Fun

Bitcoin mining expenses surge 168% amid capacity growth

News Feed - 2024-08-20 10:08:54

Josh O"Sullivan10 hours agoBitcoin mining expenses surge 168% amid capacity growthBitFuFu expands its mining capacity by over 60% despite a dramatic rise in Bitcoin mining costs post-halving.1789 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onBitFuFu, a cloud mining company affiliated with Bitmain, has released an unaudited financial and operational report on its Q2 2024 results, which ended on June 30.


The results reveal a significant surge in the cost of Bitcoin (BTC) mining amid the challenges and growth the firm has experienced over the last 12 months. 


Alongside this surge in cost, the report also noted increased mining capacity under management, increasing “62.5% to 24.7 EH/s, compared to 15.2 EH/s during the same period of 2023.”


Related:Bitcoin miners may gain $13.9B yearly from 20% shift to AI and HPC — VanEckBitcoin mining cost surge 


Among the statistics reported by BitFuFu in its Q2 report, the most dramatic change was the average cost required to mine each BTC, which has surged to $51,887.


The sharp price rise can be seen when compared to $19,344 per mined BTC in the same period in 2023 and can be attributed to higher electricity and operational costs.


The surge can also be attributed to the April 2024 BTC halving event, as the difficulty of mining ramped up, while BTC rewards were cut by 50%.


Related:Texas senator discloses up to $100K in BTC after blockchain endorsementCapacity and revenue growth


Although the firm’s BTC mining costs have significantly increased, BitFuFu has expanded its mining operations’ scale. 


With the increase to 24.7 exahashes per second (EH/s), the BTC mining company increased the capacity of its operations by over 60% amid the mining-related cost surge.


The BTC mining firm also reported an almost 70% increase in total revenue, reaching $129.4 million in Q2 2024, up from $76.3 million in the same period in 2023.


The revenue growth can be attributed to the company’s expansion of its cloud-mining services, which generated $77 million during the reporting period.


Related:Bitcoin funding rates hit YTD lows, bearish trend looms — CryptoQuantBTC analysts optimistic


In an Aug. 19 interview with CNBC, Matthew Sigel, head of digital assets research at VanEck, explained that BTC’s “forced selling [is] behind us.”


Sigel explained that the current state of the crypto market and BTC’s price is a “typical seasonal pattern” characterized by “one to three months” post-halving.


The forced selling Sigel referred to included the German government selling 49,858 BTC for $2.6 billion amid Mt. Gox creditor repayments being issued.


Magazine:11 critical moments in Ethereum’s history that made it the No.2 blockchain# Bitcoin# Business# Cloud Mining# Bitcoin Mining# Bitmain# Halving# Bitcoin HalvingAdd reaction

News Feed

Bitcoin daily withdrawals challenge records as $2B leaves exchanges
William Suberg8 hours agoBitcoin daily withdrawals challenge records as $2B leaves exchangesBitcoin is exiting exchanges at the fastest pace since mid-2021 and is on track to set new historic records in U.S. dollar terms
Dogecoin Needs $0.40 Breakout To Salvage Bull Case, Says Analyst
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Report Suggests Robinhood Owns Largest Dogecoin Address and Third-Largest BTC Wallet
Report Suggests Robinhood Owns Largest Dogecoin Address and Third-Largest BTC Wallet Last February the crypto community was obsessed with a specific dogecoin add
US Treasury to Monitor Libra Over Possible Financial Risks
The U.S. Department of the Treasury has committed to monitoring the Facebook-led cryptocurrency project Libra. The news was announced by Emanuel Cleaver, II, congressman for Miss
XRP April Target Of $8 To $13 ‘Still Stands,’ Says Crypto Analyst
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
TON continues to attract Web3 firms as Telegram Ad Platform goes live
Gareth Jenkinson10 hours agoTON continues to attract Web3 firms as Telegram Ad Platform goes liveMirana Ventures invests $8 million into The Open Network ecosystem as Bybit looks to tap into Telegram’s recently launche
Mt Gox Rehabilitation Plan Delayed Again to December 15
Mt Gox Rehabilitation Plan Delayed Again to December 15 The submission deadline for the Mt Gox civil rehabilitation plan has been extended once again, this time
Cryptocurrency Exchange to Sponsor Ukraine’s National Soccer Team
Cryptocurrency Exchange to Sponsor Ukraine’s National Soccer Team Ukraine’s national soccer team has secured a sponsorship deal with a player from the industry that wants to en
Man Sentenced to 8 Years in Prison for Stealing Nearly $7 Million of Crypto in Israel
Man Sentenced to 8 Years in Prison for Stealing Nearly $7 Million of Crypto in Israel Afek Zard, a resident of Israel, has been sentenced to eight years in priso
Lawsuit Accuses Binance US of Selling Unregistered Securities, False Advertising Terra UST as ‘Safe’
Lawsuit Accuses Binance US of Selling Unregistered Securities, False Advertising Terra UST as "Safe" A class-action lawsuit against Binance US has been filed in California that all
Canadian Firm 3iQ’s Bitcoin Fund Listed on Gibraltar Stock Exchange
Canadian Firm 3iQ"s Bitcoin Fund Listed on Gibraltar Stock ExchangeThe Gibraltar Stock Exchange said Tuesday that it listed a new bitcoin fund belonging to 3iQ Corp, a Canadian inve
Ethena Labs launches Solana version of USDe stablecoin
Christopher Roark2 hours agoEthena Labs launches Solana version of USDe stablecoinUSDe was made available on Solana and became integrated with multiple Solana-based DEXs and DeFi protocols, including Kamino, Orca and Dri