A new week closes in the dynamic world of cryptocurrencies and one of the characteristic elements was volatility. The entire crypto market experienced strong variations in its prices and several sectors such as Bitcoin mining were part of this context.
In this article, as usual, we present you a summary of the 5 most important news stories of the week in the mining industry. It is important to emphasize that miners, like whales, are among the most important players in the cryptocurrency universe.
Miners not only play a key role in the liquidity of the crypto market, but they also maintain the security of the network. Thus, the functioning of the Bitcoin blockchain is closely linked to these actors, especially the large mining companies.
If you want to know the highlights of this industry during the last 7 days, we invite you to continue reading this news review.
Top 5 Bitcoin Mining News Stories of the Week
In this edition (number 180) of our classic roundup, we present you an analysis of the top 5 news stories of the week in the Bitcoin mining industry.
1. Marathon provides heating to 80,000 households in Finland.
2. The mining business will be profitable in December, says Jefferies.
3. The new crisis in digital mining could be an ASIC shortage.
4. Cango announces massive purchase of digital mining equipment.
5. Mining is the best ally of the energy transition in Europe.
Marathon provides heating to 80 thousand homes in Finland
The usefulness of digital mining in improving people's quality of life is no longer in doubt.
Previously, the business was criticized for consuming too much energy and offering few jobs compared to other sectors that require less energy.
However, the situation changes as the business expands. The largest publicly traded mining company, Marathon, is currently one of the leading players. The company provides heating services to around 80,000 households in Finland.
The heat generated by the intense activity of ASICs is thus redirected towards the homes of that country. This is an example of how mining activity can be used for social benefit.
This holiday season, we're excited to bring the gift of warmth to even more homes with the addition of our second district heating project warming a city of 67,000 residents with #Bitcoin mining. We now proudly provide heat to nearly 80,000 residents across Finland. ❄️🏠♨️
Mining business to be profitable in December, says Jefferies
After several months of problems, Bitcoin mining companies finally achieved profitability in December, according to analysts at Jefferies. They also point out that the numbers for November were remarkably good.
The mining companies' exit from the slump is a direct consequence of the boost in BTC price following Trump's victory in the US. In any case, " average daily revenue per exahash was $55,649, which represented a 20.7% month-over-month increase ," notes analyst Jonathan Petersen of the aforementioned firm.
The bank claims that large companies mined less BTC in November compared to previous months. Despite this, the rise in the price of Bitcoin allowed them to enjoy acceptable income.
The new crisis in digital mining could be an ASIC shortage
According to recent reports , the outgoing US administration is planning to sanction the Chinese company Sophgo. The reason for this would be an alleged smuggling of chips from TSMC to the technology giant Huawei. The latter is under the sanctions regime due to fears related to its rapid growth.
In any case, the point is that Sophgo's co-founder is Micree Zhan, the founder of the world's largest mining equipment manufacturer, Bitmain. If it is proven that the latter company was also involved in the unauthorized sale of semiconductors to Huawei, the mining business could suffer a shortage crisis.
A possible sanction against Bitmain would slow down the growth of the Bitcoin hashrate, as its competitors would not be able to meet demand. The result would be a sharp increase in equipment prices and a consequent drop in profitability.
Cango announces massive purchase of digital mining equipment
Automotive transaction services company Cango has announced the diversification of its business into Bitcoin mining. The New York Stock Exchange-listed company announced this week that it has purchased a multi-million dollar ASIC equipment from Bitmain.
In a notification to the SEC, the company detailed that the purchase is worth $256 million. This makes it one of the largest digital miners in the world, with 36 EH/s. In addition, the firm agreed to purchase 18 EH/s of equipment from Golden TechGen.
As you can see, the Chinese-born company is close to becoming one of the largest in the mining sector, with these 54 EH/s. This is an amount close to the hashrate that Marathon expects to reach in December.
Mining is the best ally of the energy transition in Europe
Despite unfounded criticism of pollution, Bitcoin mining is becoming one of the most important ESG drivers in the world. According to a recent report by Forbes, the mining business will solve the energy crisis on the European continent.
" By helping to stabilise grids, utilise surplus energy and integrate with renewable sources, this technology is becoming an unexpected and vital part of the energy conversation ," the portal explains.
Countries such as Germany stand out in this regard, a nation that leads projects to merge the Bitcoin mining sector with clean generation. The enormous demand for energy from mining companies allows the generators to generate enormous income, since they sell all the surplus that is usually lost.