💸 Bitcoin Mining Profitability Is at Record Lows - JPMorgan.

• Miners earned an average of $43,600 per EH/s in daily rewards in August, the lowest rate recorded.

• This contrasts with a peak of $342,000 in November 2021, when Bitcoin was priced at $60,000.

• The market cap of 14 U.S.-listed bitcoin miners tracked by JPMorgan fell 15% in August, dropping to $20b. Only three of the miners outperformed Bitcoin during the month.

• Bitcoin's network hashrate averaged 631 EH/s in August, up 16 EH/s from July. Mining difficulty rose 9% in August, 4% higher than pre-halving levels.

• There was a brief spike in transaction fees in August, reaching up to 120% of the block reward, providing a minor boost to miners.

• Bitcoin's annualized volatility increased to 62% in August, up from 45% in July.

📔 Blockstream Launched a Third Round of Sales for Its Tokenized Note - BMN2

• BMN2 exposes investors to bitcoin earned from Blockstream’s mining over four years. The third round is priced at $31,000 and offers 1 PH/s of hashrate.

• Blockstream aims to raise $10m during this round, following two previous rounds that raised $7m.

• The company offers mining for under 4.5 cents per KWh, below the industry average.

• BMN2 is an EU-compliant security token that locks in hashprice for four years, longer than typical 12-month contracts.

• BMN2's predecessor, BMN1, delivered up to 103% returns, mining over 1,242 BTC.

• BMN2’s first two rounds started in July, with interest from U.S. institutions, but not offered there yet.

• Funds raised are used to manage infrastructure and energy costs at Blockstream’s mining facilities.

• BMN2 will trade on the crypto exchange Bitfinex.

⛏️ In the News

• Network hashrate reached a new all-time high of 746 EH/s on September 3rd, highlighting improved network security and fundamentals despite a decline in Bitcoin prices.

• Genesis plans to expand its Texas datacenter from 60 MW to 400 MW, leveraging the state's renewable energy and innovation-friendly policies.

• Russia mined nearly 54,000 Bitcoin in 2023, worth approximately $3b, with new legislation expected to attract investors, boost tax revenue, and support the country's strategy to circumvent economic sanctions.

• Bitfarms has resisted Riot's hostile takeover attempts by acquiring Stronghold Digital Mining for $175m, a strategic move to strengthen its position while accusing Riot of refusing constructive engagement.

• Core Scientific has extended CoreWeave's option to contract 118 MW of HPC infrastructure by 30 days for further design and construction planning.

• Core Scientific announced that Denise Sterling will step down as CFO on May 1, 2025, or when a successor is found, with the company already searching for a replacement and praising her contributions during a transformative period.

August Updates

 🏃 Marathon

• Marathon Digital Holdings, a leading miner by market cap, produced 673 BTC in August, reflecting a 3% MoM decrease. Mined 196 blocks in August, a 2% decrease in MoM

• Transaction fees accounted for 2.7% of total BTC earnings. As of August 31, 2024, held 25,945 unrestricted BTC, opting not to sell any Bitcoin during August.

• Transitioning a large portion of the Granbury, Texas data center to immersion cooling

• Aiming to reach 50 EH/s by the end of 2024

• Operating approximately 54% of 1.1 GW of power in its energy technology portfolio.

🧑‍🌾 Bitfarms

• Bitfarms earned 233 BTC in August 2024, increasing its HODL to 1,103 BTC.

• The company increased its operational hashrate to 11.3 EH/s by the end of August.

• Bitfarms acquired Stronghold Digital Mining, increasing its 2025 energy portfolio by 47%.

• Assumed control of a mega-site in Sharon, PA, with access to 120 MW of power by 2025.

• Operational capacity remains at 310 MW, with 256 MW from hydropower.

• Received 2,744 T21 miners to replace underperforming ones, with 5,040 additional miners in transit.

• Daily BTC earnings averaged 7.5 BTC, worth ~$443,000 based on a BTC price of $59,000.

• Sold 147 BTC for $8.8m and added 86 BTC to the treasury.

• Year-to-date BTC production totals 2,043, down from 3,281 in 2023.

🐺 TeraWulf

• Mined 184 BTC in August, averaging 5.9 BTC per day.

• Installed and operational self-mining capacity reached 10.0 EH/s, doubling year-over-year.

• Average cost per BTC mined was $35,407, reflecting a $0.044/kWh power rate.

• Curtailment of over 1,200 MWh in August, expected to reduce power costs by $0.007/kWh.

• Value per BTC self-mined was $60,025, down from $62,887 in July.

• Operating hashrate averaged 8.2 EH/s, up from 8.0 EH/s in July.

• Ongoing construction of the 2 MW 'WULF Den' proof-of-concept project and the 20 MW AI/HPC building at Lake Mariner.

• Total operational infrastructure capacity: 195 MW at Lake Mariner and 50 MW at Nautilus.

👁️ IREN

• Mined 245 BTC in August, an increase MoM of 23 BTC (10.4%).

• Installed hashrate of 16 EH/s as of September 4, with 20 EH/s expected in September and 30 EH/s in 4Q 2024.

• Operating 300 MW of data centers, aiming for 510 MW in 2024.

• AI Cloud Services: 816 NVIDIA H100 GPUs, generating $1.29m in revenue.

• Electricity cost per BTC decreased to $29,958 from $61,677 in July.

• AI Cloud Services revenue up, strong demand and customer pipeline.

• Data center construction: Childress Phase 2 (100 MW) energized, Phase 3 (150 MW) on track for 4Q 2024.

• Corporate: FY24 results webcast available, $405m cash, no debt.

🧑‍🔬 Core Scientific

• Core Scientific mined 358 BTC in August, down from 411 BTC in July. YTD total is 5,275 BTC.

• Customers earned an estimated 90 BTC in August, compared to 110 BTC in July.

• Average daily self-mined Bitcoin decreased to 11.6 BTC from 13.3 BTC.

• Energized hashrate for self-mining was 20.5 EH/s; total hashrate was 25.4 EH/s.

• Sold 375 BTC for ~$22.5m, down from $25.2m in July.

• Self-mining fleet efficiency improved slightly to 24.8 J/TH.

• Operated about 214,000 miners, with 175,000 being company-owned.

• Reduced power consumption delivered 58,733 MWh to local grids in August.

🫧 CleanSpark

• CleanSpark mined 478 bitcoins in August 2024 and bitcoin holdings were 7,558.

• Sold 2.5 bitcoins in August at an average price of $56,729 per bitcoin.

• Increased total operating hashrate by 1.4 EH/s to 22.6 EH/s by the end of August.

• Deployed fleet consisted of 163,648 machines with a fleet efficiency of 22.70 J/Th.

• Average hashrate throughout August was 21.3 EH/s, with an average of 15.43 bitcoins mined daily.

• 65 MW of new data center capacity expected to come online in September.

• Dalton Expansion: 15 MW to be energized and hashing by next week.

• Sandersville Expansion: 50 MW to be energized and hashing by mid-month.

• Wyoming: Initial 30 MW immersion-cooled facility progressing, with 75 MW of power agreements executed in July.

• Tennessee: Utilizing 50 MW of infrastructure under a hosting agreement; 80 MW of additional capacity under construction pending acquisition of GRIID Infrastructure Inc.

🛖 Hut8

• Hut 8 managed 762 MW of energy capacity and 18.5 EH/s hash rate in August 2024.

• Energized Building 1 at Cedarvale; aiming to bring the remaining three buildings online by December 2024.

• Deployed 179.5K miners, up from 174.2K in July. Total hashrate under management increased to 18.5 EH/s from 18.0 EH/s in July.

• Self-mining produced 87 BTC, down from 105 BTC in July and BTC balance increased slightly to 9,105 BTC.

• Managed services had 582 MW of energy capacity and 13.9 EH/s hash rate.

• Hosting services managed 76.7K miners with an 8.5 EH/s hash rate.

• Ongoing development for the 205 MW Texas Panhandle site, with targeted energization in H1 2025.

🚨 Riot

• Riot produced 322 BTC in August 2024, down 13% from 370 BTC in July and 3% from 333 BTC in August 2023. Average daily production decreased to 10.4 BTC from 11.9 BTC in July.

• Bitcoin holdings rose to 10,019 BTC, up 3% month-over-month and 37% year-over-year.

• No Bitcoin was sold in August, unlike 300 BTC sold in August 2023.

• Deployed hashrate increased to 23.5 EH/s, up 1% from July and 128% from August 2023.

• Average operating hashrate dropped to 14.5 EH/s, down 7% month-over-month but up 224% year-over-year.

• Power credits amounted to $6.4m, a 90% increase from July but a 78% decrease from August 2023.

• Demand response credits were $0.7m, up 261% from July but down 86% from August 2023.

• All-in power cost decreased to 2.6c/kWh, down 14% from July and significantly lower compared to August 2023.

• Riot continues to develop the Corsicana Facility, with the third 100 MW building, Building B1, set to be fully operational by the end of September.

💾 Bit Digital

• Bit Digital produced 53.4 BTC in August 2024, a decrease of 11.7% from the previous month.

• The company had an active hash rate of approximately 2.43 EH/s as of August 31, 2024.

• It earned about $4.3m in revenue from its AI contract and issued a $579k service credit for downtime.

• Treasury holdings included 682.4 BTC and 27,331.0 ETH, valued at approximately $40.2m and $68.7m, respectively.

• The BTC equivalent of its digital asset holdings was about 1,858.3 BTC, totaling around $109.6m.

• Bit Digital had $106.9m in cash and cash equivalents, with total liquidity of approximately $216.5m.

• Approximately 21,568 ETH were staked, earning a blended annual percentage yield of 3.1%, with aggregate staking rewards of 56.6 ETH for August 2024.

🍊 DMG Blockchain

• DMG Blockchain Solutions mined 21 BTC in August 2024. The company’s hash rate was 0.94 EH/s. DMG's BTC balance was 453 BTC.

• The company has installed about 40% of its 4,550 Bitmain T21 miners, producing approximately 0.35 EH/s.

• Legacy fleet optimized for summer heat, producing about 0.75 EH/s, with a total of 1.1 EH/s.

• DMG aims to reach a hash rate of 1.7 EH/s at 23 J/TH with the full deployment of T21 miners and an optimized legacy fleet.

• The company expects more consistent hashrate with cooler weather starting late September.