Network Overview

The situation for Bitcoin miners seems to have improved this week following Donald Trump’s inauguration. With the network hashrate contraction, the Bitcoin price expansion, and the increase in fees, miner’s revenue experienced a huge increase of more than 30%. This is all on the back of increased network usage, as evidenced by the increase in mempool size and estimated transaction value. The bullish sentiment of early November seems to be making a comeback.

Gryphon Digital Mining Acquires $18.7M Canadian Site to Boost AI and HPC Infrastructure

Gryphon Digital Mining has acquired an 850-acre industrial site in Southern Alberta, Canada, from Captus Energy for $18.7 million. The site is powered by natural gas and offers dual gas supply, grid connectivity, water resources, and fiber connections. This acquisition is part of Gryphon’s strategy to expand its AI and high-performance computing (HPC) infrastructure.

The deal, which includes $2 million in restricted shares for Captus’ incoming management team, is expected to close by April 2025. Analysts estimate the site could generate $1.5 million per megawatt annually, with potential revenues exceeding $5 billion if fully scaled to 4 gigawatts. Gryphon CEO Steve Gutterman described the acquisition as transformative, emphasizing its potential to position Gryphon as a leader in the AI and HPC sectors. This follows Gryphon’s recent acquisition of a scalable natural gas site in British Columbia, further strengthening its North American operations.

Source: Crypto News

Arkansas Lawmakers Push to Ban Crypto Mining Near Military Sites

Arkansas lawmakers have introduced Senate Bill 60, which aims to prohibit crypto mining operations within a 30-mile radius of U.S. military facilities in the state. The bill, introduced by Senator Ricky Hill and House Speaker Brian Evans, cites concerns over national security and noise pollution, following complaints from residents near the Little Rock Air Force Base. Facilities that were fully operational before December 31, 2024, will be exempt under a grandfather clause.

Interstate Holdings, the firm behind the targeted mining site, opposes the bill, arguing it meets all state and federal regulations. Critics of the legislation argue it could make Arkansas the only U.S. state with such a restriction, while proponents emphasize the need to protect critical infrastructure from potential risks. This move mirrors similar federal actions, such as the Biden administration’s intervention in a China-linked mining operation near a Wyoming air base in 2024.

Source: Cointelegraph

UAE to Impose VAT on Crypto Mining Services, Personal Miners Exempt

The UAE’s Federal Tax Authority (FTA) has clarified its stance on Value Added Tax (VAT) for cryptocurrency mining, stating that personal mining activities will not incur VAT, but mining performed as a service for others will be subject to the standard 5% VAT rate. This means individuals mining for themselves are not considered to be making a taxable supply, whereas businesses offering mining services to clients will need to comply with VAT regulations.

Registered mining service providers can reclaim input tax on related expenses, such as hardware, utilities, and rentals, provided they maintain proper documentation. Additionally, services provided to non-residents may qualify for zero-rated VAT, subject to specific conditions outlined in the UAE’s VAT law. The clarification aligns with recent amendments in the country’s tax regulations, which exempt crypto transactions and virtual asset management from VAT.

Source: Cryptopolitan

BitFuFu Plans Oklahoma Bitcoin Mining Acquisition to Expand in North America

Singapore-based crypto mining company BitFuFu, backed by industry giant Bitmain, is set to expand its footprint in North America with the planned acquisition of a 51-megawatt Bitcoin mining facility in Oklahoma. According to the company’s announcement, the facility—situated in an unpopulated area—operates air-cooled miners and benefits from an electricity rate of just 3 cents per kilowatt-hour, providing a cost-effective solution for its operations.

BitFuFu’s CEO, Leo Lu, described the acquisition as a “pivotal step” in the firm’s strategy to expand its 1-gigawatt global power capacity, securing long-term, low-cost, and reliable power. The deal, expected to close in the first half of 2025, is still subject to financial due diligence and final agreements. BitFuFu’s stock saw a modest increase following the announcement.

Source: Crypto News

U.S. Public Crypto Miners Double Bitcoin Holdings to Nearly 100K BTC in a Year

Publicly traded U.S. crypto mining companies have doubled their Bitcoin holdings, amassing a total of 92,473 BTC valued at $8.6 billion by the end of December 2024, according to data from TheMiningMag. This marks a significant increase, fuelled by Bitcoin’s 120% price surge over the past year and the growing popularity of the HODL strategy, where miners accumulate and hold BTC instead of selling.

Leading the pack is MARA Holdings (MARA), holding 44,893 BTC, accounting for nearly half of the industry’s total, with Riot Platforms (17,722 BTC), Hut 8 (10,171 BTC), and CleanSpark (10,097 BTC) also boasting substantial reserves. However, not all miners follow the HODL trend—companies like IREN, TeraWulf, and Core Scientific have opted to pivot towards AI and high-performance computing (HPC) for diversification.

Despite Bitcoin’s bullish trend, mining stocks have lagged behind, with most underperforming relative to BTC and other crypto equities like MicroStrategy. That said, Riot, Hut 8, and CleanSpark have recently outperformed Bitcoin, while Bitdeer (BTDR) faced a downturn after a strong 2024 performance.

Source: CoinDesk

Bitcoin Mining Pools Explore Alternative Payment Methods Amid Payout Challenges

Bitcoin mining pools are increasingly facing difficulties with BTC payouts. Despite earning 100% of their revenue in Bitcoin they are facing other issues such as delayed transaction times, volatile fees, and fluctuating USD values have prompted discussions within the mining community about potential alternatives to streamline payments.

A new concept under consideration is the introduction of eHash tokens, which would represent miners’ earnings and allow faster, more flexible payouts. These tokens, based on a Proof-of-Liabilities protocol, could help miners bypass the inherent delays and unpredictability associated with Bitcoin transactions.

Source: Protos

Argo Blockchain CEO Steps Down Amid $6.3M Quarterly Loss and Operational Challenges

Argo Blockchain’s CEO, Thomas Chippas, is stepping down effective February 28, 2025, following a difficult financial period for the mining firm. During his tenure, Chippas led key financial improvements, including the early repayment of the company’s Galaxy loan. However, Argo reported a $6.3 million net loss in Q3 2024, with revenues falling by 28% year-over-year, and mining margins shrinking from 58% to 8% due to rising operational costs.

Despite raising $5.3 million through a recent share subscription, Argo faces significant hurdles, including stagnant Bitcoin production, declining profitability, and difficult decisions regarding its Texas Helios facility. The company is now shifting focus toward high-performance computing (HPC) to diversify revenue streams while continuing its mining operations in Quebec.

Source: Finance Magnates

Bitcoin Mining Saves Texas $18 Billion and Strengthens Grid Stability

A new report by the Digital Assets Research Institute (DARI) reveals that Bitcoin mining has saved Texas $18 billion by replacing costly gas peaker plants with demand response programs. Instead of relying on expensive and underutilized power plants, BTC miners voluntarily reduce their energy consumption during peak demand, helping to stabilize the grid and prevent blackouts like those seen during the devastating 2021 winter storm.

The report highlights how Bitcoin mining not only lowers costs but also supports the integration of renewable energy sources, making the grid more efficient and environmentally friendly. Despite opposition from energy giants like Berkshire Hathaway, which previously proposed a $10 billion gas plant investment, supporters—including Texas Senator Ted Cruz—praise the role of mining in providing a flexible, cost-effective solution to grid stability.

Source: Cointelegraph

Riot Platforms Eyes AI Expansion, Slashes Bitcoin Mining Plans

Riot Platforms, one of the largest publicly traded Bitcoin miners, is shifting focus toward artificial intelligence (AI) and high-performance computing (HPC) by redirecting 600 megawatts (MW) of power capacity at its Corsicana, Texas facility. The company is halting its previously announced Bitcoin mining expansion and reducing its 2025 self-mining hash rate target from 46.7 EH/s to 38.4 EH/s, trimming capital expenditures by $245 million.

Analysts at JPMorgan and Bernstein find the pivot “encouraging,” with Bernstein suggesting the move could trigger a stock re-rating, given Riot’s underperformance compared to AI-focused miners like Core Scientific. JPMorgan maintains an “overweight” rating with a $16 price target, while Bernstein has an “outperform” rating with a $22 target, citing Riot’s undervaluation and good positioning in the AI space.

Source: The Block

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