future price increases.
26. The Zhejiang Jingde Court recently ruled on a virtual currency mining machine sales contract dispute. In April 2021, the plaintiff, Mr. Hang, purchased a 'mining machine' platform and 64 hard drives from the defendant, Mr. Chen, for a total value of 429,000 yuan. After paying the full amount, Mr. Chen failed to deliver the equipment as agreed, only refunding 180,000 yuan. The court cited the National Development and Reform Commission's notice (on rectifying virtual currency 'mining' activities) from September 2021 and notices from the central bank and other departments (on further preventing and addressing risks of virtual currency trading speculation), determining that virtual currency-related business activities are illegal financial activities. The court ruled that the mining machine sales contract was invalid due to violating public order and good morals, requiring the defendant to return the remaining 249,000 yuan payment.
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