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Summary: Bitcoin mining sector seeks to get out of the quagmire

The 80th edition of this mining summary reflects an unfriendly reality for the digital currency generation business. Companies in the Bitcoin mining sector continue to make desperate efforts to hold on as the outside presses down hard.

Despite some positive headlines in the main specialized portals, the context seems to be against it. A whole year of bad news regarding the price and investments in the crypto market is taking its toll on the battered companies.

The current green shoots in the major digital currencies can do little to pull directives out of the winter nightmare. In any case, the business continues and the analysts expect the purification process to conclude as soon as possible to start a new stage. It should not be forgotten that the Halving of 2024 is the next big event.

Top 5 Bitcoin Mining News This Week

As usual, this summary covers the top 5 news of the week in the Bitcoin mining sector. It is probable that at the time of publication some information worthy of being included has emerged. In any case, these are the headlines:

  • Digital mining to the rescue in Congolese national park.
  • New York Utilities Commission was sued for approving mining business.
  • Celsius will sell mining equipment.
  • Argo Blockchain lowered its mining capacity due to the winter in Texas.
  • Core Scientific under investigation for alleged fraud.

Digital mining to the rescue in Congolese national park

Despite the rejection of Bitcoin mining for alleged environmental contamination, the sector demonstrates its potential to do just the opposite. According to a recent report from MIT Technology Report, adopting cryptocurrency generation saved Virunga National Park in the Democratic Republic of Congo from certain disaster.

In 2018 one of the worst stages in the history of the oldest national park in Africa began. Rebel groups intensified kidnappings that year, forcing park management to close the doors to tourism. In 2019, the Ebola epidemic was the second blow to tourism and as an auction, the covid pandemic annulled 40% of the income from that reservoir.

However, the reserve’s board did not get carried away by pessimism and in 2020 they began to mine Bitcoin. The success of the initiative is such that it draws the attention of critics and enthusiasts. From any angle, the initiative becomes a successful model of cryptocurrency aid to poor countries with few export resources available. In addition, it is highlighted that the energy that feeds the Virunga mines is 100% green.

Virunga National Park revives thanks to Bitcoin mining
Virunga National Park in Congo survives thanks to Bitcoin mining. Source: AGA Safaris

New York Utilities Commission was sued for approving mining business

The New York public service commission would have been sued for violating the climate law of that entity of 2019. This entity would have approved the installation of a Bitcoin mining center to the Canadian firm, Digihost, which is dedicated to that business .

The lawsuit was brought forward by state environmental groups, who have shown great combativeness. According to a report by The Guardian, the commission authorized the aforementioned Canadian company to absorb the Fortistar North power plant to convert it into a mining center.

The mining facility would be willing to settle in the city of Tonawanda. The plaintiffs argue that the approval of this new digital mine violates the state’s plans for 2040 and 2050. On the first date, all the entity’s electricity is expected to be generated by clean routes. The second date points towards the goal of zero emissions. The mine, running non-stop, would generate 3,000% more greenhouse gases.

Celsius will sell mining equipment

The Bitcoin mining business stopped being profitable for many companies in that sector and others related to it. One of them is the once powerful lending platform, Celsius, which filed for bankruptcy in July 2022. The firm is now struggling to obtain income that allows it to meet its legal obligations.

However, problems loom. Recently, the mining company Core Scientific announced the stoppage of thousands of equipment due to non-payment of invoices by Celsius. Now, the mining arm of that firm is taking a new step with the aim of obtaining funds. In this sense, they announced the sale of mining equipment worth $1.3 million dollars.

According to the company, Touzi Capital would have made the best purchase offer. In total, there would be about 2,700 MicroBT brand ASIC devices. The announcement of the sale was made by the company’s board of directors before the United States Bankruptcy Court on January 11. The climatic and market conditions have caused great losses in the companies of the mining sector.

Argo Blockchain lowered its mining capacity due to winter in Texas

As already noted, companies in the Bitcoin mining sector are in serious trouble that is attacking them from different directions. Some companies are bankrupt and others are on the verge of announcing bankruptcy. Meanwhile, the Argo Blockchain firm also faces the combined problem of poor market and environmental conditions at the same time.

In an update on its production, the company reported that during the month of December its Bitcoin generation fell worryingly. In such a way, that month they would have mined 147 BTC in their Helios installation. For their part, in November they produced 198 coins. The reasons for this 25% drop in its production would be in the snowfall that hit the state of Texas at that time.

It should be noted that the authorities of that entity announced an emergency plan to save energy in Texas. Hence, the mining companies, among others, found themselves obliged to reduce operations to return a good part of the energy to the state. The emergency was determined by the severity of the winter.

Bitcoin mining company Argo Blockchain mined less in December
Argo Blockchain produced 25% less BTC in December compared to the previous month.

Core Scientific under investigation for alleged fraud

If there is a company in the Bitcoin mining sector that is in trouble, it is Core Scientific. The firm filed for protection under Chapter 11, that is, bankruptcy last December. The inability to meet operating expenses made the business unviable for the former bitcoin generation giant. Unlike its competitors, this company fell by the wayside.

But that was not the end of the problems, since the company had been struggling with Celsius since November. As already mentioned, this problem ended with the disconnection of 37,000 computers from the loan platform (also in bankruptcy) due to non-payment of invoices.

Core’s latest scandal involves a likely lawsuit by a New York law firm. Legal experts are investigating the company for alleged fraud in the provision of its mining and hosting services. According to reports, Core would have oversold its services.

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