Network Overview

After weeks of mining at a loss, a large number of miners have finally started shutting down over the past two weeks, with the latest difficulty increase likely being the straw that broke the camel’s back. With hashrate stabilizing at these lower levels and Bitcoin’s recent price increase, mining revenue has risen substantially this week. However, network activity, as measured by mempool size and total transaction value, still appears depressed, keeping fees and overall miner profitability lower than it could be. If conditions remain as they are right now, next difficulty adjustment could be negative, boosting profitability.

Kuwait Cracks Down on Crypto Mining, Citing Public Safety and Infrastructure Risks

The Kuwait Ministry of Interior has reiterated that cryptocurrency mining is illegal and unlicensed in the country, warning violators that legal action will be taken. In a public statement, the ministry cited several laws that crypto mining operations breach, including regulations governing industry practices, communications, and public safety. Officials highlighted that over 1,000 illegal crypto mining sites had been identified, emphasizing that mining activities place excessive strain on Kuwait’s power grid, potentially leading to blackouts and threatening public infrastructure.

Kuwait also maintains a broader ban on cryptocurrency trading and payments. The Central Bank of Kuwait prohibits banks and licensed companies from engaging in any crypto-related activities, while the Ministry of Finance does not recognize cryptocurrencies for commercial transactions. Despite being named the most affordable country for Bitcoin mining, where it once cost as little as $1,400 to mine a BTC, the government is moving aggressively to shut down illegal operations to protect its energy resources and maintain regulatory order.

Source: cryptopolitan.com

LAPD Seizes $2.7M in Stolen Bitcoin Mining Equipment Linked to Cargo Theft Ring

The Los Angeles Police Department (LAPD) has seized Bitcoin mining equipment valued at $2.7 million as part of a larger $3.9 million recovery tied to a South American cargo theft ring. The bust, which took place at a San Pedro warehouse, also included stolen goods such as tequila, coffee, clothing, pet food, and electronics. Two suspects, Oscar David Borrero-Manchola and Yonaiker Rafael Martinez-Ramos, were arrested in connection with the operation, which involved coordinated efforts between the LAPD, Los Angeles Port Police, Union Pacific Police, and Airport Police.

The Bitcoin miners, intended for shipment to Hong Kong, are an example of the growing trend in mining equipment thefts in the U.S. Similar cases occurred last year, with law enforcement agencies recovering stolen Bitcoin miners in Los Angeles and Louisiana. The LAPD emphasized the importance of inter-agency cooperation to protect commercial transportation infrastructure, noting that the investigation into the broader cargo theft network remains ongoing and that additional arrests could follow.

Source: decrypt.co

Three New Russian Regions Push to Ban Crypto Mining Amid Growing Restrictions

Three more Russian regions: Karelia, Penza Oblast, and Khakassia, are seeking government approval to impose restrictions on cryptocurrency mining, adding to the growing list of territories cracking down on the industry. Mining operations have already faced partial or full bans across over a dozen regions, including Dagestan, Chechnya, and parts of annexed Ukraine. The Russian energy ministry will review the latest requests next month, though no timeline has been set for when or how long the new restrictions might apply. Officials cite concerns over excessive energy consumption, particularly during winter months when power grids are already strained.

Recent policy moves include a permanent mining ban in the south of Irkutsk Oblast until 2031, aiming to ease pressure on the local power grid, though the halt has reportedly led to significant financial losses for the region’s power distributor. Industry figures warn that ongoing restrictions could drive miners underground, causing informal mining in residential areas and worsening grid instability.

Source: cryptopolitan.com

Paraguay’s Power Grid Could Collapse by 2029 Due to Bitcoin Mining Demand

The Paraguayan Industrial Union (UIP) has issued a stark warning that the nation’s power grid could collapse by 2029 if Bitcoin mining demand continues its rapid growth unchecked. Paraguay’s energy supply, heavily reliant on the Itaipu and Yacyreta hydroelectric dams, is under mounting strain, with officials reporting that annual demand now exceeds the output of a full turbine at Itaipu. Julio Fernández, head of the UIP’s Center for Economic Studies, emphasized that the nation is running out of time to act, urging swift measures to prevent a future blackout.

To mitigate the looming energy crisis, the UIP has proposed diversifying Paraguay’s energy sources beyond hydroelectricity. One strategy involves capitalizing on Argentina’s natural gas exports to Brazil by constructing a thermoelectric plant, which could supply domestic needs and generate additional revenue through energy tolls. Despite Paraguay’s recent hikes in electricity prices for crypto miners, companies like Hive Digital are continuing to expand operations, increasing pressure on an already stretched power grid.

Source: news.bitcoin.com

Fractal Bitcoin Secures 93% of Bitcoin’s Hashrate After Foundry Joins Mining

Fractal Bitcoin (FB), a layer 2 scaling solution for Bitcoin, has secured a major leap forward in network security by bringing on board Foundry, one of Bitcoin’s largest mining pools. With Foundry’s participation, Fractal Bitcoin now enjoys the backing of 93% of Bitcoin’s hashrate, dramatically strengthening its claim as the most secure Bitcoin-compatible network. This supports Fractal’s goal of combining Bitcoin’s robust security with the scalability needed to handle complex decentralized finance (DeFi) applications.

Fractal’s success in attracting Bitcoin miners stems from its use of the same SHA-256 hashing algorithm, enabling merged mining. Miners can secure both Bitcoin and Fractal simultaneously without significant additional cost. To incentivize participation, Fractal Bitcoin applies the Cadence Mining model, splitting block rewards between traditional Bitcoin miners and permissionless participants. One-third of the rewards go to merged miners, while the remaining two-thirds are available to anyone with compatible hardware, helping broaden the network’s accessibility and decentralization.

Source: crypto.news

Arkansas City Blocks Crypto Mining Proposal Amid Fierce Community Opposition

The city of Vilonia, Arkansas, has unanimously rejected a proposal to establish a cryptocurrency mining facility after weeks of vocal opposition from residents. Concerns about noise pollution, increased energy use, and environmental impact dominated public meetings, with citizens emphasizing that crypto mining would disrupt the town’s quiet atmosphere and strain local infrastructure. Past experiences and rising electricity costs tied to mining operations elsewhere fueled local skepticism, leading to firm resistance against hosting miners.

Vilonia’s stance continues a broader pattern in Arkansas and other U.S. states where crypto mining faces growing scrutiny. Previously, Vilonia had already blocked mining proposals in 2023, and the Arkansas legislature passed laws tightening restrictions on mining activities. Although some attempts to impose stricter bans, such as keeping mining facilities away from military bases, were rejected, the overall sentiment in Arkansas leans heavily against new mining developments.

Source: cointelegraph.com

DOGE Mining Firm Z Squared to Go Public After Merger With Biopharma Company

Z Squared, a firm specializing in Dogecoin (DOGE) mining, is merging with biopharmaceutical company Coeptis (COEP) to go public. The merger, expected to close in Q3 2025, will spin off Coeptis’ pharmaceutical business, leaving the new entity focused solely on crypto mining. With 9,000 U.S.-based DOGE mining machines, Z Squared aims to become one of the largest publicly-traded companies dedicated to mining Dogecoin and other Proof-of-Work cryptocurrencies like Litecoin (LTC). CEO David Halabu stated that going public will broaden access to capital markets and fuel expansion efforts.

This move is part of a broader trend among mining firms seeking diversification, as competition in Bitcoin mining intensifies. Companies like BIT Mining have already shifted focus to DOGE and LTC, citing higher profitability compared to Bitcoin. Z Squared’s strategy mirrors earlier examples set by miners such as Core Scientific and TeraWulf, which also went public through mergers. As of now, Dogecoin stands as the eighth-largest cryptocurrency by market cap, reinforcing the growing appeal of alternative mining operations.

Source: coindesk.com

Bitcoin Hashrate Drops 100 EH/s After Difficulty Spike, Miners Eye May 4 Adjustment

Selling pressure from Bitcoin miners has dropped to its lowest level in a year, according to cryptocurrency analytics firm Alphractal. Historically, periods of low miner selling have often been followed by either sideways price action or declines, as seen in December 2012, September 2013, mid-2016, and July 2021. Alphractal points out that April has historically been a critical month for Bitcoin mining dynamics, drawing parallels between current hashrate movements and similar weakening phases observed in 2021.

The firm also notes that although current selling pressure remains low, caution is warranted if a capitulation phase begins among miners, which could unleash renewed selling pressure. Analysts suggest monitoring key factors like Bitcoin’s price movements, hash rate trends, mining difficulty, and the financial health of publicly traded mining companies to anticipate potential shifts in the mining landscape.

Source: bitcoinsistemi.com

Bitcoin Miner Selling Pressure Falls to Lowest Point in a Year, Analysts Cautious

Bitcoin’s network has shed nearly 100 EH/s of hashrate since April 17, 2025, coinciding with a 1.42% difficulty increase that pushed the mining challenge to 123.23 trillion. As a result, block times have slowed to an average of 10 minutes and 34 seconds, noticeably longer than Bitcoin’s typical 10-minute target. The sudden drop in computational power highlights the delicate balance between network security, miner profitability, and operational costs, especially as difficulty rises.

Looking ahead, the upcoming retarget on May 4 is projected to reduce difficulty by 5.5%, offering some relief for miners still active on the network. Hashprice, the daily expected revenue for 1 PH/s of hashrate, has risen by more than 10% during this slowdown, hinting at improved short-term profitability. Bitcoin’s protocol once again demonstrates its self-correcting design, with slower blocks and miner exits setting the stage for a new equilibrium in the mining ecosystem.

Source: news.bitcoin.com