American Bitcoin (BTC) mining company Riot Blockchain (NASDAQ: RIOT) announced an increment to its production capacity in the month of September, during which it mined a total of 406 BTC. The mined coins come off with a growth of 346% over its September 2020 production of 91 BTC and reaffirm the positive impacts of the company’s operational strategies.
In the year to date through September 2021, Riot Blockchain said it has produced a total of 2,457 BTC, an increase of approximately 236% over its BTC production during the same 2020 period of 731 BTC. The company also pointed out that it is currently HODLing a total of 3,534 BTC, all of which was produced from its own mining operations only. The impressive feat for the month of September was achieved with the help of a total of 25,646 deployed miners, generating a hash rate capacity of 2.6 exahash per second (“EH/s”).
This year has been exceptionally tumultuous for Bitcoin miners, particularly those operating from China. First saddled with the Xinjiang flood crises that caused the plunging of the mining hashrate back in May, a series of crackdowns from the Chinese government has also forced many miners on an untimely migration.
While the various upheavals notably affected the overall outlook of the Bitcoin mining industry, the negativities in the industry have notably benefitted companies like Riot Blockchain. Existing miners profited from the reduction in the mining difficulty, helping them to mine more Bitcoin from relatively a similar amount of work done in the past.
Riot Blockchain Expanding its Infrastructure
Besides its own primary operational activities, Riot Blockchain hosts a number of Bitcoin mining clients who use its facilities and also serves as an additional revenue source. To effectively do this, Riot Blockchain is expanding its infrastructure and also building out its human resource capabilities.
“The infrastructure development of Riot’s Whinstone Facility continues on schedule with around-the-clock construction. As of September 30, 2021, three 100 MW Power Transformer substations have been installed with the fourth 100 MW Power Transformer substation scheduled for installation during November 2021,” the company said in the announcement, adding that “the overall Building D development is reported at 50% completion and has 2,600 kVA transformers in the process of being installed.”
While Riot Blockchain is known for making strategic acquisitions to position it as a leading miner in the North American region, some of its current facilities are undergoing a massive retouch and are also at various stages of development, with plans to generate their own energy to power all of its operations. Riot Blockchain is also expanding its fleet of new-generation miners drawing on its orders with Bitmain.
“By Q4 2022, Riot anticipates a self-mining total hash rate capacity of 7.7 EH/s, assuming full deployment of approximately 81,150 Antminers acquired from Bitmain,” the company said.
The shares of Riot Blockchain closed 1.03% to $26.61 on Wednesday.
Mclouds Cloud Mining Giant to Stop Operations in Mainland China by Dec 31
Mclouds have announced they will be withdrawing from China by the end of December this year
Chinese blockchain news outlet 8BTCnews has tweeted that one of the biggest miner hosting company in China, Mclouds, will be shutting down their services for customers in mainland China and will withdraw from the region by December 31.
Another large miner leaving China
Source cited by 8BTCnews says that today, on October 18, Mars Cloud Mine, that is part of Mclouds giant, announced that it will be withdrawing mining assets and services from mainland China before end of December, following the recent ban on crypto mining activities and crypto transactions in the country.
The platform provides solutions for Bitcoin and ETH mining, as well as for Filecoin.
Miners hosting platform Mclouds will close all mining service in Mainland China by December 31. As one of the biggest miner hosting platform, Mclouds offers #Bitcoin , #Ethereum and #Filecoin miners hosting service.https://t.co/biEGHBkDx2— 8BTCnews (@btcinchina) October 18, 2021
China is cracking down on crypto mining again
As reported by U.Today previously, China had imposed a new ban on cryptocurrency mining and trading, announcing all crypto transactions in the country illegal.
Multiple crypto exchanges are withdrawing, relocating from China or are shutting down their business completely.
The same is happening with mining pools. Bitmain miner creating giant has announced that it will stop providing mining machines to its customers in mainland China. One of its major mining pools, BTC.com, has followed the suit and another mining giant Antpool has suspended access to its services from Chinese IP addresses.
The US surpasses China by Bitcoin hashrate
The US has now officially become the top destination for miners leaving China, according to CNBC. As per the article, the leadership of the US for miners has drastically increased by 428% since September last year.
A fintech expert from the London, Boaz Sobrano, cited by CNBC, said that the times when China controlled the lion share of Bitcoin hashrate are behind. The US has now taken its place.
Some miners are also fleeing from China to Kazakhstan, however, experts believe that this is just a temporary stopover for them.
Energy provided by this country is coal-based and next year the local government plans to impose taxes on crypto mining companies.
Fifth largest bitcoin mining pool abandons China because of crackdown
BTC.com, one of the largest bitcoin mining pools, ranked 5th in hashrate, starts leaving the Chinese market from this Friday (15th), as announced by its operator, BIT Mining, a company listed on the Stock Exchange of New York. According to the official note published on Thursday (14), the reason for leaving the Asian country is to comply with local regulations.
“BTC.com will discontinue registration of new Mainland China users and expects to begin canceling existing Mainland China users’ accounts in an orderly manner from October 15, 2021,” says the statement from BIT Mining.
Also according to the company, the discontinuation of the BTC.com service for users in China should impact the company’s revenue. That’s because the subsidiary is a business conglomerate such as pool, browser, cryptocurrency merchant.
The company concluded by stating that BTC.com recently signed a contract to acquire a mining machinery manufacturer with the aim of increasing its self-sufficiency and strengthening its competitive position. BTC.com is responsible for 9% of all bitcoin mining; in 2018 it came to lead the sector with 28.2% of the network’s total hashrate.
Antpool will no longer serve China
Also on Wednesday, Bitcoin hashrate giant Antpool warned the Chinese market that it would no longer offer its services. As of this Friday, the note says, the company begins a transition to “complying with relevant Chinese government regulations” and ordering its global customer base. For this, the company published the first two measures:
Online KYC (Know Your Customer) verification system, global authentication of registered users to help users comply with the laws and regulations of their location; And the blocking of IPs from China, with the exception of Hong Kong and Taiwan.
Cryptocurrencies in China
Last month, the Chinese government started a new wave of crackdown on cryptocurrencies in the country, continuing the bans it has imposed on the sector in the past, banning mining, trade and access to the financial system of intermediaries.
With the imposition of the Chinese government, at least four of the largest mining companies operating in the country have already left the Asian region — Bee Pool and Spark Pool, respectively fourth and second largest mining pool in Ethereum, until then, had been the last to decline the doors. Now, the country’s judiciary is studying how to prosecute and sentence users of cryptocurrencies.
The action of the Asian country causes miners to migrate to the United States and other countries in the West. In fact, according to a recent Cambridge University study, the US has become a global leader in the Bitcoin mining industry.
US Takes the Top Place as Bitcoin Mining Destination Eclipses China
- The US took the top place for bitcoin mining destinations.
- According to Cambridge Center for Finance, one-third of the bitcoin hash rate is in the US.
- The four states in the US have the highest bitcoin hast rate distribution.
Early Wednesday, Cambridge University released data showing that the US now is the number one destination for bitcoin miners. In fact, this is the first time the US beat China.
According to the Cambridge Center for Alternative Finance report, 35.4% of bitcoin’s hashrate of the collective power for miners is in the US. That was a remarkable 428% increase from September 2020.
In addition, four states in the US have the highest bitcoin hashrate distribution. Notably, most bitcoin miners are led to New York, Kentucky, Georgia, and Texas. However, numerous states with the highest bitcoin hashrates also have high proportions of renewable energy. This fact may have caused changes in the story of people saying bitcoin is bad for the environment.
Furthermore, many miners are moving to those states because they offer cheap and renewable sources of power. For example, data from the US Energy Information shows that a third of New York’s in-state generation comes from a renewable source.
Kentucky had the second-highest hash rate. It is also known for its hydroelectric and wind power. Besides, the State government recently passed a law that grants certain tax exemptions to crypto mining operations.
Although Texas was placed fourth, experts believe it is the top mining destination in the US. Moreover, the states line mining giants like Riot Blockchain and the Chinese mining service platform Bitdeer.