Bitcoin Mining Difficulty Drops Significantly Amid Storm Disruptions and Industry Shifts

Bitcoin Mining Difficulty Sees Largest Drop Since 2021 China Ban

The Bitcoin mining difficulty has decreased by 11.16% in the latest adjustment, marking the most significant correction since the mining crackdown in China in 2021. This decline is attributed to the operational disruptions caused by Winter Storm Fern, which led to widespread throttling of mining operations across the U.S. Notably, Marathon Digital Holdings (MARA) reported a shutdown of 770 MW of capacity, representing nearly 70% of its global hash rate before the storm peaked.

The current mining difficulty is set at 125,864,590,119,494.3 at block height 935,424, reflecting a substantial drop from the previous period. The adjustment mechanism of the protocol responded to the increased average block times, which rose to approximately 12.4 minutes during the slow block period, aiming to return to the target of 10-minute blocks.

"The difficulty reduction of -11.16% corresponds to a multiplicative change factor of 0.888447, mechanically increasing the expected BTC mined per unit of hash rate," stated industry analysts.

In summary, the Bitcoin mining sector is experiencing significant operational challenges, with the latest difficulty adjustment providing temporary relief to miners who remained online. However, the anticipated increase of 11.57% in the next retarget suggests a quick recovery in hash rate post-storm.

HIVE Digital Technologies Shifts Focus to AI with $30 Million Deal

HIVE Digital Technologies is accelerating its expansion into the AI sector, having announced that its subsidiary BUZZ High Performance Computing has signed customer contracts totaling approximately $30 million over two years. This move is expected to significantly enhance HIVE's Tier-III data centers for artificial intelligence applications.

The contracts are contingent upon standard performance and implementation milestones, with the first phase involving the installation of 504 liquid-cooled Dell servers equipped with GPUs, specialized chips for intensive AI applications. The operational launch of this phase is anticipated by the end of March 2026.

HIVE's management expects an annual recurring revenue (ARR) of around $15 million from this initial phase once fully operational, with projections indicating a rise in annualized revenue from approximately $20 million to about $35 million following the complete rollout.

In conclusion, HIVE's strategic pivot towards AI infrastructure reflects a growing demand for high-performance computing capabilities, positioning the company for substantial growth in the evolving tech landscape.

IREN Transitions from Bitcoin Mining to AI Data Centers

IREN has announced a significant strategic shift, investing $800 million in AI data center infrastructure, surpassing its total investments in Bitcoin mining over the past three years. This transition is a response to declining profit margins in Bitcoin mining following recent halving events.

The company is set to be included in the MSCI USA Index by the end of February, which is expected to enhance its visibility among institutional investors. IREN's CEO, Daniel Roberts, emphasized that this milestone reflects the company's growth and liquidity in the market.

"This shift underscores the opportunities in hybrid crypto and AI operations," Roberts stated, highlighting the company's commitment to diversifying its revenue streams.

In summary, IREN's pivot towards AI data centers illustrates a broader trend among digital asset firms to adapt to changing market conditions, leveraging existing infrastructure to tap into the lucrative AI sector.

Bhutan Accelerates Bitcoin Sales Amid Evolving Sovereign Crypto Strategy

Bhutan has intensified its management of state-held Bitcoin assets, moving significant volumes of BTC in recent weeks as part of a controlled liquidation strategy. Recent blockchain data indicates that government-linked wallets transferred approximately 100 Bitcoin, valued at around $6.7 million, to institutional liquidity providers.

This strategy reflects Bhutan's unique approach to digital assets, having accumulated a substantial portion of its Bitcoin holdings through state-sponsored mining projects initiated in 2019. The country is now reassessing its digital asset strategy in light of changing market conditions and mining economics post-halving.

"Bhutan's gradual sales approach aims to manage liquidity without destabilizing the market," analysts noted.

In conclusion, Bhutan's evolving Bitcoin strategy highlights the complexities sovereign states face in managing digital asset reserves, balancing fiscal prudence with the potential benefits of cryptocurrency investments.

Sources:

• Bitcoin-Mining-Schwierigkeit verzeichnet stärksten Rückgang seit 2021 China-Verbot
• Vom Mining zur KI-Offensive? 30-Millionen-Deal wird zum Wachstumszünder
• Der Bitcoin-Miner IREN startet im Plus und profitiert vom KI-Trend, der ihm die Aufnahme in den MSCI einbringen soll
• IREN Aktie: Branchennews aktuell
• Bitcoin-Miner IREN verlagert Fokus von Mining auf KI-Rechenzentren
• Bhutan beschleunigt Bitcoin-Verkäufe im Zuge der Weiterentwicklung seiner staatlichen Kryptostrategie