Wu said weekly mining information: Institutional interest in mining stocks grows 1025-1031

Wu said author | Colin Wu

Editor of this issue | Colin Wu

1.

According to Bloomberg, a study by the National Bureau of Economic Research (a private research institution) in the United States showed that institutions/exchanges controlled about 5.5 million bitcoins at the end of last year, and individual whales controlled about 8.5 million. In addition, the top 1,000 individual investors controlled about 3 million. In addition, the top 10% of miners control 90% of the Bitcoin mining power, and 0.1% (about 50 miners) control 50% of the power. (Wu said)

2.

Institutional investor interest in bitcoin and crypto mining stocks is growing, analysts at Wall Street firm DA Davidson wrote on Monday, though most of these investors are still relatively new to the industry and have reservations about mining stocks’ valuations, according to CoinDesk.
Analyst Christopher Brendler said he estimates about 15% of Wall Street brokers are now taking Bitcoin seriously, up from about 5% at the beginning of the year. Almost all investors already involved in the industry agree with his view on the recent bull run in the crypto industry, but there is also a lot of skepticism, mainly around valuations. Marathon Digital and Riot Blockchain have risen about 1,500% and 600% respectively in the past 12 months, while the price of Bitcoin has risen 377% in the same period.
"We acknowledge that traditional valuation metrics may not be applicable to the industry because future cash flows are very difficult to predict," he said. It is worth noting that crypto mining companies are highly leveraged because most of their revenue comes from mining cryptocurrencies and they tend to hold as much cryptocurrencies as possible on their balance sheets. (Wu said)

3.

According to kapital.kz, data shows that legal mining can bring more than $1.5 billion in revenue to Kazakhstan's economy in the next five years, with potential tax revenue exceeding $300 million. But this only refers to the current "legal miners". If gray miners are included, this number will be multiplied by two. (Wu said)

4.

As miners relocate to Kazakhstan, this poses a challenge to the country’s grid’s power generation capacity. In the near future, the Russian government’s state-owned utility Inter RAO may provide support to the Kazakhstan grid. Alexandra Panina, Chairperson of the Board of Directors of AB Inter RAO Lietuva, expressed her concerns about Kazakhstan’s energy shortages. In addition to procuring electricity from the Russian Federation, Kazakhstan’s Minister of Energy Magzum Mirzagalieve recently listed three new investments in the national grid, in addition to plans by state-owned power company Samruk Energy to revive a 4,000 MW coal-fired power plant. President Tokayev also said that Kazakhstan needs a nuclear power plant. (BeInCrypto)

5.

According to the Associated Press, Missouri's largest utility has built a data center at one of its coal-fired power plants to mine Bitcoin. Ameren Corp. officials said this could help stabilize electricity demand, avoid reducing efficiency and resume production again. The company has mined more than 20 bitcoins. But critics question whether the $1 million project artificially increases demand for coal energy. (Wu said)

6.

On October 26, Spark Pool released a statement on the handling of users' remaining assets and the suspension of all services: Starting from 00:00 (UTC+8) on November 1, 2021, the mining pool will only retain the function of account mining users withdrawing existing balances (anonymous mining users have completed balance liquidation), and will no longer provide other related services. (Wu said)

7.

According to Coindesk, Nasdaq-listed crypto mining company Hive Blockchain announced today that it has ordered 6,500 Avalon Bitcoin mining machines from Canaan. It has purchased 6,400 and 4,000 Avalon mining machines in January and August this year respectively. The current total computing power is 1.2EH/s, and it is expected to reach 2EH/s by December and 3EH/s in March next year. The current Hive Blockchain stock price is $3.77, with a market value of $1.45 billion. (Wu said)

8.

Mawson, a crypto mining company listed on the Nasdaq, has partnered with Quinbrook to build a mining center in Byron Bay, Australia, using renewable energy for mining. Byron Bay is likely to become the center of Bitcoin mining in Australia, where mining using renewable energy can enjoy a 10% tax discount. Mawson CEO James Manning said that the cooperation has purchased 4,000 new Bitcoin mining machines, and the operating capacity will increase by 11.7% by mid-2022. (Wu said)

9.

Rhodium Enterprises plans to list on the Nasdaq Global Select Market under the trading symbol RHDM, and plans to raise up to $100 million through the IPO. The company began mining in September 2020, and documents show that in the six months ended June 30, the miner's revenue, net income and adjusted earnings after interest and taxes were $48.2 million, $14.9 million and $40.9 million, respectively. Rhodium said that its proprietary liquid cooling technology can extend the mechanical life of its Bitcoin mining machines by 30% to 50%. The company currently operates 22,600 mining machines in Texas with a power capacity of 80 megawatts, with a total computing power of approximately 1.8 EH/s. It is expected to add 45 megawatts of additional power by the end of the year and increase its computing power to approximately 2.7 EH/s. (Chain News)

10.

Australian Bitcoin mining company Iris Energy has applied to the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO), planning to raise $100 million and be listed on the Nasdaq with the stock code "IREN". JPMorgan Chase, Canaccord Genuity, Citigroup, Macquarie Capital and Cowen are the joint bookrunners for this transaction.

Lianwen previously reported that Iris Energy initially planned to go public through SPAC (special purpose acquisition company) and raise $300 million to $500 million; then in August, Iris Energy announced on its Twitter that the company had submitted an F-1 form to the US SEC to apply for a direct listing on Nasdaq, which could be carried out in the fourth quarter of 2021. (Lianwen)

11.

Canadian Bitcoin mining company Bitfarms is building two new mining farms with a total capacity of 78 megawatts in Sherbrooke, Quebec, which are expected to be completed in two phases next year. The two new mining farms are expected to accommodate 21,000 new mining machines and add 2.1EH/s of computing power. (Chain News)

12.

Web 3.0 project Mask Network announced that it has received strategic investment from blockchain storage protocol Arweave to support Mask's future strategic development. Mask said that the investment was made by exchanging protocol tokens between the two parties. Mask said that Arweave has historically supported open network projects and has worked with Mask for some time, including providing financial support to Mask Network in May 2020. The file service function previously launched in Mask's extension was created using the Arweave blockchain solution, allowing users to share files directly on social media. Since its launch, 2,865 files have been stored. (Chain News)

13.

Environmentalists Abi Buddington and Yvonne Taylor claim they were threatened by Dale Iwin, CEO of Bitcoin mining company Greenidge Generation. The news comes after a dispute between the Greenidge company and New York environmentalists. Greenidge Generation is a company that mines Bitcoin in upstate New York and has long been criticized for allegedly harming the environment around its mining facilities. (Decrypt)

14.

Perpetual Industries Inc. announced that it has moved into a new corporate facility in Auburn, Indiana. The 22,000 square foot facility will serve as the new corporate headquarters, providing Perpetual with more space to meet the growing needs of its research and development projects, as well as space for its cryptocurrency division to execute a large-scale Bitcoin mining center expansion. (Globe Newswire)

15.

According to Bloomberg, crypto fund company Cosmos launched a crypto mining ETF in Australia on Thursday: Cosmos Global Digital Miners Access ETF, with the trading code DIGA. The ETF will be traded on the Chi-X Australia exchange and will invest in mining companies such as Marathon Digital Holdings, Riot Blockchain, Hive Blockchain and Hut 8 Mining, and will not directly hold cryptocurrencies. Cosmos is also working with Australian regulators and exchanges to eventually launch a physical Bitcoin ETF.

16.

River Financial, a San Francisco-based bitcoin technology and financial services company, has launched a new service called "River Mining" that will allow its customers to purchase mining machines and start mining without having to set up and maintain computers themselves, and the generated bitcoins will be directly deposited into their River accounts. Customers can purchase Bitmain's Antminer S19j Pro mining machines in the service and manage the mining process through a mobile application. The company is currently opening pre-sales and waitlists on its website, and customers only need to pay for one mining machine to get started.

17.

On October 27, the British financial website MoneySuperMarket recently studied and calculated the electricity cost of each Bitcoin transaction. According to the global average electricity price of 9.0 cents per kilowatt-hour in the past 12 months, the electricity cost of Bitcoin mining for users to buy, sell or transfer is $176. This means that if you want to use Bitcoin to buy a latte or pay for small transactions such as dog walking fees, the cost may be higher than you think, which may be a blow to those supporters of BTC and believe that the related transaction costs are lower.

18.

According to Ganzhou Economic and Technological Development Zone, in order to further prevent and control the risks of virtual currency mining and trading speculation, recently, our district's Anti-Non-Virtual Currency Office, together with the Ganzhou Branch of the People's Bank of China, the Financial Office of the Municipal Government, the District Public Security Bureau, and the District Market Supervision Bureau went to Hengke Industrial Park and the International Enterprise Center to carry out special inspections and rectification work to combat virtual currency mining and trading activities.

At the scene of the investigation, the staff conducted risk investigation and rectification on the enterprises in the park by checking the internal settings of the company, verifying the business license, questioning the company's employees, verifying the company's business, issuing risk warning letters, etc. In the next step, our district will strengthen publicity and education, and through typical case analysis and investment risk education, publicize the illegality, harmfulness and manifestations of virtual currency speculation and other related business activities to the public, and enhance the public's awareness of risk prevention.

19.

On October 26, CryptoQuant.com tweeted that miners are still accumulating Bitcoin. Analyst IT Tech said: "The number of Bitcoins currently held by (miners) is similar to the level in May when the price was below $40,000.

20.

On October 30, iPollo announced that it would launch two series of mining machines, iPollo B1 and iPollo Darksteel. B1 is a Bitcoin mining machine with an energy efficiency ratio between 35W/T and 55W/T; Darksteel is divided into three models, providing solutions for Swarm Filecoin and Chia respectively. (Wu said)

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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.

Welcome to read Wu's selected reports : Huobi exclusive report , Binance exclusive report , Bitmain series , supervision and card freezing series , Filecoin series , currency circle chaos exposure , mining farm supervision dynamics , etc.

Risk Warning

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.