⚡️ Houston Chronicle Editorial Critical of Bitcoin Miners

A recent Houston Chronicle editorial focused on cryptocurrency miners' impact on Texas' power grid and the ensuing political dynamics. Governor Greg Abbott has been a longstanding supporter of the crypto industry, aligning with Libertarian ideals and Texas Republicans' preference for minimal regulation. However, Lieutenant Governor Dan Patrick has recently criticized miners for straining the grid, citing increased costs and consumer risks as reasons for regulation.

The editorial highlights the flexible energy usage of bitcoin miners, noting instances such as the August 2023 heatwave where companies like Riot profited more from managing power than from mining bitcoins, showcasing the profitability of this approach. However, it overlooks that without miners, the additional supply to stabilize the grid wouldn't be available and that miners are market-incentivized to support grid stability.

The piece discusses legislative attempts by Patrick to limit benefits for miners, noting their lack of success in the House, which suggests ongoing opposition or insufficient support for these measures. ERCOT's CEO is quoted emphasizing the necessity for enhanced oversight of mining operations to safeguard grid reliability, reflecting a regulatory concern amid expanding mining activities.

Governor Abbott's stance on industry regulation remains uncertain, complicated by influences from former President Trump's favorable position on Bitcoin. The editorial expresses skepticism about Abbott's commitment to enforcing regulation, despite acknowledging Patrick's initiatives aimed at managing energy consumption and mitigating crypto mining impacts in Texas.

⛏️ In the News

Marathon Digital diversified into Kaspa mining, yielding 93m KAS ($15m). Marathon has brought 30 PH/s worth of machines online to mine Kaspa, while 30 more will be starting by the third quarter.

CleanSpark announced a $155m merger with GRIID Infrastructure for a 400 MW expansion in Tennessee.

Bit Digital expanded a contract worth $275m for 2,048 GPUs.

And in China, influential voices within academia and the tech sector are urging the Chinese government to reconsider its stringent ban on crypto mining.

🐝 Hive Mined 3,123 BTC in a Year

• HIVE generated mining revenue of $111.0m and $3.4m from HPC operations, totaling $114.5m, with a gross operating margin of $40.3m or 36%.

• The company had SG&A expenses of $13.2m, resulting in a positive corporate margin of $23.7m on a cash basis, and achieved an adjusted EBITDA of $37.5m.

• HIVE mined 3,123 Bitcoin during the year and ended the fiscal year with 2,287 Bitcoin on the balance sheet, valued at $161.3m, all unencumbered and unleveraged.

• The company's Bitcoin mining ASIC hashrate grew by 57%, from 3.0 EH/s to 4.7 EH/s.

• In May 2023, HIVE entered an equity distribution agreement to sell up to $100m in common shares, which was replaced in August 2023 with a new agreement to sell up to $90.0m. Under the August 2023 agreement, the company raised $28.2m.

• For fiscal year 2024, revenue increased by 8%, with a gross operating margin of 35% compared to 48% in the prior year, affected by higher network difficulty and energy costs.

• The net loss for the year was $51.2m, a significant improvement from $236.4m in fiscal 2023.

• HIVE is diversifying into HPC to support AI using Nvidia GPU chips, broadening its revenue streams and positioning itself at the forefront of technological advancements in both cryptocurrency and AI industries.

📃 Other News

🇰🇪 Kenyan Youth Protests Turn Deadly Amid Rising Bitcoin Adoption

On June 25, thousands of Kenyan youth protested in Nairobi against the Finance Bill 2024, which proposed widespread tax increases to address Kenya's high public debt. The protests turned deadly, with over 20 killed and 300 injured amid police-involved shootings.

Amidst the chaos, Bitcoin has gained traction among the youth, offering financial freedom from restrictive policies. President Ruto eventually responded to the protests, announcing he would not sign the bill.

Advocates like Noelyne Sumba and grassroots organizations emphasize Bitcoin's potential to reduce reliance on foreign debt and improve economic stability in Kenya.