Mining Industry Recap, Episode 21

Network Overview

This week, Bitcoin experienced a price correction, dipping below the $100,000 mark after reaching an all-time high of $109,356 on January 20, 2025. According to most analysts, this is a natural pullback caused by investors taking profits after obtaining significant gains over the past few months. Despite the price decline, Bitcoin's hashrate continues to climb, reaching a record high of 833 exahashes per second (EH/s) on a seven-day moving average.The increasing hashrate indicates robust network security and growing miner confidence.

The increasing hashrate indicates a continuation of the upward trend of the past few months. However, this surge in computational power is expected to lead to a substantial difficulty adjustment, which will make mining less profitable. Network activity has also fallen in recent days, substantially reducing mining rewards from fees.

Texas Bitcoin Miners Struggle as Arctic Freeze Pushes Energy Costs Higher

The January 2025 Arctic blast sent temperatures in Texas plunging to 0°C, placing immense pressure on the state’s power grid and forcing Bitcoin miners to shut down operations. As a major U.S. mining hub, Texas accounts for over 17% of the country’s mining activity. With heating demand surging, electricity prices skyrocketed, reducing mining profitability and leading to the first negative difficulty adjustment in four months. As Texas returns to its typical seasonal patterns, the situation is expected to stabilize, but this event showcases the industry's reliance on cheap energy price changes.

Source: coinpedia.org

Bitcoin Mining Difficulty Set to Rise Again, Pressuring Miners

Bitcoin’s next difficulty adjustment on February 9 is expected to increase by 4.71%, intensifying competition for block rewards. While major mining operations continue expanding, smaller miners are feeling the squeeze, with some already selling off BTC reserves.

The ongoing pressure on miners has fueled discussions of a potential capitulation event, historically linked to market bottoms and buy signals. If difficulty continues to rise while BTC price remains stable, inefficient miners may be forced out, potentially shifting the market dynamics in the coming weeks.

Source: cryptopolitan.com

Russian Bitcoin Miners Fear Sanctions Over Government Wallet Registry

Russian Bitcoin miners are expressing their concern over a new government registry that requires them to submit wallet addresses and sensitive data. The registry, managed by the Federal Tax Service since November 2024, aims to regulate the sector, but miners worry that a data leak could expose them to sanctions.

Lawmaker Anton Gorelkin warned that if the registry’s data is compromised, it could be exploited by geopolitical rivals. While officials claim the system is secure, Russia saw 135 major data breaches in 2024 alone, leaking over 710 million records. Although Russia’s crypto mining industry isn’t directly sanctioned, previous U.S. Treasury actions against Russian crypto firms suggest that a leak could put miners at serious risk.

Source: crypto.news

Foundry Supercharges Bitcoin Layer-2 Rootstock with 200 EH/s Merge Mining Boost

Foundry, the largest Bitcoin mining pool, has expanded its operations by adding 200 exahashes per second (EH/s) to secure Rootstock, a Bitcoin layer-2 network. This move raises Rootstock’s total hashrate to 740 EH/s—approximately 80% of Bitcoin’s total computing power—while offering Foundry new revenue opportunities.

By participating in merge mining, Bitcoin miners can simultaneously mine BTC and Rootstock without extra energy costs. Those who opt in earn 79% of Rootstock’s transaction fees in rBTC, making it an attractive additional income stream. This further strengthens Rootstock’s security while enhancing Bitcoin’s broader ecosystem by supporting smart contract capabilities on its network.

Source: coindesk.com

Bitcoin at $1 Million? IREN CEO Predicts a Sky-High Future for BTC

Daniel Roberts, CEO of Bitcoin mining firm IREN, predicts that Bitcoin could reach $1 million per coin by 2030, citing its growing adoption as a store of value and increasing institutional investment. He believes Bitcoin’s superior characteristics—scarcity, portability, and ease of transfer—could see it rival gold’s $19.3 trillion market cap in the coming years.

While many analysts are sceptical about BTC hitting seven figures anytime soon, some see government intervention as a potential catalyst. Jeff Park of Bitwise suggests that a U.S. Bitcoin Strategic Reserve could send prices skyrocketing, though he estimates the chances of such an event happening in 2025 at less than 10%.

Source: financemagnates.com

Bitdeer Acquires 101 MW Gas Power Plant in Alberta for BTC Mining

Bitcoin mining firm Bitdeer has announced the acquisition of a 101 MW gas-fired power plant near Fox Creek, Alberta, in a $21.7 million cash deal. This move marks Bitdeer’s first expansion into Canada and is aimed at creating a vertically integrated mining operation, allowing for greater control over costs, energy efficiency, and scalability.

The company plans to build a 99 MW mining data center on-site while retaining the flexibility to sell excess energy back to the Alberta grid to stabilize electricity prices during peak demand periods. Additionally, the facility has the potential to scale up to 1 GW, positioning it as one of the most cost-efficient mining sites in the industry, with energy production costs ranging from $20 to $25 per MWh. Infrastructure development is set to begin in Q2 2025, with full operations expected by Q4 2026.

Source: coindesk.com

Bitcoin Mining Revenue Drops Slightly in January, Holding Steady Overall

Bitcoin miners generated $1.4 billion in revenue in January 2025, which is $40 million lower than December’s figures. This decline marks the second most profitable month in the last nine months, despite the slight drop. On-chain fees accounted for $20.37 million, down significantly from the $39.38 million in December, reflecting a lower level of transfer activity on the Bitcoin blockchain.

At the same time, Bitcoin's hashprice has improved, rising from $42 per PH/s in November 2024 to $59.94 per PH/s. However, the total network hashrate has dropped from 822 EH/s on January 6 to around 783 EH/s. As miners navigate market fluctuations and rising operational costs, some are shifting toward AI-driven initiatives and Bitcoin treasury strategies to maintain profitability in a rapidly evolving landscape.

Source: news.bitcoin.com