With less than 20 weeks remaining until the next Bitcoin halving, the worldwide hash rate has sustained its upward trajectory, reaching its peak for the entire year on November 19th, 2023. The chart for November visually highlights the daily hash rate's range throughout the month, averaging nearly 500 EH/s, reflecting a growth of 100% since the beginning of the year.
In the process of appending a new block to the blockchain and securing the associated reward of newly minted Bitcoin, miners employ their computational resources in a rigorous and expeditious mathematical conjecture procedure. To identify the subsequent block, miners must generate a hash with an equal or greater number of leading zeros than the predetermined "target hash."
As more miners join the network, the time required to solve these equations, typically set at 10 minutes, decreases. Every two weeks, the mining difficulty is adjusted to ensure that the time needed to mine one block returns to 10 minutes. In November, the difficulty factor was raised by a total of 9%, reducing the daily Bitcoin yield for miners compared to the previous month.
Nevertheless, this decline in Bitcoin production by miners was counterbalanced by two distinct events during the month. Firstly, the Bitcoin price continued its upward trajectory, as witnessed throughout 2023, increasing by 8.7%. Secondly, miners benefited from a substantial surge in transaction fees, amounting to an additional 14% on top of the $1 billion in block rewards earned during the month. This fee total of $142.2 million marked the highest recorded.
In a previous article, I emphasized the preparations needed for Bitcoin miners as the halving approaches. In recent weeks, a significant number of North American Bitcoin miners have placed orders for the most efficient miner machines on the market from suppliers Bitmain and MicroBT. These orders will enhance efficiency for each miner, effectively lowering the average energy cost to mine a Bitcoin.
Hut 8 Corp and US Bitcoin announce completion of merger
Two weeks ago, Hut 8 Mining Corp. and USBTC completed their all-stock merger, forming Hut 8 Corp, a U.S. domiciled entity that has now been trading as HUT on Nasdaq and the Toronto Stock Exchange since December 4.
The operations team have also initiated software piloting at Hut 8’s facilities in Medicine Hat and Drumheller, providing detailed reporting. Additionally, the company introduced a high-performance computing Cloud Portal in mid-November, allowing clients direct GPU access and streamlined workload provisioning through a user-friendly web interface.
Hut 8 Corp boasts access to approximately 839 MW of gross energy, with operations spanning self-mining, hosting, and managed services, positioning itself strategically for growth and operational efficiency in Bitcoin mining and high-performance computing.
In November the company produced a total of 390 Bitcoin at an average daily rate of 13 Bitcoin per day, from an operational self mining hash rate of 7.3 EH/s. The company also has a significant hosting service, currently managing 17.9 EH/s, supported by 680 MW of power.
Argo Blockchain (ARB.L, ARBK)
Argo Blockchain has welcomed Thomas Chippas, former CEO of CBOE Digital, as its new Chief Executive Officer (CEO). Based in New York, Chippas brings extensive expertise in digital assets, technology, and financial services. Chairman Matthew Shaw expressed excitement about Chippas joining, citing his proven leadership in technology and finance. Chippas, enthusiastic about the role, highlighted the increasing innovation in the Bitcoin mining industry. The appointment coincides with the award of 2,850,000 performance share units tied to Chippas' role and aligned with the company's remuneration policy.
In November, the company achieved a successful production of 145 Bitcoin, averaging 4.8 Bitcoin per day, a 4.8% increase from the previous month, despite a 9% rise in the monthly average network difficulty compared to October.
November's mining revenue reached $5.30 million, marking a 25% surge from October's $4.26 million, primarily attributed to the rising Bitcoin price. As of November 30, 2023, the company's Bitcoin 'hodl' was 21, valued at $0.8 million on November 30, 2023.
Bitdeer (BTDR)
In November, Bitdeer successfully mined a total of 403 Bitcoins, reflecting an impressive year-over-year increase of 81.5%. The Gedu Datacenter maintained full operational status throughout the month, contributing a hash rate of 3.3EH/s and yielding 209 mined Bitcoins, at a rate of 63.3 Bitcoin per EH/sl for the period.
The overall Bitcoin mined in November 2023 experienced a 9.9% decline from October 2023, which was primarily attributed to a temporary power curtailment and the downclocking of mining machines at the company's facilities in Norway, triggered by heightened electricity costs during the month.
Progress continues on their infrastructure endeavors, notably the 175 MW immersion cooling data center at our Tydal mining facility in Norway, set for completion in 2025. Moving forward, Bitdeer remains committed to advancing long-term initiatives and executing operational strategies judiciously to deliver sustainable shareholder value.
Bit Digital (BTBT)
Bit Digital announced on November 20, 2023, the successful conclusion of a service agreement with its inaugural customer in the newly established business segment, Bit Digital AI. The agreement outlines the provision of computational power, facilitated by 1,504 Nvidia HGX H100 GPUs, for a three-year duration starting January 2024. This collaboration is anticipated to generate over $35 million in annualized revenue for $BTBT.
To fulfill this commitment, the company has issued a purchase order for servers and delivery is expected by the end of January 2024, for deployment in northern Iceland, secured with 2.5 MW capacity for a three-year term. This provides a revenue stream that is not correlated to the price of Bitcoin and will provide additional financial support as the halving approaches in less than 5 months. The company has already received a prepayment for the first month from its first customer and expects to earn between $35 million and $37 million of revenue during 2024.
The Company mined a total of 142.7 Bitcoin during the month at a daily rate of 4.8 Bitcoin per day, an increase of 32.1% on the rate achieved in October. This increase was due to the operational hash rate increasing by 11% to 2.25 EH/s. The company hasn't stopped there, with a further 2,398 S19k Pro units currently being installed in Texas, and due for energizing, imminently.
As of November 30, 2023, the treasury holdings for Bitcoin and ETH amounted to 551.8 and 16,064.8, respectively corresponding to fair market values bringing the total value of crypto currency to a total value of approximately $55.3 million. The Company also had cash and cash equivalents of $14.9 million as of November 30, 2023.
Bitfarms (BITF)
Bitfarms had a month packed with updates. On November 15, 2023 the company announced it had secured a prepaid power contract in Argentina, obtaining electricity at Rio Cuarto for 2.1 cents per kWh plus VAT from November 2023 to April 2024. This fixed-rate deal, capitalizing on seasonal reductions in natural gas prices, is expected to significantly decrease Bitfarms' blended power costs and contribute to a corporate average cost of around 2.5 cents per kWh plus taxes for the first year of operations in Argentina.
On November 24, 2023, the company announced it was raising approximately C$60 million through a private placement with institutional investors, to be allocated for acquiring miners, expanding infrastructure, and enhancing working capital. The private placement concluded on November 28, 2023, with H.C. Wainwright & Co. serving as the exclusive placement agent.
However the biggest news story was to be released on November 27th, when Bitfams announced it had finalized a firm order for 35,888 Bitmain T21 miners at a cost of $2,660 per unit, with deliveries scheduled between March and May 2024. Additionally, the company secured a purchase option for an extra 28,000 T21 miners. This strategic move aligns with Bitfarms' transformative fleet upgrade plan, aiming for 17 EH/s by H2 2024. The deployment plan includes increasing operating capacity to 391 MW, enhancing efficiency to 23 w/TH, and targeting a hashrate of 17 EH/s. CEO Geoff Morphy emphasized the strategic timing and efficiency gains, positioning Bitfarms for growth and profitability.
During November the company mined 392 Bitcoin at a daily rate of 13.1 an increase of 1.8% on the rate achieved during October. The company reached a total hash rate of 6.4 EH/s and maintained an operational hash rate for the month of 5.9 EH/s.
In November 2023, Bitfarms sold 350 Bitcoin yielding $12.8 million in revenues, and adding 42 Bitcoin to the treasury, bringing the total ‘Hodl;’ to 802 Bitcoin with a valuation of $30.3 million. The company further reduced their outstanding debt by $1.9 million, leaving a remaining balance of $6.0 million as of November 30, 2023.
CleanSpark (CLSK)
CleanSpark achieved its second-highest monthly Bitcoin production, reaching 666 Bitcoin at an average rate of 22.2 Bitcoin per day, an increase of 8.7% on the daily rate achieved in the previous month.
Although the mining difficulty increased by 9% the company was able to achieve more production helped by the efficiency improving 26.4 J/Th, with operational uptime reaching an exceptional 99.98%.
The total Bitcoin holdings were 2,575, providing a value of $97.1 million as at November 30, 2023. The company sold 402 Bitcoin during the month, generating approximately $14.7 million. Productivity.
CleanSpark recently released their company presentation highlighting the growth to 16 EH/s would now be achieved during Q2 2024.
Cipher Mining (CIFR)
Cipher Mining produced 433 Bitcoin at a daily rate 14.4 per day, an increase of 4.5% on the rate achieved in October. The company also utilized its power strategy to achieve a further 9 Bitcoin equivalent in energy credits.
CEO Tyler Page highlighted the company's focus on improving machine repairs and uptime, which was demonstrated by their robust production in November, surpassing October's Bitcoin mining despite a shorter timeframe and a 6.5% monthly increase in the network hash rate.
Achieving a record site hash rate of 6.24 EH/s at Odessa, Cipher concluded the month with the ability to mine up to 15.7 Bitcoin per day. The company sold 466 Bitcoin representing 108% of production and currently have hold 558 Bitcoin in their treasury with a value of $21 million.
On December 8, 2023 Cipher Mining announced it had finalized its acquisition of a new Texas site, named Black Pearl, as outlined in the Purchase and Sale Agreement with Trinity Mining Group, Inc. The deal involved the issuance of 2,397,424 shares of Cipher's common stock as the Purchase Price. The acquisition aligns with Cipher's growth strategy, with CEO Tyler Page expressing enthusiasm about Black Pearl's potential to become the company's largest site, featuring up to 300 MW interconnection. Mining rig deployment at the site is expected to commence in a little over a year.
Core Scientific (CORZQ)
During November the company mined 954 Bitcoin at a daily rate of 31.8 Bitcoin per day, an increase of 8.3% on the rate achieved in October. Adam Sullivan, CEO of Core Scientific, revealed the company's self-mining accomplishment, surpassed 12,500 Bitcoin mined in 2023, and that the company is anticipating an additional 6.6 EH/s of incoming Bitcoin miners over the next seven months, along with 372 megawatts of partially developed infrastructure.
Core Scientific, has initiated a rights offering for holders of its common stock and certain equity interests as of November 16, 2023. This offering is part of the Third Amended Joint Chapter 11 Plan of Reorganization, developed through extensive negotiations and a Restructuring Support Agreement. The plan aims for a $1.5 billion total enterprise value, reducing debt, preserving jobs, and facilitating Core Scientific's exit from bankruptcy in January 2024. The U.S. Bankruptcy Court has approved procedures for the rights offering.
DMG Blockchain (DMGI)
DMG Blockchain announced on December 5, 2023, that the company had entered into an agreement with Bitmain Technologies to acquire 4,550 T21 bitcoin miners for US$12,103,000, with delivery expected in the March quarter of 2024. The purchase, financed through cash, liquidated bitcoin, debt, or a combination, includes a 10% down payment, and the balance is due before shipment. The T21 miners support a high-energy mode, potentially allowing DMG to realize up to 1.06 EH/s. The company plans to use its existing mining containers at the Christina Lake facility, aiming for fleet efficiency below 25 J/TH post-halvening in April 2024.
In November the company mined 64.7 Bitcoin, at an average daily rate of 2.2 Bitcoin per day, an increase of 12.9% on the rate achieved during October, which was achieved through increasing closing hash rate at the end of November to 1.07 EH/s. The company sold 97.7 Bitcoin in the month and has a current ‘hodl’ of 429 Bitcoin, valued at $16.2 million as at November 30, 2023.
Hive Digital (HIVE)
HIVE Digital announced on November 27, 2023 that it is acquiring a data center in Boden, Sweden, enhancing its long-term value and sustainability goals. The strategic investment aligns with HIVE's ESG focus, contributing to environmental responsibility and energy efficiency. The acquisition involves a cash payment of up to $750,000 and up to $1,500,000 in common shares, subject to regulatory approvals. The move is anticipated to expand HIVE's regional presence and contribute to Boden's economic development.
In November Hive Digital produced 269.5 Bitcoin at an average daily rate of 9.2 bitcoin per day, an increase of 7.5% on the rate achieved during the previous month. The company increased its total energized hash rate to 4.18 EH/s and were able to maintain an operational level of 4.14 EH/s providing a mining utilization of 99% for the month of November, only equaled by CleanSpark. Hive Digital currently hold 1,627 Bitcoin in their treasury, with a value of $61.4 million as at November 30, 2023.
The company announced the recent acquisition of 9,800 Bitmain S19k Pro miners, bringing its total to approximately 29,000 ASICs procured over the past 12 months. With an average fleet efficiency of 26 J/TH, the company aims to optimize efficiency and achieve cash flow positivity post-halving. The strategic purchase, at an average price of approximately $13.70/TH, reflects the company's focus on immediate delivery, low $/TH prices, and maximizing return on invested capital for shareholders.
Iris Energy (IREN)
Iris Energy produced 369 Bitcoin during November, at an average daily rate of 12.3 Bitcoin per day, an increase of 1.4% on the daily rate achieved in October. The company’s average operational hash rate for the month was 5.551 EH/s from a total hash rate of 5.6 EH/s providing a utilization of 98% only bettered by Hive Digital and CleanSpark.
The company was also able to benefit from their energy strategy during the month achieving $113k of sales. Iris Energy achieved an effective total revenue per PH/s of $2,505, the highest total, from all the North American listed miners in this article.
Iris Energy announced on November 30, 2023 that it has acquired an additional 1.3 EH/s of Bitmain T21 miners, enhancing its self-mining capacity to 8.3 EH/s. The purchase includes 7,000 T21 miners from Bitmain Technologies for $14/TH ($18.6 million), with 20% deferred until May 30, 2024. Scheduled for Q1 2024 delivery, the new miners will boost operating hashrate by 48% and improve overall fleet efficiency from 29.5 J/TH to 25.8 J/TH.
Iris Energy's 80 MW data center expansion in Childress is on track for delivery from January 2024 to Q2 2024, supporting a total operating capacity increase to 10 EH/s.
Marathon Digital (MARA)
In November, Marathon Digital mined a total of 1,187 Bitcoin, averaging 39.6 Bitcoin per day—an uptick of 2% compared to October. This increased production, taking the year to date production to 10,999 Bitcoin, was facilitated by a 20% boost in the domestic hash rate, reaching 23.1 EH/s. This accomplishment not only met the company's long-term domestic hash rate goal but also reinforced its status as the largest bitcoin miner in North America.
The company sold 700 Bitcoin representing 56% of the production during the month and grew their ‘hodl’ to a new high of 14,025 Bitcoin, providing a value of $528.9 million as at November 30, 2023. The company also has a cash and cash equivalents balance of $273.1 million taking the treasury total to over $800 million, providing the company with significant opportunities for consolidation in the mining space as the halving approaches.
Progress continued in Abu Dhabi which resulted in 2.5 EH/s online, of which Marathon Digital has a 20% stake in the JV. The Paraguay joint venture in which the company has an 80% stake, started with 1,170 miners energized at energy costs of $0.04 kWh.
The company continues to explore innovative projects to lower power costs, enhance sustainable energy use, and leverage Bitcoin mining heat for renewable energy development.
Riot Platforms (RIOT)
Riot Platforms mined 552 Bitcoin during the month, at an average daily rate of 18.4 Bitcoin per day, an increase of 24.5% on the rate achieved during the previous month, due to the ongoing progress of works on Buildings F and G. The company ended the month with an operational hash rate of 12.4 EH/s, an increase of 61% on the hash rate energized in November 2022.
In addition the company was also able to make use of their energy strategy achieving estimated
power curtailment credits of $0.2 million and a further $1.6 million in ERCOT demand response programs
The company sold 540 Bitcoin for $19.6 million and increased their treasury by adding to their ‘hodl’, now totalling 7,258 Bitcoin with a value of $273.7 million as at November 30, 2023.
On December 4th Riot Platforms update made the whole mining industry ‘sit up and take note’ as it announced a purchase option for 18 EH/s of the latest generation immersion miners from MicroBT, primarily the M66S model, for $290.5 million.
The order supplements the previously announced purchase and encompasses 66,560 miners scheduled for deployment starting in H2 2024, with the entire order expected to bring the company's total operations hash rate to in excess of 38 EH/s over the next 18 months. All miners will be US-manufactured and designed for immersion cooling, showcasing an efficiency rating of 18.5 Joules per TH/s.
Riot Platforms and MicroBT have also updated the agreement to provide Riot with options to purchase up to a total of 265,000 additional miners providing scalability and long-term hash rate supply, allowing the company to exceed 100 EH/s of self mining.
SATO Technology (SATO)
SATO Technology mined 35 Bitcoin at an average daily rate of 1.2 EH/s, a 0.5% increase on the rate achieved in October, achieving the highest production by EH/s of all the miners in the table above, with an impressive 67.8 Bitcoin per EH/s.
The company managed this despite a 28-hour operational halt occurring due to essential work by the electrical provider, and excluding this event, the average operating hash rate for the month would have been 538 PH/s.
The company sold 30 Bitcoin and added 5 to its treasury, taking the total ‘hodl’ to 43 Bitcoin, with a value of $1.6 million as at November 30, 2023. The company also has cash and cash equivalents totaling $1.3 million.
TeraWulf (WULF)
TeraWulf mined 323 bitcoin during November at an average daily rate of 10.8 Bitcoin per day, an increase of 6.3% on the rate achieved during the previous month. This growth was attributed to higher network transaction fees and over 95% availability from the 5 EH/s of self-mining capacity.
Both facilities, Lake Mariner in New York and Nautilus Cryptomine in Pennsylvania, demonstrated robust operating performance. The Lake Mariner facility surpassed requirements for its participation in an operating reserve program with NYISO, doubling the qualified capacity, contributing additional revenue offsets to the already below-average industry power costs at the site.
As of November 30, 2023, TeraWulf had an operational miner fleet of approximately 50,000, distributed between its Lake Mariner and Nautilus facilities.
2023 Bitcoin mined per EH/s per month
The provided table below illustrates the EH/s-based monthly Bitcoin production performance of each miner. As the year approaches its end, Bitfarms has demonstrated remarkable consistency, closely trailed by Hive Digital and Iris Energy. Notably, SATO Technology and DMG Blockchain achieved commendable production figures in November, maintaining proximity in performance.
It is noteworthy that Argo Blockchain and Riot Platforms displayed improved monthly production performances compared to their preceding six months, indicating a positive trajectory and adeptly capitalizing on additional transaction fees in November.
