Network Overview

This week Bitcoin experienced a slight recovery, reflected not just in the price but also in most network-usage metrics. The higher Bitcoin price and higher fees brought some relief to miners, who saw their revenue expand by a very substantial 25%. However, new inflation data in the US seems to have caused turmoil in the markets, and prices have responded with sharp crashes again. Mining difficulty also adjusted upwards this week, which combined with the lower Bitcoin price could lead to lower mining profitability next week.

Centralization Alert: Two Bitcoin Mining Pools Mined Over 51% of All BTC in the Last 3 Years

Over the past three years, just two mining pools: Foundry USA and AntPool, have mined over 56% of all Bitcoin blocks. Data gathered by mempool.space shows Foundry produced 28.72% of blocks and AntPool 21.42%, together surpassing the critical 51% threshold. This level of dominance means that the Nakamoto Coefficient of the Bitcoin network is effectively two, indicating that only two entities could potentially coordinate to disrupt consensus.

While Bitcoin miners are technically independent, it is the pool coordinators who control block construction, broadcasting, and reward distribution. This centralization risk is not just theoretical—F2Pool was previously caught censoring transactions, and AntPool has been linked to irregularities in fee distribution and potentially influencing smaller pools. The concentration of mining power amplifies economies of scale and could lead to further dominance, as larger pools reinvest their rewards into infrastructure and hardware. The implications challenge the long-held assumption of Bitcoin’s inherent decentralization.

Source: finbold.com

Bitfarms Stock Is Undervalued as Firm Pivots to AI and Energy – Analyst Says

H.C. Wainwright analyst Mike Colonnese has named Bitfarms one of the firm’s top Bitcoin mining picks for 2025, calling the stock “significantly undervalued” and reiterating a Buy rating with a $3.50 price target, over 3x its current trading value. This comes as Bitfarms pivots beyond mining into high-performance computing (HPC) and AI infrastructure, backed by its rapidly expanding energy portfolio.

In its Q4 2024 earnings report, Bitfarms posted a strong rebound with $56.2M in revenue, $15.2M in net income, and an adjusted EBITDA of $14.3M. Despite producing fewer BTC due to network difficulty, the company has nearly tripled its hashrate since 2023 and slashed production costs. With 18.6 EH/s deployed and recent acquisitions boosting its U.S. energy footprint, Bitfarms is shifting its growth strategy toward powering AI workloads. Colonnese sees further upside potential, especially if the company partners with a major hyperscaler.

Source: crypto.news

Bitcoin Miners See Opportunity in AI, but Also Face Challenges

As Bitcoin mining becomes more competitive post-halving and amid market volatility, miners are increasingly eyeing artificial intelligence (AI) as a growth opportunity. But transitioning isn’t simple. At the Mining Disrupt conference, industry leaders explained both the promise and the pain points of pivoting toward AI infrastructure.

Miners already operate large-scale data centers and understand energy optimization, making them well-positioned to serve AI clients. However, experts noted significant differences in operational requirements: AI data centers need uninterrupted uptime and far more complex infrastructure, including HVAC and stricter reliability standards. While the two industries share energy demands and overlapping skills, fully adapting Bitcoin mining setups for AI workloads involves steep learning curves and higher capital requirements, something not all miners are prepared for.

Source: decrypt.co

Manufacturers Are Building ASICs That Look More Like Servers.

ASIC manufacturers are beginning to ditch the shoebox form factor and embrace server-rack designs inspired by traditional data centers. Companies like Bitmain, MicroBT, Bitdeer, and Auradine are releasing new hydro-cooled ASICs tailored to fit server infrastructure. This shift could align Bitcoin mining more closely with high-performance computing (HPC) and artificial intelligence (AI) workloads.

The move toward server-compatible designs is driven by efficiency, scalability, and a growing convergence with AI infrastructure. Hydro-cooling, standard rack sizes, and direct-to-chip thermal solutions make these units easier to integrate, repair, and possibly repurpose for compute-heavy applications beyond Bitcoin. Hut 8 and potentially Marathon (MARA) are among the early adopters. While retrofitting existing mines remains a challenge, new facilities could increasingly opt for these rack-based designs.

Source: coindesk.com

Canaan Advances North American Mining Strategy via New Agreements

Canaan has announced two new hosting agreements to boost its North American mining footprint by 4.7 EH/s. One deal with Mawson Hosting LLC will bring machines to a Midland, Pennsylvania site under a three-year colocation agreement, while a second, two-year arrangement will see deployments in Edna, Texas. Most of the hashrate is expected to go online by Q2 2025.

Canaan’s CEO Nangeng Zhang emphasized the U.S. as a strategic region, citing favorable regulations and growing opportunities for hardware sales and self-mining. The company has been moving steadily into direct mining, and these deals mark a major step toward its U.S. expansion goals. Mawson’s infrastructure will support Canaan’s gear, continuing the trend of tighter collaboration between equipment manufacturers and hosting providers.

Source: news.bitcoin.com

How a Shipping Container and Bitcoin Saved a Struggling African Hydro Project

In Zambia’s remote Ikelenge district, the Zengamina hydroelectric plant was producing more energy than its community could use. That was until Bitcoin mining gave it a new lease on life. Enter Gridless, a Nairobi-based startup, which deployed a mobile mining unit to convert surplus electricity into BTC. Today, Bitcoin mining covers nearly a third of Zengamina’s revenue, enabling broader access to power and stimulating small business growth in the area.

Gridless operates similar setups across sub-Saharan Africa, using mining as a temporary financial bridge while local demand scales. Though questions remain about long-term sustainability, the model has drawn global interest. With over 300 GW of untapped hydropower potential in Africa, this approach could offer a decentralized path to rural electrification—one kilowatt and one block at a time.

Source: crypto.news

Auradine Debuts First U.S.-Engineered Hydro-Cooled Miner

Auradine has launched the Teraflux AH3880, the first hydro-cooled Bitcoin mining machine designed and engineered in the U.S., boasting up to 600 TH/s at 14.5 J/TH. The move comes amid rising trade tensions and ongoing U.S. Customs seizures of imported mining machines linked to Chinese manufacturers like Bitmain, Canaan, and MicroBT. Auradine’s U.S.-based design aims to bypass customs friction while supporting President Trump’s drive to “Make Bitcoin in America.”

Backed by MARA and building on a $150M revenue run rate, Auradine positions the AH3880 as a dual-purpose tool for both Bitcoin and AI-focused data centers. Analysts say domestic chip innovation and new regulatory clarity could trigger a $20B tailwind for U.S. miners, while supply chain nationalism reshapes the hardware landscape. With firms like Block and Core Scientific also working on U.S.-based systems, the mining arms race may be shifting back onshore.

Source: theblock.co

Pakistan Betting on Bitcoin Mining to Solve Its Power Problem

Pakistan may soon turn a longstanding liability—excess electricity—into an economic asset. Government officials, including the Ministers of Energy and Finance, are exploring a policy to attract Bitcoin miners by offering competitive electricity rates without subsidies. With miners spending up to 70% of their revenue on power, Pakistan sees an opportunity to monetize its energy surplus and draw global investment.

The newly formed Pakistan Crypto Council is working alongside regulators to create a crypto mining policy tailored to local needs. If implemented successfully, the initiative could position Pakistan as a blockchain-friendly hub, converting stranded electricity into hard currency and fueling a digital transformation in its energy sector.

Source: coinpedia.org