In the last episode of the Mining Report, The Block’s Wolfie Zhao discussed the unprecedented growth of North American bitcoin mining companies in 2021 with massive equipment pre-orders and power capacity build-outs.
Over the past few months, there have been several interesting developments in the crypto mining industry. The prices of graphic unit processors, commonly used for mining on Ethereum and other proof-of-working networks, have continued to slump, thanks in part to the overall crypto market downturn. Although Ethereum’s hashrate remains steadily at the 1,000 TH/s level, its growth has largely slowed amid anticipation the switch to proof-of-stake will take place later this year.
In the bitcoin ASIC arena, Canaan, Bitmain and MicroBT have all rolled out liquid-cooled miners, bringing changes to the market where air-cooling has been the dominant and default setting since the start of the bitcoin ASIC era. It is a sign that bitcoin’s mining chip efficiency growth is starting to plateau while equipment designers and manufacturers increase their efforts on other hardware engineering solutions to maximize mining chip performance.
Meanwhile, with the massive expansion plans executed in 2021, mining companies face mounting pressure for cash in 2022. Some long-time mining hodlers, who choose not to sell mined bitcoins to cover OpEx or CapEx, have finally started to offload parts of their bitcoin reserves. On the other hand, the demand for private loans in bitcoin mining appears to continue.
In this episode of The Scoop Mining Report, The Block Research’s mining analyst Wolfie Zhao and host Frank Chaparro take a further look at the changing dynamics in the mining hardware and financing space.
This episode is brought to you by our sponsors Fireblocks, Coinbase Prime & Cross River
Fireblocks is an enterprise-grade platform delivering a secure infrastructure for moving, storing, and issuing digital assets. Fireblocks enables exchanges, lending desks, custodians, banks, trading desks, and hedge funds to securely scale digital asset operations through the Fireblocks Network and MPC-based Wallet Infrastructure. Fireblocks serves over 725 financial institutions, has secured the transfer of over $1.5 trillion in digital assets, and has a unique insurance policy that covers assets in storage & transit. For more information, please visit www.fireblocks.com.
About Coinbase Prime
Coinbase Prime is an integrated solution that provides institutional investors with an advanced trading platform, secure custody, and prime services to manage all their crypto assets in one place. Coinbase Prime fully integrates crypto trading and custody on a single platform, and gives clients the best all-in pricing in their network using their proprietary Smart Order Router and algorithmic execution. For more information, visit www.coinbase.com/prime.
About Cross River
Cross River is powering today’s most innovative crypto companies, with banking and payments solutions you can rely on, including fiat on/off ramp solutions. Whether you are a crypto exchange, NFT marketplace, or wallet, Cross River’s API-based, all-in-one platform enables banking as a service, ACH & wire transfers, push-to-card disbursements, real-time payments, and virtual accounts and subledgers. Request your fiat on/off ramp solution now at crossriver.com/crypto.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.