The most striking fact is that the increase in computing power of the main companies continues at an overwhelming pace. Large companies accelerate the pace of new team connections in preparation for the halving.
The first major news about the Bitcoin mining industry relates to the new all-time difficulty record. In that sense, this week it was learned that the complexity reached 81.73T to be placed at a completely unprecedented point on that scoreboard.
That is the current scenario a few weeks before the halving takes place on the network. This is another automatic event that takes place every 210,000 blocks (approximately 4 years). The latter reduces miners’ rewards by half, forcing firms in the sector to at least double their computing power to stay in the game.
Terawulf and CleanSpartk Increase Computing Power and Profits
Two major players in the Bitcoin mining sector, Terawulf and CleanSpark, also made headlines this week after showing notable revenue improvements. As reported by the companies, both their income and their hash power experienced a strong increase in recent weeks.
Terawulf saw its hash power increase to 7.6 EH/s. Likewise, the company’s board of directors notified about the payment of a loan of $22 million dollars. So far, the firm has emerged from about $40 million in debt.
CleanSpark reported an increase in its hashrate to 14 EH/s. After learning about the deployment in new sites, the firm’s CEO, Zach Bradford, showed his enthusiasm. “I think we have probably set an industry record for speed of machine deployment, thanks to the extraordinary determination shown by our teams and partners,” he said.
Ethiopia Mines Cryptocurrencies through Alliance with West Data Group Subsidiary
The authorities of the African nation announced an agreement with a subsidiary company of West Data Group to carry out mining operations. This alliance was announced by the country’s sovereign fund on February 15. Within the framework of this collaboration, the authorities will invest a total of $250 million dollars to establish the necessary elements for operations.
Thus, “the cutting-edge infrastructure for data mining and artificial intelligence training operations in Ethiopia” can be launched, the fund representatives specify.
Bitcoin ETFs Put Publicly Traded Mining Companies at Risk
An alert has arisen linked to BTC ETFs, since these funds are becoming a threat to mining firms listed on the stock exchange, as informed by the recent Galaxy Digital report, which was published last Wednesday. According to this crypto company, cryptocurrency products are direct competition from mining firms when it comes to attracting institutional investors.
Investors willing to expose themselves to the crypto sector are limited. In that sense, the increase in the supply of shares of different types would make them diversify their capital. That means mining stocks could see outflows seeking better fees and performance in some ETFs like BlackRock.
Phoenix Group Reports 50% Net Income Increase and 20% Sales Growth
This week, Bitcoin mining company Phoenix Group reported significant growth and strategic partnerships. With this, it positions itself as a key player in the industry.
The company’s financial results after its IPO on the Abu Dhabi Stock Exchange were outstanding. Thus, they represented a 50% increase in net income and a 20% increase in sales. Likewise, the firm secured positive agreements for the purchase of mining equipment.
One of them was completed with the Japanese firm MicroBT and consists of $380 million dollars. With all this, it can be said that the company is already consolidating itself as one of the fastest growing in the sector.
By Leonardo Perez
