As many of you might know, the ONLY way to get Bitcoin (BTC) into the world is via the miners. Mining is a process where specialized computers run computations on the network to verify transactions and place those transactions in a block. The specialized computer that solves an algorithm correctly by finding the correct nonce gets rewarded with Bitcoin.
Initially this was 50 Bitcoin ever 10 minutes! Today that reward has been cut in half (every four years) to 6.25 BTC. The scarcity is real. Anyhoo, let’s check in to see what’s going on with these miners this week:
The Bitcoin mining industry continues to grow at a rapid pace. Northern Data’s existing Bitcoin mining customer expands contract volume by more than 200 MW. However, there is a shortage of hardware. Bitcoin mining machine shortage worsens as Bitmain sells out through August.
The amount of money the miners are making today is mindblowing. Bitcoin miners brought in $692 million in revenue during December. Bitcoin hash rate surges to new all-time high of 148 EH/s as Bitcoin miners are now making $33 Million a day. However, outside funding is required to allow these miners to scale. Bitcoin miner Marathon Patent Group completes $200M capital raise (which now values the company at $1B) and partnered with DMG to create the first North American coop mining pool; Bitcoin miners are heading west. Bitcoin's sky-high price has sparked a profitability renaissance for older mining hardware. Of course it’s a chicken and egg problem, does mining follow hashrate or hashrate follows price?
The opportunity to make money is so great, former Canaan directors to guide Chinese gaming “The9's” pivot to Digital Asset mining.In addition, Canaan releases liquid-cooled A1066I Bitcoin miner.
Meanwhile, Iranian authorities close 1,620 illegal Digital Asset mining farms. Of course not everyone can just get into this game, the barrier to entry is great, so be prepared and well funded if you consider entering.