Oman Makes $1.1Bn Investment in Bitcoin Mining Infrastructure 👏

PLUS: Nodal Power closes $13M raise, US Senator Visits Griid, Mining Updates from Galaxy and NYDIG & more..

Kim Sandin
August 25, 2023

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

The largest news of the week was an announcement from the Government of Oman in support of Bitcoin mining-related businesses.
The chairman of Oman's Authority for Public Services Regulations publicly stated his nation’s government support of privately-owned bitcoin mining facilities.
Additionally, the country of Oman stated that bitcoin mining is compliant with their traditional Sharia Law principles.
As a historically conservative nation and a contender for bitcoin mining market share dominance, Oman announcing Islamic Law abidance is a material event and could drive more hash rate in the Middle East.

U.S.-based Nodal power announced a $13M raise to fund their expansion using methane mitigation technology to capture and monetize wasted energy.
The company converts methane gas produced by landfills into electricity.
Their unique business model has multiple revenue streams within bitcoin mining and energy management.
If bitcoin mining economics are unfavorable, the company can get paid by sending their power from landfill waste to local utilities in the form of renewable energy.

The Griid team hosted Senator Hagerty who thanked the company for providing power stability to the electricity grid.
As the industry awaits regulatory clarity, a government representative who supports and comprehends bitcoin and Bitcoin mining is certainly a good sign.
In the state of Tennessee, Griid has created a large number of jobs in rural areas which has been widely embraced by the community.
We look forward to additional updates from the U.S. government and regulatory bodies.

NYDIG announced an agreement with Greenidge to purchase the GREE site in South Carolina.
In doing so, Greenidge is able to extinguish the remaining $22m of secured debt owed to NYDIG.
After the company closes the agreement for an additional 26 MW’s the total site capacity will be 44 MW’s.
For NYDIG, the move is akin to Galaxy's recent move to a hybrid mining strategy rather than a pure asset-light mining play.
Galaxy said in its Q2 report that its mining cost was $5.5 million.
Cost attribution was mainly from power purchases.
Estimated gross margin was 65% and estimated cost of production was between $9,000 to $10,000 for Galaxy Digital Mining.
In conclusion, bitcoin mining revenues are substantially higher YoY for both NYDIG and Galaxy. This is a positive sign for an industry that was previously riddled with a large number of asset-backed debt facilities in default.

Coindesk noted a JP Morgan research report that speaks to the future of bitcoin miner revenue.
The report highlights the importance of diversity within bitcoin mining businesses.
Miners are now becoming more interested in High-Performance-Computing given the rapid growth in AI.
It remains to be seen how the industry plans to capitalize on new data center revenue opportunities.