Completed the first week of June, we present you a summary of the 5 most important Bitcoin mining news. We will review the events that marked the news rhythm of these 7 days.
Our review of Bitcoin mining news begins in China. There, authorities in the northwestern provinces put pressure on the miners. Next, also in China, we will remember the “miners from beyond” in Heilongjiang.
In addition, we will briefly summarize the multi-million dollar purchase of mining equipment by the Marathon Patent Group. Finally, in the last two news items related to Bitcoin mining, we will review the mining deficit and its legalization in Kyrgyzstan.
Bitcoin mining under attack in Yunnan
The local rulers of Yunnan province ordered the disconnection of more than 57 mining projects. The action would be carried out under the accusation that the “Big data” was supposedly installed without the required permits.
The actions of the authorities were rushed by two important factors. First, mining companies take advantage of the low costs of hydroelectric power to avoid state service. The second factor is that, recently, there was an explosion at a hydroelectric plant that left several people dead.
It would be a preventive measure, since the farms, apart from being illegal, would not be complying with security protocols. This is dangerous when connecting wiring harnesses and other connections that require expert assistance.
Illegal mining discovered in China’s “graves”
An unusual event occurred in Heilongjiang province. Local police, after receiving a complaint, rushed to the area and found an illegal mini Bitcoin mining farm in a cemetery.
What was intended to be a graveyard, ended up being the starting point of a rather particular discovery. At a door near the “cemetery”, the troops found a wide variety of equipment related to Bitcoin mining.
Those who installed the illegal farm under “graves” were stealing electricity from a nearby oil field. The management of this company noticed an unusual increase in their invoice, which did not correspond to what was consumed. So they contacted the authorities.
Massive purchase of ASIC equipment will increase Marathon hash rate
United States mining company Marathon Patent Group announced a multi-million dollar purchase of Bitcoin mining equipment. It should be noted that this company is one of the few in its area to be listed on Nasdaq.
Marathon has acquired state-of-the-art equipment from the two giants of mining hardware production, MicroBT and Bitmain. In the first case, the purchase of 700 M30S + model whatsminers was announced. Each of these teams generates about 100Th / s.
Meanwhile, Bitmain bought 1,169 Antminer S19 pro miners. These powerful teams work with a hash of 110Th / s. It should be noted that, between the two purchases, the mining power of Marathon amounts to a staggering 197,600Th / s.
Crypto community concerned about mining deficit
A series of rumors on social networks caused the Bitcoin community to panic. It was a possible mass capitulation of the obsolete miners. These would have a very high loss range to be able to sustain their operating expenses.
It turns out that Bitcoin mining farms are spending more than they produce. According to the Byte Tree portal, in a 7-day range, 5,888 Bitcoins were produced, while 6,561 were spent. In this way, mining would be in a deficit of -673 Bitcoins.
The capitulation of obsolete miners is a fact that becomes inevitable after Halving. However, the bullish streak in the days before the cut gave old miners a break to stay afloat for a while longer, according to social media users.
Legalization of Bitcoin mining at the gates in Kyrgyzstan
The parliament of the Republic of Kyrgyzstan is in the discussion phase of a bill on the status of mining. This is the first step prior to legalization.
If approved, it would be in the presence of progress towards decriminalization. Both mining and the use of Bitcoin as a form of payment are prohibited in that country. The legalization would be accompanied by 15% taxes and a special electricity bill rate for miners, the same that would be 70% above the average cost.
An important factor to keep in mind is that there have been problems between Bitcoin mining and the Kyrgyz authorities. Less than 12 months ago, Bitcoin mining was expressly banned due to the high power consumption it requires to operate.