A bitcoin sign is seen in the main hall during the Bitcoin 2024 conference at Music City Center July 26, 2024 in Nashville, Tennessee.
Jon Cherry | Getty Images
It was a week of extremes for bitcoin enthusiasts.
On the plus side, the cryptocurrency rose 12% in the past seven days and the network hash rate hit an all-time high. Hash rate refers to the collective computing power of all miners in the bitcoin network, and the recent high suggests there have never been more miners online, actively securing the network.
At the same time, another key metric this week showed it’s increasingly difficult to make money in the mining business. Investment bank Jefferies wrote in a report that crypto mining was “significantly” less profitable in August. The average daily revenue per exahash, or income per miner, fell by 11.8% from the prior month, Jefferies said.
As bitcoin becomes more of an established, and even mainstream part of the economy, the days of easy money appear to be in the rearview mirror. Institutional capital has poured in since the SEC approved spot bitcoin exchange-traded funds in January, and the bitcoin network is more robust than ever, held together by a vast and decentralized network of miners securing transactions with the help of large banks of machines.
But more people — and their powerful machines — are vying for smaller rewards.
In April, the bitcoin code automatically cut new issuance of the world’s largest cryptocurrency in half, an event that occurs roughly every four years to create scarcity. The halving historically precedes a wave of bankruptcies among bitcoin mining firms, which are suddenly generating much less revenue with the same level of operating costs.
Bitcoin miners are getting hammered by Wall Street.
Marathon Digital is down nearly 30% in 2024, while Riot Platforms has fallen 53%. The price of bitcoin, meanwhile, is up about 44% this year.
Jefferies said North American publicly traded mining firms minted a smaller share of new bitcoin in August compared to July, falling to 19.9% of the total network. They’re still spending on equipment upgrades, meaning efficiency is improving but economics are getting worse.
Marathon CEO Fred Thiel told CNBC that, due to the upgrade cycle, machines are able to hash twice as much as previous models with the same energy use.
“No need to add sites or power, just upgrade systems,” Thiel said.
Riot CEO Jason Les is as bullish as ever on the future of bitcoin despite the challenging economic conditions. He said “bitcoin is the most sound money in the world,” and “low-cost mining is an efficient way to get exposure to it.”
Not all miners are feeling the pinch. Companies like Core Scientific, which emerged from bankruptcy in January, are finding ways to use their massive infrastructure to power artificial intelligence and high-performance computing (HPC).
Last month, Core announced an expanded deal worth $6.7 billion with CoreWeave, an Nvidia-backed startup that’s providing the chipmaker’s graphics processing units (GPUs) for running AI models.
In a note this week, Bernstein singled out Core Scientific as the best-performing publicly traded bitcoin miner, noting that of the miners that have diversified into AI and HPC, Core is the “only one with a material co-location contract with a leading GPU Cloud provider.”
Core has more than doubled in value since its return to the stock market and now has a market cap of close to $3 billion.
“Our facilities were developed to be multi-use for not only just bitcoin mining, but also for the transition that we’re doing right now to high-performance computing,” Core CEO Adam Sullivan told CNBC.
Bernstein added that if Core executes all of its 700 megawatt capacity that it’s allocated to AI and HPC, it would make the company the third-largest data center company listed in the U.S.
“It’s really about the next three years in terms of where the opportunity set truly lies to capture a large portion of the data center market,” Sullivan said. “Every big data center company that exists carved out a niche, just so happens that the niche that bitcoin miners are carving out now are in the largest niche that has ever been found in the data center industry.”
— CNBC’s Talia Kaplan and Jordan Smith contributed to this report.
Just like it says on the tin – retailers are advertising killer deals on the fun-to-drive Kia Niro EV, with one midwest auto dealer reporting more than $10,000 off the sticker price of the Niro EV Wind. That’s nearly 25% off the top line price!
The Kia Niro EV gets overshadowed by its objectively excellent EV6 and EV9 stablemates – both of which are currently available with substantial lease cash and 0% APR financing, in fact – but that doesn’t mean it’s not an excellent little electric runabout in its own right.
The last time I had a Niro EV tester, my kids loved it, I liked that it was quicker and more tossable than I expected it to be, and my wife liked the fact that “it doesn’t look electric. It looks normal.” And, with well over 200 miles of real world range (EPA-rated range is 253 miles), it was more than up to the task of commuting around Chicago and making the trip up to the Great Wolf Lodge in Gurnee and back without even needing to look for a charger.
Advertisement – scroll for more content
It’s not the primary family hauler I’d choose – but as a second car? As a primary car for a slightly smaller family (1-2 kids, instead of 3-4)? The Kia Niro EV Wind, with a $42,470 MSRP, seems like a solid, “can’t go wrong” sort of choice. You know?
You won’t even have to pay that much, though. Raymond Kia in Antioch, Illinois is advertising a $42,470 Niro EV for $32,431 (that’s $10,039, or about 24% off the MSRP), and several others are advertising prices in the $33,000 range.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. The best part? No one will call you until after you’ve elected to move forward. Get started, hassle-free, by clicking here.
FTC: We use income earning auto affiliate links.More.
Many school districts who used EPA funding to help purchase Lion Electric school buses are now stuck with broken down or unsafe vehicles – but Lion’s new Canadian investors seemingly have no plans to make things right.
“All four Lion buses that we own are currently parked and not being used,” Coleen Souza, interim transportation director of Winthrop Public Schools, told Jay Traugott over at Clean Trucking. “Two of them are in need of repairs which would cost us money which we are not willing to invest in because the buses do not run for more than a month before needing more repairs.”
As bad as the revelations of safety and drivability issues and $250 million in unresolved debt have been, it’s the objectively stupid design choices that have been the most shocking.
Advertisement – scroll for more content
“Lion built an auxiliary diesel heater to heat the bus, essentially writing the manual as they went,” explained a school superintendent in the midwest, who asked not to be named. “It was fascinating to watch but there were design flaws with the heater. For example, the intakes pointed downward and we’re driving across rural roads and the intake sucks in that dirt.”
“Using a diesel-powered heater to warm an electric bus also somewhat defeats the purpose of going 100% zero-emissions,” added Traugott.
Despite a new electric school bus rebate and a fresh cash injection from Vincent Chiara, president of Quebec real estate powerhouse Groupe MACH, and Lion director Pierre Wilkie, however, it seems like no help is coming.
It just gets worse and worse
Decommissioned Lion electric buses; via Winthrop Public Schools.
The US school districts who spent tens of millions of taxpayer dollars in the hopes that Lion buses would help decarbonize their fleets and reduce students’ exposure to harmful diesel emissions? Many of them are back to using diesel, while others are trying to get their deposits back so they can buy something else.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. The best part? No one will call you until after you’ve elected to move forward. Get started, hassle-free, by clicking here.
FTC: We use income earning auto affiliate links.More.
Mitsubishi is partnering with Ample and Yamoto Transports to deploy an innovative new battery swap network for electric cars in its Japanese home market — but it’s not just for electric cars. Mitsubishi Fuso commercial trucks are getting in on the action, too!
Despite a number of early EV adopters with an overdeveloped concept of ownership, battery swap technology has proven to be both extremely effective and extremely positive to the overall EV ownership experience. And when you see how simple it is to add hundreds of miles of driving in just 100 seconds — quicker, in many cases, than pumping a tank of liquid fuel into an ICE-powered car — you might come around, yourself.
That seems to be what Mitsubishi thinks, anyway, and they’re hoping they’ll be your go-to choice when it’s time to electrify your regional and last-mile commercial delivery fleet(s) by launching a multi-year pilot program to deploy more than 150 battery-swappable commercial electric vehicles and 14 modular battery swapping stations across Tokyo, where the company plans to showcase its “five minute charging” tech in full view of hundreds of commercial fleets and, crucially, the executives of the companies that own and manage them.
How battery swap works for electric trucks; via Mitsubishi Fuso.
A truck like the Mitsubishi eCanter typically requires a full night of AC charging to top off its batteries, and at least an hour or two on DC charging in Japan, according to Fuso. This joint pilot by Mitsubishi, Mitsubishi Fuso Trucks, and Ample aims to circumvent this issue of forced downtime with its swappable batteries, supporting vehicle uptime by delivering a full charge within minutes. The move is meant to encourage the transport industry’s EV shift while creating a depository of stored energy that can be deployed to the grid in the event of a natural disaster — something Mitsubishi in Japan has been working on for years.
The pilot is backed by Tokyo Metropolitan Government’s “Technology Development Support Project for Promoting New Energy,” with local delivery operator Yamato Transport testing swappable EVs for delivery operations on both its eCanter light-duty trucks and Mitsubishi Minicab kei-class electric vans.
Electrek’s Take
Fuso eCanter battery swap; via Mitsubishi.
Electrifying the commercial truck fleet is a key part of decarbonizing city truck fleets – not just here in the US, but around the world. I called the eCanter, “a great product for moving stuff around densely packed city streets,” and eliminating the corporate fear of EV charging in the wild just makes it an even better product for that purpose.
Here’s hoping we see more “right size” electric solutions like this one (and more battery swapping tech) in small towns and tight urban environments stateside somewhat sooner than later.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. The best part? No one will call you until after you’ve elected to move forward. Get started, hassle-free, by clicking here.
FTC: We use income earning auto affiliate links.More.