Bitcoin miners are working to maintain efficiency as Bitcoin’s (BTC) value climbs. Nick Hansen, CEO and Co-Founder of Luxor Technology, shared with Crypto News that while Bitcoin’s recent price trends appear encouraging, the mining industry hasn’t seen a direct benefit.
This is because a miner’s profitability depends on more than just Bitcoin’s market price. Hansen explained that a more critical factor to monitor is the hash price, which represents the earnings a miner can generate from a given amount of computational power.
At present, the Bitcoin Hashprice Index shows a hash price of roughly $56, a figure that highlights the challenges miners face. Hansen further clarified that hash price accounts not only for Bitcoin’s value but also incorporates mining difficulty and the transaction fees miners collect, making it a more comprehensive measure of mining revenue.
Bitdeer Shifts Focus Beyond Bitcoin Price Trends
Jeff LeBerge, the Head of Capital Markets and Strategic Initiatives at Bitdeer Technologies Group (NASDAQ: BTDR), shared with Crypto News that Bitcoin reaching new highs offers much-needed relief. He explained that improved profitability often leads to an increase in hash rate, as either new mining rigs or previously unprofitable older ones are brought back online. With the industry moving closer to commoditization, he emphasized the growing importance of efficiency in the upcoming cycle.
To maintain its competitive edge, Bitdeer is focusing on creating proprietary ASIC mining rigs. LeBerge mentioned that their SEALMINER A1 machines, totaling about 3.7 EH/s (exahash) hash rate, are set to be delivered to their facilities in Texas and Norway by January 2025 for self-mining. Additionally, their SEALMINER A2 rigs, featuring an efficiency of 16.5 J/TH, are projected to deliver around 18 EH/s hash rate, catering to both external customers and their mining operations in preparation for the next bull market.
LeBerge emphasized that Bitdeer’s business model is designed to succeed regardless of Bitcoin price fluctuations. The company’s emphasis on ASIC technology already provides significant advantages to the publicly traded mining group.
According to Bitdeer’s October 2024 Production and Operations report, the company is engaging with several prospective clients. The update highlights “encouraging early demand, showcasing robust interest in our advanced technology and the industry’s push for innovation and diversification within the supply chain.”
Riot Platforms Prepares for Growth
Bitcoin mining company Riot Platforms, Inc. (NASDAQ: RIOT) continues to pursue expansion plans despite the challenges posed by a low Bitcoin hash price.
A Riot representative told Crypto News that the recent increase in Bitcoin prices has, in fact, boosted the firm’s profit margins.
The company recently announced a 65% revenue growth year-over-year in the third quarter, reflecting its ability to withstand the current obstacles faced by Bitcoin miners.
Riot’s spokesperson revealed that the company is pushing forward with plans to grow its infrastructure and power capacity. Riot has begun Phase 2 of its Corsicana facility’s development, which will add 600 megawatts (MW) of power, bringing the facility’s total capacity to 1 gigawatt (GW).
Additionally, Riot is working on increasing capacity by more than 300 MW at its newly acquired locations in Kentucky.
The spokesperson also mentioned that Riot is exploring various organic and inorganic growth opportunities in addition to its stated expansion plans. These efforts align with Riot’s strategic goal of achieving a self-mining hash rate of 100 exahashes per second (EH/s) in the long term.
Core Scientific Aligns Bitcoin Mining with HPC Operations
Core Scientific, a leading Bitcoin miner and operator of high-performance computing (HPC) data centers, is focusing on streamlining its operations for greater efficiency.
A spokesperson from Core Scientific shared that the company is currently consolidating its Bitcoin mining and HPC operations to enhance performance. Core Scientific operates a self-mining hash rate of nearly 20 EH/s and produces approximately 10 to 12 BTC each day.
According to a spokesperson, Core Scientific is consolidating its Bitcoin mining activities at two key locations. One site, located in Pecos, Texas, recently added 100 MW of capacity. Another undisclosed location is also being streamlined as part of this restructuring initiative.
The company plans to dedicate 400 MW of infrastructure to its Bitcoin mining operations and allocate approximately 800 MW to its high-performance computing hosting services. Recently, Core Scientific secured contracts for around 700 gross MW of HPC hosting, expected to generate $8.7 billion in revenue over 12 years.
Additionally, Core Scientific has become the first commercial customer for Block’s 3-nanometer ASIC chip. The spokesperson confirmed that deliveries for the new chips are set to begin in the second half of 2025. These chips will be deployed to upgrade Core Scientific’s fleet, enhancing energy efficiency and increasing hash rate.
Challenges Facing U.S.-Based Bitcoin Miners
Bitcoin miners in the United States continue to confront significant hurdles despite technological advancements. Riot’s spokesperson emphasized the essential work needed to gain support from U.S. policymakers. Riot’s Public Policy team is actively engaging with regulators to ensure a stable future for the mining industry.
Similarly, a Core Scientific spokesperson highlighted the importance of regulatory transparency in securing the long-term viability of Bitcoin mining. They also stressed the necessity for greater access to financing, which is essential to fund infrastructure projects and equipment procurement. This is becoming even more critical as miners compete with AI computing firms for energy resources.
Amid these challenges, Core Scientific is optimistic about the prospects for growth under the incoming Trump administration. The spokesperson noted that President-elect Trump’s stated support for Bitcoin and domestic energy production is a positive sign for the industry. Preliminary results from Congressional and Senate races also hint at increased pro-Bitcoin sentiment in Washington, offering a more favorable regulatory environment moving forward.
