Lưu trữ cho từ khóa: Mining

Bitcoin

Bitcoin advocate rebuts IMF Report on crypto carbon emissions

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A recent International Monetary Fund report claiming a surge in carbon emissions from AI and crypto usage has sparked a rebuttal from Bitcoin advocate Daniel Batten. 

The report suggests that regulators should impose a ‘crypto carbon’ tax due to the alleged environmental impact of Bitcoin (BTC) mining.

Batten argued that the report is based on flawed comparisons and outdated data, going on to criticize the IMF’s use of a “guilt by association” technique, equating the carbon footprint of Bitcoin mining with that of AI data centers without contemporary evidence.

Batten points out that Bitcoin mining, unlike AI data centers, has been shown to have a net decarbonizing effect on energy grids, citing studies that highlight these differences.

Bitcoin mining emissions

Batten also disputed the IMF’s use of discredited sources and hypothetical models, which he claims distort the true environmental impact of Bitcoin mining. 

According to Batten, independent data reveals that Bitcoin’s share of global electricity use and carbon dioxide emissions will decrease by 2027, contrary to IMF projections.

In his tweet, the advocate called for more honest and accurate research, emphasizing the growing scientific consensus that Bitcoin mining has significant environmental benefits. Batten warns that the IMF’s report, as it stands, is misleading and not a reliable resource for policymakers.

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Theo Crypto News

Bitcoin

HIVE Blockchain stock upgraded to ‘Buy’: here’s why

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Analysts at H.C. Wainwright & Co. believe that HIVE Blockchain’s stock is now valuable due to their advances into AI and high-volume computing.

HIVE Blockchain Technologies’ stock has received an upgraded rating from analysts at H.C. Wainwright. They have upgraded their rating from “Neutral” to “Buy,” and their price target has been raised from $4 to $5.

This upgrade is driven by HIVE’s promising outlook in the high-performance computing (HPC) and AI sectors. The stock, currently trading at $2.90 on NASDAQ, has fallen nearly 40% in recent weeks, a drop analysts believe is overdone compared to the broader 7% decline in Bitcoin (BTC) mining stocks.

HIVE’s AI ventures

The upgrade reflects confidence in HIVE’s strategy to expand its HPC/AI business. 

Management aims to double annualized HPC revenues to $20 million in the second half of 2024 and reach $100 million by 2025. 

To support this growth, HIVE plans to convert 30 MW of its existing BTC mining infrastructure into Tier 3 data centers, potentially housing 16,000 NVIDIA H200 GPUs.

Despite challenges from Bitcoin’s halving event, HIVE reported solid F1Q25 results, with $32.2 million in total revenue, including $2.6 million from HPC, a 44% increase from the previous quarter. Adjusted EBITDA for the quarter was $14.9 million, significantly beating estimates.

HIVE’s newest 100 MW site in Paraguay is expected to be fully operational by Q3 2025, boosting total capacity to 12.1 EH/s. However, analysts note that risks to the price target include BTC price volatility, network difficulty increases, and potential shareholder dilution.

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Theo Crypto News

Bitcoin

Marathon Digital buys $249m in Bitcoin after raising $300m from convertible notes

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Marathon Digital has bought $249 million worth of Bitcoin using funds raised from a $300 million offering of convertible senior notes.

In an Aug. 14 press release, Marathon, which is the largest public Bitcoin (BTC) miner by realized hash rate, said it had raised $300 million, which was reduced to $292.5 million after deducting discounts and commissions. It then used $249 million from that amount to buy 4,144 BTC at an average price of $59,500.

The funds were raised through debt security in the form of 2.125% senior notes maturing in 2031, which were sold in an oversubscribed private offering to qualified institutional buyers.

Marathon said it would use the remaining funds, about $43 million, to buy even more Bitcoin and for general corporate purposes, including debt repayments and strategic expansions.

In July, the Bitcoin miner bought $100 million worth of BTC and announced that it would retain all the Bitcoin it mined going forward. Adding the 4,144 BTC it just bought, Marathon now holds more than 25,000 coins with a market value of $1.46 billion.

Despite news of the purchase, Marathon Digital’s stock still fell 2.26% to trade at $15.14 by the close of business on Aug. 14. Additionally, its revenues for the second quarter of 2024 fell short of expectations, reaching $145 million compared to the $165.2 million it made between January and March 2024. This may have been a result of the increased cost of Bitcoin mining, which doubled even as Marathon grew its hash rate.

However, year-on-year growth was up 78%, with the miner only making $81.8 million in Q2 2023. Furthermore, the company added about 25,000 new Bitcoin mining rigs to its operations, bringing the total to about 250,000 machines. This pushed up its hash rate to 24.7 EH/s, which bettered some of its biggest rivals, including Riot and Core Scientific.

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Theo Crypto News

Bitcoin

Analyst upgrades Hut 8 mining stock to ‘Buy’, raises price target

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Analysts at H.C. Wainwright & Co. believe that Hut 8 Mining’s stock is now valuable due to some of their strategic advances. 

Hut 8 Mining Corp. received a double upgrade in its rating from “Sell” to “Buy” by analysts at H.C. Wainwright following the release of its second-quarter financial results. The price target was also lifted from $7.50 to $13.50 per share, implying an upside potential of around 23% from current levels, driven by the company’s recent strategic developments.

Hut 8’s positive developments

The upgrade is driven by several positive catalysts, including Hut 8’s success in reducing electricity costs, now at a competitive $0.032/kWh, following the completion of its restructuring program and the energization of a new 63 MW facility in Texas. 

Additionally, the company’s strong liquidity position — $722 million in total, including 9,102 Bitcoin (BTC) — positions it well to capitalize on market opportunities by acquiring and deploying the latest mining equipment.

Moreover, the probability of Hut 8 securing a high-performance computing or artificial intelligence customer has increased after a $150 million investment from Coatue, bolstering the company’s potential for multi-year, high-margin contracts.

Stock declines

Despite a 50% decline in Hut 8’s stock price over the past month, analysts view the current valuation as an attractive entry point for investors, particularly given the company’s potential to nearly triple its operating hash rate by 2025.

As Hut 8 continues to optimize its operations and explore new market opportunities, the recent appointment of Sean Glennan as CFO, effective August 21, is expected to further strengthen the company’s financial strategy.

Hut 8’s Q2 2024 revenue declined 32% quarter-over-quarter to $35.2 million, with a GAAP EPS loss of $0.78 per share.

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Theo Crypto News

Bitcoin

Core Scientific seeks raising $400m to repay outstanding loans

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Bitcoin miner Core Scientific is offering $400 million in convertible notes due 2029 to repay in full the outstanding loans.

The shares of Bitcoin miner Core Scientific (CORZ) plunged as much as 10% on Aug. 14, after the company announced plans to raise $400 million through a private offering of convertible senior notes.

In an Aug. 14 press release, the crypto mining firm said the fresh capital, set to be secured from qualified institutional buyers under Rule 144A of the Securities Act, will be used to repay outstanding loans and support general corporate activities, including potential acquisitions.

The notes, bearing a 3.00% interest rate, will mature in 2029, with the issuance scheduled for Aug. 19, subject to customary closing conditions, the press release reads.

Core Scientific targets debt and upgrades with proceeds

The firm estimates net proceeds of $386.6 million, or $445 million if the option is fully exercised. Core Scientific plans to allocate over $61 million to repay loans under its January credit agreement and $150 million to redeem senior secured notes due in 2028. The remaining funds will go toward working capital and other corporate needs, per the press release.

This move follows Core Scientific’s recent announcement to modify a significant portion of its infrastructure to support high-performance computing services. The firm also reported producing only 411 (BTC) in July, a 4.4% decrease from June, and revealed it had sold 97% of its July Bitcoin production to cover operational costs.

Emerging from bankruptcy

Core Scientific has been navigating rough waters since its bankruptcy declaration in 2022, triggered by the FTX collapse. This turmoil led to a temporary suspension of its shares on the Nasdaq under the ticker CORZ, though trading resumed after the company successfully avoided closure.

Despite its financial challenges, Core Scientific maintains a robust fleet of ASIC rigs. As of the end of July, the company operated 214,000 Bitcoin miners with a total hash rate of 25.3 EH/s, distributed across seven data centers in Georgia, Kentucky, North Carolina, North Dakota, and Texas. By 2028, Core Scientific plans to expand its mining capacity by over 50%, doubling its production efforts.

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Theo Crypto News

Bitcoin

Ted Cruz: Bitcoin is a reservoir of power

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In a recent speech for the Texas Blockchain Council, U.S. Senator Ted Cruz referred to Bitcoin as an energy safety blanket for Texas’s grid infrastructure. 

Cruz described Bitcoin (BTC) as a “reservoir of power,” suggesting that it could serve as an energy safety net for the state’s grid infrastructure during extreme weather events or times of economic uncertainty. 

“What Bitcoin presents is an opportunity in real-time to enhance the resiliency of our grid,” said Cruz.

These comments come as Bitcoin mining in Texas has sparked concerns over noise pollution and health issues for residents, highlighting the need for better regulations.

Ted Cruz and crypto

The Texas Blockchain Council endorsed Ted Cruz for reelection to the U.S. Senate on August 12, according to Cointelegraph. They cited his support for Bitcoin and its potential benefits for Texas’ energy grid. Cruz, who has previously spoken at TBC events, is currently leading Democrat Colin Allred by eight points in a recent poll.

In his speech, Cruz emphasized that Texas, the leading U.S. state in wind energy production, faces challenges during severe weather when renewable energy sources like wind and solar often fail to generate sufficient power. 

During such events, Cruz argued that Bitcoin miners could be swiftly shut down, redirecting the electricity they consume to critical needs like heating homes and powering hospitals.

“Bitcoin is a reservoir of power —  a safety blanket the state of Texas,” said Cruz.

Texas has been a hotbed for crypto mining disputes between miners and the government. Recently, a Texas crypto mining firm, Lejilex, sued the SEC, challenging its authority over exchange-traded crypto and disputing the classification of certain tokens as securities. 

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Theo Crypto News

Bitcoin

TeraWulf sees 130% revenue growth despite over 20% drop in Bitcoin production

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Bitcoin miner TeraWulf has reported a 130% revenue increase in Q2 despite a more than 20% decline in crypto production.

TeraWulf Inc., a public U.S.-based Bitcoin mining company, has announced its Q2 financial results, showcasing a 130% increase in revenue year-over-year despite a decline in Bitcoin production.

Per the company’s Aug. 12 press release, its revenue surged to $35.6 million from $15.5 million in the same quarter last year, while gross profit rose to $21.7 million, up from $10.3 million. However, the gross profit margin fell to 60.9% from 66.9% “due to an approximate doubling in network difficulty and the bitcoin reward halving in April,” the press release reads.

TeraWulf’s self-mined Bitcoin in Q2 decreased by 21.4%, totaling 699 (BTC) across its Lake Mariner and Nautilus Cryptomine facilities, which the company attributed to increased mining difficulty and elevated power costs.

Operationally, TeraWulf expanded its infrastructure with the completion of the site at the Lake Mariner Facility, increasing its mining capacity to 245 MW and 10 EH/s. Another construction is underway, expected to add another 50 MW by Q1 2025. The company is also advancing into high-performance computing and artificial intelligence projects, including a recent purchase of a 128-GPU cluster.

Bitcoin miners aim at AI sector

The Bitcoin mining company indicated its intention to enter the AI sector in early July by repaying its remaining $77.5 million term loan ahead of schedule, thus clearing all outstanding debt. At that time, the Maryland-based firm announced plans to leverage generative AI to optimize costs and financial outflows.

TeraWulf is not the only crypto mining company that seeks to diversify its business by focusing on new areas, although the profitability of doubling down on AI is yet to be seen. In July, shares of Australian Bitcoin miner Iris Energy dropped 14% after Culper Research questioned the firm’s ability to serve the high-performance computers for AI.

In a report, Culper said that Iris’ flagship Childress buildout “lacks numerous features that are critical to HPC applications,” adding that the firm’s management — Iris Co-CEO Daniel Roberts and his brother Will — have started selling their own shares since February, which was the first time since Iris went public.

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Theo Crypto News

Bitcoin

Marathon Digital seeks raising $250m to buy more Bitcoin

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Marathon Digital is planning a $250 million private offering of convertible senior notes, intensifying its commitment to expanding Bitcoin holdings.

Bitcoin mining firm Marathon Digital Holdings is seeking to raise $250 million through a private offering of convertible senior notes due in 2031 as the crypto mining firm looks to double down on its Bitcoin(BTC) holding strategy.

In an Aug. 12 press release, the Florida-headquartered firm said the funds would be used to acquire additional Bitcoin as part of the company’s ongoing strategy to increase its crypto holdings.

The convertible notes, which will be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933, are unsecured, senior obligations of Marathon Digital and will bear interest payable semi-annually, the press release reads. The Bitcoin mining firm also plans to grant initial purchasers an option to acquire an additional $37.5 million of the notes.

Despite the news, Marathon Digital’s stock fell 3.11% in pre-market trading.

Marathon Digital buys more Bitcoin

Marathon Digital’s latest move follows the firm’s recent acquisition of $100 million worth of Bitcoin in late July, pushing its holdings to over 20,000 BTC.

The initiative aligns with Marathon’s goal to double its Bitcoin mining capacity in 2024, targeting a hash rate of 50 EH/s. As crypto.news reported earlier, Marathon’s operations recently achieved a hash rate of 24.7 EH/s, surpassing its rivals. If Marathon meets its 50 EH/s target, it will have more than doubled its hash rate since the start of 2024.

Previously, Marathon Digital also indicated that as part of its new approach, it will retain all Bitcoin mined in its operations and will “periodically make strategic open market purchases.” Marathon Digital chief executive Fred Thiel said at the time that Bitcoin’s purchases reflect the firm’s “confidence in the long-term value” of the cryptocurrency as a “reserve asset.”

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Theo Crypto News

Bitcoin

Bitfarms shares up 22% following Q2 results report

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Canadian Bitcoin mining firm Bitfarms revealed in its Q2 financial results, featuring it is still on track to achieve guidance of 21 EH/s in 2024.

Bitcoin mining firm Bitfarms saw its shares surge over 20% late Aug. 8, following the release of its Q2 financial results, which showed a narrower net loss and stronger revenue than analysts had predicted.

In the report, the Toronto-headquartered firm said that its revenue in Q2 was $42 million, marking a 17% increase year-over-year, though it fell 16% from the previous quarter. Bitfarms attributed the quarter decline to the decrease in block rewards following the Bitcoin halving event that occurred earlier in April.

The firm’s net loss turned out to be $27 million, or $0.07 per basic and diluted share, which is better by 36.3% than what analysts earlier projected. Bitfarms’ BITF shares responded positively to the news, climbing 22% to $2.30, per Google Finance data, pushing the firm’s market capitalization to $983.8 million.

Bitfarms dodges takeover attempt, for now

During Q2, Bitfarms sold 515 (BTC) at an average price of $65,500. At the same time, the Canadian crypto miner added 111 BTC to its treasury, bringing its total reserves to 1,016 BTC held as of late July.

Bitfarms also reiterated that its Special Committee “unanimously determined that continuing to execute Bitfarms’ strategic plan as an independent public company,” though it added that the board and management team “remain open to reviewing any and all opportunities that may deliver value to shareholders.”

Earlier in April, Riot Platforms proposed acquiring Bitfarms for $950 million. However, Riot subsequently withdrew its proposal, citing an inability to engage with Bitfarms’ current board on a potential merger.

Ben Gagnon, Bitfarms’ newly appointed CEO, highlighted the company’s progress, stating that the firm has made “significant strides” to position itself for “accelerated growth and efficiency gains in the second half of the year and into 2025.” He emphasized that Bitfarms is on track to achieve its 2024 guidance of 21 EH/s, bolstered by new site agreements.

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