23 Burst results for "Bitmain"
What Bitcoin Did
"bitmain" Discussed on What Bitcoin Did
"So I just <Speech_Male> feel like maybe <Speech_Male> we have a bit of a duty <Speech_Male> for that <Speech_Male> in the UK. <Speech_Male> What else are you working <Speech_Male> on? <Speech_Male> <SpeakerChange> We <Speech_Male> have a bill that <Speech_Male> would exempt severance <Speech_Male> tax, which is the <Speech_Male> taxes paid <Speech_Male> on gas <Speech_Male> that's sold natural gas. <Speech_Male> So <SpeakerChange> <Speech_Male> if the gas was <Speech_Male> formally flared <Silence> <SpeakerChange> <Speech_Male> and is redirected <Speech_Male> into a generator <Speech_Male> for mobile data <Speech_Male> center use onsite. <Speech_Male> So it's very narrowly <Speech_Male> scoped, <Speech_Male> but there <Speech_Male> is a 63% <Speech_Male> reduction <Speech_Male> in the carbon <Speech_Male> impact from <Speech_Male> a flare <Speech_Male> stack to <Silence> <Speech_Male> generator. <SpeakerChange> <Speech_Male> Right, man. But listen, <Speech_Male> look, I absolutely <Speech_Male> loved coming to the summit. <Speech_Male> I <Speech_Male> will come next year if you <Speech_Male> have me, <Speech_Male> it was a real honor to <Speech_Male> interview <Speech_Male> a senator on <Speech_Male> stage. It's a very, <Speech_Male> it's very weird when you set up <Speech_Male> a podcast as a hobby <Speech_Male> to suddenly find <Speech_Male> yourself in that situation, <Speech_Male> but I was really <Speech_Male> honored that you asked me. And <Speech_Male> I hope I did <Speech_Male> a good job. <Speech_Male> <Speech_Male> How can people listening <Speech_Male> support what you're <Speech_Male> doing? Where do you want to send <Speech_Male> them to? <Speech_Male> Sure. So Texas <Speech_Male> blockchain council <Speech_Male> dot org, that's where <Speech_Male> they can learn our policy <Speech_Male> page, has all of <Speech_Male> our policy, <Speech_Male> a different initiative so they <Speech_Male> can go there to see that. <Speech_Male> I'm on <Speech_Male> Twitter at <Speech_Male> Lee underscore bratcher. <Speech_Male> <Speech_Male> And the last thing <Speech_Male> that I think <Speech_Male> is relevant, <Speech_Male> given that our <Speech_Male> mind is on Bitcoin mining <Speech_Male> so much <Speech_Male> is we need an <Speech_Male> American asic <Speech_Male> machine. <Speech_Male> We <Speech_Male> can not continue to <Speech_Male> buy bitmain and <Speech_Male> micro BT machines <Speech_Male> indefinitely. Not <Speech_Male> only are they gouging us, <Speech_Male> but it is putting <Speech_Male> a <Speech_Male> that's a big <Speech_Male> area of <SpeakerChange> risk for <Speech_Male> Bitcoin. Have you <Speech_Male> taken a look at these Intel <Speech_Male> machines? <Silence> Yeah. <SpeakerChange> <Speech_Male> <Speech_Male> The Intel chips <Speech_Male> perform as advertised, <Speech_Male> but <Speech_Male> they are having a lot of trouble <Speech_Male> with some of the control boards <Speech_Male> and they're not <Speech_Male> yet <SpeakerChange> up to snuff. <Speech_Male> Okay. <Speech_Male> Coming into, pull it <Speech_Male> out. <Speech_Male> Okay, we'll share that <Speech_Male> on the show notes. We'll put <Speech_Male> both those letters in the <Speech_Male> show notes as well. <Speech_Male> You're apply, <Speech_Male> et cetera. Keep <Speech_Male> doing what you do, anything you need, <Speech_Male> just reach out to me and Danny <Speech_Male> and yeah, thank <Speech_Male> you. I appreciate <Speech_Male> it. Thanks for having <SpeakerChange> me on. Okay, what did <Speech_Male> you make of that? You <Speech_Male> enjoy that, gotta <Speech_Male> say how lovely. Love everything <Speech_Male> he's been doing down in <Speech_Male> Texas. <Speech_Male> Love the Texas blockchain <Speech_Male> council. I will <Speech_Male> rib him eventually <Speech_Male> into becoming the Texas <Speech_Male> Bitcoin council, <Speech_Male> but do appreciate <Speech_Male> him coming on the show, <Speech_Male> appreciate all the support <Speech_Male> he's given me and also <Speech_Male> he got me into <Speech_Male> their summit to interview <Speech_Male> Ted Cruz, which is very <Speech_Male> cool. If you haven't listened to that, <Speech_Male> go and check that out. <Speech_Male> As I said <Speech_Male> in the intro, we're done <Speech_Male> here in New York <Speech_Male> today, we're going to <Speech_Male> be heading out to Canada for <Speech_Male> a couple of days, me and Danny <Speech_Male> are on a secret mission. <Speech_Male> And then he'll be back <Speech_Male> to Australia. I'll be back <Speech_Male> to the UK. <Speech_Male> A big thanks again to <Speech_Male> everyone who came out to <Speech_Male> WBD live <Speech_Male> last night in New York. It <Speech_Male> was sellout. It was great. <Speech_Male> It's great to see <Speech_Male> you all. And <Speech_Male> we've got two more events <Speech_Male> coming up. We've got one <Speech_Male> in London in April <Speech_Male> and one in Miami <Speech_Male> in May, <Speech_Male> and we're going to be adding <Speech_Male> more throughout the year. <Speech_Male> Anyway, <Speech_Male> if you want to get in <Speech_Male> touch, you can drop me an email, <Speech_Male> tell her what Bitcoin did <Speech_Male> dot com. Also, you can jump <Speech_Male> into our Discord, <Speech_Male> become a patron, come talk <Speech_Male> to us over there, tag me, <Speech_Male> Daniel Ben, we're <Speech_Male> always over there. Talking <Speech_Male> <Advertisement> shit, talking about Bitcoin. <Speech_Male> <Advertisement> <Speech_Music_Male> <Advertisement> Anyway, not <Speech_Music_Male> <Advertisement> long to go. Look forward to hearing <Speech_Music_Male> <Advertisement> from you and I'll see you all <Speech_Music_Male> soon.
HASHR8
"bitmain" Discussed on HASHR8
"The sort of benefit of starting with patches of dirt and Mesquite and scrub grass was that we knew we couldn't put miners to use, like next month are in the spot market. So, you know, we ended up trying to time our delivery schedules, and by doing that, we negotiated very favorable terms with micro BT and bit name. So that was a big part of managing the cycle and preserving capital that and may have been the hardest part. We got a lot of pressure to like, well, what if you went and did a small hosting deal and bought some rigs at $90 a tera hash right now so you can show progress. And look, it was very tempting because I think people looked at us a little bit like your Greenfield company, like you don't even minding yet. But, you know, thankfully, we resisted that urge. So the biggest part and I think if you look across our entire fleet, we paid roughly $30 a Tara hash for an almost 60,000 rig fleet. And that's through the whole market where the prices were much higher than that. Most of that was based on those futures orders. Then subsequent to that, you mentioned, you know, making some opportunistic deals really opportunistically timing the cycle. We did make some purchases in the fall, we purchased 7200 rigs from bitmain. I'm sure many listeners on the program will know they have these kind of loyalty programs or you can earn coupons if you make payments on time. We made our payments on time to bit me into we had accumulated a lot of those and we put them to very good work. We had some accumulated credits and coupons. And so net of spending that, we got an extremely low single digit hash cost across those 7200 Briggs. So, you know, look, those rigs would have cost a ridiculous amount of $70 million or whatever a year before.
Crypto Mining Blog
Bitmain Has Announced the Upcoming AntMiner E9 Pro ETC Miners
"2 p.m. Wednesday, February 1st, 2023. Bitmain has announced the upcoming ant miner in 9 pro ETC miners. The sale of the updated pro version of the ant minor E 9 insect minor is apparently going to start in a few days, according to a tweet from bitmain. The new bit main app minor E 9 pro ETC minor is supposed to deliver 36 80 DMH with 2200 watts of power usage or 0.6 day per image sufficiency with a
Coin Edition
Core Scientific Seeks Court Approval to Sell 6M Bitmain Coupons
"10 a.m. Sunday January 29th, 2023. Core scientific seeks court approval to sell 6 M bit main coupons. Bankrupt U.S. Bitcoin mining company core scientific has approached the court with a filing permitting it to sell its bit main coupons. Core scientific filed at the United States bankruptcy court for the southern district of Texas Houston division, seeking to dispose of the coupons that have become of no use to the company. Core scientific the post core scientific seeks court approval to sell 6 M bitmain coupons appeared first on coin edition.
Blockchain News
Core Scientific seeks to sell 6.6 million in Bitmain coupons
"11 a.m. Monday, January 30th, 2023. Core scientific seeks to sell 6.6 million in bitmain coupons. On January 25th, bankrupt Bitcoin mining business core scientific filed an emergency move to sell bitmain coupons. Read more
TheNewsCrypto
Insolvent Core Scientific Files Petition For Selling 6.6M Bitmain Coupons
"6 p.m. Sunday January 29th, 2023. Insolvent core scientific files petition for selling 6.6 M bit main coupons. As shown by court documents on January 25th and solvent Bitcoin mining company core scientific filed an emergency petition in it.
HASHR8
"bitmain" Discussed on HASHR8
"Welcome back to the mining pod join again by Matt Kimmel of coin chairs to go over this week's news roundup. We got three hot stories for you this week. All eyes are on binance, but we have some more mining news for the next ten or 15 minutes. Start off with Argo blockchain, then move to B. Riley and core scientific and finish today's discussion with a little info about new firmware updates from bitmain and micro BT. Kick it over to you for a headline reading on Argo blockchain mat. Yeah, so kind of coming off of news from last week, Argo had kind of a leak email come out that they may be filing for chapter 11 bankruptcy. The follow on news from that is that their shares kind of plundered, fell significantly. They had been delisted from the London stock exchange, and then relisted. That's kind of the story I'm going to send it back over to you for your take. Yeah, no, this whole thing was a bummer definitely for Argo. So just feeling bad for them. This was an accident. They accidentally published that they might file for chapter 11. I think they're just getting some documents ready and they sent that out to investors and some people screenshotted it. The London stock exchange saw it as well. And as policy, they suspended trading for Argo blockchain on the London stock exchange. And then Argo also trades on the NASDAQ global and so that was suspended as well because of this notice. And then the following Monday, the issued and noticing that they've tried to be relisted because the chapter 11 knows that that had been circulating was incorrect in accidentally published. They were later relisted to the London stock exchange in the NASDAQ, believe they're trading down right now, but to be fair, most miners are. I think this whole instance, we just wanted the button up since we talked about last week, there was not a lot of information to pull away from this or action items on slay. Just one of those instances where you hit publish by accident and then there's repercussions for it. So unless you have any takeaways from it, we can move on to the next story, which is B. Riley, a huge creditor to core scientific issuing and noticing that they are might be willing to give, of course, scientific more money to stay up on their feet. I'll hand it over to you, Matt. Yeah, I'm just one last bit on the last story. I think just a little bit more painful because everyone kind of knows that the challenging conditions of the Mayan space are just kind of makes a PR mistake a little bit worse. But yeah, so I'm happy news for a core scientific, right? Getting, let's see, offer 72 million potential financing package from B. Riley. So B. Riley's confidence kind of stays with core scientific, despite them having some challenges that kind of all know about. What do you think about the story? Yeah, no, it certainly interesting to see B. Riley walked back into this. He had about $65 million or $75 million rather in credit out to course scientific at this point. There's a lot of other lenders out to course scientific and B. Riley is looking to keep that investment afloat, right? If in D core scientific chooses to go down the bankruptcy path, which they stated might happen back in October, then B.
What Bitcoin Did
"bitmain" Discussed on What Bitcoin Did
"So they're doing a lot of creative things like that. And there's a lot of companies that are doing other similar creative things. Huh. Should we buy some miners, Danny? I'm not sure it sounds like he's sketchy but yeah, sorry. You definitely. Cost averaging here may not be a terrible play. That's where a lot of folks are buying in smaller quantities, the quantities and volumes that we've seen. We started see volumes tick up in our we do a brokerage business where we help miners that need machines acquire them and we saw volumes start to pick up towards the end of Q three in early Q four. Most of Q three was effectively dead. There was nobody investing in new mining machines because of value of them was in a freefall. You can see from the chart there from April to end of July was just a basically a vertical line down. But then we sort of reached a little bit of a plateau, and that was when volume started to pick up and that was when people felt like they could reinvest, start making investments again with a little bit more certainty. Do you think the Intel machines are going to disrupt this at all? No, not right now. They're just not efficient enough yet. Okay. But I do think that if Intel continues to invest in this market, they will reach parity with the bitmain machines. And the reason, so bitmain has a pretty much has a stranglehold over the I shouldn't say stranglehold, that's rather negative. They are really, they're competing at a really high level. And the way that they're able to do that is because of their relationship with TSMC. They get allocations that other people can't. They're able to produce more chips and more machines that other people can. So that's the reason they're able to continue to hold such a strong position in the market. What's minor is would be second place. They get a lot of they're able to produce a lot of machines just not as much as bit main. Intel though, since they own their own production, they would be able to go out and compete with bit main head to head on a volume basis. They would be able to produce enough machines. The only thing that's holding them back now is they just need to get to that efficiency level that it makes sense. I talked about this on the show the other day. Everything is kind of a derivative of the Bitcoin price. It's exactly the same for our business, which is just a podcast. 6 people making content. But our downloads, you could put our you could have a line there for our downloads and it would kind of track the Bitcoin progress. Well, there's a Bitcoin price on this so you can put it you can overlay it. Yeah, ours would very quite similarly follow that.
What Bitcoin Did
"bitmain" Discussed on What Bitcoin Did
"May of 2021, about half of the hash rate or even a little bit more of the hash rate came off the network, which caused difficulty go down, hash price shot through the roof, because Bitcoin price was rocketing as well at that time. And so we went into this, I actually used the term golden age of mining. And I think I even said this level of margin is not going to exist for long, because if you go into any industry and find you have 80 to 90% margins, they're going to be pouring money in. They're going to be pouring money into that. And one of the things I want to talk about on this pod is how this is reminiscent of energy cycles. And we're going to start we are actually seeing the coincidence of an energy cycle, which is generally not, doesn't correspond with Bitcoin. They have their own cycle. Bitcoin, Bitcoin mining, they have their own cycle, and we're starting to see this coincidence of those two events right now producing the lowest margin environment that we've ever been in for Bitcoin mining. All right, so Denny's pulled up the network data chart showing so this is hash brown price, yeah. So this is hash price over the last year. And so we were talking towards the left end of that chart. You can see we changed it to pet a hash per second per day now rather than Tara hash just because it's a little bit more intuitive. Actually, we switched to pet ash per second per day because it actually coincides nicely with the it's the same order of magnitude as a barrel of oil. So barrel of oil, I think, is about between 80 and $90 today. I didn't look it up before, but now the pet ash is about $55. Okay, so it was about three 75. $375 per hour. Which is around ten machines. And that's okay. And so now it's about but per machine, it's about $5. $5 50. For that particular machine, the machines have come a long way. They're like the latest model from bitmain is an S 19 XP hydro, and that thing does 257 tar ash per second. Hold on, was that a two and a half X? Two and a half X, but it also uses 5200 watts of power. So it's not extremely more efficient. It's maybe about 30% more efficient than a J pro. But it's just a massive form factor and consumes a ton of energy. But if a minus making about 5 and a half dollars a day, what I want to know is, well, based on two cents per kilowatt hour, what will its cost be a daily cost than that? Three times 24. I don't know. I can't do the math in my head. It's going to be at two cents. Yeah, anything's brought. I think even an S 9 is going to be profitable at that point. Okay. So it's still profitable for most companies, but nobody's paying two cents.
HASHR8
Examining Biden's Chip Ban
"Let's kick it off with some Biden chip band, give me the lay of the land for this story. Definitely important for a lot of people in electronic space. Yeah, I think the Biden administration part of their strategy is they want to keep their semiconductors at home. So this story essentially came out to where they unveiled part of their strategy and the key points are that they kind of want the semiconductor industry workers to come home that are currently working in China. And then they don't want to send the cutting edge chips, those 5 nanometer 7 nanometer chips over to China. And so if you think about impact on the Bitcoin mining space, it could be that manufacturers in China can't get their chips and maybe produce as much. But I know you have some color on this one, so I'm going to send it back over to you. Yeah, first seeing a story you're like, oh, this is not good for the asic industry because a lot of asic manufacturers were formerly very centralized in China, but luckily it has changed over the last two years, pretty drastically. So we have bitmain and we have micro BT, those make up probably 90% of the asic marketplace, maybe even a little bit more. And both of those teams work through different foundries to procure their chips, notably TSMC, which is based out of Taiwan with bitmain, and then Samsung for micro BT, which is located in South Korea. A lot of the machines were then assembled in China, especially in Shanghai and those sort of areas. But it's not really the case anymore. Luckily bit main and micro BT really saw through this a while ago, made some strategic moves. A lot of both their operations are actually now based in Malaysia and Indonesia. A few other locations in Southeast Asia. That's where they're putting these machines together. So if you get an asic nowadays, that's commonly where it's manufactured.
CoinDesk Podcast Network
"bitmain" Discussed on CoinDesk Podcast Network
"I'm going to give this to will. Will you got this? Okay, here we go. Talk about some mining stuff and boring angle disclosure I do work for a mining company. So everything I say is likely suspect. But with jihan Wu when he's doing with bit deer. Bit deer is a spin off of bit main, bitman is one of the most important firms in Bitcoin, historically, why? Well, they have been involved with a few things in terms of bitcoins, development over a few years, including the block size of wires. There's a lot of different things going on here. We'll get to it in just a second. And now, will's history corner with willful? Wow. So dignified. Wow. That's pretty good, right? I wish I actually had a robe like that at home. Okay, it's back at the chuck a little bit. Let's talk about this story. So headline according to our friends over at Bloomberg, David pan, is that bit deer is leveraging up a fund $250 million. They're throwing them $50 million of their own money and they're trying to get about $200 million from other players to scoop up distressed assets in Bitcoin mining land. Bitcoin, Bitcoin mining, like everything else in the market right now is down 70, 80, 90% in some cases. And so there's a lot of cheap assets to go cherry pick, which ones you want to gobble up. I think this guy knows that jihan Wu has been in the game for quite a while. He is notorious, including some of his most famous tweets, really set a precedent for what it means to be a Bitcoin entrepreneur out there. And he knows how these market cycles work is going to town going to buy up some distressed assets to build bit deer going into the next bull cycle. Bit dear itself is a spin off, like I said, from bitmain, they made about $5.6 billion in revenue last year, so pretty successful firm. Zach will throw it over to you. All right, I'm a mining small brain small brain SM. Help me out here. So when we're talking assets, are we talking like buying Bitcoin for minors who are looking to pay bills? Are we talking about buying machines that miners are looking to unload to pay bills? Like, what are we talking about? Do you have any sort of understanding of what Jihad is buying with this new fund? Yeah, it could be a lot of different things. Probably not Bitcoin because there's not going to be necessarily much of a discount. I think in years past you might have seen that maybe you come to some agreement on a higher cost basis for buying Bitcoin, but there's still my exchanges out there. Now it's about all these machines, it's about these future orders for machines for infrastructure. It's for facilities. It's for handyman on sites for operational people. It's for software that run these mines. And there's a lot of infrastructure that goes into these things. And people overbuilt during the bull market, thinking that it was only up only. I think to a degree the Bitcoin miners were probably really buying into the super cycle theory from suzu. They got caught up in that. They built too much, and now they're selling a lot. So it's not only that bid there is going after this. There's a few other miners out there like clean spark that are doing similar thing. Jen, I'll throw it over to you. Okay, I also have a question. And I'm sorry if it doesn't make sense, but here goes. So last week, bitmain tweeted that they were reducing the prices on some of their machines. And now I read this story and it seems contradictory to me. I don't know if you can kind of help me, have I made a lot of connection by trying to connect these two stories? No, it's a good connection. So bit main, like I said at the beginning is one of the largest Bitcoin firms in history of Bitcoin, like very short history of Bitcoin, very important firm. They basically have an a monopoly on holding Bitcoin mining machines, producing Bitcoin mining machines, and selling them to the market. And now they are going to undercut the larger market. They're discounting their basic model by about 30%, while all these other liquid exchanges are out there for secondary selling of asics. It made is going to come in and just drop a 6 really cheap that's going to put more pressure down on Bitcoin miners to sell their assets where you can cheaper and then bit deer can come in and just swoop up. So I'm kind of like the Celsius story beginning or like any other stories we've seen over the last few weeks. A lot of companies are selling all their assets so they had pumped up during the bull market for really, really cheap right now and there's going to be continued undercutting based on who was the first producer of an asset. You could produce an asset for the cheapest and you're still making money even if you're selling it for nothing. Even if you're selling a very, very low. And then you're putting pressure on everyone else and wiping them out and then you can come up and gobble them up and buy them out of the store. So good to put those two stories together. Great context. I just want to see the graphic again. Can we see the graphic again control? No more. You see the graphic again? Control is bringing it up standby. I'm standing and now. Wins
HASHR8
"bitmain" Discussed on HASHR8
"Bankruptcy auction system or just go buy from bitmain and get it even cheaper. So we're in an M and a deal. If someone raised a bunch of debt to buy a bunch of machines at $80 per Terra hash, do you want to scoop them up? And are you valuing their assets very high or do you just want to buy from me? It's tough. There's a lot of machines out there. And this is a cyclical part of Bitcoin mining, right? Is the fact that there's a manufacturing arm in centralized. It means that they can pump out a bunch of these machines and start selling them when things are really high. And then when the market goes down, they can continue to pump out these machines and just clean out the floor price where everyone sort of stuck with things. And at the same time, we have this rackspace problem where you can't get a machine on a rack in time because there's just no room. And so you see asic prices drop even further. So this is definitely going to hurt secondary markets or anyone who sells a 6, you're going to see a drop in profits for machines, and then I think it's also has implications for the security of Bitcoin itself. I don't think big repercussions at all. But a quarter million to a half million machines is a lot. And a lot of those machines are going to be next generation machines. So where and when those plug in and how they get plugged in, it's interesting. And this has been a conversation back in the past when it was basically only bitmain pumping out asics, like what if bitmain pumped out too many to the wrong party and that party wanted to do something to Bitcoin? I think at this point we're passed out. Millions of Bitcoin mining machines out there. But this is definitely something that I'm curious to watch happen because a bunch of cheap machines flooding the market definitely changes economics for Bitcoin E 6. Yeah, I mean, just on the historic story of bitmain and sort of Bitcoin or concerns right there is the whole asic boost asic cover boost right drama and with jihan Wu and bitman was also running a lot of mining pools. Thankfully, Bitcoin made it through all of that, right? And it seemed like it was more of a badge of strength that it sort of made it through potential risks at the time. But I think I have seen what you sort of alluded to will of a critique of different bitcoiners talk about Ethereum when they were proof of work, saying that there's a lot of sideline GPUs in the world that could potentially come in and try to pose a 51% attack. And the more and more there are sideline asics, I guess that risk could sort of surface in some people's eyes. I don't really see it as a security risk, truthfully.
HASHR8
"bitmain" Discussed on HASHR8
"So I'm hoping that these stories end pretty soon here because they're definitely like an indicator of the depths of the bear market and hopefully we're getting past that stage, but might just be the beginning, especially this compute Northland, it was like that big capitulation. Hopefully there's not many more. Okay, let's turn to the next conversation. Can you talk about bit main discounting asic prices, which is big news along with difficulty going up all time high over 32 trillion in hash price. Also I'm low, which is like 7 cents, 8 cents. Yeah, I think 7 and a half cents. I mean, sort of ties into the first story, right? Minor revenues down. That being said, never been as many hashes, going to the Bitcoin network, right? So I mean, the question there, I guess, is why. And it seems to me that miners still have positive operating margins, so they're just going to keep going. If they're not sort of wholly profitable, maybe we've seen several debt restructurings, maybe they're can't service all of their interest payments and depreciation expenses on the books are hurting them, but they're still getting paid and have profitable operating margins. It makes sense to keep going. But yeah, I mean, the most chain protection that we've ever had. Bullish generally. I love that. That's happening here. It made discounts also huge news. So this is according to a coin desk article. Bitcoin mining rigs are down 70% during this bear market. But bit main via a tweet sent on Tuesday earlier this week said that ant minor S 19 pro one incher Tara hash models are being dropped to $19 per tear hash, which is about 30% below the index maintained by Luxor. So that's a pretty steep discount on top of already a discounted secondary market. It's interesting to see them push. There's a nice money quote here at the end. From Matt Schultz of clean spark estimating that there are between a quarter million and a half million new mining rigs sitting in boxes across the United States, which is a huge amount of machinery, and it makes sense why bit made would discount even further in order to get the remaining machines off their shelves. So remember, bitmain has allocations from foundries, bitmain has these machines already. They can undercut anyone on the market at any point. And right now, I think that's we're going to see. We're going to have these secondary markets which are more liquid, which is a nice component of going to a bear market, because people will buy, we'll have a price for, and people will be able to purchase things. But it's bad because bitmain can also just flush out their inventory because they can, because they've already made all their money off all their machines prior. Yeah, to me, this is bit man waving their hands and saying, don't look to the secondary markets, like I know you can get an S 19 over there, but you could come get an S 19 over here too, and you can get it for cheaper. I mean, last year around the same time machines were at 70, $80 per Terra hash. Now they're coming in, bitmain saying their cell phone $19 per Terra hash. Huge cuts, right? And I mean, if a miner is out there thinking, they might want to take advantage of a bankruptcy proceeding. I know Celsius had a lot of mining operations as well. More machines than I had figured until the filings actually came out. They can decide, do they want to try to go through and get those distressed assets, right?
HASHR8
"bitmain" Discussed on HASHR8
"So it's a little painful that they decide to make that transition on basically like the finishing lap or the finish line of the project they're at. There's some really interesting quotes in here, some people within the staking community within the Ethereum community and some of these people even former miners were let go or were put in tough spots and decided to resign. Really interesting story because again, steak fish is placed in the ecosystem and larger F two pool as well. And then seeing, what are the repercussions for a bear market? You think someone might be safe, you think a pool like F two pool or steak fish might be safe, but then bear market comes and you have to readjust strategies. Yeah, more layoffs in the bear market, right? We've seen like coinbase sort of kick this off earlier on. Evidence of troubled market. I think some of the sort of specific things to this story that's a bit interesting. Only non tech positions were laid off here, something that they put out and is in this coin desk article here. So it seems like they're making sort of specific intentional ways to lean up their company and have a tech focus. But as you said before, this layoff seems very cutthroat. A lot of the employees, it doesn't seem to settle well with one said that the layoffs implemented a horrible way. Another said that there was sort of a team call where some of the people on the call didn't know that they were in fact fired and then of course was left dumbstruck is the exact words there. So tough for the employees of stake steak fish, I know there's some high level employees also laid off over there. Hope the best for all of them. I hope hopefully they find a new home in the crypto space. Yeah, this is definitely tough. And I don't think it was handled well, especially on the day of the merge. You let people go and they've been building towards this for quite a while. So that's tough to see.
HASHR8
"bitmain" Discussed on HASHR8
"Welcome back to the mining pod. This week we're joined again by Matt Kimmel of coin chairs to talk about this week's news. We're talking about compute north filing for chapter 11 bankruptcy, steak fish slashing 25% of its workforce in bitmain, lowering asic crisis by 30%. Matt, how's it going? How are you doing today? Excellent. Excellent. We got a lot of big news. We recorded one already, but we're going to talk again and rerecord this episode because huge news came out yesterday about compute north. Filing chapter 11 bankruptcy before we dive into a disclosure compass mining, which owns the show, does work with compute north. Few deployments with them. So you will address that as we need to during the show, but just disclosure up front. This is big news because compute north is one of the largest hosting firms within the United States, and they host for a plethora of companies, including marathon digital, which is probably the most well-known Bitcoin mining company out there besides maybe riot. I think a lot of people have exposure to them in their four-o-one-ks if they want to buy Bitcoin miners. Bitcoin money equities. So this is pretty big news for the entire space. And I think it fulfills a lot of predictions that a lot of people had about someone going belly up during the bear market. Kick it over to you. We have a few other stories to talk about today. But yeah, this is definitely the biggest one to start out with. It's major. This is like, it's an exciting week to do a pod because there's a lot of great news to talk about. But it's kind of bad news. I mean, it's bad news, but it's just exciting that we have. Well, I mean, we're following the merge. We had a great week last week too, but this is the magnitude of this is big, right? We've been talking about a potential minor going down for a while because of adverse market conditions, but compute north is like a shark in the water. They're massive. We just didn't know that much about them, you know, their finances, because they're private, right?
HASHR8
"bitmain" Discussed on HASHR8
"There's a lot of people bought into this, hold my Bitcoin long, lonely thesis. And now they're getting wrecked. I want to turn this last subject really quick though, unless you have anything else to add there. I was going to say, maybe we should talk about whether the sort of shakeout phase of the mining cycle is over here. I know, but a lot of people are calling for it to be over because I guess there's some metric where you look at the days since there's been this, the start of the downward trend in both hash rate and price. And we're at that Mark, but I'm with you. It's like machines are still being delivered. We just had a difficulty increase because I think a lot of the sort of healthy balance sheet miners, perhaps, or. I should reframe that. I should say miners that are still receiving machines that have low electricity costs, right? That have sort of healthy operational profit margins. Those miners are still plugging in machines. And so we're still seeing hashrate come online, even though when price dropped, there was a quick reaction and a lot of hash rate came offline from those sort of speculative miners that were in the big city and have like 15 cents per kilowatt hour and just plugged in their apartments and they are gone, but all these machines are still being delivered because they order from bit main 6 months ago are still coming in and I mean this is also part of the reason why there's cash flow issues because they're still having to make payments on these things. You're going to interest payments, which I guess leads right into this story. Yeah, wow. Bravo on the segue. There we go. Class actor. Can you tell me about this? Alpha are working together on a lending product. This was announced at money disrupt in Miami at the end of July, it's a bit of an older story, but at the same time, I think we just got new information about the interest rates that they're offering around the high single digits, which is really nice for Bitcoin mining. Typically, we see high teens for any sort of acyclic lending. Yeah, I mean, the headline story here and maybe that's a poke at coin desk. Is that 6.6, I think, interest rate is what they said on a low bar, which is around half of industry standard. So that's wild. If you're a new minor looking for financing, and financing is really tight right now. I think the reason that this is possible is because bitmain has sort of offered some proprietary data to this ant alpha financing firm. But I mean, new competition in the lending space is just generally interesting, right? There's not that many players that are doing sort of sophisticated lending practices of minors, and we know about galaxy. We know about an I dig, they're sort of on a lot of the credit or lists of these public listed miners, but to have a new financer that is sort of offering very low relatively low interest rates. It's going to be interesting to watch. I mean, that could be a different for a minor that has sort of a little bit higher of electricity costs if they're paying less interest expense each time around. So at least something to track for sure. Yeah. No, it's definitely something to watch.
HASHR8
"bitmain" Discussed on HASHR8
"So it would be interesting to see how deep Intel can carve out a little space there. I know they have deals with I believe grid as well as Argo for this for this first round of basics. And they are highly efficient machines. So up there with the XP, I think it's like 21 and a half joules per Terra hash, if my memory recalls correctly, the XP, but to your point, you get a lot less hashes in general while being highly efficient. So we'll see how the Myers view that sort of what I've been told is there's different perceptions of what you want, whether it's in a bull market or bear market, depending on where prices and difficulty you're at. Side note, marathon is moving out of their hardened facility in Montana. I think partially
HASHR8
"bitmain" Discussed on HASHR8
"Look on your table desk or every listening right now, there's probably plastic, there's probably rubber somewhere. Exactly. But it takes like deeper education. It's not something trivial or surface level that you can just understand by reading an article. And I think that's part of the difficulty here. To really understand the symbiotic and sort of beauty relationship that is Bitcoin mining and excess flare gas. You have to understand what is actually happening on an oil well. And that is just different, right? And that's where it's like, we need to push education. We need to push education. But not everyone's going to have the time to go, you know, research everything. So I think it's just we have to put it on ourselves to talk to lobbyists and vote for educated people, et cetera, et cetera. That actually understand this stuff. And hopefully Bitcoin miners will be welcome in a certain amount of states where it never really becomes a problem. So just a follow-up question for you. My mind went immediately to the public perception of this just as a media person myself. The Bitcoin mining industry has put a tremendous amount of effort into education over the last two years. So many content creators were hired by Bitcoin miners. A lot of the little prop shops for education were opened up, conferences are a huge thing. There's just a lot of money in Bitcoin mining or there was two years so much right now. And a lot of money went into education and marketing of this energy intensive part in this connection with the fossil fuels industry. There's definitely public image war. And I was frankly pleasantly surprised by this vice piece. I'm sure there's going to be a lot of people out there who blast it a little bit and say this was not fair. There's some points in it that are wrong.
HASHR8
"bitmain" Discussed on HASHR8
"Natural gas oil field and what we have out here is a generator on your left and on the right, one of our manufactured in-house custom data centers. And so we're taking natural gas and converting it into Bitcoin. Let's jump into this video, talk about it a bit. Yeah, I mean, first things first, right? Oil field miners are actively reducing net greenhouse emissions, right? This is something that it's been talked about. It's been explained, but in the general environmentalist conversation, I think it could still be more of a focal point. CO2 that would be in the atmosphere is actively being reduced by minors. That is a fact. And I think it will become more and more prevalent. It's one of the more symbiotic business relationships that I think is out there just in general, not just in the Bitcoin space, right? You can diversify your revenue stream sort of as an energy producer, and then as a minor, you get this energy source that's unrivaled. It's away from the grid. And you could turn it into hashes, and you could sell it to the Bitcoin network. It's a beautiful thing. And I mean, I look forward to becoming more prevalent in the future, especially in Texas, my home state. Yeah, so I agree with you. You're not going to get any argument on that front for me. Of course, it's a mining podcast. So if you'd be hard pressed to find someone who's going to disagree with you who's going to come on this show, I do think there's a conversation that needs to be had though. It's other people. Are they buying this and to what degree they're buying us into what degree does it matter if they are buying this? And I think this video does a good job of sort of balancing it. So we have a journalist goes in there. She doesn't seem like the oil and gas type at all kind of fresh boots on the ground. I'm sure bat and Brent had some fun Tucker to barbecue or something like that. They talked about the whole method of being a wildcat or drilling this oil well.
HASHR8
"bitmain" Discussed on HASHR8
"They're just trying to get as many hashes out as possible. But now, and then in the bear market, we're seeing some cash flow problems. We're seeing minor margins get really thin. And so I'm not surprised to see some disputes going on here. People trying to squeeze out any dollar they can. Sort of out of the blue story for me though, I didn't necessarily know about GMO, but they are a long time public minor. It's been out there since 2017. Interesting story to see. Cool to see how it turns out. Not a lot of precedent and legal disputes in the mining industry, so. Yeah, I actually want to do a whole article of thread about these sort of topics. But I think I need a little bit more data before doing that, probably a whole lot of time to do it correctly, since it is legal stuff. But I do think there is a lot of contractual disputes that are going to become sort of case law for Bitcoin mining in the future. Obviously, every heavy industry has a sort of stuff and anything with cash flows is going to have us through stuff. So I'm sure there's other things that lawyers are going to pull on.
HASHR8
"bitmain" Discussed on HASHR8
"Welcome back to the compass podcast and the show we're joined by Matthew Kimmel, a researcher at point chairs focused on Bitcoin and Bitcoin mining. We're doing a tour of the headlines talking about riot and GMO Internet lawsuit. Also talking about Argo blockchains delayed procurement of Intel chips and finishing up with discussion on ant pool and bitmain's new low interest rate basic loan program. Matt, welcome to the compass podcast. This is take three, I think, for us to reach separate recordings that have gone awry for technical and other reasons. I think last time we just had the worst energy possible, so we decided that it publish it. But I am excited today to have you on the podcast. You've been getting that IV bag in you getting some energy, and some energy drinks, but any amount of coffee to get going. So we should be doing pretty well today. Yeah. I got a yerba mate guy, so. I got a fresh tea in me. Well, let's do a quick intro on you. We'll keep it brief. Just about coin sharers and your position there. And then we'll jump right into some mining news. For the audience, we're going to start doing here pretty shortly is mining news recaps on Saturdays. So be like 20, 30 minutes, catch you up on all things mining related news. We'll even slip in some other stuff relates to the technicalities of block space production. Or anything that Matt is working on over at coin sharers since he produces a lot of great research. So buckle in for that, but Matt handed off to you. Yeah, research analyst at coin shares keep brief coin sharers as a financial institution. And Europe put an exchange traded products. We do have a capital markets team. We have a venture arm and I do research there. That's great. I love it. Mostly Bitcoin and a lot of mine and stuff.
What Bitcoin Did
"bitmain" Discussed on What Bitcoin Did
"Bitmain is the dominant player. And then micro BT would be second. So it's essentially a duopoly. And yeah, but even that, so a bit mean uses TSMC in micro BT use a Samsung. So it comes down to space at the foundry. So TSMC has more capacity. And I was shocked last year when TSMC came out and said they had the 5 nanometer node coming. And bitmain was actually one of a handful of clients. I got space on that node. Now it's probably really small of space compared to like Apple, but it still is pretty cool for Bitcoin mining. Now in the opposite and micro BT uses Samsung, which creates its own products. So Samsung is always going to create their products before they give space to an external client. So they have a little bit less market share. I'd say then bit mean. Is there a supply issue now with asics? It's hard to say. So there's a ton of volume expected in 2022. But the reality of what will actually ship is hard to say. So we study and really look at all the public mining companies because that allows us to have insight into the future network cash rate. And according to public company announcements, we're expecting 414 pet hashes to come online over the next year. What does that mean? It's massive. It's like massive amounts of money and capital and asics being. Exactly. 414 414 exact 141 exhaust yeah. 41. How many asics is that? It's a lot of E 6. What does that dump the unit quantity? It's hard. The doubling the capacity? It's double. Essentially double current network. There's going to have your profitability unless we just. Okay. That doesn't include any and there's some massive private companies like massive private companies. In fact, the largest miners are private. Cool. Scientific? One of them? Core is coming to market through a public back. They're included in the one 41. Okay. So who are the private ones? Do we know? Can we say it? Is it a secret? I don't know. Atlas is a huge. Okay. Public minor. I mean, private minor, they were based out of China and moving over so they've announced deals with core and compute north. Both 200 megawatt facilities in total that we know that is coming online in the U.S.. But if these will come online, a lot of the older machines that still hashing right now, the S 9s will start to go offline, right? Yeah. I think so. I think because they won't be as profitable unless they're cost of electricity super low. Yeah. That's a massive increase in supply. Really Michael say that by a lot more Bitcoin. Luckily he bought more this morning. That's not enough. He's consistent. The interesting part though is when will they get delivered? So that's the inconsistency that we just don't know. And we're not sure exact one of these have foundry allocation to asics period. There's estimates but we don't know exactly how much they're really getting. And we don't know if they know yet. That's like the Holy Grail. Yeah. Do you think it's down to their own operations being a bit sketchy or is it just the chip shortage at the moment? And are you guys having to consider into your plans like in your risk analysis potential of China maybe dropping a few little bombs on Taiwan? Do you have to think about this?.
Unconfirmed: Insights and Analysis From the Top Minds in Crypto
Chinese cryptomining giant Bitmain’s civil war breaks into open
"Last week and actually for this whole past week. There's been a fair bit of drama. At bitcoin. Mining giant. Bit mean what happened well. So long story sure it was a it was a coup so From October twenty seven to thirty years there was a video surveillance camera. Expo in engine and my colleague John He was the he's the CO founder will be man and he was was ad expo. It was their launch some kind of a chip from Yemen for video surveillance cameras and then one day after that Jihan on the after that there was a change of the business registration data of Of Beijing Technology. Okay so in that restriction change microbes no longer the executive director will be man. He's he was also so taken over by Jehan as a legal representative an hour that Japan will who is also the other co whole funder of demand so a couple of hours after that change Japan will send an email to all staff to be man. I'm employee's employees saying Michael giants basically dismissed off. All his roles have been men and any employees. You should not engage with anymore and it should not take any directions for him so basically shut him down and that was basically it an hour after the email. Hey Japan will submit Someone all this stuff to your own hands meeting meeting to tell everybody what happened. So that was what happened on last Tuesday and on today one week off to Dad Meiklejohn finally spoke on his. What we share way ball and said is going to take some legal action to return to the office Irene? So let's go a little bit into that stuff meeting. What was the backstory that Jihad gave to explain or justify his actions while so that was kind of like a shock to many employees? Because I guess not. Many people have seen a word like expecting that so he took that opportunity to explain to everybody what happened in why he had to come back. And why he they had to take such actions and he basically use the one hour meeting to explain what happened from December twenty eight eighteen when when when the kind of conflict has started between him and my crew John Yet that was that was pretty much all of the one hour meeting. And what was that conflict. So the backstory of the December twenty eight eighteen was that at that point. The Big Quin price was like a was a big big price crash and was thinking about layoff so Jihai in a couple of family. Members of the company was were like pushing for the plan to lay off employee's because at that time I think they may have about juicers people initially based on what John said in the meeting was micro. John was AH was against the plan so they had a big struggle on December. Seventeen Jihan says on that day Meikeljohn returned to the office called for a second meeting and on that meeting. He wanted to be the socio. So as of as of December last year Japan and micro were co CEOS in CO chairman of women so he said on that that day micro Office wanted to become the only CEO. He said that is the way to save the company so that that was what happened at that time. So there was a conflict of Should have a layoff but then they come to agreement that there should be lay off and they also come to agreement that they both will step down from cozy ethos and they will ask the second other person to on the new. CEO role and they will step down from the day to day management. So that was the conflict back then the as time moves on like bay. Men official announces announced that news in March of their stepping down to the public to Hong Kong. IPO failed But what John said was MICR didn't really stepped out from the management role. He's still kind of micromanaging the details and wanted to spend more efforts on AI. Stuff instead of the crypto mining equipment. So that kind of that kind of diversed I Big Business a little bit. So that kind of started the the conflict started to escalate one. Other thing is I think Jihan also said to the employees bit mean almost didn't survive that period and actually what he said is the only only reason it was able to pull through was at the price of Bitcoin had increased later. I'm assuming he's talking about kind of you know through the Spring and And even a bit. The summer we saw the price of acquaint increase but how has bitten means struggled this year in twenty nineteen still. I sing in twenty nineteen. I mean he said himself in the meeting. Based on the transcript. I got that The market share big demands mining equipment has declined. I mean I think they're still the number. One has the most dominant market share in terms of making mining mining machines but their market dominance has declined and the same time there Wi- will competitors like non. And what's minors Microbe eighteen silicon. They have been able to seize on the opportunity of the price of press jump since earlier this year. So I mean there. I think they are doing during fine. But in terms of market share the mining equipment business has decline and also the mining pool business is also Declining if you look at the hash rate. real-time Hasher Distribution Bution Pity comment pull used to dominate the top two ranks but this year it was taken by pulling and after Paul. Yeah and one other thing that is just so curious is that at least last year Macri was chairman and and he owned thirty six percent of bit main holdings while Jihad actually owned only twenty percent. So how jeon able to oust macree. If Macri was the larger chair holder and I mean it was pretty dramatic. The way he did it I think you know not allowing him back in the building after this trip and having his email access over to cut off it was like this was a huge surprise to macri. I guess we could say yeah. That's also one question I I haven't been able to figure out to be honest if you look at the IPO prospect the file till the Hong Kong Stock Exchange last year as September last year. They they were coached. CEO's co-chairman Mike crease. You're right micro has about six thirty. Six percent of Commit Holdings John has about twenty percent and go Shin on the two two your three other family members they have four to six percent respectively and another eighteen percent was hold was. Hello Oh by a trust for the employment stock option incentive that was the all the ordinary shares that counts for bowel like nearly ninety percent. I think and all the others like nearly ten percent were held by external uh shareholders. Now there were basically preferred. AM prefer b-shares Through the equity raising commended in two thousand seventeen twenty eighteen so technically I don't know how he managed to do it but that's just give you the breakdown of their equity structure based on the IPO. Filing they last year I don't know if they have changed it in any way but uh what John said in the in the in the in the meeting was he stepped Opposed as Costa Ios. He also stepped on he. He also let Microsoft take the chairman row so supposedly he was not a chairman and now he is a chairman. So I don't I don't technically the holiday did it was somehow did yeah. I saw dovey one tweeting that she she doesn't think a- and Samson Maui. I think tweeted the same thing that it doesn't appear that the shareholders were consulted the other shareholders. So yes so. Maybe we'll find this out leader