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Cryptocurrency Ecosystem => Crypto currency Mining => Topic started by: sirty143 on January 05, 2024, 12:41:30 PM

Title: Cipher Mining Bolsters Operations With 16,700 Bitcoin Miners From Canaan
Post by: sirty143 on January 05, 2024, 12:41:30 PM
Cipher Mining Bolsters Operations With 16,700 Bitcoin Miners From Canaan

(https://i.imgur.com/CoXGv6zm.jpg)

The Nasdaq-traded mining company Cipher Mining unveiled plans to expand its Bear LLC and Chief Mountain LLC projects, revealing the acquisition of 2.5 exahash per second (EH/s) of Canaan-crafted application-specific integrated circuit... See more for yourself here (https://news.bitcoin.com/cipher-mining-bolsters-operations-with-16700-bitcoin-miners-from-canaan/).

Your opinion is greatly appreciated.
Title: Re: Cipher Mining Bolsters Operations With 16,700 Bitcoin Miners From Canaan
Post by: hugeblack on January 07, 2024, 08:28:02 AM
It seems that the rise in Bitcoin prices in Q4 of 2023 and the increase in fees in that period, which reached an average of 1.5 Bitcoin as additional profits from transaction fees per block, encouraged them to continue in more investments, especially with expectations of a decrease in the interest rate, an increase in the price of Bitcoin, and an increase in fees. All of these things will make this year is an ideal year for mining companies, and their shares will rise strongly.

(https://talkimg.com/images/2024/01/07/sIJsv.png)

At the current average fees, the total reward for each block after halving will be in the range of 3.5 BTC to 4 BTC, which means that we need to see an average of $80,000 to $70,000 in the coming years to maintain the same profits.
Title: Re: Cipher Mining Bolsters Operations With 16,700 Bitcoin Miners From Canaan
Post by: Stompix on January 10, 2024, 12:44:46 PM
Quote from: hugeblack on January 07, 2024, 08:28:02 AM
It seems that the rise in Bitcoin prices in Q4 of 2023 and the increase in fees in that period, which reached an average of 1.5 Bitcoin as additional profits from transaction fees per block, encouraged them to continue in more investments, especially with expectations of a decrease in the interest rate, an increase in the price of Bitcoin, and an increase in fees.

It's easy to play this way when it's not your money but some guys throwing money at your company.
And speaking of cipher alone:
https://investors.ciphermining.com/news-releases/news-release-details/cipher-mining-purchases-11000-new-mining-machines-canaan-inc
they were buying nearly the same amount of gear back in may when the price was half of this!
This decision alone (the December one) was probably taken well before we saw the spike in prices.

Quote from: hugeblack on January 07, 2024, 08:28:02 AM
All of these things will make this year is an ideal year for mining companies, and their shares will rise strongly.

Not so sure about that.
Income per th/s is at 8 cents , in 2021 it was above 20 cents for the whole year with months over 30 cents.
Even 2022 had period of well above 10 cents.
For 2024 to beat 2022 after the halving we need prices around 100k, for it to beat 2021 we need...almost 500k!
Of course it goes lower because of more efficient gear so cost per th/s is lower but electricity is up so it's kind of a balance.