The Bitcoin mining gold rush has begun

Feb 06, 2024

Generally, Bitcoin mining can be broken down into 4 distinct phases, as described by Anicca Research

  1. The Rising Bull
  2. Mining Goldrush
  3. Inventory Flush
  4. The Shakeout

Each period sees market participants enter or exit the highly commoditized Bitcoin mining game based on perceived market opportunity.

Data, today provided by our friend’s at HashBranch, combined with Bitcoin price sentiment, likely zeros us in on the Rising Bull part of the chart, if not the early stages of the Mining Goldrush. Last summer certainly saw the Inventory Flush and Shakeout, with numerous private and public mining companies dumping $/TH to record lows.

For reference, Hashbranch is a marketplace for hosting slots. In other words, if you want to buy or sell hosting capacity, Hashbrand does all the coordination. As of now, they claim to have 1.16  GW of energized capacity across 81 platforms with a blended average of $0.0743 kWH.

In terms of requested MW allocations, Hashbranch experienced twice the demand of Q4 2023 in January alone, an all time high for the platform. Moreover, operators are asking for higher MW allocations for ASIC deposits, while both operators and hosting clients are seeking revenue share agreements to incentivize long term partnerships. The practice is similarly executed by Swan Mining, recently featured on The Mining Pod

In terms of ASICs, Hashbranch lists the following as the top five unit types looking for rack space:

  • 23.65% Antminer S19k Pro 120TH
  • 16.21% Antminer S19j 90TH
  • 12.57% Antminer S19j Pro 100 TH
  • 12.53% Whatsminer M50S+ 
  • 9.71% Whatsminer M50 114TH

We can deduce from here that miners who purchased newer units (S19K Pro) may still be looking for rack space to deposit units, while far older units from last cycle (S19j Pro 90-100 TH) are chasing cheaper energy ahead of the halving now scheduled for April 20.

Given these data sets–particularly a drastic increase in demand for rack space–we can see miners prepping for the Mining Goldrush. Will Bitcoin give the gift miners seek? That’s the last question to answer.

The Mining Pod!

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