Network Overview

This week’s Bitcoin network data reflect a clear reduction in transaction volume, following the price correction from last week. The network hashrate remained stable, with a marginal reduction of 1.37%, while difficulty did not experience an adjustment this week. Bitcoin’s price rose by 1.70%, and seems to be getting ready to attack the $100,000 level again this week. Nevertheless, this being a key psychological level, it could take a while for the market to break out again.

The reduced transaction activity has diminished miner’s daily revenue, which decreased by 4.63% to $43.71 million, on the back of transaction fees slowly returning to normal. The mempool size also shrank significantly by 23.39%, and estimated transaction value experienced a sharp drop of 58.92%. These reductions indicate reduced network congestion and a potential shift in transaction dynamics, aligning with broader market adjustments following recent highs.

Bitmain’s Antminer Shipments Delayed Amid Speculations Over Huawei Ties

The U.S. Customs and Border Protection (CBP) has detained shipments of Bitmain’s Antminer ASIC mining equipment, causing months-long delays for several Bitcoin mining companies. These hold-ups, reportedly directed by the Federal Communications Commission (FCC), have affected key models like the Antminer S21 and T21. While the CBP has acknowledged the detentions, it has not provided reasons for the delays or a timeline for resolution. Companies impacted by these delays, now incurring over $200,000 in holding fees, have sought legal recourse as frustration mounts.

Speculation is rife that the delays may be tied to Sophgo chips used in Bitmain’s equipment. Sophgo, which shares a CEO with Bitmain, has been linked to alleged breaches of U.S. sanctions by supplying chips to Huawei, a company restricted under trade regulations since 2019. However, for the moment no concrete evidence connects the import detentions to these allegations.

Source: CryptoPotato

Bitcoin Miners Raised Over $5 Billion in 2024, Invested $3.6 Billion in Infrastructure

Publicly traded Bitcoin mining companies raised over $5 billion in 2024, with $3.6 billion directed towards upgrading hardware and infrastructure, according to The Miner Mag. The third quarter marked the highest property, plant, and equipment (PP&E) spending since early 2022, driven by investments in cutting-edge mining equipment and new facilities. This wave of upgrades coincides with Bitcoin’s network hashrate reaching a record-breaking 790 EH/s, which is a consequence of Bitcoin miners’ commitment to scaling operations despite the challenges of this year’s halving.

While stock fundraising slowed in Q3, with only $813 million raised compared to $1.6 billion in Q2, debt financing saw a resurgence, with MARA Holdings’ $1 billion issuance of 0% convertible senior notes. This shift reflects miners’ strategic pivot toward debt to sustain growth. Another notable trend throughout the year has been the increasing focus on sustainable mining practices, as miners aim to balance profitability with environmental stewardship.

Source: Bitcoin.com

Swiss Canton of Bern Passes Bill to Explore Bitcoin Mining and Renewable Energy

The Canton of Bern in Switzerland has approved a landmark bill to study the impact of Bitcoin mining, with 85 votes in favor despite opposition from the Government Council. The legislation aims to utilize surplus energy from the region’s power grid for Bitcoin mining, supporting renewable energy initiatives while stabilizing electricity supply. Drawing inspiration from Texas’ energy policies, the canton seeks to attract mining companies, create jobs, and optimize energy usage. Samuel Kullmann, a member of the Federal Democratic Union of Switzerland (EDU), announced the approval on November 28, marking a significant step in integrating Bitcoin mining into regional energy strategies.

The bill, drafted by a 23-member multi-party Parliamentary Group, highlights Bern’s potential as a net energy exporter. By using excess energy for Bitcoin mining, the canton hopes to position itself as a hub for sustainable mining operations. Dennis Porter, a Bitcoin advocate involved in similar legislation in the U.S., contributed to the proposal.

Source: CoinEdition

Northern Data Nears Sale of Mining Arm to Focus on AI Expansion

Northern Data AG, a Frankfurt-based company backed by Tether Holdings Ltd., is in advanced talks to sell its crypto mining operations. The company’s Chief Financial Officer, Elliot Jordan, revealed that they are fielding offers from multiple bidders, capitalizing on November’s Bitcoin rally. While no valuation has been set, analysts predict the sale could yield up to $800 million, with estimates based on operations generating 7.9 exahash, roughly 1% of Bitcoin’s network. Proceeds from the divestment will fund Northern Data’s growing artificial intelligence services, as part of a strategic pivot in response to declining Bitcoin mining profitability following the April 2024 halving.

This transition is part of a broader trend by miners to explore AI-driven opportunities to employ their high-performance computing infrastructure. Northern Data joins other players like Core Scientific, which recently secured a lucrative GPU hosting deal to support AI platforms. As demand for AI computing grows, the shift from mining to AI is reshaping the industry, offering miners a pathway to sustain and diversify revenue streams.

Source: Coinpedia

Bitcoin Mining as a Key Player in Energy Storage and Grid Stability

Bitcoin mining is emerging as a promising solution for balancing renewable energy production and grid stabilization. Unlike traditional energy storage methods, mining operations are location-agnostic and highly flexible, allowing miners to adjust energy consumption in real-time. For example, in Texas, Bitcoin miners collaborate with the Electric Reliability Council of Texas (ERCOT) to stabilize the energy grid by consuming excess energy during off-peak hours and pausing operations during peak demand or emergencies. This model transforms unused electricity into a monetizable asset, encouraging further investments in renewable energy infrastructure.

Policymakers are starting to recognize Bitcoin mining’s potential as a public good that supports energy efficiency and sustainability. By monetizing surplus renewable energy, fostering local economies, and repurposing unused infrastructure, Bitcoin mining can complement traditional energy storage solutions like batteries. Advocates argue that integrating Bitcoin mining into energy strategies could create a more resilient, diversified, and sustainable grid. With well-thought policies, Bitcoin mining could play a pivotal role in the global transition to renewable energy.

Source: Crypto.news

Russia’s Energy Shortages Stifle AI Growth and Crypto Mining Activities

Russia’s ambitions in artificial intelligence (AI) and cryptocurrency mining are being hindered by severe energy shortages. AI data centers and crypto mining operations, both energy-intensive industries, are placing immense strain on the national grid. AI electricity consumption reached 2.5 GW in 2024, with projections to quadruple in the coming years. However, Russia’s infrastructure growth of only 2-3 GW annually is insufficient to meet these demands, especially with the ongoing war in Ukraine complicating efforts to expand the energy grid. As a response, Russia has banned cryptocurrency mining in energy-stressed regions, including Ukrainian territories under its control, in an attempt to alleviate power deficits.

Despite these challenges, Russia remains focused on leveraging AI to bolster its creative industries, as stated by Moscow Mayor Sergey Sobyanin during a recent forum. The country’s chairmanship of BRICS includes the pursuit of an “anticolonial AI agenda” aimed at reducing dependence on Western technologies. However, the combination of energy shortages and geopolitical constraints continues to hamper progress in these sectors, raising questions about whether these bans and policies will be sufficient to stabilize the energy supply and support long-term growth in AI and blockchain technologies.

Source: Cryptopolitan

El Salvador Considers Renting Volcanoes to Bitcoin Miners for Geothermal Energy

El Salvador is exploring a groundbreaking initiative to transform its natural geothermal resources into a Bitcoin mining powerhouse. President Nayib Bukele proposed renting out the country’s 170 volcanoes to Bitcoin miners, who would be able to use the sustainable energy generated by these natural wonders. This idea builds on the nation’s success in mining 474 BTC, worth $46 million, using geothermal energy. Daniel Alvarez, Director General of Energy, Hydrocarbons, and Mines, has already begun drafting a new geothermal energy law to facilitate this ambitious plan.

The initiative has been praised by Max Keiser, a senior Bitcoin advisor to President Bukele, who views it as a strategy to position El Salvador as a leader in Bitcoin adoption. The proposal aligns with the country’s broader Bitcoin agenda, which began in 2021 when it became the first nation to declare Bitcoin legal tender. Amid the current crypto rally, El Salvador’s Bitcoin holdings of approximately 5,932 BTC are valued at $585.2 million, with unrealized profits exceeding $168 million. The “rent-a-volcano” program could further bolster the country’s Bitcoin-centric economy and attract global miners seeking cost-efficient and eco-friendly operations.

Source: CryptoSlate

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