The mining difficulty continued its relentless movement upwards, closing at 62.46 T on October 31, 2023, providing a total increase of 9.36% and setting a new all time high. The average mining difficulty increase over the month was 3.63% higher than the closing position for September, indicating that less Bitcoin rewards would be achieved by miners.
On a more positive note, the price of Bitcoin continued its year to date rally and ended the month at $34,667, a 33.7% increase on the closing price at the end of September, providing relief for the North American Bitcoin miners.
Bitcoin Self-Mining Monthly Performance
Argo Blockchain (ARBK)
In the month of October, Argo Blockchain achieved an improved mining total of 143 Bitcoin, at an average daily production of 4.6 Bitcoin, an increase of 1.8% on the previous month. Despite the continued increase in the monthly average network difficulty, the Company managed to attain this increase due to the reduced requirement to economically curtail their energy at the Helios facility, added to the Company's unwavering commitment to operational excellence.
The Company's mining revenue for October 2023 reached $4.26 million, representing a significant 19% increase in comparison to the previous month (September 2023: $3.59 million).
As of October 31, 2023, the Company's Bitcoin holdings totaled 21 BTC.
Bitdeer Technology Group (BTDR)
Bitdeer produced 462 Bitcoin at an average daily rate of 14.9 Bitcoin per day, a reduction of 7.2% on the daily rate achieved during September, but were able to achieve higher revenues, due to the Bitcoin price significantly increasing during the month.
Bitdeer continues to make progress on the build out of their 175 MW immersion cooling data center at their facility in Tydal, Norway, which is expected to be completed in 2025.
Bit Digital (BTBT)
In October 2023, Bit Digital reported the production of 111.6 BTC, reflecting a 14% decrease when compared to the previous month. Several factors contributed to this decline, including an upsurge in network difficulty, a mandated maintenance outage by a power utility that temporarily reduced operating hash rate at one of their locations, and the relocation of miners from a hosting location following the conclusion of the hosting agreement.
As of October 31, 2023, the Company's active hash rate stood at approximately 2.0 EH/s, indicative of our continued commitment to the mining industry.
Bit Digital’s treasury holdings are currently 511.1 Bitcoin with a value of $17.7 million, having sold a significant portion of their ‘hodl’ totalling 422 Bitcoin, during the month. The company also has a balance of 16,022.5 Ethereum, with a fair market value of approximately $29.1 million, respectively, as at October 31, 2023.
The Company maintained cash and cash equivalents totaling $24.4 million as of October 31, 2023, underlining their financial stability and resilience.
Bitfarms (BITF)
Bitfarms produced 398 Bitcoin, at an average daily rate of 12.8 Bitcoin per day, a reduction of 6.3% on the daily rate achieved in the previous month. However, the revenues earned through an increasing Bitcoin price totalled $13.6 million, an increase of $2.5 million on the revenues recorded in September.
In October, Bitfarms significantly augmented its hashrate to 6.3 EH/s through the successful energization of its 11 MW Baie-Comeau, Québec facility and an increase in Rio Cuarto's capacity from 51 MW to 54 MW, reported Geoff Morphy, CEO of Bitfarms. As the month concluded, Bitfarms boasted a total operating capacity of 240 MW, signifying a remarkable 31% growth compared to the previous year.
With access to long-term, cost-efficient energy contracts totaling 574 MW, the company retains substantial opportunities for portfolio expansion and the development of new farm infrastructure, potentially doubling its current 240 MW production capacity.
Bitfarms sold 341 Bitcoin during the month, generating $10 million, to fund operational and capital expenditure, adding 57 to the treasury hodl which currently stands at 760 Bitcoin with a value of $26.3 million. The company continued to reduce their total debt by a further $1.9 million, leaving a balance of $7.9 million at October 31, 2023. The journey taken by Bitfarms in reducing the debt, which totaled $160 million in mid 2022, has been nothing less than remarkable.
Cipher Mining (CIFR)
In October, Cipher Mining achieved a production of approximately 428 BTC, at an average of 13.8 Bitcoin per day, a reduction of 0.4% on the daily rate achieved in the previous month. The company also used its energy strategy to achieve approximately $550,000 in energy sales, equivalent to 16 Bitcoin during the month of October.
In the course of regular treasury management, Cipher executed the sale of approximately 466 BTC, concluding the month with a BTC balance of around 516.
Tyler Page, CEO of Cipher, expressed satisfaction with the company's performance, stating, "We are pleased to report another strong month of production, with Odessa fully operational.”
Cipher Mining announced on November 8, 2023 that it had inked a notable agreement to acquire a Texas-based ERCOT-approved site named "Black Pearl" with a robust 300 MW interconnection capability.
The company’s obligations under the Black Pearl purchase agreement are subject to specific conditions precedent. Once these conditions are met or waived by Cipher, the company will secure a land lease for up to 50 years for the site and assume various agreements related to its development and operation. Cipher plans to finalize the transaction before the end of the year, with a $7 million consideration paid to the seller in the form of Cipher common shares issued under the Company's previously filed shelf registration statement on Form S-3.
Tyler Page expressed his excitement for Cipher Mining’s next major expansion phase, due to become operational in 2025. In addition to this development, the company has acquired approximately 1.2 EH/s of the latest generation S21 Bitmain mining rigs, at a price of $14/TH, their disciplined approach to growth management across the market cycle. Cipher's strategic and rigorous approach positions the company to thrive beyond the Bitcoin halving event.
CleanSpark (CLSK)
Cleanspark had another good mining month producing 633 Bitcoin at an average daily rate of 20.4 Bitcoin per day, a reduction of 4.7% on the previous month, due mainly to the Bitcoin Mining difficulty increasing by over 9% in month.
The CEO of CleanSpark, Zach Bradford, proudly unveiled a significant achievement in the form of a 10 EH/s hash rate, a testament to the company's unwavering dedication to optimizing efficiency while upholding energy and capital efficiency standards. The feat was realized through a strategic blend of software enhancements and hardware upgrades, contributing significantly to the elevation of the total hash rate without the need for additional power at existing sites.
The company, consequently now boasts a fleet-wide efficiency rating of 27.32 J/TH, firmly establishing itself as one of the mining industry's largest and most efficient entities.
With the imminent deployment of new XPs and the expected arrival of ordered Antminer S21s this October, the company anticipates further fortifying its industry standing. An anticipated efficiency rating of 23.5 J/Th, once all new machines are operational, promises a substantial reduction in operational costs. This heightened efficiency also positions the company well in preparation for the upcoming Bitcoin halving next year, reinforcing its unwavering commitment to data-driven achievements and operational excellence.
In October 2023, CleanSpark sold 562 BTC at an average price of approximately $28,600 per BTC, resulting in proceeds of approximately $16 million. 71 Bitcoin were added to treasury, taking the total hodl to 2,311 Bitcoin with a value of $80.1 million as at October 31, 2023.
The company provided an operational update on the Sandersville expansion, reporting significant progress with no major delays, maintaining construction timelines for a year-end completion.
Key milestones include the completion of steel and roof structures for Buildings 1, 2, and 3, along with the installation of racks within these buildings. Site-wide conduit installation and substantial progress in concrete pouring for the remaining buildings signify the project's impressive advancement.
Scott Garrison, Senior Vice President of Growth, expressed contentment with the project's progress, affirming that construction is on track for the Sandersville expansion, with the anticipation of rapid progress in the coming weeks, culminating in what they believe will be the largest digital asset data center in Georgia.
Core Scientific (CORZQ)
Core Scientific recently announced a significant step towards its financial restructuring, with an agreement in principle reached between the company, the Ad Hoc Noteholder Group, and the Equity Committee.
This agreement, outlined in the Restructuring Term Sheet, paves the way for a Chapter 11 plan of reorganization, with the finalization of the Debtors' Third Amended Joint Chapter 11 Plan and a related Disclosure Statement. In the coming days, the parties are expected to execute a binding Restructuring Support Agreement. Once finalized, this agreement will align with the terms specified in the Restructuring Term Sheet.
The company anticipates emerging from Chapter 11 by the end of the current calendar year, marking a significant development in its restructuring process.
In the month of October Core Scientific mined 910 Bitcoin at an average daily rate of 29.4 Bitcoin per day, a reduction of 8.7% on the daily rate achieved in September. The company sold 977 Bitcoin to meet its operational and capital costs.
Throughout the chapter 11 process, Core Scientific has been a prominent player in the world of Bitcoin mining, proudly maintaining its stature among North America's largest Bitcoin miners. With a robust 724 megawatts of installed power the company continues to demonstrate its substantial presence in the industry with an impressive self-mining fleet efficiency of 28.96 J/Th
According to Adam Sullivan, Chief Executive Officer of Core Scientific, the company's success isn't solely attributed to its sheer scale but also to the remarkable quality and capabilities of its team. This combination of resources and expertise sets Core Scientific apart, positioning it favorably for not only efficient growth but also future success, including navigating the challenges associated with the next Bitcoin halving event.
DMG Blockchain (DMGI)
In the month of October, DMG Blockchain successfully mined 59.2 bitcoins, achieving a realized hashrate of 0.87 EH/s at an average daily rate of 1.9 Bitcoin per day, an increase of 9.3% on the daily rate achieved in the previous month.
As of October 31, 2023, the company’s bitcoin holdings in treasury amounted to 462 Bitcoin, having sold 66 Bitcoin during the month to pay for operational and capital expenditure.
The close of October also marked a significant milestone as DMG surpassed the 1 EH/s threshold for its realized hashrate, reflecting a remarkable 50% increase compared to the previous quarter in September.
DMG is actively engaged in refining its fleet's operational efficiency with the aim of aligning its realized hashrate more closely with the fleet's designated nameplate hashrate of 1.2 EH/s in the forthcoming months. This strategic focus on optimizing mining operations demonstrates the company's commitment to enhancing its performance and capacity within the cryptocurrency mining industry.
Hive Digital (HIVE)
Hive Digital reported its unaudited production results for October 2023, showcasing the company's continued strong performance in Bitcoin mining.
In the month of October, the company produced 265.9 Bitcoin at an average rate of 8.6 Bitcoin per day, a decrease of 4,6% on the average daily rate achieved in September, whilst maintaining an impressive average hashrate of 3.94 EH/s throughout the month.
During the month, Hive Digital broke through the 4.0 EH/s barrier, in terms of ASICS hash rate, achieving approximately 4.13 EH/s, when combining ASIC and GPU mining capacity. HIVE's robust Bitcoin production and mining capacity reflect its commitment to maintaining a strong position in the industry and adapting to market changes.
Aydin Kilic, President & CEO of HIVE, expressed satisfaction with the achievement of 4.0 Exahash in ASIC mining operations this month, emphasizing their commitment to optimizing their mining fleet within current infrastructure. Additionally, Kilic noted that a portion of their GPUs remains engaged in mining alternative cryptocurrencies, with earnings received in Bitcoin. The Bitcoin hashrate equivalent from their GPUs in October amounted to 130 PH/s.
Furthermore, Kilic highlighted the company's ongoing efforts to identify ASIC purchase opportunities that offer the best return on invested capital. This proactive approach aligns with their preparations for the upcoming Bitcoin halving event.
Hive Digital employs a meticulous evaluation of the break-even mining economics for different machine models while also focusing on optimizing their existing fleet through firmware enhancements wherever possible.
Hut 8 (HUT)
Hut 8 produced 112 Bitcoin during October, at an average daily rate of 3.6 Bitcoin per day, a reduction of 4.8% when compared to the previous month. The company sold 365 Bitcoin in October to fund operational and capital costs and has 9,113 Bitcoin held in treasury of which 7,016 were unencumbered with a value of $243.2 million.
Hut 8 is awaiting final approvals for its pending ‘merger of equals’ with US Bitcoin Corp (USBTC), under the name Hut 8 Corp (New Hut). The companies have been complying with U.S. Securities and Exchange Commission (SEC) and have recently submitted an additional amendment. The Transaction's finalization hinges on pending regulatory approvals, stockholder consent from USBTC, and the usual closing conditions.
On November 3, 2023 Hut 8 received approval from the Ontario Superior Court of Justice for its stalking horse bid to acquire four natural gas power plants in Ontario, encompassing 310 MW, along with a Bitcoin mining facility in North Bay. This bid is part of a support agreement with Macquarie Equipment Finance Ltd and was approved in connection with a sale and investment solicitation process. If the stalking horse bid emerges as the successful offer, an Ontario subsidiary of Hut 8, known as BidCo, will assume ownership of select assets from Validus Power Corp. Macquarie will hold a minority equity interest of around 20%, with Hut 8's subsidiary as the majority owner holding the remaining 80%.
Iris Energy (IREN)
Iris Energy had another consistent mining month, producing 377 Bitcoin at a daily rate of 12.1 Bitcoin per day, 6.7% lower than the previous month, but achieving the highest utilization rate of all the North American publicly listed Bitcoin miners. The company also achieved $203,000 of power sales, equivalent to an additional 7 Bitcoin, through its energy strategy at the Childress site in Texas.
Hash rate continued to increase at the Childress Site to 539 PH/s in October compared with 495 PH/s achieved during the previous month, utilizing 20 MW of power. A further 80 MW of data centers are under construction which should be completed in early 2024 with the potential to house a further 3.8 EH/s and taking the total near term planned hash rate to 9.4 EH/s.
On October 24, 2023, the company unveiled its strategic collaboration with WEKA, a leading data platform software provider specializing in performance-intensive workloads. This partnership signifies the company's expansion into the generative AI market.
Under this collaboration, Iris Energy will leverage the WEKA Data Platform to deliver storage and data management solutions tailored for generative AI and performance-intensive workloads.
The initiative aims to offer a high-performance solution optimized for GPUs within the company's data centers. This solution is designed to be user-friendly, scalable, environmentally sustainable, and highly secure.
Marathon Digital Holdings (MARA)
In October, Marathon Digital achieved notable results, producing 1,202 Bitcoin during the month, at an average daily production rate of 38.8 Bitcoins. Although this represented a 6.3% decrease from daily rate achieved in the previous month, the company's Chairman and CEO, Fred Thiel, highlighted substantial expansion. Marathon Digital’s hash rate increased by 1% to reach 19.2 EH/s, driven in part by the Garden City, Texas facility. Thiel emphasized that the facility's full operational capacity will soon propel the company beyond its 23 EH/s target, securing its position as the largest publicly traded Bitcoin miner in North America.
Notably, Marathon Digital earned 4.0% of the total Bitcoin network's miner rewards in October, including contributions from a joint venture in Abu Dhabi. The company also explored innovative mining methods, such as a pilot project in Utah powered by landfill methane gas, aimed at diversifying operations, reducing energy costs, and increasing sustainability.
As of October 31, Marathon held 13,396 unrestricted Bitcoins with a value of $464.4 million. The company strategically sold 961 Bitcoins to manage the rising hash rate and production costs, with plans to continue selling portions of its holdings to support ongoing operations, treasury management, and corporate needs.
Additionally, Marathon Digital engaged in hedging activities, pledging 571 Bitcoins as collateral, which were consequently removed from the company's balance sheet. The company concluded the month with a substantial $156.1 million in unrestricted cash and cash equivalents, contributing to a combined balance of unrestricted cash, cash equivalents, and Bitcoins totaling $620.4 million. This financial strength and strategic approach underscore Marathon's position in the cryptocurrency mining industry.
Riot Platforms (RIOT)
Riot Platforms produced 458 Bitcoin from self-mining during the month of September at an average daily rate of 14.8 Bitcoin per EH/s, an increase of 22.4% on the average daily rate achieved in September.
As the temperatures cooled in Texas, the company seized the opportunity to expand its mining operations while still accumulating Power and Demand Response Credits through its power strategy, equivalent to approximately 93 Bitcoins based on the average monthly Bitcoin price.
Furthermore, Riot Platform’s total hash rate experienced an uptick, driven by ongoing progress in repairing one of its immersion buildings, Building G. The successful acquisition of replacement dry coolers for Building G is set to further boost the hash rate as installation proceeds in November.
Additionally, Riot Platform announced an update to its purchase agreement with MicroBT, involving the exchange of MicroBT M56S++ miners with MicroBT M66 miners. By mid-2024, with the full deployment of this order, the company anticipates its total self-mining hash rate capacity to reach an impressive 20.2 EH/s.
This strategic move aligns the company with cutting-edge technology, bolstered by its low production costs and strong balance sheet, positioning Riot ahead of the upcoming Bitcoin halving event.
During the month of October Riot Platforms sold 440 Bitcoin for $12.5 million to cover its operational and capital costs. The company has 7,345 Bitcoin held in its treasury, currently valued at $254.6 million, and recently reported a further $290.1 million in cash on hand as at September 30, 2023.
SATO Technology (SATO)
SATO Technology produced 36 Bitcoin, totaling $1.07 million in revenues, at an average rate of 1.2 Bitcoin per day, a small drop of 3.6% on the average rate achieved in September.
The company sold 33 Bitcoin to cover operational costs during the month and has a current hodl of 38 Bitcoin with a value of $1.3 million, along with $1.3 million held in cash in the treasury, as of October 31, 2023.
On October 26, 2023, the Hordes Wallet, a non-custodial Bitcoin Taproot wallet developed by SATO for the secure storage of ordinals, expanded its art collection offerings. The inclusion of 500 pieces created by the artist Takeru Amano marks an initial move towards enhancing revenue generation for SATO Technology.
TeraWulf (WULF)
TeraWulf produced 314 Bitcoin in October at an average of 10.1 Bitcoin per day, a decrease of 7.6% on the daily rate achieved in the previous month. The decrease was due to the increase in network difficulty and a planned outage that occurred during the first week of October.
The company having one of the cheapest power costs were able to produce Bitcoin at an average energy cost of $10.8k per Bitcoin produced, or approximately $0.034/kWh during the month of October.
Sean Farrell, SVP of Operations at TeraWulf, emphasized the company's commitment to operational excellence and participation in demand response programs at their Lake Mariner facility. They've optimized site resources to maximize miner inventory and slot utilization. Construction progress in Lake Mariner's Building 3 remains on track for completion by year-end, with the installation of the first pod of Hydra racks already underway.
Equivalent Rank by Utilization
In the context of Bitcoin mining, utilization refers to optimizing Bitcoin production with available hash rate capacity. The average utilization rate for the miners depicted in the graph below stands at 85%.
Despite some curtailment in October, Iris Energy achieved an impressive 97% utilization rate, while SATO Technology and Hive Digital reached 96%. Bitfarms, Bitdeer, CleanSpark, TeraWulf, and Marathon Digital all exceeded 90% utilization rates.
Riot Platforms recorded a utilization rate of 57% in October but effectively utilized their energy strategy, resulting in a total of 93 Bitcoins earned.
It's essential to note that this metric does not encompass Bitcoin equivalents and should never be the sole factor in evaluating Bitcoin miners' performance.
Bitcoin Production by EH/s
Similarly to the utilization metric, this measure evaluates the Bitcoin production per EH/s with the available operational hash rate. In October, the miners benefited from reduced curtailment, resulting in increased mining uptime. However, the heightened hash rate difficulty had an impact, causing miners to effectively experience a production loss of approximately 3-4% compared to the average difficulty in September.
SATO Technology secured the top position for the month, achieving a rate of 67.5 Bitcoins per EH/s when calculated to two decimal places. This surpassed competitors such as Iris Energy, Hive Digital, Bitfarms, and DMG Blockchain, all of which also attained the same rate of 67.5 Bitcoins per EH/s.
Bitcoin sold as a % of Production
The total amount of bitcoin mined during the month of October for all the Bitcoin miners in the chart below, was 5,643 Bitcoin. The total amount sold during the month was 5,858, representing 103.8% of the amount produced. Hive Digital were excluded from the calculation as they did not release data of Bitcoin sold.
As the 2024 Bitcoin halving approaches and the price of Bitcoin Is seeing a resurgence year to date, Bitcoin miners have been taking advantage, to purchase more efficient miners with the likes of Cipher, CleanSpark, Iris Energy, and Riot Platforms taking advantage and placing large orders for the latest, most efficient miners available from Bitmain and Micro BT.
Total Bitcoin mined
The table below illustrates the Bitcoin earnings exclusively from self-mining and does not encompass the additional benefits Texas-based miners have recently been capitalizing on from their energy strategies.
In October, Marathon Digital maintained its standing as the world's largest publicly-traded Bitcoin miner by successfully mining 1,202 Bitcoins. This achievement may be surpassed in November, as the company is poised to energize a substantial amount of hash rate in Garden City, Texas.
CleanSpark achieved an impressive 633 Bitcoins during the month, crossing the significant 10 EH/s threshold. The company has substantial miner orders in place, with plans to double its hash rate capacity by early 2024.
Riot Platforms is currently in the process of energizing more miners in Buildings F and G, utilizing immersion cooling technology. This effort is set to elevate their hash rate to 12.5 EH/s by the year's end, with an additional 7.6 EH/s scheduled for energization at the Corsicana site in Texas during the first half of 2024.
Bitcoin mined per EH/s per month
The table underscores the remarkable production consistency among the top miners in terms of production by EH/s over the initial ten months of 2023. Bitfarms has exhibited an unmatched level of consistency, securing the top position, while Hive Digital, Iris Energy, and SATO Technology occupy the next three places. The actual gap between the top 6 moners is only 3.9%.
Notably, the three miners at the lower end of the table have shown a progressive increase in their performance over recent months. This positive trend positions them well to capitalize on the upswing in Bitcoin prices.
It is important to understand that the metrics and analysis provided in this article should not be taken in isolation and not be construed as financial advice.
