How are cryptocurrency miners adapting during 'crypto winter'? [48]
Between big mining firms and small hobbyists its going to be a wild ride
Good afternoon friends!
As we all know it’s been an interesting year for crypto markets and this week’s news roundup reflects that for the cryptocurrency mining firms.
The big mining outfits are peering into energy efficiency and renewables to reduce costs and at-home hobbyists are using their flexibility and adaptability in order to stay afloat as well amid the fallen markets.
Many corporate and large crypto mining outfits have been cutting their own operations and selling large swaths of bitcoins to stay afloat — such as Bitfarms and Core Scientific.
Crypto mining outfits such as Lancium and Hive Blockchain are focusing on renewable and green energy resources. As a big example, Hive’s Swedish operation uses hydropower, which provides a cheap form of electricity to power its facility. While part of this is to increase profits in line with the depressed markets and rising electricity prices, it is also being driven by a desire to make crypto mining more environmentally sustainable as well.
The other side of the proverbial coin is the rising price of electricity in the U.S. has been driving up prices as well. This is especially a concern for at-home miners who work with small-scale mining operations.
While it seems dramatic, moving has become an option for smaller at-home mining operators who can take advantage of higher flexibility said Chris Vega and Michael Carter, who are experts with knowledge on the matter. Some of those able to pack up and move have been taking advantage of that by moving to states with cheaper power and renewable mixes such as wind and solar energy.
This follows what is an expected 16.4% rise in energy prices in New England, but may merely be a 2.4% increase in the South-West. Add in some sort of renewable energy source and those prices could be cut even further for operations.
In the wake of the bear market, GPU and ASIC mining equipment have been dropping in price on secondary markets in part because of dropping demand. This opens up possibilities for getting in on the cheap. Although it’s hard to predict how the markets will move or electricity prices, it might allow small operators some further flexibility.
For corporate miners, last week things started to look a bit better after Bitcoin prices perked up and broke over the $21,000 mark. CoinDesk reported that stock prices for most of the major cryptocurrency miners Digihost Technology, TeraWulf, and Marathon Digital saw increases of 26.6%, 18.94%, and 17.62% respectively.
Although last week did look up, markets are turning down again midweek, so it’s clear that everyone is still in for a wild ride.
As usual more news after the paid break. See you next time!
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Blockchain Bulletin
Texas crypto mine Lancium looks to battery tech to ease energy demands. Lancium, a cryptocurrency mining infrastructure developer, has signed a deal that will bring batteries into its West Texas Fort Stockton mining facility to store excess renewable energy, reported Bloomberg.
Reddit announces new NFT ‘Collectible Avatars’. The social media website Reddit is introducing new NFT collectible avatars using limited-edition artwork for its users to buy that its users can sell and trade on NFT marketplaces, reported CoinTelegraph.
Blockchain Behind the Scenes
Hobbyist crypto miners adapt to ‘crypto winter’ and rising electricity costs. With crypto markets down and electricity prices up, how are at-home hobbyists and miners adapting?
Bitcoin mining company Compass reduces staff 15% to ‘stay agile’. The crypto mining company Compass is reducing its staff by 15% and cutting the salary of its executives by 50% in order to “stay agile” amid depressed crypto markets.
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