⚡️ Trump, Biden or Bitcoin? VOTE NOW!

Ethan Vera
Ethan Vera

Happy 161-days A.H. everyone.

Last week we casted our vote by partnering up with Core Scientific to mine a block for US Congress.

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Trading Update

Rig Price Index

The ASIC markets have shown a slight decline in prices across the board. New generation machines are being delivered to farms, and the glut of old generation machines in secondary markets has shrunk. New-gen ASICs are trading at $26.32 per TH. At an electricity price of $0.05 / kWh these machines have a 710 day payback period.

Hashprice Index

Since our last update, hashprice has traded in the 7.5 to 8.2 cents per TH range. Difficulty only changed by -0.08% in the period so the fluctuations were caused by changes in Bitcoin price and transaction fees. With Network Hashrate estimated at 141EH, Difficulty is expected to increase by 2.3% on Saturday.

Difficulty Futures

FTX’s Q4 2020 Difficulty Future is up ~1% from the last update to 21.068 T. This represents an expected ~9% increase in hashrate by mid-November from current levels.

Mining News

Core Scientific and Luxor Mine Bitcoin For Congress

  • We got contacted by our friends over at Core Sci to help mine a Bitcoin block as part of the Crypto for Congress campaign. From their facilities in Georgia, Kentucky, and North Carolina they pointed thousands of rigs towards our mining pool server in Iowa and together we mined some Bitcoin made in Murica (Block #651363). We then sent it to all 535 Members of Congress. (article)
  • The purpose of this campaign was to give policymakers hands-on experience with Bitcoin, leading to a working knowledge of the technology and hopefully help them create a regulatory environment that will promote innovation of blockchain technology in the U.S.

Hashr8 Launches the AirBnB of Colocations

  • Our friends over at Hashr8 launched a new platform called Compass, which matches miners with colocations (sort of like AirBnB).

  • They also help manage the actual hosting process including ASIC procurement (optional), hosting contract, payment & billing, shipping & support. (article)

  • It’s no surprise that with mining revenue dropping 44% this year, retail miners have mostly had to turn off their operations given they can’t compete with the economies of scale leveraged by the institutions coming into the space. Compass’ aim is to help small-scale miners access enterprise-level energy prices and infrastructure.

Publicly Traded Mining Companies Continue to Expand

  • It has been quite the month for the publicly-listed mining companies.
  • New machine orders continue to get announced such as Riot purchasing 2,500 S19 Pros expanding up to 2.3 EH/s (June 2021). Also, Bitfarms partnered with Blockfills to purchase an additional 1,000 M31S and thousands more to come bringing their expected hashrate up to 3.0EH/s (Dec-2021).
  • Meanwhile, mining firms Argo Blockchain and Marathon Group are looking to dive further into the infrastructure layer to secure cheaper sources of power. Argo entered into a LOI with Quebec-based, GPU.one to potentially acquire two data centres. Marathon formed a JV with Beowulf Energy to secure 105MW of power at $0.028/kWh (all-in $0.034/kWh).

Galaxy Digital and BlockFi Join the Financing Space

  • Galaxy Digital is setting up a new mining arm, headed by Amanda Fabiano who previously worked in the mining group at Fidelity. Amongst other mining initiatives, Galaxy will be providing ASIC financing.
  • On a podcast with Hashr8, Zac Prince, CEO of BlockFi revealed that they are looking to enter the ASIC financing business and help bring hashrate to North America.
  • The financing landscape is heating up with a half dozen financiers now available. Blockfills recently announced a deal with Bitfarms and Arctos with Core Scientific.
  • Finally, miners will have the same access to traditional financing packages offered to other industries. This should also have an impact on the amount of hashrate in North America as well as the overall network hashrate (and hence mining revenue).

Mining Educational Content

There are many great reports out there for mining. Industry reports, academic papers, blog posts, and equity research. We put together a library of all of these great resources here:

Mining Research Library

About Luxor

Luxor is a US-based mining company.

We run mining pools for Bitcoin, Dash, Zcash, Horizen, Decred, Sia and more. We launched a new Equihash Profit Switching Algorithm called Luxor Switch and Catalyst which allows altcoin miners to receive payments for their hashrate in Bitcoin.

We also run mining data website, Hashrate Index.

We can be found on Twitter or Discord.

Hashrate Index Newsletter

Ethan Vera Twitter

COO at Luxor Technology