🇨🇳 Mining Was Never Banned in China.

A report from HIVE, part of their "FUD Fighters" series, challenges the widely held belief that Bitcoin mining was banned in China in 2021. Contrary to mainstream media reports, the report argues that Bitcoin mining was never fully banned but faced a temporary suspension or moratorium, particularly targeting new mining operations and large-scale fossil-fuel-based mining. This moratorium was introduced primarily to address environmental concerns, such as carbon emissions, and prevent capital flight from the country through large-scale Bitcoin mining operations.

The report delves into the timeline of events, noting that while China's network hashrate saw a significant drop in mid-2021, this did not signal a complete ban. In fact, by the end of 2021, China's share of global hashrate had rebounded significantly, contradicting the narrative of a full-scale ban. This rebound was largely due to the continuation of mining activities in less regulated, remote areas like Inner Mongolia, where local authorities were more lenient, and where renewable energy sources were abundant. These regions saw the rise of smaller, environmentally friendly mining operations that utilized excess renewable energy, particularly hydropower, and engaged in heat recycling practices, which were actively encouraged by local governments.

The report also critiques media outlets like The New York Times for misinterpreting Chinese policy documents and failing to account for the nuanced enforcement of regulations across different regions of China. It highlights that in China, policy enforcement can vary greatly depending on the region, with more developed cities adhering strictly to the law, while less developed areas might prioritize local economic benefits over strict regulatory compliance.

Furthermore, interviews with industry insiders reveal that while some mining operations did relocate outside China, new mining capacity has since emerged within the country, focusing on renewable energy sources. This shift not only aligns with China's environmental goals but also helps stabilize local electricity grids by utilizing otherwise wasted renewable energy.

In essence, the report asserts that Bitcoin mining in China was never entirely banned but instead underwent a period of adjustment. The industry adapted by shifting to smaller, more sustainable operations that continue to thrive with the tacit approval of local authorities, particularly in regions where such activities offer economic and environmental benefits. This nuanced reality challenges the oversimplified narrative of a comprehensive mining ban in China.

Full report here 

⛏️ In the News

Core Scientific's shares surged by up to 17% after the company extended its high-performance computing contract with CoreWeave, bringing the total potential revenue to $6.7b, with the deal starting in 2026.

Hut 8 has announced Sean Glennan as their new CFO, effective August 21, 2024, succeeding Shenif Visram, who is stepping down for personal reasons.

CleanSpark has postponed the webcast for its fiscal third quarter 2024 financial results, which was initially set for August 8, 2024, and will announce the new timing and details later.

☀️ July Report

• Top 11 Bitcoin mining companies increased July production by 10.9% to a total of 3,217 BTC.

• Combined market cap of these top mining companies is approximately $21b.

• MARA holds a 21.5% share of monthly production, CLSK 15%, CORZ 13%, and Riot 12%.

• MARA's production represents about 5% of the total monthly Bitcoin supply, which is approximately 13,700 BTC.

🏃 Mara Mined 692 BTC

• Marathon produced 692 BTC in July 2024, a 17% increase from June and a 41% decrease year-over-year.

• Mara increased BTC holdings to 20,818 BTC and had a total cash and BTC balance of $1.6b.

• Marathon's average operational hashrate rose 5% to 27.5 EH/s, with a total energized hashrate of 31.8 EH/s.

• The company won 201 blocks in July, a 27% increase from June and a 12% increase year-over-year.

• Marathon energized approximately 5,000 new miners and optimized its fleet by relocating 10,000 existing miners, currently operating 245,000 BTC miners capable of 31.8 EH/s.

• The company held 20,818 BTC with a full HODL strategy, opting not to sell any BTC in July.

🫧 CleanSpark Mined 494 BTC

• CleanSpark mined 494 bitcoin in July 2024, increasing its total bitcoin holdings by 567% year-over-year.

• The company expanded operations into Wyoming and Tennessee, securing 75 MW of power in Wyoming and starting hashing in Tennessee with 1 EH/s.

• Total bitcoin holdings were 7,082, and it sold 2.54 bitcoin at an average price of $62,070.

• Deployed fleet consists of 160,900 miners, with an average efficiency of 22.89 J/TH and an operating hashrate of 21.2 EH/s.

• CleanSpark’s average hashrate for July was 20.07 EH/s, with an average daily production of 15.94 Bitcoin and a peak of 16.55 Bitcoin in a single day.

• Construction updates include a 15 MW expansion at Dalton, with 0.9 EH/s expected from the new facility by early September 2024.

🐺 TeraWulf Mined 195 BTC

• TeraWulf mined 195 bitcoin in July 2024 (averaging 6.3 bitcoin per day) up from 136 bitcoin at Lake Mariner and 41 at Nautilus in June.

• The company's installed and operational self-mining capacity reached 10 EH/s, a 100% increase year-over-year.

• Power costs averaged $36,346 per Bitcoin mined, equating to approximately $0.047/kWh, excluding anticipated demand response savings.

• The Lake Mariner facility curtailed over 3,400 MWh through demand response, potentially reducing power costs by about $0.013/kWh.

• TeraWulf's average operating hashrate was 8.0 EH/s in July, up from 7.1 EH/s in June.

• Building 4 at Lake Mariner was completed in July, adding significant capacity with 10,000 Bitmain S21 and S21 Pro miners.

• Construction of Building 5 at Lake Mariner has started, adding 50 MW of capacity.

• TeraWulf is advancing AI/HPC projects, including a 2 MW proof-of-concept project and a 16 MW colocation building, with operational targets set for Q4 2024.

• The company plans to fully utilize its expanded capacity during periods of lower energy prices and moderate temperatures.

🥼 Core Scientific Mined 411 BTC

• Core Scientific mined 411 Bitcoin in July 2024, bringing its year-to-date total to 4,917 Bitcoin, and customers earned an estimated 110 Bitcoin.

• The company was the first to support Foundry Donate, a program to fund Bitcoin network core developers.

• Core Scientific's average daily Bitcoin production was 13.3, down from 14.3 in June.

• The total energized hashrate increased to 25.3 EH/s from 24.6 EH/s in June.

• Bitcoin sales amounted to approximately $25.2m in July, a decrease from $31.6m in June.

• The company operated about 214,000 Bitcoin miners, with 172,000 being self-owned and 41,500 customer-owned.

• Core Scientific continues to expand its Pecos, Texas data center by 100 MW, reallocating miners from sites transitioning to HPC hosting.

• The company curtailed mining operations strategically, saving power and providing 30,762 MWh to local grid partners.

🚨 Riot Mined 370 BTC

• Riot mined 370 bitcoin in July 2024, a 45% increase from June 2024 but a 10% decrease compared to July 2023.

• The company held 9,704 bitcoin at the end of July 2024, reflecting a 4% increase month-over-month and a 33% increase year-over-year.

• No bitcoin was sold in July 2024, unlike July 2023 when 400 bitcoin were sold, generating $12.1m in net proceeds.

• The average net price per Bitcoin sold in July 2023 was $30,293.

• Riot's all-in power costs increased across its facilities, with the total rising to $0.034/kWh in July 2024, up 33% from June and 109% from the previous year.

• The company's power credits, including those from demand response programs, totaled $3.4m in July 2024, a 35% decrease from June and a 57% decrease year-over-year.

• Riot's acquisition of Block Mining immediately increased its hashrate by 1 EH/s and provided new growth opportunities in Kentucky.

• Following the Block Mining acquisition, Riot raised its 2024 self-mining hashrate guidance from 31 EH/s to 36 EH/s, with expectations to reach 56 EH/s by 2025.

👨‍🌾 Bitfarms Q2 2024

• Revenue for Q2 2024 was $42m, down 16% from Q1 but up 17% year-over-year. Gross mining margin decreased to 51% from 64% in Q1.

• Hashrate increased to 11.1 EH/s from 6.5 EH/s, with efficiency improving to 25 w/TH, up 26% from Q1. On track for 21 EH/s and 21 w/TH by year-end.

• Expanded capacity by 220 MW, totaling 648 MW. New sites include 120 MW in Sharon, PA, and 70 MW in Paso Pe, Paraguay, with a further 100 MW planned for Paraguay.

• Ben Gagnon appointed CEO. Strategic review concluded Bitfarms will continue as an independent company.

• Operating loss was $24m, including $46m in accelerated depreciation. Net loss was $27m, or $(0.07) per share. Adjusted EBITDA was $12m.

• Cost per BTC rose to $47,300. Liquidity of $195m included $139m in cash and 905 BTC valued at $57m. By July 31, 2024, held 1,016 BTC.

• Sold 515 BTC for $34m in Q2, and 142 BTC for $9m in July. Raised $136m through equity offering in Q2 and $240m by August 7, 2024. Received $24m in tax refunds, with $19m refunded in Q2 and $5m in July.