Chinese Miner Makers Ginger Market as Bitcoin Price Hits Multiple Price Records
With the price of top cryptocurrency Bitcoin hitting multiple records within days in the last seven days, mining hardware makers have been having a field day as they strive to tag along with the bullish momentum building in the crypto space.
Between the last few days of 2020 and the first three days of 2021, Bitcoin has hit new all-time highs starting with going above $29,000 on Thursday December 31 – the closest it has moved to closing on a $30,000 price in two weeks after breaking through the $20,000 barrier for the first time ever – to setting a new all time high above $30,000 on January 2.
The uptrend didn’t stop even after passing what’s been described as another psychological level after 16 days since it broke the $20,000 barrier. Rather, it continued with another new all-time high above $34,700 on Sunday, January 3 before settling to trade at around $34,000 level.
The bullish sentiment is expected to continue in 2021, according to several insiders including The Spartan Group’s Kelvin Koh.
Rising Bitcoin price excites miner makers
Meanwhile, the new records come as the average estimated number of hashes per second produced by miners in the network reportedly reached the highest ever in Bitcoin‘s history so far – 136 exahash/s with the December hash rate. They also coincide with several developments taking place within the mining sector around the same uptrend period.
From Chinese blockchain technology company with ASIC chip design capability planning to launch its cryptocurrency exchange in Q1 2021 to Bitmain signing a new purchase contract with one of the largest Bitcoin self-mining companies in North America, activities in the mining equipment sector have been growing of late.
Bitmain will supply 70,000 Antminer S19 series ASIC miners for Marathon Patent Group in a $170 million new purchase that will more than triple the size of the US company’s existing fleet of 33,000 miners.
Also this week, Canaan, the world’s second largest producer of bitcoin mining hardware (after Bitmain), announced the launch of its latest submerged liquid-cooled crypto miner, Avalon Immersion Cooling Miner (A1066I) with a capability to run 90 mining module deployments simultaneously and sees an overclocked mining ratio of 45% to fully maximise its computing power.
According to the company’s specification, the Immersion Cooling Miner which is set to promote future liquid cooling technology practices in the mining industry, sees an increase of up to 78% in power efficiency when compared to its latest AvalonMiner A1246. With single mining modules running within the liquid coolant, the new miner is said to offer a noiseless mining experience while eliminating the risk of microdust absorption and reducing the heat expelled during the mining process.
The company says the new machine also generates significant cost-savings in cooling expenditure, prevents overheating, and ensures the durability of the hardware.
The the new kid on the crypto mining block
Investors including former Canaan directors Jianping Kong and Qifeng Sun have been reported to have cooperated with The9 Internet company to assist it in developing cryptocurrencies mining business. The9 seeks a new wholly-owned subsidiary NBTC Limited to operate its blockchain and cryptocurrencies business.
“Our goal is to build up cryptocurrencies mining machines for The9 that will contribute 8% to 10% of the global hash rate of Bitcoin, 10% of the global hash rate of Ethereum and 10% of the global hash rate of Grin and become one of the world’s largest cryptocurrencies mining companies in terms of hash rate,” Jun Zhu, the CEO of The9 says. “This will also speed up our other cryptocurrency-related businesses. It has been 12 years since the birth of Bitcoin. We believe that cryptocurrencies will bring more convenience to our daily life.”