STOCKS TELEGRAPH

Tag: Bitcoin Mining

  • SOS Stock Dips Following Announcement of Joint Venture with Niagara Development

    SOS Stock Dips Following Announcement of Joint Venture with Niagara Development

    SOS Limited (SOS) stock prices were down by 7.30% shortly after market trading commenced on June 21st, 2021, bringing the price per share up to USD$3.36 early on in the trading day.

    Joint Venture with Niagara Development

    June 21st, 2021 saw the company announce that it had entered into a joint venture agreement with Niagara Development LLC that will be based in Niagara, Wisconsin. The joint venture FD LLC is expected to conduct crypto-currency mining operations and facilitate the construction of an international standardized Digital Super Computing Custody Operation Center.

    Specifics of the Agreement

    As per the agreement, Niagara Development will be tasked with the responsibility for the provision of 150MW of electricity and the construction of the Operation Center. The electricity to be generated will include energy generated from renewable sources. Management, operation, and financing of the joint venture is to be carried out by SOS, which is committed to its block-chain strategy and strives to become a leader of sustainability.

    Entry into American Market

    In light of the increasingly pessimistic outlook of the laws and regulations pertaining to blockchain operations in China, the company has initiated a transition of its bitcoin mining operation to the US. Most of the company’s Chinese operations are fully operational and remain unaffected as of yet. This primarily includes SOS’s insurance business, call centers, and Ethereum mining business. As the company continues to increase its development of blockchain solutions for a myriad of industries, SOS made the decision to acquire a sustainable power supply. This move comes in preparation for the expansion of the company’s blockchain operations into North America, which it has high hopes for in light of the joint venture.

    Prolific Track Record

    To date, SOS has registered a total of almost 100 software copyrights, as well as 3 patents. The company has been granted a national high-tech enterprise certification as recognition of its caliber. SOS has also been awarded the title of Big Data Star Enterprise by the Gui’an New District Government, a further indication of the company’s ability to stay at the forefront of digital technology innovation.

    Future Outlook for SOS

    Armed with its recent expansive acquisition and a bright outlook for its transition into the North American market, SOS is poised to capitalize on upcoming opportunities afforded to it. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Bit Digital, Inc. (BTBT) Stock Prices Surge Following Announcement of Strategic Partnership with Digihost Amid Meme Stock Craze

    Bit Digital, Inc. (BTBT) stock prices skyrocketed by a massive 26.16% shortly after market trading commenced on June 14th 2021, bringing the price up to USD$9.77 early on in the trading day.

    Meme Stock Phenomenon

    With the recent proliferation of the meme stock craze taking over stock markets, akin to the GME and AMC episodes from earlier in the year, BTBT seems to be the latest target of the meme stock phenomenon. In the absence of any significant news or developments, the recent surge in PROG stock prices is likely to be attributable to the coordinated pump by investors who are users of the popular social media platform, Reddit.

    Agreement with Digihost

    The company recently announced entering into a strategic co-mining agreement with Digihost Technology Inc (DGHI). As per the agreement, DGHI will provide certain premises to BTBT to facilitate the operation and storage of a 20 MW Bitcoin mining system that will be delivered by BTBT. DGHI will also facilitate the provision of services to maintain the premises for a term of two years. The collaborative efforts of both companies are forecasted to result in an increased generation of hashrate in the amount of almost 400 PH between the two.

    Terms of Agreement

    As per the agreement, DGHI will be responsible or the provision of power for the operation of the Miners, as well as for management services that will be essential in maintaining the planned 95% uptime on the Miners. In return, DGHI will be paid a very competitive rate for power. The two companies will also participate in a profit sharing arrangement based on a fixed distribution formula. The delivery and installation of the Miners is expected for the fourth quarter of the fiscal year 2021.

    Scope of Agreement

    The company expects an increase in hashrate of 400 PH between them, based on current Bitcoin metrics, which will signal a massive collaborative success on the part of the joint venture. BTBT continues to expand its business strategy through the expansion of the company’s mining infrastructure, vertical integration of low-cost and green sources of energy, strategic partnerships within the blockchain sector, and geographic diversification across North America. These steps serve to strategically operating the business in regions where the carbon footprint being generated is minimal or non-existent.

    Future Outlook for BTBT

    Armed with a potentially lucrative strategic partnership, as well as the fortuitous surge in the value of their equity, BTBT is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher in more organic growth over the long-term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Riot Blockchain, Inc. (RIOT) Stock Undergoes Minor Volatility Following May 2021 Production and Operations Updates

    Riot Blockchain, Inc. (RIOT) Stock Undergoes Minor Volatility Following May 2021 Production and Operations Updates

    Riot Blockchain, Inc. (RIOT) stock prices were down by a marginal 1.93% as of the market closing on June 11th, 2021, bringing the price per share down to USD$31.03. Subsequent pre-market fluctuations have seen the stock rise by 6.99%, bringing it up to USD$33.20.

    May 2021 BTC Production Report

    RIOT reported having produced a total of 227 BTC in May 2021, representing a 220% increase over the 71 BTC reported having been produced in May of the prior fiscal year. Year-to-date production numbers through to May of 2021 were reported at 924 BTC, up almost 101% over the company’s pre-halving BTC production during the same period over the course of fiscal 2020, which reported 460 BTC being produced. As of May 31st, 2021, the company reported having a total of almost 2,000 BTC, the entirety of which was produced by the company’s own mining operations.

    Acquisition of Whinstone

    May 26th, 2021 saw the company announce the completion of its acquisition of Whinstone U.S., including their Rockdale facility, which is the largest Bitcoin mining facility in North America. The facility comes in at 300 MW in developed capacity. RIOT announced its intent to facilitate the immediate development of additional capacity at the Whinstone facility, in order to raise the cap to 750 MW. An industry-leading development team of more than 10 employees will spearhead the expansion.

    Bitmain Purchase Order

    May 2021 saw the shipment of 1000 S19 Pro Antminers (110 TH) as part of a purchase order with Bitmain in December 2020. The installation of the miners is expected to be completed in Q2 2021, with RIOT reporting a total of 23,946 Antminer’s in operation. This array of miners uses roughly 76 megawatts of energy, with an estimated hash rate capacity of 2.4 exahash per second.

    Agreement with Mogo Inc

    The company recently announced the completion of purchase transactions with Mogo Inc, which saw Mogo acquire a cumulative entirety of the 3.4 million common shares of CoinSquare Ltd stock held by RIOT. In return, RIOT was granted a total consideration of 3.2 million shares of Mogo’s common stock, in addition to roughly USD$1.8 million in cash. As of this agreement, RIOT no longer owns any equity investment in Coinsquare.

    Future Outlook for RIOT

    Armed with the stellar reports and developments over the month of May 2021, RIOT is poised to continue its trajectory of success over the upcoming few months. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • China & Iran – Opposite stances on Bitcoin mining

    China & Iran – Opposite stances on Bitcoin mining

    Bitcoin mining in the East

    A report from blockchain analytics firm Elliptic has found out that the regulated mining industry in Iran may be piling up as much as $1 billion in revenues. Iran has been under a lot of scrutiny because of its nuclear program. The United States has placed trade embargos on the country effectively crippling its already struggling oil economy.

    The economy of Iran is almost wholly dependent on the export of oil and petroleum products. The sanctions and economic embargo have pushed the country into a recession with staggeringly high levels of unemployment and inflation. However, as the world observes a shift with the rise in cryptocurrencies and blockchain technology, Iran may have found itself a problem to its solution.

    The report revealed that Iran accounts for 4.5% of the total Bitcoin operations which has earned the country a ton of money – all used to tackle the problems caused by the trade embargoes.

    The Elliptic report furthered that a lot of developments in the crypto sphere in Iran had been with the help of Chinese investors. China has had a very strict stance on cryptocurrencies which has led to investors injecting their money into other economies like Iran. The financial committee in China has announced a total crackdown on Bitcoin mining in the country. This is the first time the committee has outrightly spoken against crypto mining. It has added Bitcoin mining as a crucial sector to watch and monitor in order to mitigate financial risks.

    The news from China broke out as Bitcoin, once again, fell over 12%. The king of the cryptocurrencies had started off on brutal market corrections as Tesla CEO denounced the use of Bitcoin as a mode of payment for Tesla’s electric cars.

  • Citigroup Reports Drastic Increase In Bitcoin Power Consumption

    Citigroup Reports Drastic Increase In Bitcoin Power Consumption

    The environmental sustainability of cryptocurrencies has been long debated in the crypto community. The king of cryptocurrencies, Bitcoin, has received the most bashing for its high energy consumption with various reports being published drawing comparisons to show the critical situation that crypto world is.

    A Citigroup report has stated Bitcoin is now consuming 66 times more energy than it did in 2015. The report also warned of increased scrutiny to be faced by corporations and large-scale investors of Bitcoin for the carbon emissions.

    The COVID-19 pandemic has also put a lot of things in perspective and people are considering environment conservation to be more important than ever. The parallel rise of the cryptocurrency market means a rise in the energy consumption by the industry – which had already been debated on at length.

    However, the report also cites the energy consumption to have not increased as much as expected. The price of Bitcoin has increase more than 170 times with the energy consumption increase only being at 66x.

    A Crypto Climate Accord is also in the works as private entities also taking the situation in their own hands to curb the problem. The Accord is replicating the Paris Climate Accord and the partners aim to increase the collaboration in the whole community to move towards sustainable energy.