bitcoinlfg

Tag: Core

  • Core Scientific the first buyer of Block’s 3nm Bitcoin mining ASICs

    Core Scientific the first buyer of Block’s 3nm Bitcoin mining ASICs

    Core Scientific the first buyer of Block's 3nm Bitcoin mining ASICs
    • Core Scientific buys Block’s 3nm Bitcoin ASICs in a major deal between the two companies.
    • The deal boosts Core Scientific’s hash rate by 60%, enhancing efficiency and profitability.
    • The deal between Block and Core Scientific aims to redefine Bitcoin mining standards, leveraging advanced ASICs.

    Jack Dorsey’s financial services company Block has finalized a major deal with Core Scientific, marking the first sale of its highly anticipated 3 nanometer Bitcoin mining ASICs.

    This deal marks one of the largest ASIC agreements ever signed in the history of Bitcoin mining, underscoring Block’s commitment to advancing mining technology and Core Scientific’s strategic expansion in the sector.

    Block’s 3nm Bitcoin mining ASICs

    Developed by Block’s Proto team, the 3nm mining ASICs represent a leap forward in efficiency and performance for large-scale Bitcoin mining operations.

    By integrating cutting-edge technology into these chips, Block aims to significantly enhance the efficiency, reliability, and uptime of mining activities conducted by firms like Core Scientific.

    The 3nm ASCIs provides Core with 15 exahashes per second (EH/s) worth of chips and are set to increase the mining firm’s energized hash rate by a remarkable 60% as of June 2024.

    Core Scientific, a publicly traded Bitcoin mining giant, has emerged as a key player in the industry’s recovery following recent challenges. The company’s stock (CORZ) has surged, reflecting investor confidence in its ability to leverage advanced mining technologies to bolster operational capabilities and profitability.

    Core Scientific’s decision to purchase Block’s 3nm Bitcoin mining ASICs comes amidst a broader industry trend towards greater efficiency and sustainability in cryptocurrency mining, driven by technological innovation and environmental considerations.

    Block pioneering a new era in Bitcoin mining

    According to Russell Cann, Chief Development Officer at Core Scientific, the collaboration with Block marks a pivotal moment in scaling Bitcoin mining operations.

    Cann emphasizes that the new mining platform built around Block’s 3nm ASICs will not only optimize space and operational resources within their data centers but also contribute to the long-term vitality of the Bitcoin network.

    The partnership underscores a shared vision to redefine industry standards and accelerate the adoption of advanced mining technologies globally.

    The strategic alliance between Block and Core Scientific highlights the growing importance of technological innovation in sustaining and expanding Bitcoin mining capabilities.

    As the cryptocurrency landscape continues to evolve, advancements in ASIC technology are expected to play a crucial role in enhancing the efficiency and profitability of mining operations.

    With Core Scientific leading the charge as the first recipient of Block’s 3nm ASICs, the stage is set for further advancements that could shape the future of Bitcoin mining worldwide.

    Share this article
    Categories
    Tags

    Source link

  • Core Scientific agrees $70M loan facility from B. Riley

    Core Scientific agrees $70M loan facility from B. Riley

    • Core Scientific is seeking emergency relief from the bankruptcy court for it to secure a replacement loan facility.
    • According to court documents, the miner has agreed to a $70 million credit facility from investment banking firm B. Riley.
    • The company will use the funds to pay off an existing loan to avoid defaulting,

    Core Scientific, a Bitcoin mining firm that filed for Chapter 11 bankruptcy orotection in December last year, says it’s agreed to a $70 million financing facility from B. Riley Commercial Capital, LLC.

    Court documents the Bitcoin miner filed on Tuesday reveal that the crypto company seeks to use the loan facility from the investment bank to pay off an existing debtor-in-possession (DIP) facility.

    Core Scientific seeks emergency relief

    The miner seeks an emergency relief from the bankruptcy court, which it says is needed no later than 11:30 am CET on Wednesday, 1 February, 2023. As noted in the filing, the crypto miner would be in default under the terms of the original DIP facility.

    The Core Scientific team says if approved, the first part of the facility will be $35 million before the rest follow. Securing the new credit facility from B. Riley is key to the miner continuing its operations as it navigates its bankruptcy process.

    The past year proved to be particularly brutal for crypto mining companies, with the crash in Bitcoin prices and surging energy costs combining to hurt business. Core Scientific was one of the largest miners to seek bankruptcy protection as Bitcoin price collapsed once more following crypto exchange FTX’s implosion.

    At the time of its bankruptcy filing, Core Scientific revealed liabilities of $1 billion to $10 billion.

    Share this article
    Categories
    Tags

    Source link

  • One of the original Bitcoin core developers losses all his BTC in hack

    One of the original Bitcoin core developers losses all his BTC in hack

    • Bitcoin OG and core developer, Dashjr, claimed virtually all his bitcoins were stolen.
    • The hackers accessed the developer’s PGP key.
    • On November 17, 2022, Dashjr, noted his server had been compromised.

    A Bitcoin OG and one of the original Bitcoin’s core developers, Luke Dashjr, has claimed that he virtually lost all his bitcoins after his Pretty Good Privacy (PGP) keys were compromised on December 31, 2022, just before the new year.

    PGP key is a common security method that uses two keys to gain access to encrypted information.

    In a post on Twitter on January 1, 2023, Dashjr was asking for help from the PSA:

    “PSA: My PGP key is compromised, and at least many of my bitcoins stolen. I have no idea how. Help please.”

    In a follow-up tweet, Dashjr appeared distressed asking why he could not reach anyone from the FBI or IC3 before following it up with a tweet containing a wallet address, which is believed to be one of the Bitcoin wallets where some of the stolen BTC was sent to.

    “What the heck @FBI @ic3  why can’t I reach anyone???

    Although Dashjr did not disclose how many bitcoins were stolen from his wallet, the wallet address that he shared showed four bitcoin transactions on December 31 that totalled to 216.93 BTC.

    Dashjr server compromised in November 2022

    Although the developer said that he had no idea as to how hackers gained access to his PGP key, some community members have drawn a possible connection to an earlier claim that Dashjr had made on November 17, 2022, that his server had been compromised by ““new malware/backdoors on the system.”

    Unfortunately, Dashjr, says that he learnt of the hack after getting emails from Kraken and Coinbase about login attempts.

    The hack also caught the attention of Binance CEO Changpeng Zhao (CZ) who consoled the developer on Twitter saying:

    “Sorry to see you lose so much. Informed our security team to monitor. If it comes our way, we will freeze it. If there is anything else we can help with, please let us know. We deal with these often, and have Law Enforcement (LE) relationships worldwide.”

    Share this article
    Categories
    Tags



    Source link

  • Why are Bitcoin miners struggling so much? Core Scientific file for bankruptcy

    Why are Bitcoin miners struggling so much? Core Scientific file for bankruptcy

    Key Takeaways

    • Core Scientific was worth over $4 billion last summer, but is down 985 form all-time highs
    • Rising electricity costs are hiking costs with falling Bitcoin prices hurting revenue
    • With hash rate near all-time highs, the entire mining industry is struggling

    The crypto winter continues to take victims. The latest to succumb to Chapter 11 bankruptcy is Bitcoin miner Core Scientific.

    Bitcoin’s plummeting price has quelled revenues significantly and, while cashflow is still positive, the revenue is not enough to cover operational costs. The goal is for the company to restructure under the Chapter 11 process rather than entirely liquidate.

    Core Scientific has been struggling all year, in line with miners across the industry as they get squeezed on both ends – falling revenue in the form of Bitcoin prices and rising costs as a result of surging electricity costs across the globe.

    The stock was trading at a market cap north of $4 billion last summer, but has now fallen 98% from all-time highs, its current market cap $70 million.

    The share price did triple in short order last week when financial services company B. Riley offered to provide the company with $72 million in non-cash financing. The stock has since given up some of those gains.

    Mining industry struggling

    Across the entire industry, miners are finding it tough. Electricity costs and the Bitcoin price are the two most vital inputs for the bottom line of a bitcoin miner, and both have moved significantly against them this year.

    So too has the hash rate, with it straddling near all-time highs for a lot of the year. A higher hash rate means more computing power is demanded to verify transactions on the Bitcoin blockchain. While a higher hash rate is thus seen as a positive because it increases the security of the network – it would cost more energy and time to take over the network – it also weighs on miners’ profit margins.

    When the hash rate hit another all-time high of 250 TH/s in early October, blockchain analytics company Glassnode warned that “miners are somewhat on the cusp of acute income stress”. This latest story about Core Scientific proves that.

    Looking at miner reserves, the number of bitcoins held by the large mining pools has also been steadily decreasing this year.

    Mining stocks are a  levered bet on Bitcoin

    It’s a poignant reminder that with these mining companies’ revenue denominated in Bitcoin, they are obviously extremely volatile stocks. Unfortunately, this year has brought the perfect storm giving rise to not only falling Bitcoin prices, but rising costs in the form of electricity, meaning miners have been hit twice as hard.

    Looking at share prices, many companies have fallen further than the price of Bitcoin, which as I write this is trading at $16,800, down 64% on the year. Many mining companies are seeing losses that dwarf that in 2022.

    They’ll hope that 2023 will bring better fortunes. But for Core Scientific, the road head is murkier. Now embroiled in the Chapter 11 process, it will hope to restructure and weather the storm, but there is no getting around the fact that the market for miners is likely to remain torrid in the short to medium term, at least.

    Share this article
    Categories
    Tags

    Source link