A new week closes for the Bitcoin mining industry with important events, as the sector approaches the fourth Bitcoin halving in April this year.
News about Bitcoin mining is abundant and most of it has to do with the progress of the sector. The expansion of major mining companies becomes a topic of great debates for the cryptocurrency community. These firms increasingly establish themselves as absolute queens of the industry and some experts fear monopolistic or oligopolistic concentration.
Added to the positive news are those in which the business is not looking very good, at least within the US, where complaints in some states are becoming more and more frequent. Likewise, the government authorities of the North American country are increasing pressure again.
Miners’ BTC Reserves Plummet
This week, the Bitcoin mining industry experienced one of the most worrying news, related to digital miners’ BTC reserves, which are at a 3-year low, according to CryptoQuant. For analysts, this could have bearish consequences for the price of the largest digital currency, which is particularly worrying, considering that the halving is just around the corner.
The statistics firm highlighted that, mid-week, miners’ reserves lost a total of 14,000 bitcoins. If a similar trend continues in the coming weeks, the expected rally would be compromised.
US Government Seeks New Approach to Digital Mining
The United States authorities seem once again interested in approaching the Bitcoin mining industry. The Energy Information Administration (EIA) is preparing to collect information from companies, which ranges from consumption, capacity and others.
Although this agency declares itself impartial, its statistics could help the authorities to resume the attack on the sector. In the North American country, the digital mining area is highly politicized. On the one hand, Republicans defend the industry tooth and nail, while Democrats want to annul it. Hence, within the crypto community it is suspected that the government seeks to exercise control to force political benefits from its rivals.
Hut 8 Will Manage Celsius Farms for 4 Years
Recently, it was learned that Celsius signed a four-year agreement with mining company Hut 8. The contract would see Hut 8 manage Celsius’ mining assets (equipment and farms) for a period of four years. With this, the mining firm could receive approximate profits of $100 million, as detailed in the contract they announced this week.
The agreement seeks to boost the Ionic initiative, which was created by Celsius after receiving approval from the bankruptcy commissioner. It is worth mentioning that the agreement includes both the management of Ionic’s four sites and the expansion of the firm.
Small Texas Towns Report Injuries Related to Digital Mining
Recently, a small town in the state of Texas, United States, is a victim of the voracity of companies dedicated to the mining business.
As TIME reports, residents of small towns like Granbury, TX and Kearney reported noise-related injuries. The company in charge of operations in the areas recently announced that it had reached an agreement to remove some facilities.
Core Scientific Mined $812 Million in BTC in 2023
Last year, Mining company Core Scientific made cryptocurrency revenue equivalent to $812 million. The company managed to get out of all its commitments and also from bankruptcy. The mining giant is now listed on the stock market again and is in full expansion awaiting the April halving.
By Leonardo Perez
