During increasing Bitcoin mining problems and falling mining profitability, Colorado-based Bitcoin miner Crusoe Energy Systems made the announcement regarding acquisition of the operating assets of portable BTC mining operator Great American Mining (GAM), as reported by Cointelegraph.
According to Cointelegraph, the deal is expected to see GAM’s operations integrated into Crusoe’s, which would add over 10 megawatts (MW) to its mining output and approximately 4,000 application-specific integrated circuit (ASIC) cryptocurrency mining rigs, increasing Crusoe’s capacity by around nine percent as mentioned by the company. GAM is responsible for development of portable BTC mining facilities, which are vehicle trailer-mounted containers enclosed with ASIC miners to assist oil and gas companies get benefits from wasted natural gas by using it to power the facility to mine BTC.
On the basis of information by Cointelegraph, Crusoe is expected to deploy around 125 of the waste gas-powered containers deployed and operating post the acquisition, with an aim to reduce an annual CO2-equivaltent emission of around 170,000 cars. The consolidation between the two mining operations has arrived during the sector facing pressure from both the traditional and cryptocurrency markets, along with an all-time high BTC mining difficulty which carries the potential to negatively impact miner profitability.
“The result was that mining companies bought Bitcoin directly from the market at higher costs than their mining operations and were negatively exposed to further capital expenditure investments as they placed equipment orders a year in advance,” Markus Thielen, head of strategy, Matrixport, said.
Moreover, Cointelegraph noted that cryptocurrency miners such as CleanSpark reportedly have sparked their interest in going after cheap assets amid tough market conditions, buying over 1,000 ASIC mining rigs at a discounted price in July and 1,800 Antminer S19 XP rigs the month before. In September, CleanSpark purchased a $33 million facility in US from Australian-oriented miner Mason.
(With insights from Cointelegraph)
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