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Bitcoin Miners’ Position Index Reaches 9.43, Signaling Potential Market Shift

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According to a recent analysis by crypto analyst Ali, on January 12, the Bitcoin Miners’ Position Index (MPI) surged to a notable high of 9.43. This development has raised concerns among cryptocurrency enthusiasts as it suggests that miners have been actively moving more Bitcoin (BTC) than the usual trend, possibly indicating an inclination towards selling.

The Bitcoin Miners’ Position Index is a crucial metric for gauging the market sentiment and predicting potential price movements. A reading of 9.43 implies a significant uptick in miner activity, with a higher likelihood of increased sell-offs. Traders and investors are advised to exercise caution, especially in light of the recent correction in BTC prices.

Bitcoin recently experienced a price correction and is already facing market uncertainty. The newfound Miners’ Position Index surge could contribute to a bearish market sentiment. If miners continue to sell off their holdings, it might exert downward pressure on Bitcoin prices.

However, the increased selling by miners could lead to a cascading effect, pushing Bitcoin prices further down. Investors are urged to closely monitor market developments and monitor the Miners’ Position Index for any signs of continued selling activity.

Leading Bitcoin Mining Firms Prepare For Halving

Despite this volatility, mining firms Riot, TeraWulf, and CleanSpark are strategically positioned to weather significant cost increases expected after the April 2024 Bitcoin halving event, according to CoinShares’ analysis. However, concerns loom over the industry’s growth, sustainability, and profitability, prompting a detailed examination.

The mining network has expanded by a staggering 90% in 2023, raising questions about environmental impact and operational efficiency. Post-halving, higher-cost miners may face challenges due to decreased immediate income, with an average cost of production per Bitcoin post-halving estimated at $37,856.

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Efficiency improvements, driven by technological advancements and the use of stranded energy, have led to a notable 8% efficiency increase in 2023 alone. The current average efficiency of the network stands at 34W/T, with projections suggesting a potential drop to 10W/T by mid-2026.

Addressing environmental concerns, approximately 53% of Bitcoin mining energy is now sourced sustainably, surpassing the finance industry’s sustainability levels. Despite a 44% increase in annualized power demand to 115 TWh, emissions have decreased from nearly 600 grams of CO2 per kWh in 2021 to 299 grams in 2024, attributing this reduction to the growth of sustainable energy sources.

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Looking ahead to the April 2024 halving, historical patterns indicate a potential normalization of the hashrate back to around 450EH/s, with a subsequent drop to 410EH/s six months later. However, the trend line forecasts a sharp increase to approximately 550EH/s by the end of 2024.

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Riot Revenues Rocket 12%, Hash Rate Surges 95%

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Riot Platforms, a leading Bitcoin mining company, reported strong financial results for the third quarter of 2023, with revenue increasing to $51.9 million and hash rate capacity growing to 10.9 EH/s. The company also expanded its power strategy, which helped to drive down its average cost to mine Bitcoin to $5,537 per Bitcoin. The mining firm’s strong financial position and execution of its growth plans position it well for continued success in the years to come.

Riot Platforms highlighted its continued growth and industry leadership. Revenue increased to $51.9 million, up from $46.3 million in the same period last year, demonstrating the company’s strong operational performance. Notably, hash rate capacity grew to 10.9 EH/s, solidifying Riot’s position as one of the largest Bitcoin mining companies in the world. This significant increase in hash rate capacity reflects the company’s commitment to expanding its mining operations and capturing a larger share of the Bitcoin network.

Riot’s financial strength was further underscored by its ability to drive down the average cost to mine Bitcoin to $5,537 per Bitcoin, down from $8,227 in the same period last year. This achievement is attributed to the company’s effective power management strategy, which resulted in earning $49.6 million in power curtailment credits during the quarter. Additionally, Riot maintained its industry-leading financial position, with $442.3 million in working capital and $290.1 million in cash on hand, providing ample resources to support its growth plans.

Riot CEO Hails “Ongoing Execution”

Riot’s CEO, Jason Les, said that he is “excited” about the company’s third-quarter results and that they “demonstrate ongoing execution of our long-term strategic plan to grow and thrive post-halving.” He also said that the firm is “confident” that the steps it has taken will position it as a “leading low-cost producer” of Bitcoin and allow it to “continue to fund our growth plans and enhance our balance sheet strength ahead of the upcoming ‘halving.’”

Overall, Riot Platforms had a strong third quarter and is well-positioned for continued success in the years to come. The company’s strong financial position, execution of its growth plans, and industry-leading hash rate capacity make it a compelling investment opportunity.

Bitcoin Mining Giant Riot Platforms Narrows Losses

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In a compelling turn of events, Riot Platforms, a prominent Bitcoin mining firm based in Colorado, has reported a remarkably narrowed net loss for the second quarter of this year, a stark contrast to the dire situation faced by the industry during the same period in the previous year. The company’s latest earnings report unveiled a net loss of $27.7 million for Q2 2023, a significant improvement from the staggering $353.6 million net loss recorded in the equivalent timeframe of the previous year.

At the heart of Riot’s success story lies its core focus on Bitcoin mining, coupled with its vertically integrated operations and formidable financial prowess. The company’s strategic execution in the energy domain during this quarter allowed them to achieve unparalleled results in terms of cost-efficiency. Jason Les, Riot’s Chief Executive Officer, lauded their achievements, highlighting how the company’s innovations lowered the average cost of mining to $8,389 per Bitcoin, even as the average Bitcoin price stood at $28,024.

Driving this upturn in fortunes, Riot’s revenue for Q2 2023 soared to $76.7 million, marking a substantial improvement from the previous year’s $72.9 million in the same quarter. This surge in revenue was primarily attributed to a notable 27% increase in Bitcoin production, though mitigated by the prevailing lower Bitcoin prices.

A notable highlight in Riot’s financial performance is the increase in power curtailment credits, a testament to the company’s conscious energy management strategies. During the second quarter, Riot harnessed $13.5 million in power curtailment credits, more than double the $5.7 million secured in the corresponding period last year.

The mining juggernaut produced a formidable 1,775 Bitcoins during the second quarter, leading to mining revenue amounting to $49.7 million, up from the previous year’s $46.2 million. This remarkable uptick in Bitcoin production can be attributed to a substantial increase in deployed miners over the year, signaling Riot’s expanding operational capacity.

Bitcoin Milestone: All-Time High Capacity Amidst Goals

Riot’s strategic moves for the future are equally inspiring. The company’s partnership with MicroBT and their agreement to acquire a substantial number of next-generation miners exemplify Riot’s commitment to further enhancing its capabilities. The company is set to augment its capacity by 7.6 EH/s through the acquisition of 33,280 miners by mid-2024, with an option to purchase an additional 66,560 miners.

Amidst these achievements, Riot reached an all-time high in capacity at 10.7 EH/s during Q2 2023. The company has its sights set on more ambitious goals, aiming to hit 20.1 EH/s by Q2 2024 and a staggering 35.4 EH/s by 2025.

While Riot’s stock price dipped by 4.42% at market close on Wednesday, with a further 0.85% decline in after-hours trading, the underlying performance of the company remains robust and forward-looking. Riot Platforms’ ability to adapt, innovate, and capitalize on the evolving Bitcoin landscape has positioned them for a promising trajectory ahead.

Bitcoin Miner Riot Makes A Splash With $162.9M Purchase Of 33,280 Mining Machines

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Riot, the renowned mining company in North America, has made headlines with its recent acquisition of 33,280 cutting-edge Bitcoin mining machines.

The company has entered into a long-term purchase agreement with MicroBT Electronics Technology Co., LTD, a prominent manufacturer of Bitcoin miners based in Shenzhen, China.

However, these specific mining machines will be produced in Pittsburgh, Pennsylvania, in the United States.

In a press release, Riot Platforms revealed that the total value of this purchase amounts to a staggering $162.9 million. Each machine is priced at around $21.50 per terahash (TH).

Delivery of the new miners is expected to commence in December 2023, with deployment scheduled for the first quarter of 2024. Once the 33,280 miners are fully operational, Riot’s self-mining hash rate capacity is projected to increase to 20.1 EH/s.

The initial order consists of two models: M56S+ and M56S++. The M56S+ model includes 8,320 units, with a hashrate of 220.0 TH/s and an efficiency of 24.0 Joules/TH.

On the other hand, the M56S++ model comprises a staggering 24,960 units, boasting a hashrate of 230.0 TH/s and an efficiency of 22.0 Joules/TH.

Overall, the order represents a total of 33,280 units, with a combined hashrate of 7.6 EH/s and an average efficiency of 22.5 Joules/TH.

MicroBT To Manufacture Bitcoin Miners In The US

Additionally, Riot has secured an option to purchase an additional 66,560 M56S++ miners from MicroBT, offering the potential to further increase its self-mining capacity by 15.3 EH/s, resulting in a total capacity of 35.4 EH/s. This option can be exercised until December 31, 2024.

CEO Jason Les expressed his enthusiasm about the new order, said:

These new models are among the most powerful and efficient miners ever made for Bitcoin mining and are designed and produced specifically for immersion cooling systems, such as those that will be used at our Corsicana Facility.

Apart from the considerable impact on Riot’s operations, this partnership with MicroBT marks a significant milestone for the industry as it strengthens the domestic supply chain for Bitcoin miners in the United States. The manufacturing of these miners in Pittsburgh will also create new job opportunities and contribute to the local economy.

Jordan Chen, COO of MicroBT, hailed the order from Riot as a momentous occasion for their company. He emphasized the advanced technological advancements embedded in the M56S+ and M56S++ models and expressed his delight in expanding their operations in the United States.

Nonetheless, with Riot’s ambitious purchase and the domestic manufacturing agreement, the Bitcoin mining landscape in North America is set to witness further growth and innovation in the coming years.

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Bitcoin Miner Riot Reports $260M In Revenue & 46% Rise In Production

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Riot Platforms, one of the largest Bitcoin mining companies in North America, has released its financial report for the full year that ended December 31st, 2022. The report showcases Riot’s impressive growth and financial strength, but it also includes some concerning news.

The company’s financial report showed that it had $230 million in cash, no long-term debt, and 6,974 Bitcoin by the end of 2022. The impressive figures are a testament to Riot’s ability to maintain its strong financial position despite challenging market conditions.

Riot Platforms declared that it had boosted its hash rate capacity threefold, resulting in multiple monthly production records, and culminated the year with an unprecedented hash rate capacity of 9.7 EH/s. 

Furthermore, its expansion initiatives are advancing smoothly, and the Corsicana Facility’s construction is on schedule to be powered on by Q4 2023.

Bitcoin Miner Faces Delay In Filing Financial Statements 

Despite the positive news, Riot reported a net loss of $509.6 million for the same period. The company attributed the loss to an accounting error in calculating the impairment of its Bitcoin holdings. Riot Platforms said it would delay filing its financial statements with the SEC and would file and amend the relevant data within 15 days.

The accounting error also led to the restatement of certain financial statements included in prior reports in accordance with FASB ASC Topic 250, Accounting Changes and Error Corrections. 

The error was discovered during the preparation of the 2022 Annual Report. Riot said the Audit Committee of the Board of Directors determined that the previously issued financial statements contained material errors and should not be relied upon.

Despite the setback, Riot’s total revenue increased by $46 million from $213.2 million in 2021 to $259.2 million in 2022. The company also produced 5,554 Bitcoins, a 46% increase from 3,812 Bitcoins during the same twelve-month period in 2021. Riot’s cost to mine Bitcoin for 2022, net of power credits allocated to self-mining, averaged $11,225 per Bitcoin, a decrease of 6% year-over-year.

However, with its exceptional financial stability, Riot is well-positioned to pursue its ambitious expansion strategies in 2023 and beyond. Additionally, with three new buildings completed at its Rockdale Facility and development progressing at its Corsicana Facility, Riot is poised for continued success.

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Bitcoin Mining In 2023 Kicks Off with Surging Production & Hashrate: Report

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Bitcoin miners had a strong start to 2023, with many companies reporting significant growth in their production and hashrate from December to January. 

The Hashrate index, which said that it would release a monthly article summarizing the production updates of public miners, revealed that the rebound in mining stocks was due to the 40% increase in bitcoin prices in January.

While most public miners saw slower-than-expected growth in their hashrate in January, Cipher was an exception. The Texas-based company grew its hashrate by over 50%, reaching 4.3 EH/s and joining the ranks of the mega miners. 

Meanwhile, Riot, another Texas-based mega miner, encountered headwinds with a decline in its self-mining hashrate from 9.7 to 9.3 EH/s due to a winter storm that damaged one of its facilities.

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Source: Hashrate Index

On the other hand, Core Scientific continued its positive streak of hashrate growth, increasing from 15.7 to 17 EH/s. Hive also saw substantial growth, with a 30% increase in its hashrate from 2.1 to 2.7 EH/s.

Bitcoin Production Surges In January: CleanSpark Sets New Record

The stabilization of electricity prices following a winter storm in December allowed miners to achieve higher uptime and production in January. CleanSpark saw a 50% increase in its bitcoin production, reaching an all-time high of 697. 

Core Scientific remained the largest bitcoin producer, generating 1,527 BTC, followed by Riot with 740 bitcoin. Marathon also reported a 45% increase in its bitcoin production, reaching 687 BTC in January.

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Source: Hashrate Index

While growth is crucial for BTC miners, operating efficiency is often overlooked. The public miners’ bitcoin produced per EH in January revealed that Terawulf was the most efficient miner, squeezing out 112 bitcoin per EH. 

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Source: Hashrate Index

CleanSpark, Hive, Iris Energy, Bit Digital, and Bitfarms also achieved solid efficiency, with three of these companies powered primarily by hydro. Argo and Riot struggled with achieving a high up-time.

The report emphasized the importance of operating efficiency, as miners will face challenges with achieving high up-time if electricity prices remain volatile and mining economics stay depressed. 

With the break-even electricity price of mining near all-time lows, miners in volatile electricity markets may have to curtail operations, leading to lower efficiency and production.

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