Miner Weekly: Realized Hashrate – a New Metric
Mining companies slowed down dumping their BTC holdings in August and are maximizing their hashrate capacity.
Introducing "Realized Hashrate"
This week we introduce a new chart that tracks the "realized hashrate" of publicly traded bitcoin mining companies by using:
1) Their BTC production during a month, 2) The Bitcoin network's average hashrate, and 3) Bitcoin's total block rewards in the month.
Why is it relevant? We believe it provides a more accurate picture of a mining company's hashrate during a month. By comparing a company's realized hashrate against its installed hashrate, we get a better idea of how much of its available computing power a company is realizing.
The logic is simple. By comparing a company's monthly bitcoin production with the total bitcoin rewards that were up for grabs during that month, we get the company's realized share of the network's average hashrate.
For instance, the 31-day average hashrate in August was 210.6 EH/s. The total rewards were 29,863 BTC, including block subsidies and transaction fees. Hence, every 1 EH/s of hashrate should have produced 141.8 BTC in August on average. Riot mined 374 BTC last month, which translates to a realized hashrate of 2.64 EH/s. Using this method, we have compiled the year-to-date realized hashrate for 13 dozen public mining firms.
It is interesting how the realized hashrate of a company compares to its self-disclosed installed hashrate capacity. In Riot's case, its realized average for August was 2.64 EH/s, about 55% of its installed capacity of 4.8 EH/s. This sheds new light on a mining operation's reliability. Voluntary curtailment of its mining operation to instead sell power to the state grid in August was one reason that Riot wasn't hashing at a higher percentage of its installed capacity. In the chart below, we have listed the year-to-date (YTD) percentage of the realized hashrate of all mining companies compared to their installed hashrate.
BTC Liquidations
It appears that mining companies slowed down liquidating their bitcoin holdings in August, compared to liquidations in June and July. In terms of monthly productions, Iris Energy stood out by almost doubling its results in August. The top five bitcoin mining firms by bitcoin production in August were Core Scientific, Bitfarms, CleanSpark, Hut8, and Riot.
Regulation News
Crypto Mining Energy Usage Endangers US Climate Efforts, White House Says — www.bloomberg.com
The White House says the environmental impact of producing cryptocurrencies like Bitcoin could impede U.S. efforts to combat climate change.
Hardware News
CleanSpark Buys 10K New Machines for $28M After Discounts, Credits — www.coindesk.com The company has been taking advantage of opportunities to expand in the bear market.
Hive Blockchain Testing Other GPU Mineable Coins Ahead of the Merge — www.theblock.co Mining company Hive Blockchain is testing other coins to mine with GPUs after Ther Merge, stating it is "well poised" to navigate the competitive market.
Finance News
Poolin Suspends Withdrawals From Wallet Service — www.coindesk.com On Sunday, the mining pool acknowledged having liquidity issues.
Bitdeer and Its SPAC Have Extended the Merger Deadline Again to Dec 14
The deadline was initially set for June 14 and was extended already for three months.
Infrastructure News
CleanSpark to Buy Mawson’s Georgia Mining Facility, Rigs for Up to $42.5M — www.coindesk.com
The deal has the potential to increase CleanSpark’s hashrate to 5.2 EH/s by the year-end, exceeding the company’s previous guidance.
Cryptomining holding firm acquires underground data center in Texas — www.datacenterdynamics.com Cryptomining holding firm acquires underground data center in Texas
General News & Features
Large Ethereum Miners Look to Cloud Computing, AI Ahead of The Merge — www.coindesk.com The network's upgrade will do away with the need for bulky and expensive data centers, which the miners are looking to repurpose.
How a Small Intel Team Built a Blockchain Chip Behind the Builders: Ajat Hukkoo leads an Intel team that ‘builds accelerators in an accelerated manner.’ The Intel Blockscale ASIC fits the bill on both fronts.
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