A new week concludes for the digital currency market and for the Bitcoin mining business. Shares of publicly traded BTC mining companies are breathing after months of pressure.
The mining sector remains optimistic given the biggest rise in the market in the last 5 months. The main digital currencies experience bullish impulses that restore hope to battered investors. In that sense, the BTC price performs in an outstanding way, outperforming the main stock market indices.
As is to be expected, the price of the most popular cryptocurrency has a direct influence on mining. Hence, the companies in the area experience a fresh generation that allows them to cover operating expenses and pay the high energy bills of some countries. In this work, the 5 most important news of the last 7 days in the mining business are reviewed.
The 5 most important Bitcoin mining news of the week
Unlike the previous ones, the 81st edition of our roundup of the most outstanding Bitcoin mining news of the week is positive. As already stated, the prices of cryptocurrencies allowed for a respectable income stream for companies in the sector. These are the headlines that shone:
- Miners’ income increases thanks to the rise of BTC
- Compass Mining Faces Lawsuit for Losing Customer Equipment
- Mining shares on the stock market improve with price rally
- Bitcoin computing power continues to break records
- Litecoin hashrate is not far behind and reaches ATH
Miners’ income increases thanks to the rise of BTC
The rally in the price of the largest digital currency in market capitalization drags Bitcoin mining with it. Over the past 7 days, BTC’s performance is 9%, according to data from CoinMarketCap. Meanwhile, entrepreneurs in the mining business are finally beginning to see green numbers.
The strong capitulation of the miners, forced by the conditions of 2022, seems to show signs of fracturing and giving way to a better moment. The Darwinian situation that bankrupted many companies allowed others to make the necessary adjustments. Blockchain data shows signs of accumulation by miners. These cumulative shipments began their run in December 2022 and everything indicates that in 2023 they will remain.
The mining business becomes profitable again despite the fact that the recovery is moderate. In this way, the bet that it is one of the most profitable businesses in the world comes to life. In any case, the rise in the price of Bitcoin from 16K to the current 23K is more than good news for farms.
Compass Mining Faces Lawsuit for Losing Customer Equipment
Although this week was generally positive for Bitcoin mining, not everyone had such a good time. Among the unfortunate are the customers of the Compass Mining company. These would have been victims of the company, which lost the equipment purchased by these people. In response, those affected carry out a lawsuit for fraud.
The fact is that this intermediary company housed the equipment of its clients in the Bit River facilities. The latter is sanctioned for its operations in Russia. In any case, Compass Mining announced that it had cut its relations with the sanctioned company and left its clients’ mining assets abandoned.
The company affirms that, in compliance with the sanctions, it cannot have any type of dealings with Bit River, not even the return of the ASICs. The clients contacted the Russian company, which asked them to refer to the intermediary. In other words, Compass Mining did not make it clear to Bit River that it was an intermediary, but instead acted as the owner of its clients’ equipment. This opened the door to the current fraud lawsuit.
Mining shares on the stock market improve with price rally
Returning to the good news for Bitcoin mining companies this week, the public ones are glaringly obvious. As a result, almost twenty mining companies listed on the New York Stock Exchange experienced strong growth in the value of their shares. The reason for this, once again, the current rally of the BTC price.
With the crypto rises, the shareholders of these companies surpassed Wall Street in returns and even the direct investors of BTC themselves. According to specialized platforms, 17 companies listed on the stock exchange saw their profits double. Some stocks went up more than 280%, which expresses the true magnitude of this moment.
In general terms, the price of BTC is presented as the engine of all movements. So far this year, the pioneer cryptocurrency has returned close to 30%. At the same time, the stock market, despite the not inconsiderable moment, gives a return of 6%.
Bitcoin computing power continues to break records
A piece of information that always accompanies the good moment of Bitcoin mining is the increase in the hashrate of the blockchain of that cryptocurrency. It is the combined computing power of all the miners in the world and from which the difficulty of the network determines the profitability of the mining process.
In short, that hashing power on the Bitcoin network continued its record-breaking streak of growth. According to data from Coinwarz, the Bitcoin network reaches 297.10 EH/s. As can be seen in the graph above, the BTC price motivated a large number of connections during the day on Saturday, with a rise close to 100 EH/s.
Regarding the difficulty, it was updated on Sunday, January 15, at a new top of 37.59T. This reflects a rise of 10.26% compared to the previous adjustment that took place on January 3 of this year at block 770,112. All this points to the fact that the new adjustment could also move upwards.
Litecoin hashrate is not far behind and reaches ATH
Bitcoin mining was not the only one with positive news this week. The chorus was joined by the network of miners of the legendary Litecoin coin. This is not just any altcoin, but it is one of the few that is proud to celebrate 11 uninterrupted years of operation of its blockchain. Like Bitcoin, this currency is generated through Proof-of-Work.
Thus, the computing power of this network reached 625 TH/s and, at the beginning of the week, it exceeded 670 TH/s, according to data from minerstat. For its part, the currency itself continues to recover the positions it had lost in recent years. Its enthusiasts dream of regaining the status of “the silver” of cryptocurrencies (assuming Bitcoin is gold). At the time of writing, the price of LTC is over $88 per coin.
It should be noted that the Litecoin Halving is also just around the corner. This chain will experience the cut sometime in July 2023 and it will be the third in its history. Since late last year, the coin is one of the few to show green numbers amid the FTX scandal.
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