The skyrocketing currency price hits record highs of miners’ income, triggering mining “craze”
During the Spring Festival, as Bitcoin broke through the $50,000 mark and Ethereum broke through the $1,900 mark, the two major cryptocurrencies continued to hit record highs, and the crypto market was boiling.
According to CoinMetrics data, Bitcoin miners earned more than US$354 million last week, which is the highest level in the history of the Bitcoin blockchain and surpassed the record of US$340 million set in mid-December 2017. In addition, the latest data also shows that the cumulative income of Bitcoin miners in January 2021 reached 1.09 billion U.S. dollars, an increase of 70 million U.S. dollars in monthly income compared to the 1.02 billion U.S. dollars after the bear market in January 2018. According to forecasts, the income of Bitcoin miners is expected to reach a record high of US$1.25 billion in February 2021.
The continued high popularity and high returns attract visitors. On February 8, the Internet company Ninth City (Nasdaq: NCTY) announced that it had signed a legal memorandum (MOU) with six mining machine owners to purchase a batch of bitcoin digital currency mining machines by issuing new shares. This batch of equipment will include Bitcoin mining machines of different brands such as Bitmain, Avalon and Shenma, with a total of 10,489 units with a total computing power of about 251PH/S. The mining machines have been deployed in Xinjiang, Qinghai, Inner Mongolia and other places. The Ninth City also announced that it has signed a formal purchase agreement with the 5 mining machine owners who signed a purchase memorandum on January 25 this year. 26,007 Bitcoin mining machines will be officially delivered to Nine City and included in Nine City’s Bitcoin The amount of mining. After the two purchases are completed, the Ninth City will complete the deployment of 36,496 Bitcoin mining machines, and the total computing power will be upgraded to about 800PH/S.
On February 10th, as the price of cryptocurrency soared, unknown local customers in Russia have purchased tens of thousands of mining machines. An executive of BitRiver, Russia's largest crypto mining hosting service provider, said that a local customer has purchased more than 20,000 crypto mining equipment. These mining machines are imported from Asia, and the price is between 40 million and 60 million US dollars. BitRiver also disclosed relevant information about the customers who purchased the batch of mining machines, and did not make clear the specific models of the mining machines. These miners will be placed in a site in Siberia owned by BitRiver.
On February 17, American Bitcoin miner Blockcap stated in a statement that it had purchased 10,000 Antminer S19 produced by Bitmain to double its hash. Under the current difficulty of Bitcoin mining, Blockcap's existing machines can provide about 950PH/s computing power, and can generate about 5.5 Bitcoins in 24 hours.
On February 18th, Bitcoin mining machine manufacturer Ebon International (EBON) will start the Bitcoin mining business. It is reported that the company plans to operate its Bitcoin mining business by deploying a combination of self-produced mining machines and mining machines purchased from other manufacturers, as well as leasing computing power from other mining farms. At the same time, the company also plans to build a data center to provide support for Bitcoin mining activities.
On February 18, Sun International (08029-HK) announced that ExtraBlossom Holdings Limited (the company's indirect wholly-owned subsidiary, the buyer) and Mindfulness Venture Fund I, L.P. (the seller) entered into a non-legally binding memorandum of understanding on the proposed transfer and transfer of equipment. Accordingly, the seller intends to transfer and sell and the buyer intends to accept the transfer of equipment and the transfer of cryptocurrency mining equipment, including a total of 1,000 cryptocurrency mining machines BitmainAntminerS19, BitmainAntminerT19, MicroBTWhatsminerM32 and MicroBTWhatsminerM31S. The consideration payable for the equipment will be negotiated by the parties to the memorandum of understanding, and the buyer will procure the company to allot and issue new shares (issued at HK$0.321 per share) or any other type of consideration to the seller. The seller is a limited partnership established in the Cayman Islands, which is mainly engaged in the operation and provision of equipment for cryptocurrency mines in Inner Mongolia, Xinjiang and Sichuan provinces of China. The board of directors believes that the signing of the memorandum of understanding enables the group to invest in new businesses and diversify the development of the group.
On February 19th, blockchain and robotics solutions company BotsInc announced that it had placed an order to purchase 1,000 Bitcoin mining machines, valued at 4 million U.S. dollars. Therefore, BTZI is now planning to develop a large Bitcoin mining farm in West Virginia. Once preliminary tests show promising results, it may expand to 50,000 Bitcoin mining machines.
Interestingly, Waqar Zaka, a famous Pakistani TV and video host, also stated on Twitter that the Iranian government is said to have more than 45,000 Bitcoin mining machines. This may help Iran become one of the richest countries in the world and avoid economic sanctions imposed by the United States. Earlier, there were reports that Iran has lifted its ban on cryptocurrencies and entered the field of Bitcoin mining. The government announced that it would purchase all bitcoins produced by local miners. Bitcoin supporter Max Keiser believes that Iran and Venezuela may gain trillions of dollars in gains from entering the cryptocurrency mining market.
It is worth noting that although Bitcoin mining is currently profitable, mining costs are also increasing due to the intensified bidding war for mining equipment. In particular, the price of Bitcoin has risen rapidly recently, and many ASIC owners can pay 70% Sell miners at a premium. Since February, the price of Bitcoin has risen by nearly 50%, and global demand has shown no signs of slowing down.
Not only Bitcoin mining, but with the skyrocketing of Ethereum, miners are also frantically sweeping goods. Taking Nvidia's latest and strongest 30 series as an example, prices like 3060 and 3070 have almost doubled. In this context, Nvidia announced the launch of NVIDIACMP in its blog on February 18, which is a cryptocurrency mining processor specifically designed for Ethereum. The product does not support processing graphics, which allows miners to obtain better performance.
In fact, in the face of the skyrocketing of Ethereum, it is not surprising that Nvidia launched mining-specific chips. In the bull market of 2017, Ethereum miners also scanned graphics cards, and Nvidia launched P104, P106 and other mining-specific chips.
It is worth mentioning that not only Bitcoin and Ethereum mining, Filecoin computing power is also increasing. On February 16, Internet company Ninth City (Nasdaq: NCTY) announced that it has signed a USD 10 million framework agreement with Filecoin mining machine service providers to purchase Filecoin mining machine server clusters and technical services in cash. Prior to this, Jiucheng had purchased the Filecoin mining machine group and started Filecoin mining. At present, Jiucheng has independent nodes in the Filecoin network, with a total of 8PByte of effective storage computing power, and the computing power is continuously increasing.
(Golden Finance)
