Mining

Report: Miner Spends Only $1567 per BTC

30/08/2018 by Idelto Editor

Report: Miner Spends Only $1567 per Bitcoin

Electricity is the number one cost for cryptocurrency mining, giving an edge to whoever can secure it for the lowest price. Bitfarms, which has access to cheap renewable energy in Canada, reports that mining a single BTC cost the company just $1567 in the first half of the year.

Also Read: The Daily: Huobi Nears Backdoor Listing, Musk Still Loves Scambots

$1567 Per BTC

Tel Aviv Stock Exchange listed firm Bitfarms Technologies Ltd. (TASE: BLLCF), today reported its consolidated results for the half-year period which ended June 30, 2018. The report shows that the company generated 1,923 BTC, 2,222 BCH, 3,324 LTC, 567 ETH and 220 DASH during the first six months of 2018. And the figures also reveal that it cost Bitfarms just $1567 to mine each BTC.

Financial highlights for the period include mining operations segment revenue of $21.1 million, gross profit of $12.3 million (58% gross profit margin), gross mining profit of $17 million (80% gross mining margin), operating income of $8.1 million (38% operating margin), EBITDA of $13.9M (66% EBITDA margin) and net income of $6.2 million. Bitfarms also executed an acquisition of a company with 40 electricians specialized in building infrastructure for computing centers, and installed over 6,500 ASICs at a St. Hyacinthe, Quebec facility producing about 91 PH/s of hash power.

Low-Cost, Clean Energy

Bitfarms has bought land and two industrial properties in Sherbrooke, Quebec where it plans to build a “mega-facility”. It negotiated energy purchasing agreements with Hydro-Sherbrooke to secure 98 MW of low-cost electricity, enough to grow its mining operation five times their current size. The company also reports it completed the construction of leasehold improvements and installation of all electrical infrastructure for a new 10MW facility in Magog, Quebec.

“We are very proud of the tremendous progress made in the first half of Fiscal 2018,” commented CEO Wes Fulford. “Through disciplined execution and responsible financial management, our team has successfully completed several key initiatives that align with our strategic objectives of securing low-cost, clean energy, growing mining infrastructure and operations, vertically integrating to minimize dependence on costly third-party service providers and exploring exciting new business verticals within blockchain technology. Contrary to industry trends, we achieved strong revenues and robust margins throughout the period. Our impressive cost structure, enabled by long-term, affordable electricity and real-estate leasing costs, allows us to maintain profitability during periods of volatile cryptocurrency pricing. We are committed to executing our vision as we strengthen Bitfarms’ position as a leading player within the global blockchain industry.”

Does access to cheap energy guarantee that mining will support the development of renewable sources? Share your thoughts in the comments section below.

Images courtesy of Shutterstock.

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Pangolin Miner Claims 16nm ASIC Miner Will Compete With 7nm Machines

28/08/2018 by Idelto Editor

Over the last few weeks, we’ve been reporting on the wide variety of new cryptocurrency miners entering the digital asset economy. Some of these newly created miners are bringing faster processing power and more optimized chips, while others have even built mining rigs that tether to a water-cooling system. Now another new SHA-256 mining rig called the ‘Whatsminer M10’ is joining the competition and the manufacturer claims it will boast speeds of up to 33 trillion hashes per second (TH/s).

Also Read: Bitmain Offers Wi-Fi Routers Mining Cryptocurrencies

Pangolin Miner Begins Selling the 33 Terahash Whatsminer M10

Last January a mining manufacturing company called Pangolin Miner released a SHA256 mining rig called the Whatsminer M3 that processed a maximum hashrate of 12TH/s for a power consumption of 2000W. This summer the company has announced the launch of a new miner called the Whatsminer M10, and according to the specifications, it will compete with GMO Group’s B3 mining rig. Pangolin’s specs for the M10 show the new rig will have a hashrate of around 30-33.5 TH/s and pulls about 2150W from the wall. At the moment Pangolin is selling its first batch for September 20 delivery, and the second batch for November 20.

The M10 Still Uses the Older Generation 16nm Fabrication Process

What is interesting about the M10 is that it doesn’t use 10nm or 7nm chips for its ASIC mining rigs, as the Whatsminer M10 still uses 16nm architecture. The company’s prior model the M3 was similar using older generation tech, as it processed speeds of up to 12TH/s but with 28nm chips. Pangolin has also published a video of the M10 in action, but the machine only processed at 30TH/s. The creators detail the test is “not the final version of the machine.” The video also details the rig has 315 16nm Finfet chips and the M10’s power consumption pulled 2042W off the wall during filming.

“The M10 features a new all in one structure that further enhances computing power and it is also easy to disassemble, which reduce maintenance costs,” says Pangolin. “After sixty minutes of working the background shows a hashrate stabilize at 30TH/s — The Whatsminer M10 has a lot of room for improvement.”

Mining Manufacturers Using 10nm and 7nm Chips Sell Out Quick

The M10 will compete with GMO Group’s B3 (33TH/s), Canaan’s Avalonminer A9 (30TH/s), GMO Group’s B2 (24TH/s) and Innosilicon’s T2 Turbo (24TH/s). Moreover, GMO Group and Canaan Creative use 7nm architecture, while the Innosilicon T2 Turbos use 10nm chips. Now while many of these new machines are super powerful, most of these miners are difficult to acquire. For example, the SHA-256 miners manufactured by Ebang and Halong Miners have been sold out for a long time.

GMO Group’s B2 is also sold out, and customers can only purchase the B3 model right now. In contrast to the lack of accessibility, the Bitmain developed Antminer S9j is only 14.5TH/s, and the machines are always available for purchase. Bitmain also revealed the Antminer Hydro this week that boasts speeds of up to 18 trillion hashes per second (TH/s), but uses a water-cooled system to reduce noise and increase operation life. Like most Bitmain hardware the Hydro is also accessible today, and the rig is available for September delivery.

16nm ASIC Mining Rigs Are Not Going Away in 2018

Furthermore, manufacturers making SHA-256 mining rigs that bolster 7nm technology may have some difficulties acquiring these semiconductors from the foundries. On August 27 reports detailed that Globalfoundries is shifting its manufacturing strategy and has decided to stop its 7LP (7nm) fabrication processes. Essentially, this means that mining rig manufacturers will have to deal with only one manufacturer TSMC, who was the first foundry to complete 7nm architecture. Samsung has been working on the 10LP (10nm) fabrication process and doesn’t expect to complete the 7nm fabrication until 2019.

With only one firm creating 7nm chips it’s likely demand will exceed availability and most giant mining facilities will still be using 16nm machines for quite some time. If the Whatsminer M10 performs at 30-33.5TH/s then older generation chips will still be competitive against machines produced with 10nm and 7nm technology. Moreover, if the M10 produces what the specs claim, then one can assume that newer rigs made with 10nm and 7nm technology could outperform GMO’s latest B3 as well.

What do you think about the Whatsminer M10 and its 16nm technology processing 30TH/s? Let us know what you think about this subject in the comment section below.

Disclaimer: Bitcoin.com does not endorse Pangolin Miners products/services. This article is provided for general informational purposes only. Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images via Shutterstock, Pangolin Miner, and Pixabay.

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Montana Senator: Closing Coal Plant Could Hurt Bitcoin Mining Industry

28/08/2018 by Idelto Editor

The crypto industry has scored another first, as a junior U.S. Senator from Montana, Steve Daines, has lobbied against the planned closure of a coal-fired power plant in Rosebud County, arguing that its closure could harm the growing cryptocurrency mining industry in the state.

According to reports, the Colstrip coal plant in Rosebud County is scheduled to shutdown by 2027 as State and Federal governments in the U.S. look to transition toward clean and renewable energy sources.

Unusual Situation

Elsewhere in North America and around the world, crypto mining generally takes place where cheap power is available, which is the case in Montana, but with one key difference: most other crypto mining hubs with access to affordable electricity make use of renewable energy.

Indeed, mining ventures have increasingly flocked to sources of renewable energy in an effort to generate greater profit, as is the case in Scandinavian countries, which make use of hydroelectric and geothermal energy, or America’s Pacific seaboard and China’s Sichuan mountain region.

In Montana, however, vast coal deposits and several coal-fired power plants supply an abundance of cheap electricity, and this has attracted a growing number of mining farms to the area. According to Senator Daines, this should be encouraged and not stifled, as bitcoin mining is one of the few growth industries with immediate, long-term prospects in the state.

Speaking during a U.S. Senate Energy and Natural Resources Committee meeting recently he said:

“As the demand for Bitcoin miners increases and supply of cheap, reliable electricity from coal generation decreases, this could pose a threat [to] the expansion of Bitcoin generation and an even greater threat to energy supply and prices for Montana as a whole.”

Montana’s Unique Crypto-Positive Atmosphere

It will be recalled that Montana is currently one of the most crypto-positive states in the U.S., offering permission to bitcoin mining operations before any other state in the country.

Governor Steve Bullock also announced last year that, out of a special fund meant to stimulate economic activity and boost growth in the state, $416,000 was allocated to Project Spokane.

Alongside low energy costs, Montana’s low temperatures are also a draw for coin miners who want to save costs on cooling, as ASIC miners and other related mining hardware require temperature controls to keep from overheating. Mining companies that have taken advantage of Montana’s unique comparative advantage include CryptoWatt LLC and Bonner Bitcoin.

CryptoWatt’s facility in the town of Butte has an exclusive agreement with the Colstrip coal-fired plant to supply it 64MW, and it’s one of the largest consumers of electricity in the state. Located in Missoula, Bonner Bitcoin’s data center,Project Spokane, is also undergoing expansion to take its total number of mining rigs from 12,000 to 55,000. This could mean more controversy for the company whose neighbors have complained about the noise levels of its hardware in the past.

Speaking with Bitcoin Magazine, CryptoWatt Chief Communications Officer Matt Vincent said they chose coal for their current power contract because it was the most “competitive on the market for our intents and purposes at the time.”

The company, however, has a number of “competitive alternatives for power contracts” and he expects them to be adequately secured before the closure in 2027.

“We will continue to strategically and responsibly evaluate the best options for our needs in the future, and we have a lot of confidence that Montana will continue to be the best place for us into the future. We consider sustainable options (wind, solar and hydro) every bit as viable for us as coal and we will always strive to do what’s in the best interest of our company in balance with the communities in which we are invested,” he said.

Elsewhere in the States, mining operations in New York may benefit from plans to revitalize the Valatie Falls hydroelectric dam. DPW Holdings has spearheaded the restoration process to power its subsidiary’s cryptomining farm in the state of New York.

In a statement released to the media, DPW Holdings said the project is an “important step” in creating a “self-sustaining cryptocurrency mining business.”

“Our successful repurposing of Valatie Falls dam to provide clean, low-cost, renewable power to Super Crypto’s future co-located mining farm is another important step in our strategy to create an economically viable, self-sustaining cryptocurrency mining business.”

This article originally appeared on Bitcoin Magazine.

Report Finds Mining Activity and Bitcoin Exchange Development in North Korea

28/08/2018 by Idelto Editor

A report by South Korea’s state-run Korea Development Bank (KDB) suggests that North Korea has been mining cryptocurrencies, according to local media. In addition, a technology firm in the country is developing an exchange platform for bitcoin, while average citizens of North Korea have little knowledge of cryptocurrency, the report claims.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Mining Activity

A research unit of South Korea’s state-run Korea Development Bank (KDB) has compiled a report suggesting that North Korea has been mining cryptocurrencies, Yonhap News Agency detailed Monday.

Citing the report, the news outlet wrote:

North Korea appears to have tried to mine cryptocurrencies on a small scale.

“The KDB unit said North Korea may have tried to mine bitcoin between May and July last year, but the attempt appears to have been unsuccessful,” the publication added.

The report further describes that North Korea seems interested in the defining “characteristics of cryptocurrencies, including anonymity, difficulties of tracing money and cashability.”

Bitcoin Exchange Being Developed

Without providing additional details, the news outlet quoted the report claiming that:

A North Korean technology firm, named Chosun Expo, is developing and selling a market-exchange platform for bitcoin.

According to the KDB unit, it will take time for the cryptocurrency industry to expand in North Korea, due to the lack of a blockchain infrastructure, high-performance computers, electric power, and networks to carry the internet, South Korean media Speconomy conveyed. “The current situation in which only a few layers of the Internet can be connected will dampen the development of the virtual currency industry.”

In April, Koryo Tours, a travel company specializing in tourism to North Korea, announced “the creation and release of a new blockchain-based cryptocurrency exclusively for use in the DPRK [Democratic People’s Republic of Korea] tourism industry — the Koryo Coin.” The company also said that it was launching an initial coin offering (ICO) of this token.

North Korean Citizens Know Little of Crypto

The KDB report further asserts that average North Koreans “appear to have little knowledge of cryptocurrencies,” Yonhap noted. Citing “recent interviews with North Korean defectors,” the report claims that “all of them replied that they don’t know about cryptocurrencies in the North.”

In November last year, the Pyongyang University of Science and Technology gave a course on cryptocurrency, bitcoin, and blockchain technology. It was led by Federico Tenga, an Italian bitcoin entrepreneur. “The attendees of the lectures were a mix of computer science and finance students, but sometimes also some of the other professors of the university came to learn about the subject,” Tenga told NK News. The publication added that “according to Tenga, the students were aware of bitcoin but showed limited knowledge of the crypto-currency.”

What do you think of the KDB report finding mining activity and crypto exchange being developed in North Korea? Let us know in the comments section below.

Images courtesy of Shutterstock and KDB.

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Bitcoin Mining is Big Business in Montana: US Senator Works to Protect Industry

27/08/2018 by Idelto Editor

Bonner and Butte, Montana are home to two of the largest bitcoin mining facilities in North America. They’re also subject to a major energy producer in the state, the Colstrip power plant, which is due to be shut down. Bitcoin mining has become such a potential windfall for the state economy, one of its congressional representatives, Senator Steve Daines, openly worried closing of the plant could kill its crypto golden goose.

Also read: Bitcoin Journalist Pioneer: Jamie Redman Has Over 2,000 Articles Published

US Senator from Montana Defends Bitcoin Mining

“As the demand for Bitcoin miners increases and supply of cheap reliable electricity from coal generation decreases,” Senator Daines explained during a Senate Energy and Natural Resources Committee meeting in Washington, DC, “this could pose a threat of the expansion of Bitcoin generation and even greater threat to energy supply and prices for Montana as a whole.”

For example, Butte, Montana is home to the Crypto Watt LLC mining center. Having taken over an industrial site, it relies on the coal-fire powered Colstrip plant for 64 megawatts of power, making it one of the hungriest users of energy in the entire state. Senator Daines explained the plant is scheduled for a shutdown in less than ten years, and if all four of the plant’s sectors are shuttered that could well end Montana’s bitcoin mining industry.

Such an enlightened posture by the state’s politicos is hardly new. Last summer, its governor announced close to half a million dollars would be awarded as a grant to bitcoin miner Project Spokane for business growth, job creation, and employee training.

On a Roll

Governor Bullock explained at the time, “Missoula County received $416,000 of BSTF Job Creation funds to assist Project Spokane, LLC to expand, which will allow the company to create 65 new jobs in Bonner. The BSTF funds will be used for purchase of equipment, machinery, furniture and software and for wage reimbursement. Project Spokane, LLC is a data center that provides blockchain security services for the bitcoin network.”

The Bonner bitcoin mining facility is doing so well, it’s widely expected to expand its processing prowess from 12,000 to 55,000 rigs. The mining business can thrive in the state thanks not only to a hospitable political climate, but also through its natural temperatures. Miners prefer colder areas to keep machines running well, not to mention lowering cooling costs. Of course, reliable, low cost energy helps as well.

In February of this year, the state scored yet another mining contractor, as these pages reported. In the last two years alone, tens of millions of dollars has been promised by miners to the various communities. And if the plant Senator Daines is concerned about does dry up and is shuttered, panelists at the Senate meeting reminded him it could be an opportunity for the state to bring more alternative energy providers online.

Is it good to have a US Senator so in favor of bitcoin mining? Let us know in the comments below.

Images via Pixabay.

We’re celebrating Bitcoin Journalist Pioneer Jamie Redman’s work. Check out Jamie Redman’s author archives. It’s an encyclopedia, a living history of crypto.

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