Valery Vavilov (BitFury CEO): "We understand it will be nearly impossible for older tech to compete. As a responsible player, we will work with integration partners & resellers to make our unique tech widely available, ensuring network remains decentralized & we move into the exahash era together.")
Canadian Bitcoin Miner Hut 8 Reports Q3 Loss of $8.7 Million. What do you think about Hut 8’s quarterly performance? Let us know in the comments below.
Hut 8 Mining Corp., a Canadian bitcoin mining company, has released its third quarter earnings report, which shows a net loss of US $8.7 million on higher depreciation costs. Depreciation spiked to $13.3 million, wiping out mining profit which came to $6.7 million.
Revenue Soars but Profits Fall
During the third quarter of 2018, the Toronto-listed miner extracted 1,978 BTC at a cost of $3,394 per coin, almost half the average market price of bitcoin for the three months, which averaged $6,400. Hut 8 said this difference explains the profit on mining, at margins of about 51 percent. Overall, the company mined 3,581 BTC for the nine months to Sept. 30, and 4,200 BTC since operations began in December 2017. According to the earnings release published Nov. 8, Hut 8 reported revenue increase of 126 percent to $13.4 million from $5.9 million the previous quarter due to increased operational capacity. The $189 million-valued company deployed an additional 16 Blockboxes in September at its mining facility in the City of Medicine Hat (CMH), bringing it to a total 56 Blockboxes at the site. Adjusted earnings before interest, tax, depreciation and amortization soared 86 percent to $5.5 million from $2.96 million a quarter earlier, “largely as a result of increased revenue from the new facility at CMH.” Hut 8 expects to see improved efficiency of the ASIC chips used to mine bitcoin during the colder months in Alberta, western Canada. Through Bitfury, Hut 8 has access to a proprietary mix of hardware, software and operational expertise to construct, optimize and manage data centres in low-cost and attractive jurisdictions. Shares of Hut 8 are up 4.21 percent at $2.25 in Toronto trading at the time of going to press. Over the past 52 weeks, Hut 8 shares have reached a high of $3.80 and a low of $1.77. What do you think about Hut 8’s quarterly performance? Let us know in the comments below. https://preview.redd.it/imycyxv6uhx11.png?width=493&format=png&auto=webp&s=14b98869ae950b3121339a736cbe1cf9ded9e9bc
Bitfury! how about you sell us miners... instead of suing?
I find it really funny how Bitfury threatens to sue everybody who is against a POW change but one of the reasons why Bitcoin is so centralized is due to companies like Bitfury. They make the ASIC themselves and mine themselves because they are greedy and don't want the increased hashrate to go against them. However if they sold us their ASIC chips or made miners then the network would be a little more decentralized.
Just a bit after Bitfury revealed a new 14nm mining chip called the Bitfury Clarke, Bitmain has upped the ante with the announcement of a new 7nm ASIC processor that it says offers better hashing power and energy efficiency over older models. Bitfury launched its 14nm Clarke chip earlier, saying it "offers the strongest performance among bitcoin mining chips and is unparalleled in efficiency." The ASIC is said to have power efficiency up to 55 mW/GH and a hashrate up to 120 GH/s. This ASIC battle is going on for long. Eventually, it has to end one day. Who do you support: Bitmain or Bitfury? https://preview.redd.it/javgfbd9zco11.png?width=1024&format=png&auto=webp&s=49886b9c4951aa7ccea644d2f62daca3e1d30745
So are folks ready to deep six SHA256(SHA256(HEADER)) PoW yet?
Miner concentration that occurs when PoW is so easily unrolled onto ASIC -- which is to say when the PoW is not memory, storage, and memory<->storage bandwidth demanding, will always lead in the end to mining concentration with the most marked advantage landing in the hands of manufacturing concerns. It is true of course that any process that can be done in commodity hardware can be done better, faster, in specialized ASIC. But with Bitcoin we have a single easily unrolled hash function buzzing a small piece of header data with only a very tiny nonce getting incremented between operations. Tiny, tiny, tiny amounts of memory per hash instance, nil requirements in terms of storage, and zero need for high bandwidth memory <-> storage. More and more parallel hashing instances per chip, smaller processes, and economies of scale lead to centralization especially in the hands of the manufacturers. That centralization leads to power, and as the entirety of human history proves, power has a corrupting influence. We see this today in the reporting today regarding remote kill functionality in Bitmain miners. We see it more generally in folks like Bitfury who do not offer consumer level mining equipment, and would rather sell monster shipping container sized rigs to monster sized customers. (If you have to ask how much it costs you can't afford it). Now, forgive me, but I cannot resist dropping an "I told you so" to all of the brazen UASF BIP148 supporters. I've been urging caution and getting a lot of crap for it. But imagine how a UASF chain fork would have gone if the UASF chain were not only a shorter chain at the outset, but the Antminer hashpower on that chain got remotely bricked in the middle of the process to see which fork would survive. At any rate, I'd say its time to put a plan in place to at least be READY to roll out a new PoW for Bitcoin within an 18 to 36 month time horizon. Its very extreme to think about, but ask yourself: Could you have ever imagined anything like the matters that are prevalent in mining these days? Pools refusing to implement broadly supported and very well tested protocol upgrades. Covert, patented, optimizations. Remote kill code in a crushingly large segment of deployed mining hardware. Hell, the mere fact that it is possible to get 5 human beings in a single room and, among them, have an overwhelming majority of hashpower spoken for is worrisome enough. I've seen luke-jr post about the potential need for such a change before. I would love to hear if nullc or any of the other core devs have considered the circumstances where a PoW change would need to be considered. Perhaps if there were a crypto break of SHA256 for example. Just my thoughts at present.
Five US Congress members call on the IRS to issue clarified and comprehensive cryptocurrency tax framework as crypto market is mixed with red and green
According to an unnamed source familiar with the matter, several large Russian banks have expressed strong interest in working with the cryptocurrency and blockchain industry during a closed-door meeting at the Moscow Exchange. The unnamed source told Russian news outlet, RBC, that cryptocurrency demand in Russia is very high, but banks cannot meet the demand due to a lack of clear regulation. Earlier this week, Russian officials met with Japanese regulators to discuss cryptocurrency regulation.
After US crypto exchange, Coinbase, rebuked claims in a report by the New York Office of the Attorney General, crypto exchange Kraken has done the same. Kraken tweeted today that, “We must... object to the highly unprofessional/malicious implication that because we did not respond to the voluntary information request, we *might* be operating illegally. We told you we don’t operate in NY.” Meanwhile, Coinbase challenged claims that 20% of its exchange’s trade volume came from its own staff, saying the figure was “misreported.”
Bitfury Group announced Wednesday that it has developed a new, more efficient Bitcoin mining chip. According to CEO Valery Vavilov, Bitfury’s application-specific integrated circuit (ASIC) chip, “offers the strongest performance among Bitcoin mining chips and is unparalleled in efficiency.”
Engima, a startup that seeks to bring privacy to public blockchains, announced it is delaying the launch of its protocol on Ethereum’s Mainnet. The team conducted a beta test of Engima on Ethereum’s Testnet this Summer and had plans to launch on Mainnet by the end of 3Q2018. However, the team has delayed the launch to better fit its developmental roadmap.
Five United States congress members have released a joint open-letter to the Internal Revenue Service (IRS), calling upon the IRS to issue clarified and comprehensive cryptocurrency taxation guidance. The lawmakers also added that while the IRS has made a point to remind citizens of current crypto tax laws and enforce said laws, the IRS' failure to issue more robust crypto tax framework severely hinders citizens’ ability to meet their obligations.
Japan’s National Police Agency released a report today detailing that 60.503 billion yen (USD$540 million) in cryptocurrencies were stolen in the first half of 2018. The total number of thefts is about 158, triple the amount recorded over the same time period in 2017. The largest single crypto hack ever recorded occurred this year in Japan when crypto exchange Coincheck was hacked and robbed of 58 billion yen (USD$520 million) in January.
Litecoin (LTC) creator, Charlie Lee, came to the defense of LTC while facing bearish traders and hedge funds attempting to short the coin. Lee took to Twitter to defend LTC, arguing that, unlike many altcoins, LTC’s protocol is incredibly secure and solutions like the Lighting Network will support LTC in scaling.
The Royal Bank of Scotland’s blockchain team has jumped ship in order to start a blockchain “venture studio”, called Chorum. Head of the team, Richard Crook, revealed in an interview with CoinDesk that the team will continue to work closely with the Cordite, a token project on R3’s Corda platform that the team developed while at RBS.
Shower thought - Bitcoin miners that are in bed with Core will have an advanced notice of new POW algorithm so they can get a headstart after POW change
Miners that are laying in bed with Core currently are doing so because they want a headstart with the POW change that Core is threatening (attacking) the community with. This gives them an unfair advantage over other honest miners that are sticking with Nakamoto consensus (longest chain). I wonder what all the miners who have millions of dollars sunk into mining rigs will do with their newly bricked machines? Core literally wants to destroy your millions invested into mining overnight. The only advantage I can think of where a miner who has millions invested who could lose it overnight would be a POW that they can game in advance so they can make boat loads more while everyone else is playing catchup. Who makes sells/makes chips again? Isn't it Bitfury and Bitmain basically, the two top ASIC chip sellers? EDIT: Now Core developer and Blockstream CTO Greg Maxwell is saying they will change POW to only target SPECIFIC hardware (Bitmain!)
UK’s largest Crypto Cloud mining company doubles server capacity
Island Crypto, a division of BITCOIN (GUERNSEY) LIMITED, doubled their crypto-mining capabilities today with their provisioning of a further 718 Orion 3 Bitcoin miners. Island Crypto, based out of Guernsey, chose Orion miners as their strategic business partners due to the efficiency the miners have over other miner types and are regarded as the current best ASIC crypto miners. Orion miners are built using custom chip design with emphasis on reliability that delivers better performance and efficiency. Island Crypto recently installed 250 servers in Iceland, 155 servers in Armenia, as well as 313 servers in the Transnistrian Moldovan Republic. Utilising the cheap electricity costs involved in these data centers improves the profit of each bitcoin and other cryptocurrencies mined. Island Crypto have also placed a pre-order of another 500 of the next generation Orion 5 mining servers to be deployed at the end of April 2019. These will join the existing mining servers provided by Bitfury’s Blockbox AC previously utilised.
Buratino Blockchain Solutions: we have found new solutions to old problems
The market of the mining equipment continues to develop strenuously contrary to adverse conditions on the crypto exchanges. Technologies are constantly improving, increasing growth of mining profitability at the reduction of energy consumption and partly compensating negative dynamics of cryptocurrencies rates. However, it automatically increases the complexity of production of new digital coins that form request for creation of more powerful equipment. Industry is constantly changing and miners need to be able to understand modern trends of the branch. Let’s discuss market tendencies, new technology solutions capability to affect the efficiency of this business, and how exactly our team is ready to help miners. Mining market today Lets begin with the general review of the market, with emphasis on forecasts of the authoritative research companies. Analysts of the American consulting company Coherent Market Insights are convinced: in the medium term (5–10 years) mining will be profitable. Demand for the new equipment will remain high even during the crypto -markets depression. According to the last forecast of the company, by 2025 mining industry will exceed the capitalization level of $16,3 billion. The indicator of cumulative average annual growth rate (CAGR), according to experts, will grow by 18,68% from 2017 to 2025. At the time of posting, the greatest share of computing capacities has been concentrated in Asia. Experts from other large consulting company Technavio consider that the Pacific Rim will take 51% of the general growth of the industry in 2018–2022. Then the share of the Pacific Rim will be reduced below 50% level. The cause is a hard governmental line of China in relation to crypto industry. It makes miners migrate to other countries of North and South America and Eastern Europe. According to the Technavio, 33% of the market is now in the New World, but the share of the USA will grow, forcing out China. Coherent Market Insights experts are solidary with colleagues, and also give the future world leadership to North America. Improvement of production technologies of cryptocurrencies and increase in productivity of the hardware remains a key tendency of the current market. Along with it large producers of microelectronics, such as Samsung and United Microelectronics Corporation are entering the market as suppliers of hi-tech accessories. The large manufacturing companies (Bitmain Technologies, BitFury, Advanced Micro Devices, etc.) actively develop ASIC systems with bigger energy efficiency and the increased hashrate coefficients. It is important for providing the more effective mining. However alternation of generations in available lines of the equipment happens slowly that opens opportunities for new players, such as our company. According to the Coinshares company, hashrate of the only one Bitcoin network grows by 300% annually, the efficiency of chips increases by 80%, and their cost falls on average on 50%. So the profitability of digital coins production grows even in conditions of crypto rate instability with the introduction of new technologies in ASIC-mining . 74% of the mining market is the share of ASIC of all configurations in 2017. It is expected that they will continue to dominate. The process of improvement of the hardware leads to the growth of volumes of the mined coins. But the more is mined, the quicker the algorithm of generation of new blocks in the network complicates. As a result — miners need capacities to grow. Escalating levels of complexity become nearly the main factor of mining equipment market growth in the medium term. For example, analysts of Technavio predict the increase in growth rates for 2018 by 9,04%. Increase in productivity as natural selection To be a successful miner means always to work proactively. Anyone who first manages to use more productive mining systems also remains in a prize or at least in the market. The Forbes.ru magazine describes how the market of a mining is affected by the generation of more productive machines. All of us remember the last year's agiotage around the first ASIC systems for Dash cryptocurrency. Before it was mined only on video cards and brought the monthly income of $1-1,5 thousand from one farm. New miner (DM11G from iBeLink, Antminer D3 from Bitmain and DR-100 from Pinidea) promised income from $5 thousand from each installation. Those who the first have managed to connect ASIC to Dash network succeeded the most. Their monthly income has made about $6 thousand, but it was not for a long time. The rapid growth of the number of ASIC devices in the network has provoked the same fast increase in complexity of calculations. Therefore the payback period of one ASIC system has increased from 3-4 to 12 months. As a result, by the end of 2017, the profitability of Dash mining has decreased almost by 3 times (in comparison with September of the same year). In completion to everything, the Dash rate has fallen off in spring 2018. Production of cryptocurrency is favorable only to those who quickly reacts to the production of the new hardware. Only being guided by new generation equipment or modernizing old ones it is possible not to lose. Recent leaders VS perspective beginners BitFury and Bitmain remain recognized leaders in the global market in summer 2018. BitFury generally specializes in providing mining decisions under specific projects. Bitmain, on the contrary, is guided by production and sale of the ready-made mining systems. Today the market is rather highly consolidated and more than a half of all computing capacities belongs to largest companies. Nevertheless, Coherent Market Insights analysts consider that in the near future deconsolidation of branch due to the appearance of new players is expected. This segment is also interesting to us. With the support of the community on ICO, we will be able to impose market competition to the acting leaders. Just because present devices have a number of problems which are still not solved by anyone except for us. Support of the only one cryptocurrency, the impossibility of the partial modification, high noise level, high costs of cooling and a lot of things still. Everything remains unresolved. We plan to put on the market the multi-mining system of the new generation Papa Carlo. The equipment surpasses competitors in all key indicators: energy efficiency, productivity, customizability, the number of coins, etc. With our development, it will be not just ASIC anymore, but the first real multi-miner, allowing to get fifteen digital currencies on the most popular algorithms SHA-256 and SCRYPT. It is difficult to overestimate the potential of such a product. Papa Carlo is capable to take the worthy place in the market of the CIS and the whole world. It is enough to compare our technological product to the acting leader of sales - Antminer s9, to estimate all range of advantages of Papa Carlo. Compare several key indicators of Papa Carlo and Antminer s9: hashrate of Papa Carlo – 26 Th/s, Antminer s9 – 13,5 Th/s; Papa Carlo processors – 10 nanometers, Antminer s9 – 16 nanometers; the number of Papa Carlo chips – 210, Antminer s9 – 189; energy efficiency of Papa Carlo – 0,065 J/Gh, Antminer s9 – 0,1 J/Gh; Papa Carlo noise level – 35-45 dB, Antminer s9 – 75-80 dB. Conclusion Papa Carlo is a high-performance equipment which can compete with leaders of the market. Our Buratino Blockchain Solutions company provides its development and service. The issue of own token will allow attracting the capital for scaling of business and distribution our multi-miner. Everyone who wishes to receive exclusive privileges from the producer at a stage of the closed sales can join our tokensale.
Crypto Mining Tech Firm Bitfury Closes $80 Million Funding Round
https://preview.redd.it/h1xy3je20rw11.jpg?width=1200&format=pjpg&auto=webp&s=c7426d625bcacc5c16ba2493ff37005d169e2d53 Cryptocurrency mining technology firm Bitfury Group has just closed an $80 million funding round led by venture capital firm Korelya Capital. Also participating in the private placement were investors such as Mike Novogratz's Galaxy Digital, Macquarie Capital, Dentsu Inc., Armat Group and others, according to a Bitfury press release. Advising Bitfury on the funding was investment bank Bryan, Garnier & Co.. George Kikvadze, Bitfury's executive vice chairman, said in the release:
"With a half billion dollars in revenues, Bitfury is the leading blockchain B2B global technology infrastructure provider at the corporate and government level. This private placement will take our corporate governance to the next level, broaden our financial strategic options, and ideally position us for our next phase of growth as the market matures."
Bitfury is best known for manufacturing processors and devices used for mining cryptocurrencies, and launched a new "Clarke" ASIC chip for bitcoin mining in September. It said at the time it plans a new range of miners based on the processor. The firm also capitalizes on its mining tech business by running crypto mining datacentres in countries such as Canada, Norway, Iceland and the Republic of Georgia. The new Clarke chip will being installed across these facilities as well, the firm indicated. The funding round after Bitfury was said to be eyeing going public via an IPO as a way of raising funds in late October. A news report at the time suggested the firm might list in Amsterdam, London or Hong Kong, possibly as soon as next year, though a final decisions hasn't been made. Its biggest rival in the crypto mining space, Bitmain, launched a prospectus for its planned IPO in September, though it has not been without controversy. Discussing why his firm took part the funding round, Mike Novogratz, CEO and founder of Galaxy Digital, said, "We are impressed with Bitfury's unparalleled team, as well as the company's vision, technical expertise and global reach, all of which are essential to advancing the underlying bitcoin ecosystem."
We would like to show you a description here but the site won’t allow us. ASIC development update. The funding will seek to power the company’s development of what it hopes will be industry-leading ASIC chips, as well. BitFury announced in September that it is seeking to achieve energy efficiency of 0.2 J/GH by the fourth quarter of 2014, and sub-0.1 J/GH efficiency by mid-2015. Bitfury’s New Bitcoin ASIC Mining Hardware. Bitfury has decided to unveil a new bitcoin ASIC mining chip known as Bitfury Clarke. In this article we will review one of the most powerful mining chips in the market and how it behaves. According to the official site, Bitfury offers the Bitfury is a diversified blockchain company, the largest industrial miner outside China, developer of software and hardware for working with the Bitcoin blockchain. The company has offices in San Francisco, Washington, D.C., Hong Kong, London and Amsterdam. It has data centers in Iceland, Norway, Canada and the Republic of Georgia. The Bitfury Clarke application-specific integrated circuit (ASIC) chip “offers the strongest performance among bitcoin mining chips and is unparalleled in efficiency,” the company claims in a ...
Introducing the Bitfury Clarke: Building on Bitfury’s five successful generations of mining chips, the Bitfury Clarke ASIC offers the strongest performance among bitcoin mining chips and is ... Testing of the BitFury ASIC with BitCentury Prototype PCB. Consuming 0.8V / 1.03A and generating 1.2GH/s. This can be increased further by changing clock settings and adding a heatsink. This is the second video of our 3 video series about our new 16nm Bitcoin Mining ASIC. In this video we demonstrate the high power performance of the chip with the help of a heat sink. How to setup Bitfury Twin Chip 4-5 gh/s ASIC USB Miner with cgminer - Duration: 7:08. ... START $19 BITCOIN FARM ( BITFURY's HASHING24 Affiliate program) MAY 2017 - Duration: 16:41. At the Blockchain Solutions Forum in Barcelona I interviewed Marc Taverner of the fast growing Bitfury, the largest Bitcoin mining and blockchain transactions processing company in the world.