Network Overview

With the appearance of a new AI company in China, stock an Crypto markets experienced a sharp crash earlier this week that also took Bitcoin back down to $100,000. However, the price now seems to be recovering and approaching again the very recent all time high of $109,000. Nevertheless, reduced prices and network activity have negatively affected mining revenue this week, even in the presence of the first negative difficulty correction since September.

F2Pool Censors OFAC-Sanctioned Transactions

Bitcoin developer b10c recently uncovered that F2Pool, which controls around 11% of the Bitcoin network’s hashrate, has resumed censoring transactions tied to OFAC-sanctioned addresses. This has caused concern over mining censorship, a potential threat to Bitcoin’s censorship resistance.

While one pool enforcing such policies only causes minor transaction delays, the real danger arises if a majority of pools follow suit. If they refuse to build on blocks containing sanctioned transactions, those transactions could become permanently unconfirmed, effectively rendering Bitcoin non-fungible and censorable at the protocol level.

Although legal risks may explain F2Pool’s decision, some in the Bitcoin community argue that instead of discussing a Strategic Bitcoin Reserve (SBR), policymakers should first address governmental attacks on Bitcoin, including restrictions that push miners into compliance.

Source: Bitcoin Magazine

Bitcoin Mining Fuels Paducah’s Energy Economy, Benefits Local Utility

Bitcoin mining is becoming a significant force in Paducah, Kentucky’s energy landscape, with local utility Paducah Power confirming that three mining firms are among its top 10 electricity consumers. Two of these operations alone accounted for 4.2% of the utility’s total electricity sales in 2024, with the third operating at a similar scale.

According to Doug Handley, a Paducah Power executive, the presence of Bitcoin miners has been financially beneficial for the utility, providing consistent revenue streams without logistical strain. The revenue generated from these operations is expected to help offset costs for local customers, while mining activity in the region is projected to expand further in 2025.

With the U.S. contributing around 40% of Bitcoin’s global hashrate (roughly 311 EH/s out of 779 EH/s), Paducah’s mining-friendly stance aligns with the country’s growing dominance in the industry.

Source: Bitcoin.com

Bitfarms Sells Paraguay Site to Hive for $85M, Shifts Focus to US Expansion

Bitcoin mining firm Bitfarms is selling its 200 MW mining facility in Yguazu, Paraguay to Hive Digital Technologies for $85 million, reallocating capital to expand its operations in the United States. This move came after Bitfarms announced its strategy of shifting its focus towards North America, with plans to balance its portfolio at 80% US-based operations by the end of 2025.

The company intends to reinvest the proceeds into its 1 GW growth pipeline for both Bitcoin mining and AI computing infrastructure in the US. According to CEO Ben Gagnon, this transition marks Bitfarms’ evolution from an international miner to a North American energy and compute infrastructure company.

Meanwhile, Hive Digital will take over the largest of Bitfarms’ three mining sites in Paraguay, with the deal expected to close by Q1 2025. The payment structure includes an initial $25 million, followed by $31 million over six months and the remaining $29 million in power deposit reimbursements and capital obligations.

Source: Cointelegraph

VanEck Plans to Increase Bitcoin Miner Investments Amid Trump’s Pro-Crypto Push

Leading asset manager VanEck is preparing to increase its investments in Bitcoin miners, citing President Donald Trump’s pro-crypto and AI-friendly stance as a key driver. With Trump prioritizing technological leadership in crypto and artificial intelligence, VanEck sees Bitcoin miners playing a strategic role in both industries due to their ability to repurpose mining energy for AI computing.

The firm noted that miners pivoting to AI infrastructure—such as Core Scientific, Terawulf, and Hut 8—have significantly outperformed traditional mining firms like Cleanspark and Marathon Digital over the past year. For instance, Core Scientific’s stock surged 302%, while Marathon Digital saw a 28% decline.

VanEck remains bullish on Bitcoin, forecasting that BTC will eventually rival gold as a global monetary standard. In the short term, they expect continued price appreciation, setting a $170,000 Bitcoin price target for 2025.

Source: The Crypto Basic

Bitmain Co-Founder’s AI Chip Firm Blacklisted by U.S.

The U.S. government has added Sophgo Technologies, an AI chip company founded by Bitmain co-founder Zhan Ketuan, to its trade blacklist citing concerns it was assisting China’s semiconductor ambitions and potentially circumventing sanctions by supplying Huawei.

Zhan’s shift from crypto mining hardware to AI chips has caused internal tensions within Bitmain, which still dominates Bitcoin mining through its Antminer series and mining pools like BTC.com and Antpool. With Sophgo now cut off from Taiwan Semiconductor Manufacturing Company (TSMC), the move could impact Bitmain as well.

Source: Crypto.News

Argo Blockchain Deploys 7,800 Bitcoin Miners Across Tennessee & Quebec

Argo Blockchain (NASDAQ: ARBK, LSE: ARB) has secured a hosting agreement with Merkle Standard LLC, deploying 5,293 S19J Pro miners in Memphis, Tennessee, while an additional 2,500 miners will be installed at its Quebec facility. These miners were previously housed at Argo’s Helios facility and are now being converted from immersion-based to air-cooled systems. The company aims to have one-third of its 23,000 displaced miners operational by March 2025.

Meanwhile, CEO Thomas Chippas is set to step down on February 28, after leading financial improvements, including early repayment of the Galaxy loan. Despite these efforts, Argo reported a $6.3 million loss in Q3 2024. The firm continues to explore expanding into AI-focused high-performance computing (HPC) alongside its core Bitcoin mining business.

Source: Finance Magnates

Russia’s Power Giant Rosseti Eyes Large-Scale Bitcoin Mining Amid Regulatory Shifts

Rosseti, Russia’s largest power grid operator, is exploring Bitcoin mining as a way to utilize underloaded power centers and increase revenue. The state-owned company says it’s technically ready, with the infrastructure and switching equipment needed to support large-scale mining. Rosseti also plans to act as a coordinator for mining infrastructure deployment across the country and is considering a separate electricity tariff for miners to better manage demand.

This initiative comes as Russia implements new mining regulations. A law signed by President Vladimir Putin in August 2024 requires all large-scale miners to register as legal entities. However, due to power shortages, mining has been banned in several regions until 2031, creating uncertainty about where and how operations will expand.

Source: Crypto Briefing

Brazil’s Petrobras Explores Bitcoin Mining to Reduce Carbon Emissions

Brazilian oil giant Petrobras has begun researching Bitcoin mining as a potential tool for reducing carbon emissions and optimizing energy use. The state-owned company, which produces nearly 3 million barrels of crude oil per day, is forming a multidisciplinary team of climate experts, oil researchers, and blockchain specialists to explore how mining could fit into its energy strategy.

The initiative follows similar moves by global oil giants. ExxonMobil piloted a gas-to-Bitcoin mining project in North Dakota, while Argentina’s Tecpetrol is employing mining at the Vaca Muerta oil field. These efforts focus on utilizing flared gas—an otherwise wasted byproduct of oil extraction—to power Bitcoin miners. Petrobras has yet to confirm whether this technique will be part of its approach.

Source: Bitcoin.com

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