Latest Mining News and Insights | Yellow.com

Miner profitability has plunged to unprecedented lows. Blocksbridge, a storage infrastructure firm, reports that miner hashprice has dipped below $36 per petahash per second (PH/s). This metric gauges mining profit margins. The outlook is grim. Blocksbridge predicts a bleak future for miners if the upcoming difficulty recalculation isn't adjusted downwards. It's a tough pill to swallow for the industry. Bitcoin's price has bounced back after its August 5 tumble. Yet miner hashprice still hovers around $40 PH/s. This is 10% lower than the previous all-time low in July 2024. Talk about a double whammy. Big public mining companies are feeling the heat. MARA, Core Scientific, and Riot Platforms each face projected monthly mining costs of $60,000 or more per Bitcoin. MARA's all-in mining cost for July topped the charts. Ouch. These high costs hit differently across the board. MARA and Riot Platforms plan to hodl their Bitcoin. Core Scientific, on the flip side, sells 100% of its mined Bitcoin to cover operational costs. Each strategy has its pros and cons. MARA and Riot take on debt to expand and bet on future appreciation. Core Scientific reduces debt but takes a hit selling at current prices. It's a classic case of damned if you do, damned if you don't. July saw some miners cling to their coins. CleanSpark only sold 2.54 BTC at an average price of $62,000. That's a tiny fraction of the 494 BTC they mined that month. Talk about diamond hands. MARA, also known as Marathon Digital Holdings, bumped up its treasury by 2,282 BTC. That's about $124 million worth. They're playing the long game with their Bitcoin treasury strategy. Meanwhile, Bitcoin's mining difficulty has gone through the roof. It hit a new all-time high of about 90.6 trillion on August 1. This reverses months of relative decline. The mining difficulty gets recalculated every 2,016 blocks. It's set to readjust the week of August 12. Miners are on the edge of their seats, hoping for some relief. But in this wild world of crypto, who knows what's coming next?

Marathon Digital Holdings has made waves in the crypto world. The firm just bought $100 million worth of Bitcoin. This happened over the past month. Marathon is the world's largest Bitcoin miner. They're now using BTC as a strategic reserve asset. It's a big move. The company plans to go "full hodl". That's crypto slang for "hold on for dear life". Fred Thiel, Marathon's CEO, broke the news on X: "Today Marathon is proud to announce that to strengthen our strategy of holding Bitcoin as our strategic treasury reserve asset, we have over the past month purchased $100 million in BTC, and will now go full HODL @saylor." This is a big deal. Large holders like mining firms can really shake up Bitcoin's price. This is especially true with the 2024 Bitcoin halving coming up. Miners might need to sell more BTC then. But Marathon's playing it cool. They didn't sell any Bitcoin in June, even when prices were dropping. That's pretty gutsy. Back then, they said they might sell some Bitcoin. It would've been for operations, treasury management, and general corporate stuff. But now they've changed their tune. Thiel's all in on the "full hodl" strategy. He reckons they won't be selling any more BTC. Here's what he said: "Adopting a full HODL strategy reflects our confidence in the long-term value of Bitcoin." With this new $100M Bitcoin buy, Marathon's holdings are massive. They've now got over 20,000 BTC. That's worth more than $1.28 billion. Not too shabby. So, what's next for Marathon? Only time will tell. But one thing's for sure – they're betting big on Bitcoin. It's a bold move in a volatile market. Let's see if it pays off.

Senator Cynthia Lummis has launched a blistering attack on the Biden administration's proposed 30% excise tax on Bitcoin mining energy consumption. According to Lummis, the White House has no idea about how green Bitcoin mining really is. Yes, green, despite all the popular myths. The pro-crypto lawmaker released a report on July 23 titled "Powering Down Progress: Why A Bitcoin Mining Tax Hurts America". The report sheds light on the Bitcoin mining industry's benefits to the US energy grid. Lummis argues the tax would harm America's interests. She cites data suggesting Bitcoin mining is cleaner than commonly believed. "Up to 52.6% of BTC mining might be emissions-free," the report states, referencing the Bitcoin Energy and Emissions Sustainability Tracker. Lummis emphasizes the growing role of mining facilities in grid stabilization. The GOP senator highlights a key example from Texas. In 2022, Bitcoin miners sold 1500 megawatts back to the grid during peak demand. This pattern repeated in 2024 during winter storm Heather. Lummis claims the proposed tax would backfire environmentally. "It would disincentivize miners from seeking sustainable energy sources," she argues. The senator gives examples of innovative energy use in mining. She points to methane sequestration from landfills for Bitcoin mining. Lummis also mentions El Salvador's use of volcanic energy to mine 474 Bitcoin. In Finland, a Marathon Digital facility heats an entire community of 11,000 people. The report notes Marathon Digital's agreement with Kenya to develop renewable energy. Kenya already sources up to 80% of its energy from renewables. Lummis argues these initiatives could be at risk under the new tax. The senator invokes the Laffer Curve to warn of potential consequences. She argues higher taxes will drive miners out of the US, reducing tax revenues. Lummis cites China's 2021 mining ban as a cautionary tale. "Before the ban, Chinese miners controlled a majority of the Bitcoin network's hashrate," the report states. The implication is clear: overtax the industry, and it will simply move elsewhere.

Bitcoin's recent surge past $65,000 has set the crypto world abuzz. Analysts are now forecasting potential price targets north of $200,000. This bullish outlook stems from historical patterns and improving miner profitability. Pseudonymous analyst Cryptonary highlighted a key trend. "The end of Miner Capitulation periods following Bitcoin Halvings" has preceded significant price jumps "in subsequent months and year," they noted on X. Bitcoin was hovering just below $65,000 at the time. Cryptonary shared a hash ribbons chart. It showed miner capitulation periods and their characteristics. The chart revealed a striking pattern. The end of miner capitulation in previous halving cycles led to massive price increases: 2012 cycle: 5,110% increase 2016 cycle: 3,346% increase 2020 cycle: 591% increase "Assuming the current Miner Capitulation period ends soon, and using today's price of $64,700, an exponential decay model suggests a potential price peak of $223,000 for this cycle based on historical post-Halving periods," Cryptonary explained. Michael van de Poppe, founder of MN Capital, offered his two cents. He believes Bitcoin could hit $100,000 if it holds above $65,000 with "consistent institutional inflow." Independent analyst Cryptocon sees similarities to previous cycles. They shared a chart showing Bitcoin's multiple retests of the 2021 all-time high resistance. This mirrors the 2017 pattern. Cryptocon explained the potential next steps. Bitcoin may flip the previous all-time high into support. This could trigger the "most important cycle price action." In simpler terms, if Bitcoin reclaims the 2021 high of around $69,000, it might enter a parabolic uptrend into uncharted territory. This is the outcome we are all counting for, right? Yet, there is a catch, or even a couple of those. Another trader, known as Nebraskangooner, pointed to a technical indicator. The sharp rise in the Goon X indicator is a "good sign for strong trend continuation and new ATHs" for Bitcoin, they claim. But let's pump the brakes for a sec. We've seen this rodeo before. Bitcoin's volatile nature means these predictions should be taken with a hefty grain of salt. Historical Context and Market Dynamics To understand the current excitement, we need to look back. Bitcoin has a history of boom and bust cycles. These often coincide with its halving events, which occur roughly every four years. The halving reduces the rate at which new bitcoins are created. This effectively decreases the supply of new coins entering the market. If demand remains constant or increases, this can lead to price appreciation. The last halving occurred in May 2020. Bitcoin's price subsequently skyrocketed from around $8,000 to nearly $69,000 by November 2021. Then came the crash. Bitcoin plummeted below $16,000 in late 2022. Now, we're seeing signs of recovery. The next halving is expected in April 2024. This has many investors eyeing potential gains. Institutional Interest and Market Maturation One key difference in this cycle is increased institutional involvement. Major companies and investment firms have dipped their toes into crypto waters. This includes Tesla, MicroStrategy, and more recently, BlackRock's filing for a Bitcoin ETF. These moves lend legitimacy to Bitcoin. They also potentially increase demand from traditional finance players. This could drive prices higher in the long run. However, regulatory concerns loom large. The crypto industry faces ongoing scrutiny from governments worldwide. Unclear or unfavorable regulations could put a damper on Bitcoin's growth prospects. Miner Dynamics and Network Security Bitcoin miners play a crucial role in the network's security and operation. When miners are profitable, they're more likely to continue their operations. This strengthens the network. The end of miner capitulation periods often signals a bottom in Bitcoin's price. As profitability returns, miners are less likely to sell their Bitcoin reserves. This reduces selling pressure on the market. Currently, miner profitability is improving. The hash rate, a measure of the network's processing power, has also been climbing. These are generally seen as positive indicators for Bitcoin's health and potential price appreciation. Of course, there is an unusual case of Germany selling BTC seized in anti-criminal activities. That is definitely a selling pressure that can outweigh the miners income, at least for some time. Technical Analysis and Market Sentiment Many traders rely on technical analysis to predict Bitcoin's movements. The multiple retests of previous resistance levels, as noted by Cryptocon, are seen as bullish signals. If Bitcoin can decisively break above its previous all-time high, it could trigger a new wave of FOMO (fear of missing out). This could drive prices higher in a self-fulfilling prophecy. However, it's worth noting that technical analysis has its limitations. Bitcoin's price is influenced by a complex mix of factors. These include macroeconomic conditions, regulatory news, and market sentiment. Risks and Challenges While the current outlook seems rosy, there are plenty of potential pitfalls. Regulatory crackdowns, security breaches, or a broader economic downturn could all derail Bitcoin's momentum. We've seen that a lot already. And we all remember that every bullish cycle is unique and rather unpredictable, so making predictions based on old data only, is pretty naive. Moreover, Bitcoin's energy consumption remains a contentious issue. Environmental concerns could impact institutional adoption and public perception. There's also the question of scalability. As Bitcoin grows, it faces challenges in transaction speed and fees. Developments in layer-2 solutions like the Lightning Network aim to address these issues, but their widespread adoption remains to be seen. And we can be sure that even given all the advances in this area, we might still not feel the effect of all those technologies in the current bull run, not just yet. Maybe in the next one.

Russian President Vladimir Putin has raised the alarm on an impending energy crisis. The culprit? Unchecked growth of bitcoin mining in the country. Yes, this is what President of the country amid conventional war is really worried about. Putin highlighted the massive power consumption of mining operations. They account for about 1.5% of Russia's total electricity usage. That's a whopping 16 billion kilowatt-hours annually, which would be enough for a number of small countries to survive for years. The president's concerns focus on regions like Irkutsk, Buryatia, and Zabaikalsky Krai. These areas have been experiencing frequent power shortages. Maybe, military facilities are out of electricity too often, but who knows, they will not tell us the truth anyway. Putin acknowledged cryptocurrencies aren't conventional money. Yet, he noted their increasing use in international settlements. He emphasized the significant energy demands of digital coin mining. Russia has become a hotspot for these operations. Low power prices and portable mining equipment are the main draws. Putin cautioned that unchecked expansion could push regional power systems to breaking point. The energy drain has wider implications beyond just operational costs. Putin stressed broader social and economic risks. He pointed out that power shortages could impact businesses, housing, and public services. The president's remarks echo concerns voiced by regional leaders. They've highlighted potential disruptions to new businesses, residential areas, and crucial social infrastructure. "Uncontrolled increase of electricity consumption for cryptocurrency mining may lead to a power deficit in some regions," Putin said. It's not rocket science, folks. Amid the crypto mining chaos, Putin also took the opportunity to promote Russia's digital ruble. This central bank digital currency (CBDC) is already making waves. Russia's leader is probably impressed by what China does trying to control its citizens with digital yuan project, that has yet to be fulfilled. The digital ruble has facilitated 7,000 payments for goods and services. It's also enabled over 27,000 transfers. Putin's pushing hard for its adoption, touting these numbers as proof of its "efficiency and usefulness." The digital ruble is a key player in Russia's broader strategy. It's part of a plan to modernize the financial system and reduce dependence on Western financial institutions. With Western sanctions biting, it's high on Russia's economic agenda. Putin's government is urging companies to explore cryptocurrencies and other digital assets. They're seen as alternatives to international transaction systems. It's a bold move, to say the least. The situation's a bit of a mess, really. Russia's juggling economic opportunities with potential risks. It's anyone's guess how this'll play out in the long run.