America Block reward miners Hope that Chinese ASIC manufacturers move quickly when expanding US production facilities as mining margins are currently thinner than Melba toast.
Jpmorgan (Nasdaq: JPM) explained this week that the combined proportion of the 13 US-listed mining operators that they are tracking now account for 31.5% of the overall BTC Network Hash Rate, a new highest time (the share of total US miners have been estimated at over 40%). The winnings reflect the increasingly welcome climate for miners in Stateside since Donald Trump’s second Stint, which the US president began in January.
So much for the good news has btc network hash rate dipped below 900 Eh/s Since June, but continues to float close all the time, which drives up production costs. The total cost of breaking a single BTC – including the need to constantly replace/upgrade Asic mining rigs to keep up with competitors – are floats barely $ 100,000Only a few thousand during the current Fiat price.
It doesn’t help it BTC transaction fees have dropped below 1% of the total block rewarda low that has not seen since January 2022. Simply put, most BTC transactions now occur exchange (Shop BTC for other tokens or cash), offers zero benefit to miners and the current mania for so -called “Treasury” company Buying-Mothball BTC does not help.
In a new interview with COINTELEGRAHZhibing ‘tony’ li, vp of Canaan Inc (Nasdaq: Can), warned that miners “must develop beyond the traditional hash-per-dollar model. Block reward decline And difficulties in increasing, mining will face a structural change. Transaction fees will take the center and replace block subsidies such as the primary income stream. “
It may be what miners need, but the current state of BTC offers no signs of this fee/reward that happens at any time soon. Daily activity at BTC struggled to stay over 300,000 transactions last week and have only gathered something this week.
Further complicated issues are the economic customs that Trump has introduced almost all other countries since he took office. With the leading mining rig manufacturers all based outside the United States – mainly in China and other Southeast Asian countries – the costs of importing rigs have taken a large part of American miners. The latter category now includes American Bitcoin Corp (ABTC), Trump -Family and miner’s mining family and miners The hut 8 (Nasdaq: Hut).
But relief may be on the way, as Reutants offered an update of efforts from the three largest foreign manufacturers –BitterCanaan and MicrobtCollective responsible for over 90% of mining rig production-to establish us business bases and ensure a stable duty-free flow of ASICs to US-based miners.
Bitmain began to fight rigs in the United States in December last year, while Canaan started a production attempt in April. However, the company warned that there is some doubt in going full brush in view of the mercury nature of Trump’s customs method. Microbt has not yet announced any concrete plans, but claims “actively implementing a location strategy in the United States” to minimize customs impact.
While this is music for most miners’ ears, USA ASIC-MAKER Auradinthat counts us the mining giant mara (Nasdaq: Mara) Among its investors, lobbying has lobbying the government to impose tougher restrictions on Chinese companies to “strengthen national security in critical infrastructure.”
Shortly after Trump took his second oath of the office, Auradine proposed “Implementation of rigorous compliance standards for imported technology” and mandate “Cybersecurity assessments for foreign components in Bitcoin Mining and Electric Grid Management.”
For what it is worth, rejected Canaans Biz-Dev VP Leo Wang this alarmist national security view and told Reuters that mining rigs “are worthless if they are not applied to Bitcoin mining.”
In any case, the Auradine president urged to “appropriately” reducing the miners’ dependence on Chinese suppliers “to ensure financial security.” Auradine also suggested “extended incentives, such as tax relief or direct subsidies”, should be offered US manufacturers (the proposed duration of this proposed company’s welfare went cheese).
France rejects (at the moment) state mining operation
Miners rejoice when Trump did well on his 2024 campaign promise Loosen environmental restrictions on power generation To ensure America becomes “The world’s undisputed Bitcoin Mining Agency.” As production costs rise, it can ensure access to cheap and abundant energy to make the difference between profit and loss.
Pakistan recently announced plans to redistribute its surplus energy to a large extent because Pakistani households go off the net by using cheap solar panels from China-against against Mining BTC and Driving AI Data Center. Other countries have encouraged similar efforts in regions where The power is abundant and demand is slack.
But not every country is ready to jump on this bandwagon. France, which has an extensive nuclear power program that generates more power than the country requires, recently maintenance a proposal in its National Assembly to study the possibility of devoting some surplus energy to mining BTC.
Despite the promise that the state generated additional revenues by initiating a state mining activity was the proposal rejected by the National Assembly This week. However, the rejection was not based on the qualifications of the proposal but on procedural grounds (the language was considered too broad and not related to the legislation it tried to Piggyback).
So this proposal may come up again soon, as France’s energy surplus does not disappear. And without any other serious solutions offered, why not choose a path that allows the country to generate revenue?
Russia’s Russia
Russia is a country that is miserable with gas and oil, but its cramped electricity grid is routinely growing on the brink, so much that the government has introduced both season- and geographical Restrictions on BTC mining operations in recent years.
In February, Russia launched one Mandatory register for mining equipment and ordered miners to report their income to the federal tax service. But Tass news agency This week reported that only 30% of Russian miners have bothered to register for the register and led Deputy Finance Minister Ivan Chebeskov to get about two -thirds of miners to be “cleaned up.”
Russia has tried to handle its reluctant miners by preparing new financial penalties so as not to comply with the rules. This month, the Ministry of Digital Development announced Planning to impose new fines of up to 2 million ($ 25,500) for companies and rub 200,000 for individuals.
In May, Russia’s Energy Ministry offered that offers registered miners incentive to move its operations to the country’s northern regionsWhere the sparse population offers greater net flexibility. Deputy Energy Minister Yevgeny Grabchak noted that the region was dotted with power centers that once served oil production facilities, but these oil fields are now dropped and leave an energy surplus that he thought could be of use to BTC miners.
When Russia tries to stretch the mining surplus, illegal mining operators become creative to frustrate the authorities’ efforts. Last week, Fit Reported that the Buryatia region authorities had busted an illegal mining operation that is driven on the back of a tractor car.
A routine inspection of local officials discovered 95 mining rigs connected to “a transformer station that can provide power to a small settlement.” Two suspects who are believed to be able to perform this operation fled in an SUV. The authorities said it was the sixth case of “electricity theft with mining equipment” in Buryatia since the seasonal restrictions were introduced.
Xai slapped for passing gas in Memphis
A New study Claims about the electricity requirements from AI Language Models (LLMS) will account for 49% of global data center power use at the end of this year, removing BTC miners as the foremost power-leading technology. That said, since so many miners have “swung” to the more reliable revenue flows that AI and other high -performance computer information provide, they are not exactly outside the hook yet.
AI’s insatiable energy requirement has been credited to drive the rush of AI developers, including Amazon (Nasdaq: Amzn), Google (Nasdaq: Googl), Meta (Nasdaq: Meta) and others to Sign nuclear agreements To ensure that their LLM does not lose ground to more reliable competitors.
Enter ELON MUSICAs in 2021 famously, customers’ ability to buy Tesla stopped (Nasdaq: TSLA) vehicle with BTC because of blockchains High energy requirements and dependent on fossil fuels. Fast flushing until 2025, and Musk is threatened with a mood for him allegedly concealing the dirty energy that drives his Xai Llm.
Southern Environmental Law Center (Selc) submitted A remarkable letter Details of their evidence of the more than two dozen are said to be unauthorized methane turbines in action at Xai’s “Colossus” data center in South Memphis, Tennessee. The letter contains flying thermal images of the data center’s turbines, which Selc claims is about to emit “more than 2,000 tonnes of smog -forming nitrogen oxides” annually.
The turbines were originally installed under what local authorities claim was a “364-day exception” from having to get the necessary permits. Selc says that the same authorities have not yet made any documentation that explains the reasons behind this statement.
The letter gives Xai 60 days to correct the situation – aka turns off the turbines – or Selc will sue the company in federal court on behalf of the National Association for the Advancement of Colored People (NAACP) for violation of Clean Air Act.
Neither Xai nor Musk have not yet publicly responded to the Selc letter, but given that Xai builds a second, even larger data center in the Memphis area, let’s just say that this was probably a really Bad time for Elon to have had a very public bust-up with the loving president of the fossil fuel.
Bitdeer borrows, investors penalties
American miners have taken a significant debt late when they try to (a) jump in front of the rivals’ ability to break new blocks, (b) diversify their operations in data centers for AI/HPC data and (C) buy BTC tokens for its state funds.
After turning in a something Grim Q1 Revenue ReportThe Bit (Nasdaq: BTDR) announced this week that it was looking to collect $ 300 million, then arose the total to $ 330 million The following day, with a possible additional upswing to $ 363 million. The company said it will use the revenue to pay the costs of raising new debt, expanding its data center operations, developing new ASIC rigs and other general expenses.
Investors gave an emphatic thumb down to the news and ran Bitde’s share price from almost $ 13 to $ 11.50 on Tuesday. The shares arranged a smaller rally Wednesday but finally closed more than 7% to $ 11.80.
One cannot help but wonder about Bitdeer, like so many of its comrades, claimed that the total hundreds of millions of dollars in new debt to buy BTC as it would park in some Cold wallet And hope for a great appreciation along the way, would its share price have risen? We suspect it would. If you wanted a more condemning prosecution against the overall mining sector, you can’t do much better.
Look at | Bitcoin Mining 2025: Is it still worth it?
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