Wu said weekly mining news: Gansu inspections and mining have entered regular supervision 0906-0912

Wu said author | Colin Wu

Editor of this issue | Colin Wu

Wu's brief comment this week: As the central bank recently stated, the rectification work has been basically completed and has entered "normal supervision". Irregular inspections will be carried out in various places. In addition to the news in Gansu that has been disclosed, there are actually many irregular inspections in various places, so we will occasionally see a sudden decline in computing power. In the future, large Bitcoin mines will move to the United States, Hasa and other places, while small mines, Ethereum, POC, etc. will remain in China, which may become a trend.

1. Gansu Lanzhou New District carries out special inspection on virtual currency mining and enterprises sign commitment on site

Wu Blockchain learned that on September 10, Yingda Media Group, a subsidiary of State Grid, reported that in order to conscientiously implement the government's requirements on the "14th Five-Year Plan" dual control measures for energy consumption, on September 9, the Lanzhou New District Company organized elite troops to actively cooperate with the Gansu Energy Inspection Office, the Ministry of Industry and Information Technology, and the Development and Reform Commission to carry out special inspections on Bitcoin and other virtual currency "mining" activities.

The article stated that in order to ensure the smooth implementation of this action, the employees of the Lanzhou New District Company immediately contacted the relevant government inspection department personnel, set up an inspection team to discuss the special inspection work plan, and determined the inspection object, time, method and content. On the day of the implementation of the action, the inspection team conducted on-site inspections of many big data companies in the new district through surprise inspections, focusing on the factory environment, electrical equipment, etc. The special inspection team held on-site discussions with the inspected companies on the country's work policy and firm attitude in strictly prohibiting virtual currency and other activities. The relevant companies signed the "Commitment to Prevent Bitcoin and Other Virtual Currency "Mining" Business Activities" on the spot, promising not to carry out Bitcoin and other virtual currency "mining" and trading activities.

The article states that virtual currencies such as Bitcoin have many problems such as wasting energy and evading financial supervision, and they do not have a clear legal status in my country. New mining machines frequently steal electricity, with obvious characteristics of large amounts of electricity stolen, hidden forms and group crimes, which not only cause huge losses to state property, but also seriously disrupt the normal power supply order and undermine the rules of the market economy.

The article said that this action has achieved good results in warning relevant enterprises in Lanzhou New District to eliminate activities related to virtual currencies such as Bitcoin. In the next step, Lanzhou New District Company will continue to thoroughly investigate Internet cafes, Internet companies and customers with sudden increases in electricity consumption in the area that may be "mining", and conduct regular inspections of virtual currency mining machines "mining", electricity use violations and electricity theft.

2. Bitmain has reached a Bitcoin mining hosting agreement with data center and power partners Bit5ive and ISW Holdings

Wu said blockchain learned that according to The Block, Bitmain has reached a Bitcoin mining hosting agreement with data center and power partners Bit5ive and ISW Holdings, which will accommodate 56,000 BitAnt miners in Georgia, USA. ISW Holdings will provide funding, electricity and other resources, Bitmain will provide mining equipment, and Bit5ive will provide project management services. It is expected that the first 50 megawatts will be put into operation by the end of this year, and another 50 megawatts will be ready in the first quarter of next year, and the entire deployment will be completed in October 2022, with a total capacity of 200 megawatts. ISW Holdings expects that the hosting business will bring the company $100 million in annual revenue, and the revenue is not related to cryptocurrency price fluctuations.

3. HIVE Blockchain, a listed mining company, purchased 3,000 Shenma mining machines from MicroBit, and the total computing power will increase by 294PH/s

According to Chain News, HIVE Blockchain, a listed mining company, announced that it has purchased 3,000 Shenma mining machines from MicroBT, including three models: M30S, M30S+ and M30S++. They will be delivered monthly in 2022, with 250 units delivered per month. After all these mining machines are deployed, HIVE Blockchain's total computing power will increase by 294PH/s, and 67 bitcoins will be produced per month based on the current computing power of the entire network. HIVE Blockchain said that the company's total computing power currently exceeds 1EH/s, and the monthly output is more than 225 bitcoins based on the current computing power of the entire network. The company currently holds 1,030 bitcoins in its cold wallet, all of which are mined by consuming clean energy.

4. The total amount of Bitcoin held by the five mining companies in North America is nearly 18,000, which is four times the amount held at the end of last year

Wu said blockchain learned that according to statistics from The Block, as of August, the five North American bitcoin mining companies Riot, Marathon, Bitfarm, Hut8 and Argo added a total of 17,960 bitcoins to their balance sheets (including 4,812 bitcoins purchased by Marathon Digital through the secondary market in the first quarter), worth approximately US$820 million, which is four times the 4,176 bitcoins held on December 31, 2020. The five mining companies have mined a total of 10,500 bitcoins this year, of which nearly 40% came from the past two months, with 1,796 bitcoins mined in August, and their collective average output accounted for nearly 5% of the total bitcoin mining revenue so far this year.

5. Blockstream and Macquarie Group pilot renewable energy-powered Bitcoin mining facility

Golden Finance reported that Australia-based financial services giant Macquarie Group and Bitcoin technology company Blockstream have teamed up to pilot a Bitcoin mining facility powered by renewable energy. The pilot facility will be located in the United States. Blockstream said that if successful, it also plans to expand to new sites as green power infrastructure is further developed. The two companies said that the facility will explore carbon-neutral alternatives for mining cryptocurrencies.

6. Bitcoin mining difficulty increased by 4.5%, but mining revenue remains highly profitable

Golden Finance reported that at 00:05 (UTC) on September 7, the Bitcoin mining difficulty adjustment increased by 4.5% on block 699551. Compared with the 13% surge in mining difficulty two weeks ago, the recent 4.5% increase in mining difficulty is not worth mentioning. According to miners and mining pool operators, the recent bull run of the largest cryptocurrency has offset the increasing costs and kept Bitcoin mining highly profitable. Azam Roslan, a senior sales associate at Wattum, a New York-based miner hosting service provider, said the slowdown could be attributed to limited global hosting capacity.

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

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