Mining Difficulty reaches All-Time-High

The mining difficulty has consistently risen as the global hash rate expanded with the addition of more mining machines, ending October at 95.6727 terahashes (T). This represents a 4.2% increase for the month, which has significant implications for production. As difficulty increases, the efficiency of Bitcoin mining diminishes, leading to a reduction in the amount of Bitcoin mined per unit of hash rate.

Nevertheless, as miners enter the cooler months in North America, the need for operational curtailment decreases. Many miners have successfully scaled up their operational hash rates, resulting in higher daily production compared to September. Notable increases in daily production include CleanSpark (CLSK) at 28.6%, DMG Blockchain (DMGI) at 43.1%, IREN (IREN) at 22.4%, and Riot Platforms at 18.6%.

Bitcoin Price reach all-time-high

The price of Bitcoin surged to an all-time high of $93,000 following Donald Trump’s re-election, which reignited optimism in the cryptocurrency market. Trump’s victory appears to have bolstered investor confidence, driven by his promise to strengthen U.S. crypto policies and promote blockchain innovation. His administration’s commitment to making the U.S. a global leader in crypto further fueled buying interest. Analysts predict continued upward momentum for Bitcoin, spurred by the anticipation of a more crypto-friendly regulatory environment and increasing institutional demand.

Galaxy Digital (GLXY) provide notice to vacate Helios

Galaxy Digital (GLXY) informed Argo Blockchain (ARBK) that it will not renew the Helios hosting contract beyond December 28, 2024, as it transitions to high-performance computing (HPC) hosting. Galaxy has signed a non-binding term sheet with a U.S. hyperscaler for HPC colocation at the Helios facility in Texas, repurposing its 800 MW power capacity. Argo is reviewing options for its 23,000 (2.3 EH/s) S19j Pro miners.

Notably, Argo originally built and launched the Helios facility in May 2022 but sold it to Galaxy for $65 million just seven months later to avert insolvency.

Core Scientific reaches 500MW 

On October 22, 2024, Core Scientific (CORZ) announced that CoreWeave, an Artificial Intelligence (AI) hyperscaler, has exercised its option for additional infrastructure under a 200 MW hosting contract for HPC. This modification will add 120 MW of critical IT load to host CoreWeave's NVIDIA GPUs, starting in 2025 with operations by late 2026. This move will increase Core Scientific’s projected revenue from CoreWeave contracts to $8.7 billion over 12 years.  Capital investments for infrastructure will be funded by CoreWeave and credited against hosting fees. The total capacity for HPC infrastructure will reach approximately 500 MW by 2026.  The project is set to achieve a net profit of approximately $6.2 Billion over the initial contract period.

CEO Adam Sullivan highlighted the expansion as pivotal to positioning Core Scientific as a top U.S. data center operator, supporting demand for next-gen compute workloads.  He recently expressed, "From where we sit right now, we have a lot of confidence in the capital structure of the balance sheet we have today, to be able to execute on our game plan and be a $30 Billion company." 

Bitdeer Technologies Group (BTDR)

On October 31, 2024, Bitdeer officially unveiled the launch of its self-developed Bitcoin mining machine, the SEALMINER A2 series. This second-generation product features the advanced SEAL02 chip, delivering superior power efficiency, enhanced technology, and stability compared to its predecessor, the A1. 

The A2 series includes two models: the air-cooled SEALMINER A2 and the hydro-cooled SEALMINER A2 Hydro, both designed for optimal performance in various mining environments. The SEALMINER A2 offers a power efficiency ratio of 16.5 J/TH with a hashrate of 226 TH/s, while the A2 Hydro provides a hashrate of up to 446 TH/s.  The company also successfully taped-out their SEAL03 chip, in October, with an expected chip efficiency of 10 J/TH, and anticipate initial sample wafers in Q2 2025.

During October Bitdeer mined 174 Bitcoin, at a daily rate of 5.6, an increase of 2.7% on the rate achieved in September. This increase was helped by the increase of operational hash rate to 8.7 EH/s. Self-mining allows the Company to mine cryptocurrency for its own account, enabling it to capture the full appreciation potential of its assets. In contrast, the Cloud Hash Rate service offers subscription plans, sharing mining income with customers. However, If a customer fails to make monthly electricity payments, their contracted hash rate may transition to self-mining.

Infrastructure updates include progress at various sites. In Rockdale, Texas, a 100 MW hydro-cooling conversion is underway, with phased delivery expected between January and March 2025 due to supply chain delays. In Tydal, Norway, a 175 MW expansion is on track for energization by Q4 2024, with significant milestones achieved. Progress continues on a 221 MW site in Massillon, Ohio, with energization expected by mid-to-late 2025. Finally, in Jigmeling, Bhutan, a 500 MW site is advancing, with major construction milestones anticipated by early 2025.

Bit Digital (BTBT) 

During the month of October Bit Digital produced 52.2 Bitcoin, at a daily rate of 1.7, a 1.9% reduction in the rate achieved during the previous month, with an active hash rate of 2.43 EH/s.  The company’s treasury holdings now include 781.2 Bitcoin and 27,503.4 Ethereum, valued at approximately $54.8 million and $69.2 million, respectively. Additionally, they also reported cash and cash equivalents of $79.8 million, taking their total liquidity to approximately $203.9 million , as ofOctober 31, 2024.

Bit Digital also operated 256 servers under its initial Bit Digital AI contract, generating approximately $4.3 million in revenue for the month. The company also staked about 21,568 Ethereum, earning a blended annual percentage yield (APY) of 3.4% and approximately 62.2 Ethereum in staking rewards for the month.

On November 4th, Bit Digital finalized a Master Service Agreement with Boosteroid Inc., a global cloud gaming provider. Following a binding term sheet signed on August 19, 2024, Bit Digital placed an initial purchase order for 300 GPUs, expected to generate approximately $4.6 million in revenue over five years.  Delivery is anticipated by the end of November 2024 and the agreement allows Boosteroid to expand its order up to 50,000 servers, potentially yielding $700 million for Bit Digital. CEO Sam Tabar expressed enthusiasm for the partnership and the growth opportunities it presents.

Bitfarms (BITF)

Bitfarms announced a second hosting agreement with Stronghold Digital Mining, Inc. (SDIG) to deploy 10,000 miners at Stronghold's Scrubgrass site, complementing a prior agreement for 10,000 miners at another Pennsylvania location. These agreements will support approximately 4 EH/s, with energization planned in multiple phases over the coming months.

CEO Ben Gagnon noted that while the company achieved its year-end efficiency goal of 21 watts per terahash ahead of schedule, it is disappointingly still behind its mid-year target of 12 EH/s due to ongoing miner warranty servicing issues. 

In October, Bitfarms mined 236 Bitcoin, at a daily rate of 7.6 Bitcoin , an increase of 5.2% on the rate achieved in September, despite the rise in Bitcoin difficulty. Gagnon also expressed gratitude for the partnership with Bitmain, which is addressing a significant number of underperforming miners as deliveries are set to increase.

Bitfarms sold 194 Bitcoin mined during the month as part of its regular treasury management, generating total proceeds of $13.0 million, adding 42 Bitcoin to its treasury, increasing its total holdings to 1,188 Bitcoin valued at approximately $84.3 million as of October 31, 2024. Additionally, Bitfarms held 802 long-dated Bitcoin call options as part of its Synthetic HODL™ strategy, an increase from 602 options at the end of the prior month.

Core Scientific 

During the month of October Core Scientific mined 369 Bitcoin, at a daily rate of 11.9 Bitcoin , an increase of 3.5% on the rate from the previous month.  As of October 31, 2024, Core Scientific operated approximately 185,000 Bitcoin miners across its data centers, achieving a total hash rate of 21.8 EH/s. Of this, about 169,000 were owned miners, which accounted for 91% of the miners in operation. Additionally, the company hosted around 16,000 customer-owned miners, which represented 9% of the total, earning an estimated 52 Bitcoin, including shared rewards. 

Core Scientific also supported local energy grids by reducing power consumption, delivering 26,748 MW hours. Furthermore, it completed a significant project to enhance its infrastructure by adding 100 MW at its Pecos, Texas, Bitcoin mining data center in October.

DMG Blockchain (DMGI) 

DMG Blockchain Solutions reported strong preliminary Bitcoin mining results for October 2024, marked by significant increases in Bitcoin mined and hashrate. The company produced 34 Bitcoin, at a daily rate of 1.1 Bitcoin per day, an increase of 43.1% on the rate achieved in September, driven by an increase in operational hash rate of 1.53 EH/s, up from 1.1 EH/s the previous month. This growth includes a strategic shift of 0.12 EH/s to a hosting location.

DMG Blockchain is focused on expanding its mining capacity, having purchased six one-megawatt hydro mining containers expected to add 0.4 EH/s to its hashrate upon full deployment in early 2025. This expansion utilizes efficient Direct Liquid Cooling (DLC) hydro technology.

The company strategically managed its Bitcoin holdings, liquidating $3 million to meet regulatory capital requirements and repay a $1 million loan. Notably, DMG Blockchain realized significant gains by deferring the sale of Bitcoin used to secure the loan, capitalizing on its price appreciation.  The company currently has 399 Bitcoin held in treasury with a valuation of $28 million as ofOctober 31, 2024. 

Gryphon Mining (GRYP) 

On November 4, 2024 Gryphon Mining CEO, Steve Gutterman, announced a strategic update to shareholders, detailing recent advancements in leadership, financial restructuring, and growth plans and along with recent appointment, Chairman, Jimmy Vaiopoulos, have solidified the leadership team.  CFO Sim Salzman has also decided to stay in post after briefly considering retirement. 

The company has also recently completed a transformative debt restructuring, with Anchorage Digital, converting $13 million in debt to equity at a premium and extending $5 million in debt at a low interest rate of 4.25%.  Anchorage Digital, now the largest shareholder, has joined the board, enhancing advisory capabilities and has strengthened the financial position allowing Gryphon Mining to secure low-cost power, expand Bitcoin mining, and explore AI hosting. With these initiatives, the company aims to maximize shareholder value and drive significant market growth.

Hive Digital (HIVE)

Hive Digital reported robust unaudited production figures for October 2024, highlighting continued growth and operational efficiency, mining 117 Bitcoin, at a daily rate of 3.8 Bitcoin , an increase of 1.1% on the previous month, attributable to the consistent average mining capacity of 5.3 EH/s and an impressive fleet efficiency of 22.3 J/TH. Notably, the company achieved a peak hashrate of 5.6 EH/s during the month.

The company sold 97 Bitcoin representing 83% of production and added 20 Bitcoin to its treasury, now totalling 2,624 Bitcoin with a value of $184 million as of October 31, 2024.

Hive Digital’s strategic expansion plans include constructing a 100 MW facility in Paraguay, furthering its goal to capture 2% of global Bitcoin mining capacity using sustainable energy sources.  Executive Chairman Frank Holmes emphasized the company's commitment to prudent capital management, continuous technological upgrades, and sustainable growth strategies. He highlighted the Paraguay facility as a key driver of long-term value creation for shareholders. 

HUT 8 (HUT) 

During October, Hut 8 mined 83 Bitcoin at a daily rate of 2.7 Bitcoin , an increase 11.8% on the rate achieved in the previous month. The company sold 79 Bitcoin representing 95% of production and added 4 Bitcoin to its hodl, now totalling an impressive 9,110 Bitcoin with a value of $640 million as ofOctober 31, 2024.

Hut 8 highlighted significant progress on its 205 MW, Vega site. Groundwork is advancing rapidly, keeping the site on schedule for energization in Q2 2025. This site will house 15 EH/s of hosting deployment of BITMAIN's U3S21EXPH ASIC miners, generating an anticipated $135 million in annualized revenue.

Concurrently, Hut 8 is preparing its existing sites for a near-term ASIC fleet upgrade and launched an immersion cooling pilot at its Salt Creek location. The company remains focused on innovation, actively pursuing opportunities in large-scale AI data center development across its portfolio of sites.

On November 6th, 2024, Hut 8 announced it is upgrading its ASIC fleet with a strategic purchase of 31,145 BITMAIN Antminer S21+ miners, boosting its self-mining hashrate by 66% to approximately 9.3 EH/s. This upgrade, anticipated for full deployment in Q1 2025, focuses on optimizing efficiency and self-mining economics. Combined with the planned deployment of hosted U3S21EXPH miners at its Vega site, Hut 8 is positioned to achieve a self-mining hashrate of 24 EH/s with enhanced efficiency by Q2 2025, with an average fleet efficiency of 15.7 J/THshould it decide to take up the option to purchase from Bitmain.

IREN (IREN) 

IREN produced 439 Bitcoin in October, at a daily rate of 14.2 Bitcoin, an increase of 22.4% on the rate achieved in September.  This was helped by the company increasing their operational hash rate from 16.5 EH/s to 19.9 EH/s (+21%) and with their target hash rate due to reach 31 EH/s by the end of the year, production will only continue to significantly grow faster.  The company has also set an ambitious target of 50 EH/s for 2025 and after the growth in 2024, this should be well within their capability.

The company is currently operating the most efficient Bitcoin mining fleet in North America achieving 16 j/TH and helping the company achieve one of the lowest direct costs of mining a Bitcoin, which reached a level of $20,824 per Bitcoin providing a gross margin of 68%. 

IREN AI Cloud Services demonstrated substantial growth and capacity in October. The company is currently operating 816 NVIDIA H100 GPUs, while a further 1,080 NVIDIA H200 GPUs are currently undergoing commissioning. Remarkably, this combined total of 1,896 H100 and H200 GPUs represents less than 0.5% of IREN's total data center capacity, highlighting the significant scalability potential. This deployment will support an illustrative annualized hardware profit of $32 million. Further expansion is underway, with design and procurement processes in place to accommodate liquid-cooled hardware, including NVIDIA Blackwell GB200 GPUs. 

IREN has also accelerated the development timeline for its 1.4 GW site, advancing the target energization date to April 2026. This schedule is supported by proactive procurement efforts already underway for critical electrical infrastructure, including transformers and circuit breakers for both the bulk and primary substations. Additionally, IREN has secured 800 acres of additional land, bringing the total land secured for the site to over 1,300 acres, further solidifying the project's progress. 

Riot Platforms

During the month of October Riot Platforms mined 505 Bitcoin, at a daily rate of 16.3 Bitcoin , an increase of 18.6% on the rate achieved in the previous month.  This achievement was driven by the deployment of new-generation MicroBT miners at Riot's Corsicana Facility, bringing the company's total deployed hashrate to 29.4 EH/s. It should be noted that the company’s operational mining performance was only bettered by Bitfarms in October, and further recognition that Riot Platforms is starting to get production closer to where it needs to be. 

Riot Platforms is nearing completion of Phase 1 (400 MW) at Corsicana and has commenced the development of Phase 2 (600 MW), with operations expected to begin in the second half of 2025.  The company is well placed to see their production increase as more miners are being energized and less requirement for curtailment needed, as weather starts to get cooler. 

The company added 501 Bitcoin to its treasury taking the new total to 10,928 Bitcoin within a valuation of $767 million as ofOctober 31, 2024. 

Soluna Holdings (SLNH)

Soluna Holdings mined 16 Bitcoin during October, at a daily rate of 0.5 Bitcoin , an increase of 3.2% on the rate achieved during September, aided by the increase in operational hash rate to 735 PH/s.

The company provided significant updates on its key projects, particularly Project Dorothy, which includes two segments: 1A and 1B, each with a capacity of 25 MW for Bitcoin hosting and mining. The site has been operating efficiently, benefiting from cooler autumn temperatures and experiencing minimal curtailments. Project Dorothy 2, with a capacity of 48 MW, is progressing well; initial site grading is complete, foundations for 30 MW have been poured, and fabrication work is ongoing. The substation interconnection work is scheduled for completion in November, with a tie-in anticipated in early January.

In addition to the Dorothy projects, Soluna is advancing Project Grace (2 MW) focused on AI cloud hosting, with the design of the Helix data center nearing completion. Project Ada (1 MW) is actively conducting ten proof-of-concept projects and has added a specialized AI Solutions Architect to its team. A waitlist for the first phase includes 128 nodes and 1,024 GPUs, while two new software partners are being evaluated to enhance capabilities.

Project Sophie, which combines Bitcoin hosting and AI, has completed a significant upgrade and expansion, achieving steady operations at new peak levels. Meanwhile, Project Kati (166 MW) is on track, with the initial scope of substation interconnection work expected to finish in December, and meter designs submitted to ERCOT and AEP. 

TeraWulf (WULF)

TeraWulf has announced plans to enhance its high-performance computing (HPC) hosting capacity by 72.5 MW, targeting completion by the end of Q2 2025. In October the company mined 150 Bitcoin at an average of 2.8 Bitcoin per day, a reduction of 17.5% in the rate achieved in September, due to the cessation of operations at the Nautilus site, post agreed sale. 

The company achieved a power cost of $36,789 per Bitcoin  mined, which translates to about $0.048/kWh, excluding additional revenue from demand response services. TeraWulf is actively upgrading its mining hardware at the Lake Mariner facility, replacing older S19 Pro/J-Pro and M30s+ models with approximately 12,200 new S19 XP miners. This transition aims to enhance efficiency and will continue alongside a warranty recovery plan for 1.5 EH of mining equipment.

Management highlights the establishment of a dedicated Business Development and Performance Optimization team to integrate advanced IT solutions for improved operational efficiency. With ongoing construction of new facilities, including a 20 MW HPC hosting site and preparations for a 50 MW facility, TeraWulf is well-positioned to meet the rising demand for HPC solutions while sustaining its growth in Bitcoin mining.

Monthly and year-to-date (YTD) metrics

In October Bitfarms, once again, led the industry in productivity per hash rate, achieving 22.3 Bitcoin per EH/s, closely followed by Riot Platforms, DMG Blockchain, CleanSpark and Hive Digital.  From a Year-to-date (YTD) average performance, Bitfarms continues to remain top North American miner in terms of production per EH/s, demonstrating consistent performance. However, Hive Digital, IREN, TeraWulf and DMG Blockchain are narrowing the gap, with less than 1% separating the top five miners.

In terms of utilization, DMG Blockchain reported the highest rate at 97%, followed by CleanSpark (95%), IREN (95%), Hive Digital (95%) and Bitdeer (94%).

In terms of Bitcoin mined per MW, used for assessing operational efficiency and resource utilization, IREN achieved the highest Bitcoin production per MW with 1.22 Bitcoin, followed by CleanSpark at 1.13, Bit Digital 1.08, and Hive Digital at 0.92.