A week of important events in the cryptocurrency market is coming to an end. The dynamics in the sector are one of the highest in recent years and everything points to the good times continuing. All this gives way to a more favorable environment for the Bitcoin mining industry.
After months of negative performance, this sector is once again moving towards profitability thanks to the consecutive ATHs that Bitcoin has set for several days. This Sunday alone, the largest cryptocurrency marked two historical highs above $80,000 per token.
Donald Trump's landslide victory in the US presidential election last Tuesday became the key factor. In fact, the new administration could lay the groundwork for a large-scale recovery of the digital mining business. The latter caused the shares of the main companies in the sector to experience huge increases this week.
Top 5 Bitcoin Mining News Stories
In this new edition (number 174) of our summary, we present you the most important news of the week in the Bitcoin mining sector. If you want to keep up to date with the most important events in this industry, we invite you to continue reading this work.
1. Hive Digital increases its BTC holdings.
2. Bitfufu's year-on-year revenue increased by 47.5% in the third quarter.
3. Mining difficulty reaches 100T milestone.
4. Marathon and Riot reach their highest production level since the halving.
5. Deutsche Telekom announces digital mining trials.
Hive Digital increases its BTC holdings
Mining firm Hive Digital recently published its production results for the month of October. During that period, the company is believed to have gained +51% in the value of its portfolio year-on-year. Meanwhile, during that month, the company is believed to have mined a total of 117 bitcoins, which represents a 1% increase month-on-month.
In total, the company now holds 2,624 bitcoins in its reserves, which is 51% more than in the same month last year. In the aforementioned press release, the company's CEO, Frank Holmes, said that this portfolio growth was achieved thanks to the company's prudent capital management.
The executive also said that this proactive management allowed dilution to be minimized, in addition to covering operating expenses. On the other hand, Holmes expressed his optimism about the new era for the world of cryptocurrencies after Donald Trump's victory in the United States.
" With President Trump's administration and a Republican-led Congress in place, the company anticipates policies that will benefit both the Bitcoin ecosystem and the capital markets ," he commented.
Bitfufu's year-on-year revenue increased by 47.5% in the third quarter
Another Bitcoin mining company that reported more positive than expected earnings was Bitfufu. This week, the company published its earnings report for the third quarter of the year.
During that period, the firm released its unaudited financial results, which consisted of revenues of $90.3 million. This represents an increase of 47.5% from $61.2 million in the same period last year. Among the sectors with the highest growth are cloud mining solutions with 51.4% year-over-year.
With these results, the company is showing significant profits thanks to the rise in the price of BTC. The latter suggests that the fourth quarter of the year will also be particularly favourable.
Mining difficulty reaches 100T milestone
The constant increase in the global Bitcoin hashrate has caused an equivalent increase in the network's difficulty in processing transaction blocks. In this sense, the difficulty index experienced an automatic upward adjustment of +6.24% on Monday, leaving it at 101.65 T.
This is the first time in the history of the Bitcoin blockchain that the complexity has surpassed the 100 trillion barrier . As you might expect, this increase has two results. The first is that it strengthens the security of the network. Meanwhile, the second is that it harms small and medium-sized miners and drives the centralization of the mining business.
Network difficulty adjustments occur automatically every 2,016 transaction blocks. This is a time period of approximately two weeks. The difficulty goal is to keep the average mining period between blocks at 10 minutes. The next adjustment will occur in one week and is expected to increase the difficulty by 0.62%.
Marathon and Riot reach the highest level of production since the halving
Two of the world's largest Bitcoin mining companies, Marathon and Riot, released their production results this week. Both companies experienced their highest production month in October since the halving in April of this year. The executives of these mining companies emphasize that the increase in their computing power allowed them to make this leap in production.
As CoinTelegraph reported, Marathon Digital mined 717 bitcoins during October. Meanwhile, its hash power increased by 14% and surpassed 40 EH/s. Meanwhile, Riot Platforms mined 505 BTC during the same period, which translates to a month-over-month increase of 22.6%.
According to the company's management, this improvement was related to the increase in its hashrate to 29.4 EH/s. At the beginning of the week, the company's shares were in the red. However, after the news of Trump's victory, they rose significantly during the rest of the week.
Deutsche Telekom announces digital mining trials
While some mining firms are looking to exit the business to focus on AI, other traditional finance companies are looking to get into Bitcoin mining. This is the case of German telecom giant Deutsche Telekom, which announced a partnership with the country's oldest bank, Bankhaus Metzler.
The initiative that these companies are carrying out is to use surplus clean electricity in digital mining. With this, they seek to take advantage of surpluses that would otherwise be unused due to lack of demand and lack of storage capacity.
They argue that digital mining can create a favourable balance in demand for clean energy. This ultimately benefits generating companies and stimulates increased production.
