Which public
#bitcoin
miners will be the winners and losers of the bear market?
I analyzed their cash flows and balance sheets to find out.
A thread๐งต
One of Norway's richest men, Kjell Inge Rรธkke, with a net worth of $5.5 billion, is starting a Bitcoin company that will mine Bitcoin with stranded renewable energy, and has bought Bitcoin for around $60 million. Pretty damn cool.
A Norwegian energy producer dumped 340 GWh of hydropower in 2022 due to too high water levels in its reservoirs.
This wasted power could instead have been used to generate 1,800
#BTC
Bhutan confirms they have mined
#bitcoin
for several years.
Mining allows the country to monetize its massive excess hydropower capacity.
Bullish on Bhutan๐ง๐น
A targeted attack on
#bitcoin
miners is taking place in Europe.
Sweden increases the electricity tax for data centers by 6000% to curb the mining industry.
@egreechee
Electricity prices in the Nordics continue to stay negative.
#bitcoin
miners in Finland and the northern parts of Norway and Sweden keep being paid to consume electricity ๐ซ๐ฎ๐ณ๐ด๐ธ๐ช
We urgently need more
#bitcoin
miners to come to Northern Norway๐ณ๐ด
In 2022, my local energy producer dumped 340 GWh of water due to too high reservoir levels. This wasted power could have generated 1,800
#BTC
I can't get over the fact that
#bitcoin
mining allows anyone, anywhere in the world, to turn electricity into money.
If that isn't revolutionizing, nothing is.
Bitcoin mining is an energy refinery. It turns unrefined, stranded, and undervalued energy sources into high-value energy money. And I think that's beautiful.
After I understood that
#bitcoin
mining will revolutionize the energy industry, I've had zero doubts about Bitcoin's long-term potential.
The energy industry is the world's biggest industry, and they will get behind Bitcoin. Mark my words.
It's crazy that Australia doesn't have more
#bitcoin
mining๐ฆ๐บ
Enormous energy resources. Lots of space. Strong capital markets. Political stability. What else do you need, mate?
For the first time in history, we have a global buyer of electricity: the
#bitcoin
miner.
Energy asset owners globally now the optionality of two energy buyers:
- the grid
- the Bitcoin energy market
This is HUGE
In Norway, we generate more hydropower than we can consume. We need more
#bitcoin
miners to come here to monetize the stranded energy.
DM me if you want to build a mining site or host machines here. I can help you๐ณ๐ด
About
#Bitcoin
mining in Russia from the St. Petersburg Economic Forum๐ท๐บ
- Mining is given the green light by the government
- Many established capital players are entering the industry
- Many power companies are involved
Bitcoin miners are so good at demand response that they could make peaker plants redundant.
Peaker plant mogul Warren Buffett is scared and is now lobbying against miners.
Learn more in this article:
Finland will become the biggest
#bitcoin
mining nation in Europe ๐ซ๐ฎ
- Biggest nuclear power plant in Europeโข๏ธ
- Massive wind capacity coming online๐จ
- Miners can sell heat to district heating๐ค
- 85% up-time in September yielded about $15 per MWh in average electricity price๐ค
I can't get over the fact that
#bitcoin
mining allows anyone, anywhere in the world, to turn electricity into money.
If that isn't revolutionizing, nothing is.
We will soon utilize the heat from
#bitcoin
mining to heat a city in Finland๐ซ๐ฎ
Reach out if you want to mine with us and contribute to keeping the Finnish people warm during the winterโจ๏ธ
I recently spent some days in Kyrgyzstan and met with insiders in the country's
#bitcoin
mining industry.
In this thread, I share some of the things I learned ๐งต
Yesterday I explained to my parents how
#bitcoin
mining generates heat.
My mother instantly asked me if I could install a bitcoin mining machine inside her greenhouse to extend the growing season of her tomato plants. She gets it.
The United Arab Emirates is emerging as the prime destination for
#bitcoin
miners in the Middle East ๐ฆ๐ช
Read this thread to learn more - and don't forget to read the entire article at the end.
Thanks to its stranded hydropower, Norway has become the biggest
#bitcoin
mining hub in Europe. But what else defines the bitcoin mining industry in this Arctic outpost?๐ณ๐ด
Learn in this thread ๐งต
Oman has the potential to become the biggest
#bitcoin
mining hub in the Middle East.
Read this thread to learn more - and don't forget to read the entire article at the end.
I can't get over the fact that
#bitcoin
mining allows anyone, anywhere in the world, to turn electricity into money.
If that isn't revolutionizing, nothing is.
Many have questions about Core Scientific right now:
- How did they get into this mess?
- Who do they owe money to?
- What could be the outcomes of this situation?
- How could a bankruptcy affect the mining ecosystem?
In this thread, I try to answer these questions ๐งต
My grandpa was the CEO of a major power-generating company for 25 years.
Last weekend I explained to him how
#bitcoin
mining consumes energy and how it can revolutionize the energy industry.
That was all it took to make this 85-year-old a bitcoiner.
The direct bitcoin production cost impacts a miner's operating cash flow and determines when a miner is forced to turn off machines.
Stronghold and Argo have the lowest direct bitcoin production costs, while Bitfarms and Hut 8 have the highest.
@AlanRMacLeod
I recently lived in Eastern Ukraine๐บ๐ฆ for 9 months, 15 km from the "war zone".
The western media is far more obsessed with the conflict than local Ukrainians.
It was weird to come back to Western Europe and hearing more about the war than I did when I lived 15 km away from it.
Ethiopia is extremely forward-thinking to utilize
#bitcoin
mining to monetize its excess hydropower. It is a genius move.
Read this article to learn 5 ways bitcoin mining benefits Ethiopia๐ช๐น
One year ago, a miner in Texas could produce one
#BTC
for $5k. Then the BTC price was more than $60k.
Now it costs $14k to produce the same BTC, and the price is only $19k ๐คฏ
Learn more in
@hashrateindex
's Q3 2022 mining report by
@AsILayHodling
.
My dream is to own a nuclear power plant that powers a bitcoin mining facility that uses the waste heat to grow cannabis.
That's circular economy in action.
One of the largest hydropower plants in the world is under construction in Ethiopia. Once it opens, the country's electricity surplus will grow from 3 GW to 9 GW.
Ethiopia is made for
#bitcoin
mining, and
#bitcoin
mining is made for Ethiopia๐ช๐น
Hut 8 just revealed the state of its finances and operations in its latest quarterly report.
How is it going with this Canadian bitcoin miner and data center operator? Find out in this thread๐งต
I have a message to all climate activists - If you want to reduce emissions, mine
#bitcoin
of stranded natural gas.
That's by far the most cost-effective way you can reduce greenhouse gas emissions.
.
@nic__carter
wrote a phenomenal foreword for our recent research report about how
#Bitcoin
mining can transform the energy industry.
Read his foreword in this thread ๐งต
Miners have started to dump their
#bitcoin
holdings.
Public miners sold more than 100% of their production in May, a massive increase from the usual 25-40%.
Ethiopia is the place to be for
#bitcoin
miners of the future:
- Halving-proof electricity ratesโก๏ธ
- Massive hydropower surplus๐
- Professional operators๐งฑ
We can help you get started mining in Ethiopia๐ช๐น
Thanks to its massive amounts of stranded hydro and geothermal energy, Iceland has become the biggest hashrate producer per capita.
But what else defines the
#bitcoin
mining industry on this volcanic island?๐งต
As predicted,
#bitcoin
mining companies are starting to go public outside the United States.
The UAE will soon have its first publicly listed mining company๐ฆ๐ช
I just started my own newsletter about
#bitcoin
mining investing.
In this first edition, I predict how mining stocks will perform in the next bull market. Check it out and subscribe if you like it!
I got my Russian mother-in-law to buy
#bitcoin
at $24k. I just told her the price is almost $36k. Her first reaction: "I need to buy more before it gets too expensive".
I'm proud that she is already thinking like a true bitcoiner.
All
#bitcoin
miners I have talked with expect a considerable hashrate decline following the halving.
But nobody expects themselves to be the ones turning off the machines๐ค
Marathon just revealed the state of its operations in its latest quarterly report. How prepared is this mega miner for the
#bitcoin
halving?
Find out in this thread, and don't forget to read the entire article at the end.
Ethiopia has the greatest water resources in Africa but little local electricity demand. The country urgently needs
#bitcoin
miners to come and help monetize its otherwise wasted hydropower.
DM me if you want to start mining in Ethiopia. We offer halving-proof hosting rates๐ช๐น
Even if the bitcoin price reaches $2M by 2040,
#Bitcoin
miners will still consume less than 1% of the global energy.
Spending less than 1% of the global energy to secure a global monetary system is worth it.
Ethiopia is made for
#bitcoin
mining.
- cheap electricityโก๏ธ
- abundant hydropower๐
- the country needs more exports๐ฐ
- strong
#Bitcoin
adoption๐ช๐น
That's why we mine there.
The dumbest decision I ever made was not going all-in on
#bitcoin
mining stocks one year ago.
I only allocated a meager 30% of my portfolio to the sector. How stupid.
West Texas:
- 31 GW of wind and solar ๐ช๏ธ๐
- Only 6 GW of average load ๐
- Only 12 GW of transmission capacity โก๏ธ
Who will use the excess electricity and prevent waste? Maybe
#bitcoin
mining fixes this...
Cash is king in a bear market. The miners with the most substantial operating cash flows are best positioned to pay upcoming expenses, such as machine deliveries or debt payments.
Core Scientific has the highest current operating cash flows.
An interesting dynamic is playing out in
#bitcoin
mining right now.
Miners' attempts to outpace each other in upgrading fleets ahead of the halving is leading hashrate to surge, causing even worse conditions for everyone. The game theory of mining never stops to amaze me.
The biggest
#bitcoin
mining countries are:
1) ๐บ๐ธ 40%
2) ๐จ๐ณ 15%
3) ๐ท๐บ 12%
Notably, there is relatively little hashrate in Africa and Latin America. This will change over the next 1-2 years.
I recently spent two weeks in Kazakhstan and met with insiders in the country's
#bitcoin
mining industry.
In this thread, I share some of the things I learned๐งต
The public miners are still dumping their
#bitcoin
holdings, but not nearly to the same extent as during the mining bloodbath earlier this summer.
They "only" sold 6,200 BTC in July, less than half the amount they sold the previous month.
I studied energy management at university and was the first student to write a master's thesis about bitcoin mining and energy.
My prediction is that in five years, all serious energy universities will offer students the possibility to major in bitcoin mining.
Riot Blockchain, one of the largest publicly traded
#bitcoin
miners, just revealed the state of its finances and operations in its latest quarterly report.
How is it going with the Texas-based miner? Find out in this thread ๐งต
Finland just launched a new nuclear reactor - the most powerful in Europe.
This massive influx of electricity generation capacity could make the country Europe's next big
#Bitcoin
mining frontier.
Stay tuned for
@hashrateindex
's article on Bitcoin mining in Finland๐ซ๐ฎ
Marathon already has $101m cash and 13.7k
#BTC
, giving it a total liquidity of $568m.
Their liquidity and cash flows should be more than sufficient to fund upcoming CAPEX. Why on earth do they need to raise equity and dilute shareholders now?
I intend to heavily study the fundamental aspects of
#Bitcoin
and money.
Shill me your best Bitcoin learning resources - the more advanced and abstract the better.
Thanks to its stranded hydropower, Sweden has become one of Europe's last
#bitcoin
mining refuges. But what else defines the bitcoin mining industry in this Arctic outpost?
Learn in this thread ๐งต
@AlpacaAurelius
I lived in Ukraine for a year. They eat like horses and barely exercise, and nobody is fat there.
A few things I noticed about their diet:
1) They eat lots of vegetables
2) They eat lots of meat and animal fat
3) They don't eat seed oils
4) They barely drink soda
The EU wants to halt
#bitcoin
mining operations in northern Norway, Sweden, and Iceland in case of an energy emergency further south in Europe.
Energy is stranded in these places, so halting mining operations there will not lead to more energy on the continent.
Sweden just announced their intentions to launch 2.5 GW of nuclear power by 2035 and 12.5 GW by 2045โ๏ธ
Looks like
#bitcoin
mining will have an excellent long-term future in Sweden๐ธ๐ช
Veldig gode nyheter for Sverige og oss som nabo! Den svenske regjeringen lanserer en plan for kjernekraft.
Effekt tilsvarende to store reaktorer (2.5 GW) pรฅ plass senest 2035
Effekt tilsvarende TI store reaktorer pรฅ plass senest 2045 ๐๐
The total market cap of
#bitcoin
mining stocks is currently at only $8 billion, a massive decline from the $37 billion peak in November 2021.
I would be surprised if the total market cap of mining stock doesn't surpass $75 billion in the next bull market.
A map of
#Bitcoin
mining facilities in Texas.
Most of them are located in the western part of the state, where they monetize previously stranded wind and solar energy.
This chart shows the remaining machine payments in 2022 relative to the current operating cash flows.
Marathon has 6.2 times higher remaining machine payments in 2022 than their accumulated current operating cash flow accumulated out the year. This will drain them of liquidity.
Most of these companies are struggling, and some will get into a liquidity squeeze that will force them to liquidate parts of their assets. In the midst of every crisis lies great opportunity, as the best-capitalized miners can buy the struggling miners' assets cheaply.
ASIC prices havenโt been lower since January 2021.
The prices will likely keep falling due to two reasons:
1) ASICs are still highly-priced historically relative to their current income
2) Some of the distressed public miners will have to dump their machine orders on the market
Bitcoin miners busy at work delivering heat to a district heating plant in Finland ๐ซ๐ฎ
We have a new
#bitcoin
mining heat-reuse site in Finland coming up and are looking for hosting customers. DM if interested.
Which countries are the biggest
#bitcoin
miners?
1) ๐บ๐ธUnited States: 40%
2) ๐จ๐ณChina: 15%
3) ๐ท๐บRussia: 12%
Check out our latest article to learn more:
So many US-based miners hosted at $0.07 and above will become unprofitable following the halving.
We can help you get started mining in Ethiopia at halving-proof hosting rates ๐ช๐น
The cash outflows are also important. Some of these companies have hundreds of millions in remaining machine payments in 2022.
Marathon has the most, with $260 million.