US Bitcoin Miners Double Hashrate Share
According to a report by Investing.com Deutsch, JPMorgan has revealed that the collective hashrate of publicly traded US Bitcoin miners has nearly doubled over the past year. These miners now account for approximately 29% of the global Bitcoin network. The hashrate of the 14 monitored companies increased by about 95% year-over-year, reaching 244 exahashes per second (EH/s), while the overall network saw a 45% increase.
The report highlights that the Bitcoin network's hashrate, a key indicator of competition and mining difficulty, rose by 6% this month and 45% over the past 12 months. However, the average Bitcoin price has slightly declined since January, putting pressure on the profitability of mining operations. Analysts Reginald Smith and Charles Pearce from JPMorgan noted that the daily profitability for miners, known as the hash price, has dropped by 13% since late January. This decline is attributed to the combined effects of the rising hashrate and falling Bitcoin prices. Consequently, miners' daily block reward revenues for this month were estimated at approximately $53,600, a 6% decrease compared to January.
Additionally, the report sheds light on the performance of individual mining stocks. IREN recorded a notable 27% gain in the first two weeks of February, while Greenidge Generation experienced a 20% decline during the same period. Overall, the total market capitalization of the Bitcoin mining stocks covered in the JPMorgan report decreased slightly by 1% compared to the previous month. A separate report by Bernstein corroborated JPMorgan's findings, emphasizing the growing share of the network's hashrate held by US Bitcoin mining stocks. For more details, visit the original article on Investing.com Deutsch.
MARA Holdings Acquires Texan Wind Farm for Bitcoin Mining
As reported by Investing.com Deutsch, MARA Holdings, Inc. (NASDAQ: MARA), a company specializing in digital asset computation and energy transformation, has completed the acquisition of a wind farm in Hansford County, Texas. The facility boasts a connection capacity of 240 megawatts and a rated capacity of 114 megawatts. This move aligns with MARA's strategic shift towards an asset-intensive business model and its commitment to environmental sustainability. Over the past 12 months, MARA has achieved an impressive revenue growth of 131%.
The acquisition allows MARA to repurpose older ASIC mining hardware, which would otherwise be discarded or sold, by operating it with renewable wind energy. This initiative aims to significantly reduce Bitcoin production costs through vertical integration and achieve near net-zero operating costs. Despite concerns about rapid cash consumption, MARA maintains a strong liquidity position with a current ratio of 4.0, ensuring the ability to meet short-term obligations while pursuing growth strategies. By utilizing 100% renewable energy, MARA seeks to minimize its carbon footprint and revitalize underutilized energy resources.
Fred Thiel, Chairman and CEO of MARA, described the acquisition as a significant milestone in the company's ongoing transformation. He emphasized MARA's focus on strengthening its position across the energy generation and Bitcoin mining processes, as well as its dedication to sustainability and long-term value creation. With the new wind farm, MARA now owns and operates a generation capacity of 136 megawatts, underscoring its strategy to leverage renewable energy for Bitcoin mining activities. For further insights, refer to the full report on Investing.com Deutsch.
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