Wu said weekly mining news: FIL circle was shaken by Bitmain's new mining machine 1101-1107

Wu said author | Colin Wu

Editor of this issue | Colin Wu

1.

Dongguan recently strictly investigated virtual currency mining, emphasizing that mining is suspected of violating the "Energy Conservation Law of the People's Republic of China"

Wu said that on November 3, based on the risk clues provided by relevant departments of Dongguan City, the Tangxia Town Economic Development Bureau took the lead and jointly carried out the investigation of suspected "mining" risk clues with the Tangxia Public Security Bureau, Market Supervision Bureau, Power Supply Service Center and Hengtang Community.

That morning, in an industrial park in Hengtang Community, inspectors checked and found a suspected "mining" site at the address mentioned in the clue, with about 200 "mining machines" working. The inspectors immediately asked the property management staff of the industrial park to contact the person in charge of the lessee of the site to assist in the investigation. After investigation, it was found that the computers in the site were purchased by several partners from other places and operated at the site for virtual currency (Ethereum) mining and reselling of "mining machines", and no relevant procedures were carried out.

The inspectors informed the person in charge that on September 24, 2021, the People's Bank of China issued the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation", which pointed out that virtual currency does not have the same legal status as legal currency, and virtual currency-related business activities are illegal financial activities. The above-mentioned behavior has not been reviewed for energy conservation, and it consumes a lot of electricity and energy, which is suspected of violating the "Energy Conservation Law of the People's Republic of China". The inspectors asked the venue to shut down and turn off the power on the spot. Then the person in charge of the venue shut down all computers, and the staff of the power supply service center and the property management staff went to the meter room to turn off the meter switch. The community will be responsible for coordination and supervision in the future. The person in charge of the relevant department of Tangxia Town said that the virtual currency mining behavior that has not gone through the energy conservation review and approval procedures must be resolutely investigated and dealt with. Those who should suspend electricity should stop using electricity immediately, those who should be transferred to the public security organs should be transferred, and those who should be held criminally responsible should be held criminally responsible. At the same time, letters will be sent to various communities and smart network centers, requiring relevant personnel to pay more attention to "mining" behavior in daily inspections, and report and investigate to the office in a timely manner if found.

Previously, some towns and streets in Dongguan City found that some companies used computer and graphics card recycling business to carry out virtual currency mining in subleased factories. The above-mentioned activities did not undergo energy-saving review and were suspected of violating the "Energy Conservation Law of the People's Republic of China". Among them, Qingxi seized more than 260 mining machines in two locations.

On October 28, when Yuan Shiwang, deputy secretary of the Qingxi Town Committee, led a team to inspect the fire protection of three small places, he found that there were more than 100 mining machines in a rented factory in Sanzhong Village. He immediately cut off the power supply and asked the person in charge of the company, Yan, to cooperate with the investigation. After the Qingxi Town Economic Development Bureau, Public Security, Power Supply and other departments intervened in the investigation, they found that Yan used about 60,000 kWh of electricity in September and more than 120,000 kWh in October, which seriously disrupted the normal order of electricity use. It is understood that Yan's main business is to recycle old mining machines and second-hand computer graphics cards for his own mining and selling mining machines. At present, more than 260 mining machines have been found in Sanzhong Village and Tuqiao Village. According to the work deployment of Dongguan City's orderly electricity consumption task force, next, Qingxi Town Economic Development Bureau will take the lead in jointly strengthening patrol and law enforcement with multiple departments, fully implement local supervision responsibilities, and conduct a comprehensive investigation of sub-leased factories and other places within the jurisdiction. Virtual currency mining activities that have not completed energy-saving review and approval procedures must be resolutely investigated and dealt with. Those who should suspend electricity use must stop using electricity immediately, those who should be transferred to the public security organs will be transferred, and those who should be held criminally responsible will be held criminally responsible. We must resolutely crack down on Bitcoin mining and trading activities, and resolutely prevent individual risks from being transmitted to the social field.

But some lawyers pointed out that mining violates the relevant basis of the Energy Conservation Law? After carefully reading it from beginning to end, there is indeed no specific basis for violation. Reference Shocked, mining violates the Clean Energy Law?

2.

Bitmain will hold a meeting in Dubai from November 9th to November 10th. According to a poster disclosed by a Thai supplier, Bitmain will announce its latest mining machine, the S19XP, which uses TSMC's 5nm chip, has a computing power of up to 150TH/s, a power consumption of 3225W, and an energy efficiency ratio of up to 21.5J/TH. It will be shipped from July to September 2022.

Previously, Bitmain's top model was the S19Pro, with a computing power of 110TH/s, a power consumption of 3250W, and an energy efficiency ratio of 29.5J/TH. This time, both the computing power and energy efficiency ratio have been greatly improved. (Wu said)

3.

According to the Xuzhou Public Security Bureau, the Fengxian County Bureau has arrested 31 members of the Interstellar Alliance online pyramid scheme criminal gang in Shanghai, Wuhan, Shenzhen and other places, and seized virtual currencies such as Ethereum, Tether, and FIL worth about 400 million yuan. The Interstellar Alliance stated that the reason was that the suspect used suspected illegal funds for procurement. At present, most members have resumed normal work and will resume services after assisting in the investigation. (Wu said)

4.

According to Sina Finance, on the evening of November 4, Canaan Technology's affiliated company Shanghai Canaan Jiesi Information Technology Co., Ltd. accused Sichuan Yinbimei Technology Co., Ltd. and Shenzhen Gaorui Electronic Technology Co., Ltd. of infringing its patent rights and requested the court to order the two defendants to immediately stop the infringement and compensate for economic losses and reasonable expenses of RMB 90 million.
Canaan Information claimed that the patent in question was applied for by Canaan Technology to the Patent Office of the State Intellectual Property Office based on its technological research and development results, and has been transferred to Canaan Information, and is still legal and valid. However, the company found that some products developed and manufactured by Shenzhen Gaorui and sold by Sichuan Yinbimei used the technical solutions protected by the patent in question, which fell within the protection scope of the patent in question. The two companies implemented the patent technology in question without permission, and are suspected of infringing Canaan Information's patent rights.
According to the evidence of Canaan Information, Shenzhen Gaorui's related profits exceeded 10 million US dollars. Therefore, Canaan Information formally filed a lawsuit with the Chengdu Intermediate People's Court, requesting the court to order Shenzhen Gaorui and Sichuan Yinbimei to immediately stop the infringement and compensate Canaan Information for its economic losses and reasonable expenses totaling RMB 90 million.
Previously, Bitmain and Shenma Mining Machine, and Ebang and Shenma have had many patent disputes.

5.

According to TheBlock, as China cracks down on after-school tutoring businesses, Meten EdtechX, an English training company based in China and listed on Nasdaq, has entered the field of Bitcoin mining. Meten went public through a SPAC transaction in March 2020. The company first stated in September that it planned to enter the field of cryptocurrency mining to expand its business line, and soon raised nearly $60 million in a new round of stock issuance.

6.

Swedish regulator calls for EU to ban POW mining

Wu said that according to Decrypt, the Swedish financial regulator Finansinspektionen called for a ban on crypto mining, saying that cryptocurrencies pose a threat to the climate. Cryptocurrency mining requires a lot of electricity, so some cryptocurrency miners have turned to renewable energy, which has brought additional problems to Sweden. Sweden has abundant renewable energy, but the resources available are limited. Regulators said that this part of the energy is used to achieve climate transformation, and the occupation of miners will threaten the government's ability to implement the Paris Agreement, so it is proposed that the EU consider a ban on POW mining throughout the EU.

7.

According to Businesswire, Fortress Technologies (stock code: FORT), a crypto mining company listed on the Toronto Stock Exchange, announced that it will purchase 4,500 Bitmain Antminer S19j Pro Bitcoin mining machines. The machines are expected to be delivered in equal monthly installments from April to September 2022. The acquisition increases the company's total computing power by 450 PH/s, which was previously 195 PH/s. The acquisition came less than two weeks after the company announced the purchase of 180 Whatsminer M30S machines and the deployment of three additional containers in its strategic cooperation with Great American Mining. Since the appointment of new leadership in September, Fortress's computing power has increased by more than 260%. (Wu said)

8.

Atlas Technology, which is expanding its North American cryptocurrency mining operations, has signed an agreement with Core Scientific to host more than 100 megawatts of bitcoin mining capacity, Atlas announced on Monday, according to CoinDesk. On October 19, Atlas said it had signed a 100-megawatt hosting agreement with Compute North.

9.

Argo Blockchain, a British listed mining company, released its third-quarter financial report. The company's quarterly revenue was $26 million, a record high, and its net profit was $17 million. As of September 30, the company had a total of 1,836 bitcoins, and mined 597 bitcoins in the third quarter, with a computing power of 1.07EH/s. In addition, Argo Blockchain expects that the 20,000 Bitmain Antminer S19J Pro mining machines purchased previously will begin to be delivered in the second quarter of 2022, and the total computing power is expected to reach 3.7EH/s after deployment. (Chain News)

10.

Bitcoin mining company Genesis Digital Assets announced that it is building a new self-hosted Bitcoin mining data center in western Texas with a capacity of 300 megawatts. The electricity comes from the Electric Reliability Council of Texas (ERCOT), of which more than 40% of the energy comes from wind and solar energy. (Chain News)

11.

Wu said that on November 2, North American listed mining company MARATHON said that it mined 417.7 bitcoins during October 2021, increasing its total bitcoin holdings to approximately 7,453, with a fair market value of approximately US$457.4 million. The company ordered 42,381 mining machines from Bitmain at the beginning of the year, some of which are still in transit. The company currently has 27,280 mining machines in operation.

12.

Riot Blockchain said it produced 464 bitcoins in October 2021, a year-on-year increase of 433%; as of October 31, 2021, it held approximately 3,995 bitcoins.

13.

Wu said that Kazakhstan has recently established a number of regulatory measures for crypto asset investment. According to local media Kapital.kz, the government has restricted the amount of money that retail investors can invest in cryptocurrencies. Investors who have provided financial proof can invest up to 10% of their annual income or 5% of their total assets (excluding their primary residence) each year, with a maximum investment of $100,000; those who have not provided proof can invest up to $1,000 per month.

In addition, Kazakh President Tokayev, in a meeting with Energy Minister Mirzagaliev, stressed the need to ensure uninterrupted electricity supply to businesses and households and tasked the executive power to organize “urgent legislative regulation of mining.”

14. Coinbase engineer Yuga C tweeted a summary of the information about the Ethereum merger in the Ethereum community conference call on November 6: the merger is expected to take place around the second quarter of next year, and there will be no downtime during the merger; ETH locked in the staking contract after the merger will remain locked. The Ethereum community's first task after the merger is to unlock the staked ETH, and reiterated that the ETH rewards after the merger will only be provided to validators rather than miners.

15.

Etherscan data shows that as of November 1, the computing power of the entire Ethereum network has reached 812.76TH/s, setting a historical high.

16.

Bitcoin mining company Compass Mining has partnered with Red Jar Digital Infrastructure to build and host a new 140 MW Bitcoin mining facility in Ontario, Canada, and 95% of the facility will be powered by "clean energy." It is expected that the introduction of the full 140 MW capacity will take at least a year, and the mining machines will start to go online at the end of January 2022 and reach the planned production capacity by the end of 2022. (Chain News)

17.

Bitfly, the parent company of Ethermine mining pool, launched the non-custodial ETH 2.0 staking pool Ethpool, where each validator needs to stake 32 ETH. After the merger, in addition to Ethereum 2.0 block rewards, users can also receive MEV (maximum extractable value) or transaction fee income. (Chain News)

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According to the "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" issued by the central bank and other departments, the content of this article is only for information sharing and does not promote or endorse any business or investment behavior. Readers are requested to strictly abide by the laws and regulations of their region and not participate in any illegal financial behavior. Wu said that the content is prohibited from being reproduced or copied without permission, and violators will be held accountable.