Robert Steinadler, 5 months ago

Mining: Greenidge deploys 6,914 rigs with Core Scientific

Miners have had a tough time for the last 16 months. They operate in a hostile business environment that forces them to compete with each other. There is no niche or time to take a rest. Miners must increase their hash power and catch up to their competitors. With prices plummeting in 2022, the situation worsened since their revenue nosedived with Bitcoin. But the mining industry is slowly recovering and is helping each other out.

What deal did Greenidge sign with Core Scientific, and how is the mining industry doing?

Greenidge is recovering from hard times

Greenidge is a US Bitcoin mining company that became internationally known for operating its mining rigs in an old power plant in Dresden in Upstate New York. Like many other companies operating a mining business, Greenidge was struggling under less favorable market conditions.

In December 2022, officials wondered if Greenidge could continue its business under such circumstances. In January, the company reportedly signed a deal that reduced its debt by $61 million and allowed it to continue its operation.

Greenidge caused much controversy over its environmental practices, and New York officials denied an air permit renewal. The Department of Environmental Conservation argued that mitigation of GreenHouse Gases wasn’t sufficient.

Core Scientific will host the miners

The company had to search for a new home housing their mining rigs to keep operations running. Yesterday, Core Scientific and Greenidge announced a deal in which Greenidge gets to host 6,914 mining rigs with Core Scientific at two different facilities.

According to the press release, the company also hosts 1,500 additional rigs throughout the country in other facilities. This adds up to a total of 8,414 out of 9,150 rigs that Greenidge owns, leaving only a fraction of undeployed rigs. However, it needs to be clarified when the rest will follow, but according to the official statement, both companies are looking forward to getting all 9,150 rigs operational again.

How are miners doing?

The total hashrate of the Bitcoin network kept growing since July 2021, which is generally a good sign. It means that those miners who operate profitably under those harsh conditions thrive. They reinforce their equipment and gain a larger market share.

Of course, not all miners will survive, but that’s the game that those businesses are playing. The current numbers reveal that the Bitcoin network is growing, indicating that most of these businesses believe the price will follow the hashrate sooner or later.

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