In this newsletter, we summarize some of the big events from this week. Subscribe to get it straight in your inbox.

Here's what happened in the world of mining this week:

• Marathon achieved record production with 20.1 EH/s and fees 🏃‍♂️ 

• Bitfarms May update 📈 

• CleanSpark acquired 12,500 new XPs 🤖 

• Tether sets up green Bitcoin mining operations in Uruguay 🇺🇾 

• Texas Blockchain Council and Bitcoin stand victorious in Texas 🤠 

Swiss Business News Featured Sebastien 🫕 

• Sebastien Hess, co-founder and CEO of Block Green got featured in Bilan, Forbes of Switzerland, in a 40 under 40 list 😄 

Marathon Produced 1,245 BTC in May 77% Increase MoM 👏 

• Marathon achieved a record production of 1,245 BTC in May, marking a 77% increase from the previous month and a 366% increase from May 2022.

• The increased production was attributed to a higher hash rate and a significant rise in transaction fees, which accounted for approximately 11.8% of the total bitcoins earned.

• The operational hash rate increased by 9% to 15.2 EH/s, and the installed hash rate increased by 13% to 20.1 EH/s in May.

• In May, Marathon energized approximately 5,500 Bitcoin miners (0.75 EH/s) at Applied Digital's facilities in North Dakota.

• Additionally, around 5,300 S19 XPs (0.72 EH/s) were energized in Ellendale, ND, while the remaining units were activated in the Jamestown, ND, facility, where immersion mining is underway.

• The company's operating fleet now consists of approximately 133,600 Bitcoin miners, theoretically capable of producing around 15.2 EH/s, as of June 1, 2023.

• Once all the previously purchased miners are installed, approximately 66% of Marathon's hash rate is expected to come from S19 XPs, which are approximately 30% more energy efficient than the previous generation of mining rigs.

• As of June 1, Marathon holds a total of 12,259 BTC, all of which are unrestricted.

• The company sold 554 BTC during the month of May. Marathon plans to sell a portion of its bitcoin holdings in the future to support monthly operations, manage its treasury, and for general corporate purposes.

• The company ended May with 97.3 MUSD in unrestricted cash and cash equivalents on its balance sheet.

Bitfarms Increased Production By 21% MoM 📈 

• Bitfarms accelerated its organic growth target to 6.0 EH/s by the end of Q3 2023, ahead of schedule.

• BTC production increased by 6.5% year-over-year in May, while network difficulty increased by 65% in the same period.

• Bitfarms mined 459 BTC in May, a 21.1% increase from April. The company remained cash flow positive in May, with 45 BTC added to their treasury.

• Network difficulty increased by 5.2% in May and has risen by 44.9% year-to-date, while Bitcoin price increased by roughly 63.5% in the same period.

  

• The company mined an average of 14.8 BTC per day, equivalent to approximately 401,100 USD per day or 12.4 MUSD for the month, based on a BTC price of 27,100 USD on May 31, 2023.

• In Rio Cuarto, Argentina, 2,900 MicroBT miners arrived and are scheduled for installation in June. The acquisition of the Baie-Comeau facility, which represents 22 MW of hydropower capacity, is on track to close in June 2023.

• Bitfarms expects to receive and install an additional 3,300 Bitmain miners in June.

  

• In May 2023, Bitfarms sold 414 BTC, generating total proceeds of 11.3 MUSD. The company reduced its total outstanding indebtedness by 1.8 MUSD, leaving a remaining balance of 17.4 MUSD as of May 31, 2023.

• Bitfarms added 45 BTC to its treasury, increasing the total custody to 510 BTC.

CleanSpark Mined 609 BTC in May and Aim to More Than Double Hash Rate Before EOD 📦️ 

• CleanSpark Inc. has purchased 12,500 Antminer S19 XP bitcoin mining machines for 40.5 MUSD. The machines were acquired at a lower price than the current market average, costing 23 USD/TH.

• 6,000 machines will be shipped in June, and the remaining 6,500 will be shipped in August. CleanSpark aims to achieve a year-end target of 16 EH/s with this purchase.

• CleanSpark achieved over 100 MUSD in revenue for the fiscal year to date. BTC mined in May: 609; CY2023 bitcoin mined: 3,004.

• Total BTC holdings as of May 31: 451; Total BTC converted for operations and growth in May: 471.

• The company sold 471 BTC in May at an average price of approximately 27,400 USD per BTC, generating proceeds of around 12.9 MUSD

• CleanSpark's currently deployed fleet consists of about 67,196 latest-generation Bitcoin miners with a hash rate of 6.7 EH/s.

• The Washington 50MW expansion is progressing as planned, with all units expected to be at the facility by the end of the month.

• Preparations for the expansion at the Sandersville site are underway, aiming to add over 6 EH/s to CleanSpark's mining operations.

Report Claim Miners Are Liquidating New Bitcoins Due to Squeezed Margins ✂️

• Bitcoin miners are facing selling pressure at the 28,000 USD price level, potentially impacting the market.

• Crypto-services provider Matrixport suggests that miners are being compelled to liquidate newly mined bitcoins due to squeezed profit margins.

• Mining has become highly competitive and often unprofitable, primarily due to the continuous increase in mining difficulty.

• Most machines produced before 2022 appear to be unprofitable based on current input cost and revenue expectations.

• Miners are forced to sell their inventory at the current level rather than holding on for higher prices, according to Matrixport's report. However, there is potential for significant profitability if bitcoin prices increase by 10% or more.

New York Times Accused of Sharing Manipulated Footage of a Bitcoin Mine 🗞️ 

• Twitter profile Level39, conducted an extensive investigation delving into whether the New York Times had indeed published manipulated footage of a Bitcoin mine, potentially aiming to bolster the newspaper's existing bias.

• The New York Times published an article critical of Bitcoin mining that included aerial drone footage showing smog over a Bitcoin mining operation in Rockdale, Texas.

• Analysis of the color histograms in the footage suggests that it may have been manipulated or lacks proper color grading.

• The photographer who took the footage, Jordan Vonderhaar, published a clear photo from the same drone flight on his personal website, indicating that the hazy footage was not due to weather conditions.

• The hazy footage used by the Times may give readers a false impression that the air in rural Texas has been polluted by Bitcoin mining, while in reality, the mining facilities have zero Scope 1 carbon emissions.

• The extent of the manipulation and the true colors of the footage can only be determined if Vonderhaar releases the original raw footage. The Times should address concerns and allegations of improper conduct and follow ethical journalistic practices.

• Read more

Tether Expands into Sustainable Bitcoin Mining in Uruguay Leveraging Renewable Energy Sources 🇺🇾 

• Tether, the company behind the USD stablecoin, is expanding into Bitcoin mining in Uruguay. Tether aims to invest in renewable energy sources to support and promote sustainable Bitcoin mining while minimizing its ecological footprint.

• Uruguay is known for its leadership in renewable energy, with 94% of electricity generation coming from renewable sources.

• Uruguay's favorable conditions for renewable energy production, such as wind farms, solar parks, and hydropower projects, make it an ideal location for sustainable mining operations.

• The country's robust and reliable grid system further ensures efficient and sustainable mining activities.

Texas Legislature Champions Pro-Bitcoin Policies, Boosting Mining and Innovation in the State 🤠 

• Pro-Bitcoin legislation in Texas emerged victorious as the legislative session ended, with the defeat of an anti-mining bill (Texas SB 1751) and the passage of a pro-mining bill (Texas SB 1929).

• The successful bills will contribute to the growth and stability of Bitcoin mining operations in Texas, providing flexibility in balancing and stabilizing the power grid.

• Texas established a registration process (SB 1929) for Bitcoin miners to share information with ERCOT, enhancing transparency and grid reliability

• HB 591 was approved, offering a tax incentive for on-site Bitcoin mining that utilizes gas, leading to emissions reduction.

• Texas positioned itself as a leader in building confidence within the digital asset ecosystem through the passing of HB 1666, which introduced a proof-of-reserves regime.

• A special thank you to Lee Bratcher and the Texas Blockchain Council ⭐️