Sphere 3D Bitcoin production remains flat in July amid US customs problems, crypto winter

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Car­bon-free min­ing com­pa­ny Sphere 3D‘s July 2022 report showed that it man­aged to keep up with its usu­al per­for­mance in July even though the 4,000 new min­ing rigs were held back in the U.S. cus­toms dur­ing the win­ter mar­ket, where min­ing com­pa­nies have been tak­ing sig­nif­i­cant hits.

The com­pa­ny has been expect­ing 4,000 S19J Pro min­ing machines to be deliv­ered and set to work at the begin­ning of August. How­ev­er, they nev­er reached their destinations.

Accord­ing to the report, U.S. cus­toms tem­porar­i­ly con­fis­cat­ed the equip­ment in mid-June, say­ing they were wait­ing for a receipt of doc­u­men­ta­tion from the sup­pli­er. More­over, the report raised a red flag about U.S. cus­toms and said:

“Based on con­ver­sa­tions with indus­try lead­ers, oth­er min­ing com­pa­nies are being chal­lenged with sim­i­lar­ly frus­trat­ing U.S. Cus­toms clear­ance issues.”

Regard­less, Sphere 3D man­aged to increase its Bit­coin hold­ings up to 62.3. The com­pa­ny has been hold­ing on to its 0.41 dai­ly Bit­coin pro­duc­tion vol­ume since June and man­aged to pro­duce 12.78 Bit­coin dur­ing July as well.

Mining companies in the winter market

Cryp­tos­phere is expe­ri­enc­ing its cold­est win­ter. As soon as the win­ter start­ed, a sell-out trend also emerged amongst cryp­to min­ers. At the time, Bit­coin was trad­ed for around $30,000, and the trend sug­gest­ed that min­ers were expect­ing it to fall more.

They were proven right. A month lat­er, Bit­coin fell as low as $22,600, which made all min­ing rigs pro­duced before 2019 to lose prof­itabil­i­ty. The amount these machines mined didn’t com­pen­sate for the elec­tric­i­ty they consumed.

Soon after, major min­ing com­pa­nies showed signs of finan­cial trou­ble because they could not pay their bills. Most were forced to con­tin­ue the sell-out trend to cov­er oper­at­ing costs, while some lost whole facil­i­ties because they couldn’t pay their elec­tric­i­ty bills.

Difference of renewable energy

While the min­ing sphere is tak­ing sig­nif­i­cant hits due to Bitcoin’s ener­gy prices and win­ter rates, Sphere 3D seems intact, pri­mar­i­ly thanks to its renew­able ener­gy sources. The com­pa­ny defines itself as a “net car­bon-neu­tral cryp­tocur­ren­cy min­er.” Based on their month­ly report, they’re oper­at­ing Antmin­er S19 Pro’s, which would be prof­itable by con­sum­ing elec­tric­i­ty as low as $16,411 BTCUSD.

Cryp­to min­ing caus­es less eco­log­i­cal dam­age com­pared to the gold and bank­ing sec­tors. How­ev­er, renew­able min­ing also offers secu­ri­ty in severe win­ter con­di­tions. To pre­vent the min­ing sec­tor from los­ing prof­itabil­i­ty, tech giants have been work­ing on new tech­nolo­gies to cre­ate ener­gy-effi­cient min­ing rigs.

The lat­est update came from Sam­sung when the com­pa­ny announced it’s about to launch 45% more ener­gy-effi­cient 3‑nanometer min­ing chips. The new chips are expect­ed to have 23% high­er per­for­mance. More­over, the com­pa­ny also announced that a new 2‑nanometer min­ing chip will be released by 2025, with even high­er ener­gy effi­cien­cy and performance.

Post­ed In: Bear Mar­ket, Min­ing

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