Network Overview

This week has been one of contraction for Bitcoin price and also for the network. As everyone takes profit and sells to benefit from tax advantages, hashrate and difficulty continued to expand. However Bitcoin price contracted by 8%, falling under the $100,000 level and severely diminishing Bitcoin mining revenue. Network usage has also seen an important contraction, with estimated transaction value falling by 35%. This has significantly reduced network fees, which contributed to the reduction in mining revenue.

As December comes to an end and the new year approaches, selling for tax purposes should stop soon. It remains to be seen whether this will reignite the bull run of the last few months.

Trump’s Bitcoin Mining Ambition Faces Global Reality

Donald Trump’s vision to mine all remaining Bitcoin in the U.S. is a consequence of his interest in harnessing Bitcoin mining as a way to achieve energy dominance. Nevertheless, despite his patriotic rhetoric, the decentralized nature of Bitcoin’s network makes such a policy difficult to achieve. Globally, countries like Russia, China, and Ethiopia are using cheap energy and vast resources to dominate mining, leaving U.S. miners struggling with rising costs and tougher competition.

American miners face mounting challenges, from increasing mining difficulty to skyrocketing operational costs. This year’s Bitcoin halving slashed rewards, squeezing profits further. Despite Trump’s support and $135 million in campaign contributions from the crypto industry, many U.S. mining firms remain in the red. Meanwhile, global players continue to expand, leaving U.S. miners grappling with the reality of a decentralized network that transcends borders.

Source: Cryptopolitan

Ethiopia’s Hydroelectric Power Drives Bitcoin Mining Revenue Boom

Ethiopia is turning its renewable energy surplus into digital profits, with the Grand Ethiopian Renaissance Dam (GERD) powering Bitcoin mining activities that now account for 18% of Ethiopian Electric Power’s (EEP) income. Over the past year, the country has generated $1 billion from Bitcoin mining, surpassing earnings from regional power exports. Deals with 25 mining companies and competitive electricity tariffs of just 3.2 cents per kilowatt-hour have made Ethiopia a hub for international miners, particularly following China’s mining crackdown.

This trend isn’t isolated to Ethiopia. Across Africa, Bitcoin mining is being integrated with renewable energy projects, driving rural electrification and economic development. From microgrids in Kenya and Zambia to Congo’s Virunga National Park funding conservation efforts, Bitcoin mining is proving its value as a tool for sustainable growth.

Source: Crypto News Flash

Bitcoin Miners’ Spending Strategies Diverge Amid Market Dynamics

Bitcoin miners are adopting different approaches to capital deployment as they navigate the current market environment. Hut 8 recently made headlines with its purchase of 990 BTC for $100 million, following a strategy to build up its bitcoin reserves. In contrast, CleanSpark is focusing on mining Bitcoin at a significant discount to the spot price, with a production cost of $36,250 per BTC last quarter. CleanSpark’s growth priority lies in reaching a 50 EH/s hashrate by 2025 while managing its treasury of 9,297 BTC.

Meanwhile, Marathon Digital is using funds raised from convertible notes to expand its holdings, reaching 44,394 BTC as of December 18. The contrasting strategies reflect the different philosophies among miners—some prioritize building reserves to complement operations, while others focus on production efficiency and reinvestment in infrastructure for long-term growth.

Source: Blockworks

Bitcoin Mining Stocks Struggle Despite Network Growth and BTC Price Surge

Publicly traded Bitcoin mining companies faced mixed fortunes in 2024, with 17 out of 25 miners reporting losses, according to Hashrate Index data. While the HI Crypto Mining Stock Index rose from 4,234.18 in January to 5,330.37 in December, many mining companies struggled despite Bitcoin reaching all-time highs and a network hashrate of over 770 EH/s. Argo Blockchain Plc saw the steepest decline, losing 82.92% of its share value, while hosted mining companies like Bitdeer Technologies Group emerged as winners, gaining 165.32% this year.

Diversification strategies are driving success for some miners. TeraWulf, for example, shifted focus to AI data centers and achieved 170.87% growth, while Hut8 expanded its BTC treasury with debt financing, boosting its shares by 92.7%. However, operational costs and varying production prices remain challenges, with miners holding 1.9 million BTC, down from 2.02 million in August. In the US, Foundry dominates the mining pool landscape, controlling 31% of the total hashrate.

Source: Crypto News Flash

Russia to Restrict Crypto Mining in 10 Regions Until 2031

Russia has announced a comprehensive ban on cryptocurrency mining in 10 regions, set to take effect in January 2025 and lasting until 2031. The move aims to manage energy consumption while prioritizing industrial power needs. Areas like Dagestan, Chechnya, and the Donetsk and Lugansk People’s Republics will face a total prohibition, while regions such as Irkutsk, Buryatia, and Zabaikalsky will experience temporary restrictions during peak demand periods.

These restrictions follow Russia’s 2023 legalization of crypto mining, which requires miners to register with the Federal Tax Service. Individual miners are capped at using 6,000 kWh per month. The measures are part of Russia’s efforts to balance cryptocurrency innovation with energy stability.

Source: Coinpedia

Halliburton Ventures into Bitcoin Mining with Investment in 360 Energy

Halliburton, the world’s second-largest oilfield services firm, has entered the Bitcoin mining industry by investing in Austin-based startup 360 Energy. Through Halliburton Labs, the company became an equity partner and welcomed 360 Energy into its energy technology accelerator program. The startup focuses on transforming stranded and flared natural gas into power for modular Bitcoin mining data centers, offering oilfield operators a way to monetize waste gas and reduce environmental impact.

360 Energy plans to collaborate with Halliburton to expand its off-grid mining solutions and develop its In-Field Computing technology for upstream oil and gas companies globally. This innovative approach demonstrates the potential of Bitcoin mining to repurpose stranded resources, generate revenue, and reduce environmental harm in the oil and gas sector.

Source: Bitcoin.com

Marathon Digital Heats 80,000 Finnish Homes with Recycled Bitcoin Mining Heat

Marathon Digital Holdings has extended its innovative heat recycling initiative, now providing heating to approximately 80,000 residents in Finland. Using surplus heat from its Bitcoin mining operations, the company has significantly contributed to energy efficiency goals in the Satakunta region. The program builds on a successful pilot launched in June, which initially heated 11,000 homes.

The initiative employs district heating technology, transferring centrally heated water through underground pipelines to warm homes. This approach showcases the potential of Bitcoin mining to address environmental challenges and align with climate goals.

Source: CryptoSlate

NiceHash Relocates Headquarters to Switzerland to Enhance Compliance

NiceHash, a prominent cryptocurrency mining platform, has officially moved its headquarters from the British Virgin Islands to Zug, Switzerland. The relocation aims to align the company’s operations with Switzerland’s regulatory framework and ensure compliance with the European Union’s upcoming Markets in Crypto-Assets Regulation (MiCA) and the Travel Rule.

MiCA, set to take full effect on December 30, 2024, introduces comprehensive regulations for crypto assets, while the Travel Rule mandates improved transaction transparency to combat financial crimes.

Source: Finbold

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