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Because of the decrease in difficulty, Bitfarms are producing more BTC at a cheaper cost.
Bitfarms, a publicly listed North American Bitcoin mining firm, has more than quadrupled its output this year as a result of the Chinese crackdown and resulting miner exodus.
The Canadian hydroelectricity mining company claims to be supplying more than 99 percent sustainable green energy to an estimated 1.5 percent of the total Bitcoin network.
In a July 14 production update, the firm revealed that it had mined 1,357 BTC in the first six months of 2021, adding that this was the largest number of BTC mined in North America as reported by publicly-traded miners.
It has projected the production of more than 400 BTC for the month of July, which would be double the 199 it mined in January, and more than 50% over June’s 365 BTC mined.
Bitfarms, which was formed in 2017, also said that as of July 12, more than 95 percent of its production for this year, or 1,445 BTC, had been placed into custody.
Due to a mining crackdown in China and the subsequent stoppage of operations, Bitcoin witnessed its biggest difficulty reduction in history earlier this month. Since late May, BitInfoCharts has recorded a 42.5 percent decrease in difficulty, with more than half of it occuring this month.
According to the paper, this has resulted in Bitfarms producing substantially more BTC at a reduced cost per unit generated. The increase in productivity did not prevent the company’s shares from falling in late June, as reported by Cointelegraph.
Emiliano Grodzki, the founder and CEO of Bitfarms, claimed that Beijing’s Bitcoin mining embargo has been beneficial to the firm, which has nearly quadrupled its market share as a result.
“Reports indicate that the ban on crypto mining in China and the exodus of mining rigs seeking new hosting may take an extended period of time to resolve. Bitfarms is well-positioned to take advantage of the significantly improved economic opportunity.”
The business has already started that process by installing 1,500 Bitcoin miners from MicroBT in its Magog, Quebec, data centre, which will contribute 120 PH/s to total production by June 2021.
Compass points to nuclear power
In a separate mining sector move, North American mining and hosting business Compass Mining has inked a 20-year agreement with nuclear fission startup Oklo to deliver 150 megawatts of electricity.
The first Oklo mini-reactors will be installed in 2023 or 2024, according to Compass CEO Whit Gibbs, and the prices will be “considerably” cheaper than the firm’s existing energy sources.
According to the United States Nuclear reactors do not emit air pollution or carbon dioxide when running, according to the Energy Information Administration; nonetheless, the primary environmental issue associated with them is the generation of radioactive waste.
According to a Nasdaq report, Compass is also in negotiations with the crypto-friendly city of Miami about obtaining electricity from the Turkey Point Nuclear Plant.