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- 1 The cryptocurrency mining space has been showing mixed signals
- 2 The impact of turbulence in the global crypto market following enforcement actions will affect crypto mining operations.
Bitcoin mining companies were in the tough phase during crypto winters. With the overall market conditions getting better, the mining sector followed to perform better in the contingency. However, several issues around hashrate and mining revenue persisted here and there. Leading miners like Hut 8 Mining and Marathon Digitals reported their BTC production in May and hashrate throughout the month. The increasing popularity of Bitcoin Ordinals Inscriptions also boosted the miners’ revenue in the past months.
North America’s leading crypto exchange, Hut 8 reported the production of Bitcoin (BTC) in May month was 147 BTC on June 9. The company sold more digital assets than it produced in a similar timeframe.
The block rewards and transaction fees accumulated Hut 8, 147 Bitcoin (BTC). In the meantime, it sold 179 BTC. Overall the company managed to accumulate revenue worth 6.8 million USD. By May month, the total Bitcoin reserve of Hut 8 reached 9,233 BTC.
Hut 8 noted in the statement that the hash rate capacity of the installed application-specific integrated circuit (ASIC) at their Drumheller, Alberta facilities was 2.6 exahashes/sec (EH/s).
The overall Bitcoin network hashrate currently stands at 433.102 EH/s. Given the overall network hashrate, the computing power utilized by the publicly traded crypto miner is around 0.67%.
Hut 8 Mining Seeking Way Out of Damage
The issue of damaged equipment at the company’s Drumheller, Alberta Sire, did not make much development. Power shortages and equipment failure were cited as the reason behind the delay.
Hut 8 stated that the efforts of bringing the equipment back online and operating as expected are slower. On top of repairing and re-installing individual miner hashboards, failing and repair of other hashboards slows down the production and drops the hash rate.
The company reportedly is in talks with the US Bitcoin Corporation for its merger.
Marathon Manages More Bitcoin (BTC) Production in May
Earlier this month, another prominent crypto miner Marathon Digital Holdings reported its Bitcoin production for the last month. It was said to mine about 1,245 Bitcoin (BTC) in May 2023. The production is up by 77% from the production in April 2023. The company cited its proprietary software to give BTC production of the company to witness the huge jump.
Bitcoin miners have got a chance to raise extra revenue following the Ordinals upgrade. The transaction fees for Inscriptions over the network have resulted in a notable surge in miners’ income. Until May 2023, the dominance of transaction fees generated by the trade of Inscriptions was around 26%.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
