Mining Industry Recap, Episode 15

Network Overview

This week’s Bitcoin mining metrics show very strong expansion across most indicators. The network hashrate dipped slightly to 796 EH/s (-8.82%), but difficulty remains high and climbed slightly higher after the latest adjustment. Meanwhile, Bitcoin’s price continued its rally this time jumping by +6.07% to $107,187, more than compensating the difficulty increase.

As a result, miners’ daily revenue surged by +24.63% to $49.90 million, recovering from last week’s slight decline. Average transaction fees also increased +11.35%, reaching $3.14, showing heightened on-chain activity and growing demand for block space. The mempool size expanded by +26.99% to 74,177 MB, while the estimated transaction value rose marginally +5.68% to 185,555 BTC. This uptick in fees and transaction volume showcases the network’s increased usage typical when prices are rising fast.

Iran’s Crypto Mining Boom Blamed for Blackouts Amid Power Grid Strain

Iran is grappling with widespread power outages in Tehran and nearby regions, with unlicensed crypto mining operations emerging as a major cause. The country’s electricity costs—just $0.002 per kWh, the lowest globally—have turned it into a hub for Bitcoin mining. Officials report that 230,000 unauthorized mining devices are consuming power equivalent to an entire province’s energy needs.

In response, Iran’s state electricity company, Tavanir, has introduced bounties to incentivize citizens to report illegal mining activities. Public frustration has intensified, as many operations are uncovered in government-supported facilities like mosques and schools, which benefit from free or discounted electricity. While Iran recently approved new crypto regulations to counter US sanctions and facilitate international trade, the government faces mounting challenges balancing its crypto ambitions with grid stability.

Source: BeInCrypto

Bitcoin Mining Profitability Rises in December as Hashprice Climbs 5%, Says JPMorgan

Bitcoin mining economics continued their upward trajectory in December, as hashprice, a key measure of daily profitability, rose 5% compared to the end of November, according to JPMorgan. This improvement came as Bitcoin’s price rally outpaced the rise in the network hashrate, which increased 6% month-to-date to an average of 773 EH/s.

JPMorgan analysts noted that miners earned about $57,300 in daily block rewards per EH/s in the first half of December—the highest level in seven months, though still 40% below pre-halving levels. The report also revealed that the combined hashrate of 14 U.S.-listed miners the bank tracks grew 94% year-to-date to 222 EH/s, accounting for around 29% of the global network. Despite this, the aggregate market cap of these miners fell 4% or $1.5 billion in December, partly reversing gains seen after the U.S. presidential election.

Source: CoinDesk

Bitcoin Miners Sell 90,000 BTC Over Past Year, But No Major Bearish Impact Seen

Bitcoin miners have been in steady selling mode for the past year, reducing their collective holdings by 4.74%, according to on-chain data from CryptoQuant analyst Maartunn. Starting 2024 with 1.99 million BTC, miners now hold approximately 1.90 million BTC, reflecting a sale of 90,000 BTC—worth about $9.3 billion at current prices.

The selling has occurred gradually to cover operational costs like electricity bills, a common practice among miners. While historically miners are consistent sellers, this slow and measured offloading hasn’t placed significant bearish pressure on Bitcoin’s price. Analysts suggest that unless miners engage in large-scale or rapid selloffs, the current trend poses little risk to the market.

Source: Bitcoinist

British Columbia Maintains Bitcoin Mining Ban Despite Vancouver’s Bitcoin-Friendly Push

British Columbia continues to enforce its ban on new Bitcoin mining connections until December 2025, despite Vancouver’s recent motion to explore becoming a “bitcoin-friendly city.” Introduced in 2022 to preserve energy for clean initiatives, the ban has faced legal challenges, including from Conifex Timber, which argued the policy was discriminatory. However, the B.C. Supreme Court upheld the restrictions earlier this year.

The province’s Energy Statutes Amendment Act grants direct authority to regulate electricity use specifically for crypto mining, bypassing the BC Utilities Commission. While Vancouver’s mayor cites Bitcoin’s financial benefits, the city lacks jurisdiction over provincial energy policies. BC Hydro, which generates over 90% of its power from hydroelectric sources, remains aligned with the province’s clean energy priorities.

Source: CoinDesk

Bitcoin Mining Turns Europe’s Energy Challenges Into Profits

Bitcoin mining, long criticized for its energy consumption, is emerging as a surprising solution to Europe’s energy crisis. Across the continent, miners are helping stabilize grids, utilize surplus power, and even provide sustainable heating solutions.

In Germany, where renewables like wind and solar generate nearly 60% of the country’s power, Bitcoin miners are balancing the grid by pausing operations during price surges and resuming when demand drops. Similarly, in Austria, a pilot project run by Austrian Power Grid and 21Energy is redirecting surplus hydroelectric power to miners, preventing energy waste and improving grid stability.

In Finland, initiatives like Genesis by Terahash are using heat generated from mining to warm homes for 12,000 residents, showcasing the dual benefits of the process. These examples show Bitcoin mining’s potential to complement renewable energy systems and pave the way for innovative, sustainable energy solutions across Europe.

Source: Coinpedia