Crypto Mining Companies Ramp Up Investments in Equipment Upgrades
According to a report by Binance, 16 publicly traded cryptocurrency mining companies have collectively invested $3.6 billion in upgrading plants, property, and equipment (PP&E) since the beginning of this year. This includes significant spending on new mining hardware, with $2 billion allocated specifically for these upgrades since 2023. The third quarter of 2024 marked the highest PP&E expenditure since early 2022. These investments are crucial, as crypto mining hardware typically has an average lifespan of three to five years, necessitating regular updates to maintain profitability.
The report also notes a shift from equity financing towards debt financing among these companies. Notably, Bitfarms entered into a miner hosting agreement with Stronghold on November 1st, which includes provisions for hosting an additional 10,000 Bitcoin mining devices at its Pennsylvania facility. Around the same time, CleanSpark announced plans for building a substantial 400-megawatt infrastructure following their acquisition of GRIID in October 2024. Additionally, Hive Digital purchased thousands of application-specific integrated circuits (ASICs) intended for use at their upcoming Paraguay facility.
Swiss Canton Bern Explores Potential for Bitcoin Mining
A recent article from Binance highlights how the Swiss canton of Bern is exploring opportunities within Bitcoin mining despite opposition from local government officials. Cointelegraph reports that the cantonal parliament approved a proposal initiated by cross-party members advocating research into the feasibility and impact of regional bitcoin-mining activities. It passed successfully via a vote count tallying 85 votes supporting versus 46 against the motion, marking a victory according to proponents who view the outcome positively overall, given the circumstances involved throughout the process.
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