Weekly Mining Newsletter
Bitcoin miners kick off earnings week with M&A news and big digital assets impairment while the energization of new capacities continues.
Highlights of the week
It's been a busy earnings week for public bitcoin miners. Some of the miners with large BTC holdings like Marathon and Hut8 have reported large digital assets impairments that affected the EBITDA due to the overall crypto downturn in Q2. Nevertheless, they are still progressing towards expansion goals set for the end of 2022.
Meanwhile, we are starting to see M&A activities making headlines in the industry. CleanSpark acquired a distressed 36MW mining site with 3,400 miners in operation for $25 million. Elsewhere in the industry, Iris Energy and Cipher Mining announced the completion of respective power capacities ready for plugging in miners. And Genesis Digital Asset secured 708MW of capacity for bitcoin mining over the first half of 2022, spreading across west Texas, as well as North and South Carolina.
With more miners releasing earnings next week, we will take a look at their respective cost of productions in Q2 v.s Q1. Stay tuned!
Regulation
Celsius Wants To Sell Its Mined Bitcoin. Texas Regulators Don’t Trust It. — blockworks.co
The Texas State Securities Board cited Celsius' "problematic asset deployment decisions" in a formal objection to bitcoin sales last week.
Kazakh Authorities Arrest 23 Suspected of Forcing IT Professional to Run an Illegal Crypto Mine: Report The country is still grappling with the illegal crypto mining industry.
Hardware
Bitcoin Miner CleanSpark Buys 36MW Facility and 3,400 Machines in Georgia for $25.1M — www.coindesk.com The Las Vegas-based company continues to look for growth in a market ripe for mergers and acquisitions.
Iris Energy Turns On 41 Megawatts of Bitcoin Mining Machines Ahead of Schedule The company plans to add another 50 MW by the end of next month, bringing its total hashrate to 3.7 exahashes per second.
Finance
CleanSpark Raises Year-End Hashrate Guidance, Sets 2023 Outlook The miner suffered a $29.3 million loss for the fiscal quarter, partly driven by the previously disclosed decision to sell its energy assets.
Marathon Increased Bitcoin Holdings Amid $191.6M Quarterly Losses Bitcoin miner Marathon Digital increased its Bitcoin holdings by 707 despite a quarterly decline in production.
Crypto Miner Core Scientific Cuts 10% of Staff, Keeps Hashrate Projection The company also took a $840 million accounting charge to write down the value of its assets.
Renewable Energy Company Closes $4.3M Capital Round to Convert Landfill Methane Into Bitcoin Vespene Energy’s first funding round was led by Polychain Capital.
Riot Blockchain Delays Earnings Report to Sort Out How Much Crypto Rout Devalued Its Assets Its rivals Marathon, Cipher and CleanSpark all managed to get their results out this week as expected.
Hut 8's Q2 Loss Widens to $69M, Continues to 'Hodl' Bitcoin The lower price of bitcoin and higher power costs hurt the results.
Stronghold Digital Mining Pushes Back Q2 Earnings Due to 'Significant Announcement' Stronghold Digital Mining has pushed back its second-quarter earnings call to August 15.
Infrastructure
Genesis Digital Locks In 708 MW of Energy for Bitcoin Mining — www.coindesk.com The power capacity is spread across sites in west Texas, as well as North and South Carolina.
Cipher Mining Completes 40-Megawatt Wind Powered Site in Texas Cipher Mining has completed its first site in Alborz, Texas, with a 40-megawatt capacity and has started shipping rigs to additional centers.
General & Features
After Countless Bungles, Compass Mining Tries to Change Course — www.coindesk.com The company that set out to make crypto mining available to retail investors has had to put out its own fires.
Norwegian Bitcoin Miner Moves North of Arctic Circle Where Electricity Cheaper Soaring power prices are forcing a Bitcoin miner and data center operator in southern Norway to head north.
Crypto Lender Tied to Chinese Rig Giant Offers Loans to Bitcoin Miners
Chinese Bitcoin mining rig giant Bitmain Technologies Ltd. has been selling machines to miners for about nine years. Now it's helping to keep them afloat during the cryptocurrency market downturn through its ties with industry financier Antalpha.