In August, mining difficulty decreased by an average of 2.15%, offering some relief to North American Bitcoin miners. However, Bitcoin's price closed at $58,970 on August 31, 2024, reflecting an 8.7% decline, which directly impacted miners' revenues. A lower Bitcoin price not only reduces the value of mined Bitcoin but also diminishes the value of holdings in treasury, thereby affecting overall profitability.

Bitfarms agrees purchase to buy Stronghold Mining

Bitfarms entered into an agreement to acquire Stronghold Digital Mining (SDIG) in a stock-for-stock merger valued at $125 million, along with $50 million in assumed debt. The announcement, made on August 21, 2024, follows a period of consolidation among North American publicly traded miners, with CleanSpark (CLSK)  acquiring GRIID Infrastructure Inc. (GRDI) in June and Riot Platforms (RIOT) purchasing Block Mining in July.

Stronghold Digital Mining, a Bitcoin mining and environmental services company, operates power plants and currently boasts a 4.0 EH/s hashrate, with plans to expand to 10 EH/s by 2025. The merger will position Bitfarms to grow its energy portfolio to 950 MW by 2025, while capitalizing on Stronghold's facilities, which provide significant environmental benefits such as carbon capture and land reclamation. The deal is expected to close in early 2025, with Stronghold shareholders holding approximately 10% of the combined entity.

Bitdeer Technologies Group (BTDR)

Bitdeer AI, part of Bitdeer Technologies Group, launched its advanced Artificial Intelligence (AI) Training Platform. As one of the first NVIDIA Cloud Service Providers in Asia, it enables organizations to efficiently build, train, and collaborate on AI models without server management. The platform leverages NVIDIA DGX SuperPOD and a pay-as-you-go model, optimizing costs and simplifying AI development.

In August the company mined 166 Bitcoin, at a daily rate of 5.4 Bitcoin per day, a reduction of 8% of the rate achieved in July.  With 87,000 mining machines deployed the company increased their self mining hash rate to 7.8 EH/s, 4% higher than the previous month.

In August 2024, Bitdeer completed a US$172.5 million convertible senior notes offering, with proceeds intended for datacenter expansion, ASIC mining rig development, and general corporate purposes. Additionally, US$5 million was repaid on senior secured notes from a prior acquisition.

The mass production of SEALMINER A1, projected to have an efficiency of between 20-23 j/TH, remains on schedule for completion in Q4 2024 and is projected to increase the Company’s proprietary hashrate by 3.4 EH/s. Deployment will coincide with the Texas hydro-cooling conversion and Phase 1 of the Tydal, Norway project, slated for Q4 2024 and Q1 2025.

Taiwan Semiconductor Manufacturing Company’s (TSMC) delivery of SEAL02 initial tape-out wafers are expected by mid-September 2024, with chip verification and prototype testing to follow. Pending successful testing, mass production is anticipated to begin by late 2024. Research and development efforts for SEAL03, the next-generation chip, are actively progressing.

Bit Digital (BTBT)

On August 19, 2024, Bit Digital announced a binding term sheet with Boosteroid Inc. for its HPC business. Under a forthcoming MSA, Boosteroid will purchase GPU servers for a five-year term, generating $13 million in revenue, with potential expansion to 50,000 servers and over $700 million in revenue.

In late July, at the behest of the current HPC customer, both parties have mutually agreed to temporarily delay the purchase order for the additional 2,048 GPUs, so that the customer could evaluate potentially upgrading the purchase order to include newer generation Nvidia GPUs.  As of August 31, 2024, the Company had 256 revenue-generating servers under this contract, earning approximately $4.3 million in unaudited revenue for August, and also reported a $579k service credit, which was issued to the client for equipment downtime from February to June 2024.

Bit Digital expects to provide additional details about the revised deployment timeline in the coming weeks. The contract remains fully in effect, but may have to be amended to provide for newer generation GPUs. In early August, the Company received $30.0 million as a non-refundable prepayment from its customer, half of which will be distributed to the Company’s leasing partner.

Bit Digital produced 53.4 Bitcoin, down 11.7% from the previous month, with an active hash rate of 2.43 EH/s. Treasury holdings included 682.4 Bitcoin and 27,331.0 Ethereum, valued at $40.2 million and $68.7 million, respectively, taking their total liquidity, including $106.9 million in cash and equivalents to $216.5 million.

Bitfarms

Ben Gagnon, CEO of Bitfarms, highlighted the importance of acquiring Stronghold Digital Mining, a move that strengthens Bitfarms’ position in both Bitcoin mining and the HPC/AI sectors. The acquisition will boost Bitfarms' energy portfolio, with plans to expand to 950 MW by 2025, with nearly half of the capacity in the U.S.

Looking ahead, Bitfarms aims for up to 1.6 GW, with 66% U.S.-based capacity. The company is also vertically integrating power generation and energy trading, positioning itself for long-term growth. Bitfarms took control of a mega-site in Sharon, PA, with 30 MW expected online by 2024 and capacity to reach 120 MW by 2025.

In August, Bitfarms mined 233 Bitcoin at a daily rate of 7.5 Bitcoin per day, a reduction of 7.9% on the rate achieved in July.  As part of its regular treasury management practice, the company sold 147 Bitcoin, generating $8.8 million in proceeds. Additionally, 86 Bitcoin were added, increasing the total Treasury to 1,103 Bitcoin, valued at $65.1 million based on the Bitcoin price as of August 31, 2024. The company also held 647 long-dated Bitcoin call options.

On September 13, 2024 Bitfarms announced it had entered a hosting agreement with Stronghold Digital Mining (SDIG) at their Panther Creek site in Pennsylvania. Under this agreement, Bitfarms will accelerate the deployment of 10,000 Bitmain T21 miners, originally planned for its Paraguay site, to be energized in October 2024, adding 2.2 EH/s. The deal enables Bitfarms to optimize power costs and integrate with Stronghold’s power generation infrastructure.

Core Scientific (CORZ)

Core Scientific announced plans to offer $400 million in convertible senior notes due 2029, with an option to increase by $60 million. The notes will accrue semi-annual interest and provide options for conversion or redemption.

Proceeds have been used to repay $267 million in debt, lowering the current interest rate from 12.5% to 3%, and increasing cash reserves to support expansion, particularly in HPC hosting. This strategic move strengthens Core Scientific’s financial position and flexibility for future growth initiatives, enhancing its ability to pursue acquisitions, capital expenditures, and further expansion plans.

The company also announced a 30-day extension to CoreWeave's option to contract an additional 118 MW of infrastructure for HPC. The extension was mutually agreed upon to allow for further development of design, supply chain, and construction timelines. To date, CoreWeave has contracted 382 MW of infrastructure, supporting HPC hosting operations across multiple Core Scientific data centers.

Core Scientific mined 358 Bitcoin in August, at a daily rate  of 11.5 Bitcoin per day, a reduction of 12.9% on the rate achieved in the previous month.

DMG Blockchain (DMG)

DMG Blockchain produced 21 Bitcoin mined, at a daily rate of 0.7 Bitcoin per day and a total hashrate of 0.94 EH/s. The company holds a Bitcoin balance of 453 Bitcoin, with a value of $27 million, as at August 31, 2024 and is on track to fully install its 4,550 Bitmain T21 miners by the end of September. Approximately 40% of the new mining fleet has now been energized, contributing 0.35 EH/s to overall production. Additionally, the company has optimized its legacy fleet to operate in a low-power mode during the summer months, producing 0.75 EH/s, for a combined total of 1.1 EH/s.

DMG Blockchain anticipates reaching its target hashrate of 1.7 EH/s at an efficiency rate of 23 J/TH when the remaining T21 miners are fully operational, and the legacy fleet runs at a slightly higher power level, producing around 0.85 EH/s.

As previously noted, minor dips in hash rate were experienced during hot weather. However, with cooler conditions expected by the end of September, DMG Blockchain forecasts more consistent hashrate performance in the coming months.

Gryphon Mining (GRYP)

Gryphon Mining produced approximately 20 Bitcoin during the month of August, at a daily rate of 0.6 Bitcoin per day, a reduction of 6.5 % on the rate achieved in July, fully powered by zero-carbon hydroelectricity.  The company actually improved its monthly hashrate by 8% to 883 PH/s whilst achieving a fleet efficiency of 28.5 j/TH.

The company has recently entered an agreement to acquire up to 2.9 MW of active Bitcoin mining operations, equipped with 59 PH/s of mining machines, and secured power purchase agreements at an average cost of 1 cent per kWh, whilst also evaluating opportunities for an additional 500 MW in low-cost power.

The company also welcomed Dan Tolhurst, a founding member, back to its board of directors.

Hive Digital (HIVE)

Hive Digital achieved significant milestones in August 2024, mining 112 Bitcoin, at an average daily rate of 3.6 Bitcoin per day and raised its total treasury holdings to 2,567 Bitcoin with a value of $151m as of August 31, 2024.

The company has also acquired 1,000 Bitmain S21 Pro Antminers, which will be delivered immediately to upgrade its mining fleet and enhance efficiency and capacity. Hive’s operations continue to emphasize sustainability, with data centers primarily powered by hydroelectricity.

Executive Chairman, Frank Holmes, highlighted the company's focus on maintaining low G&A expenses and maximizing cash flow, positioning it as a leading, efficient player in the market.

President and CEO Aydin Kilic outlined the company’s ongoing optimization efforts, including firmware improvements that enhanced the efficiency of its mining fleet. The company plans further upgrades to achieve a projected hashrate of 13.5 EH/s upon completing its Paraguay facility, solidifying its position as a leader in Bitcoin mining efficiency and sustainable operations.

Hive Digital plans to convert 30 MW of Bitcoin mining capacity into 20 MW of Tier 3 GPU infrastructure, offering faster retrofit timelines and lower costs compared to new builds. Completion is expected within 6-9 months.

Hut 8 Corp (HUT)

As of August 21, 2024, Hut 8 managed 1,322 MW of energy across 18 sites, including 762 MW at nine Bitcoin mining facilities, 310 MW at four natural gas power plants, and 3 MW across five data centers, along with a 205 MW site, being developed in the Texas panhandle. The company owned approximately 49,400 miners with a total hashrate of 4.8 EH/s, including its stake in the King Mountain joint venture.

During Q2 2024, the company highlighted their cost to mine a Bitcoin at $26,232, an increase from $14,907 which was achieved in Q2 2023.  Energy costs, however, per MWh, decreased to $31.71 from $37.34.

In the month of August, Hut 8 mined 87 Bitcoin at an average daily rate of 2.8 Bitcoin per day.  CEO, Asher Genoot, highlighted the company's focus on maintaining low-cost operations and optimizing unit economics. He noted that in August, the company prioritized maximizing returns from its existing fleet while planning a strategic upgrade to next-generation ASICs. The company’s curtailment software, Reactor, enabled efficient mining and managed energy costs effectively during the peak summer months.

The company also advanced its commercialization efforts for the 205-megawatt site in the Texas Panhandle, alongside exploring large-scale opportunities in Bitcoin mining and AI. Hut 8 is targeting energization of the Texas site in the first half of 2025 and continues to make progress with engineering and procurement.

Additionally, Hut 8 successfully energized Building 1 at its Cedarvale site in August and remains on track to bring the remaining three buildings online by December.

IREN (IREN)

IREN produced 245 Bitcoin in August 2024, averaging 7.9 Bitcoin per day, a 10.4% increase from July, driven by the rise in operational hash rate from 9.0 EH/s to 10.9 EH/s. On September 4, the company reached 16.0 EH/s of installed hash rate, improving fleet efficiency to a record 18 J/TH, leading the North American publicly listed miners. IREN remains on track to meet its Q3 target of 20 EH/s, with an additional 60 MW and 2.2 EH/s of miner machines to come online at Childress in September, along with a further 1.8 EH/s from fleet upgrades and remains confident of reaching 30 EH/s target by year-end.

After a one-time $7.2 million payment to exit a power hedge, IREN leveraged Texas market rates, achieving an energy cost per Bitcoin of $29,958 and a gross margin of 51%. The Childress site in Texas posted an impressive energy cost of $0.031 per kWh.

IREN's high-performance computing (HPC) business achieved record monthly revenues of $1.29 million in August, translating to an annualized revenue of $15.5 million, with an impressive 98% gross margin. To capitalize on its substantial power pipeline, the company has engaged Morgan Stanley to identify and assess potential partners in the HPC space. Several Non-Disclosure Agreements (NDAs) have been signed, and information has been shared with interested parties.

Riot Platforms (RIOT)

Riot Platforms produced 322 Bitcoin during August, at a daily rate of 10.4 Bitcoin, a reduction of 13% on the rate achieved in July.  This reduction was due to the company utilizing its energy strategy, as August is generally accepted as the hottest month in Texas, bringing some of the highest demand on the ERCOT grid and enabling the the company to achieve $6.4 million in power credits, equivalent to 109 Bitcoin and an increase of 90% on the amount achieved in the previous month.  As a result, Riot Platforms achieved an all-in power cost of $0.02 kWh at its Rockdale Facility, while its Corsicana Facility, which purchases energy at real-time spot prices, saw an all-in power cost of $0.039 kWh.

The company also communicated that hash rate uptime was impacted by both participation in demand response programs and unscheduled maintenance at the Rockdale Facility, which has since returned to full operation. Additionally, cooling systems in Buildings A1 and A2 at the Corsicana Facility were nearing completion at the end of August, expected to mitigate the effects of high temperatures moving forward.

Riot Platforms has made significant progress on its third 100 MW building at the Corsicana Facility, with full miner deployment and operation expected by the end of September. The company is also increasing hash rate capacity at its newly acquired Kentucky facilities, keeping on track to meet its Q3 hash rate target of 28 EH/s and year-end goal of 36 EH/s.

The company added 315 Bitcoin to its Hodl, increasing the Bitcoin held in treasury to 10,019 with a valuation of $591 million as of August 31, 2024.

On September 5, 2024, the company issued a U.S. Securities and Exchange Commission (SEC) document SC 13D/A highlighting that the company beneficially owns an aggregate of 90,110,912 Bitfarms shares, representing 19.9% of the class.

Soluna Holdings (SLNH)

Soluna has made notable progress on several key projects. Project Dorothy 1A (25 MW, Bitcoin Hosting) and 1B (25 MW, Bitcoin Prop-Mining) which saw the company produce 14 Bitcoin during the month of August, at an average daily rate of 0.5 Bitcoin, a reduction of 17.6% on the rate achieved in July, due to the significant power curtailments in Texas. Site optimization efforts, including building insulation and cooling solutions, are set to be completed by September’s end to improve resilience against extreme weather conditions.

Project Dorothy 2, which is due to provide Bitcoin Hosting with 48 MW of power, began construction with a groundbreaking ceremony attended by key stakeholders. Civil, mechanical, and electrical teams are actively working on-site, with the remaining equipment expected to arrive soon, ensuring steady progress.

Project Grace, providing 2 MW of AI Cloud/Hosting, has been named after Grace Hopper, an iconic computer scientist. This new AI facility at the Helix Data Center will focus on innovative computing solutions. Similarly, Project Ada, with 1 MW, AI Cloud with HPE is rapidly expanding its H100 Cluster, with proof-of-concept projects underway.

Project Sophie providing 25 MW, Bitcoin Hosting/AI Hosting and Project Kati due to provide 166 MW continue to advance with fleet optimization, infrastructure upgrades, and ongoing negotiations for site land leases.

TeraWulf (WULF)

TeraWulf has expanded its Bitcoin mining capacity to 245 MW and over 10 EH/s across two sites with the completion of Building 4 at its Lake Mariner Facility in New York. Construction on Building 5 is underway, which will add 50 MW by Q1 2025 for either Bitcoin mining or AI/HPC applications. In Pennsylvania, the company operates 50 MW at the Nautilus Cryptomine Facility, with another 50 MW planned for 2025, potentially increasing mining capacity by 2.5 EH/s. Additionally, TeraWulf is advancing a HPC and AI project at Lake Mariner, deploying a 128-GPU NVIDIA cluster for AI workloads.

In August, TeraWulf mined 184 Bitcoin, averaging 5.9 Bitcoin per day, a slight 5.6% decrease from July due to operational adjustments made to optimize performance despite peak summer temperatures. The company’s average operating hash rate showed improvement, reflecting the effectiveness of these optimizations.

TeraWulf is also progressing its 20 MW AI/HPC colocation pilot project, "CB-1," which is scheduled for completion by year-end to support next-generation GPU technology with Tier 3 data center capabilities. Meanwhile, its 'WULF Den' proof-of-concept project for high-density GPUs is nearing completion, with key infrastructure for power and cooling expected to be operational by early September.

Monthly and year-to-date (YTD) metrics

In August, SATO Technologies (SATO) topped the productivity charts, achieving 22.73 Bitcoin per EH/s, closely followed by Gryphon Mining, TeraWulf, CleanSpark (CLSK), Bitfarms and Hive Digital.

From a year-to-date (YTD) perspective, Bitfarms continued its position as the most consistent  North American miner, in terms of production by EH/s, though Hive Digital, SATO Technologies and IREN have now closed the gap to fractions of a percentage.  

In terms of the Utilization metric, Gryphon Mining achieved 101% with Bitdeer Technologies providing the closest position with 95%. CleanSpark, DMG Blockchain, Bitfarms and Hive Digital all achieved above 91%, respectively.