🪆 Russia’s BRICS Bitcoin Mining Strategy May Spark Global Shift

Russia’s plan to build Bitcoin mining and AI computing facilities in BRICS nations, backed by a partnership with data center operator BitRiver, may set off a trend of nations using state-owned resources to mine Bitcoin, says analyst Nico Smid.

The move, described as "game theory in motion," could push other countries to adopt similar strategies, as some—like El Salvador and the UAE—are already doing. By investing in BRICS, Russia aims to strengthen geopolitical ties and establish alternatives to US-led economic systems, potentially even settling trade in Bitcoin rather than traditional currencies.

The approach aligns with Russia’s foreign policy to increase influence among BRICS members while the US’s support for some countries in the bloc declines. Meanwhile, Russia’s plan to lift its domestic Bitcoin mining ban on Nov. 1 comes with restrictions: miners must register and report their equipment, although rising electricity costs and a weakening ruble could pose challenges.

Simultaneously,

• Russia will ban cryptocurrency mining in certain regions starting in November due to electricity shortages exacerbated by increased consumption from miners, particularly in areas like the Far East and southern Siberia. New consumers will not be able to connect to the power grid until at least 2030.

💰️ Comparison of Cost of BTC

⛏️ In the News

• CleanSpark has acquired infrastructure firm GRIID to expand its capacity to 400MW in Tennessee, aiming for operational flexibility and geographic diversity.

• Bitfarms signed a hosting agreement with Stronghold to deploy 10,000 ASICs at Stronghold's Pennsylvania sites.

• Bhutan’s government moved $66m in Bitcoin to Binance as prices surpassed $70,000, signaling potential future sales from its remaining $886m Bitcoin reserves, which have been accumulated through years of mining.

🚨 Riot Q3

• Riot Platforms’ Q3 2024 revenue rose 65% to $84.8m, with Bitcoin mining generating $67.5m due to a 159% increase in deployed hash rate (28 EH/s), though costs per BTC rose with the April halving and increased network difficulty.

• Riot mined 1,104 BTC in Q3, nearly matching 2023, at an average mining cost of $35,376 per BTC, offset partially by $12.4m in power credits.

• Expenses led to a $(154.4)m net loss, impacted by higher legal and stock-based compensation costs, and a $38m unrealized loss on securities.

• Riot maintained strong liquidity, closing Q3 with $590.6m in working capital, including $355.7m in cash and 10,427 BTC worth $660.3m.

• Hash rate goals were revised: Riot expects 34.9 EH/s by year-end, 46.7 EH/s in 2025, and 65.7 EH/s by 2026 due to facility delays.

• Riot raised $730.8m through ATM offerings in 2024, with $62.1m additional sales as of late October, bringing total outstanding shares to 332.3m.

🧑‍🌾 Bitfarms October Update

• In October 2024, Bitfarms mined 236 BTC, a 9% increase from September, and raised its Bitcoin treasury to 1,188 BTC valued at $84.3m at a BTC price of $71,000.

• The company signed a second hosting agreement with Stronghold Digital Mining for 10,000 miners at the Scrubgrass site, complementing an earlier agreement for the same number of miners, totaling 20,000 miners across two sites in Pennsylvania, supporting approximately 4 EH/s.

• Average operational efficiency reached 10.6 EH/s, an 80% YoY increase, but the company remains behind its mid-year target of 12 EH/s due to miner warranty servicing delays, despite improvements in shipments.

• Bitfarms reported an operational hash rate of 11.5 EH/s at the end of October, an 83% increase YoY, with average mining efficiency at 22 BTC per average EH/s, a decrease of 67% YoY.

• The company sold 194 BTC for $13.0m during the month, maintaining regular treasury management practices and holding 802 long-dated BTC call options as of October 31, 2024.