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TopCryptoSupers 12thReport OrionX May2024

The document presents an analysis of the cryptocurrency landscape, highlighting Bitcoin's evolution and its current market prominence, now valued at $1.25 trillion. It discusses the technological advances in mining, particularly the competitive nature of Bitcoin mining and its environmental impact, noting that Bitcoin mining is primarily powered by sustainable energy sources. Additionally, it compares Bitcoin’s economic value to traditional assets and discusses the key players in mining and their performance metrics.

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@OrionX_net May 2024 Stephen Perrenod CryptoSuper 500 – Twelfth Report Top Cryptocurrency Supercomputers Bitcoin Passes the Fourth Halving Five and half Years of Coverage
@OrionX_net ©2024 OrionX.net Digital Money or Digital Property Store of value Safety, security, to what degree? Unit of account Fixed Supply or inflationary? Medium of exchange Stable or Volatile? Money 3.0 is: Money in the Internet “Money has become information. Bitcoin is energy securely encapsulated as information. Electrons to eternal bits.” - @moneyordebt a 600-year advance in accounting with triple-entry ledgers on a timechain Money 3.0
@OrionX_net ©2024 OrionX.net ✦ Bitcoin and cryptocurrency represents technology for Money 3.0 – 0.x – decentralized: shells, beads, centralized: Yap rai stones – 1.0 – decentralized ownership but state minting: gold and silver coins – 2.0 – centralized: national fiat currencies – 3.0 – decentralized digital Money stored in, sent across the Internet – Some might say cryptocurrencies are simply digital assets ✦ There are tens of thousands of cryptocurrencies but only 83 have market cap over $1 billion as 5/5/2024 ✦ Very few use Proof of Work, only 6 of those have significant market cap above $2 billion ✦ Surprise: your Bitcoin is not located in your hardware wallet or mobile wallet or paper wallet. That just holds the keys. A decentralized safety deposit box but with transmission privileges, you can have one key only or set up multikey. OrionX position Money 3.0
@OrionX_net ©2024 OrionX.net It’s not either/or with blockchain and bitcoin, it’s both They are each layers in an integrated stack Blockchain (or timechain) is the triple entry ledger of chained transaction blocks: sender wallet, blockchain, receiver wallet A consensus algorithm (e.g. Nakamoto) that enforces security and prevents double spending is required: Mining, it also enforces a monetary policy An incentive is required to cause the algorithm to be computed and transactions added to the chain: Cryptocurrency/Coin Smart contracts (ordinals, BRC-20, etc.) and second layer chains such as Lightning extend the functionality and scaling for fast, small transactions Blockchain or Bitcoin? Gold, Fiat or Bitcoin? Table 1. Advances in monetary technology. Aristotle defined the first four attributes required for money over two millennia ago. We have added Fungibility “one is as good as another” to the table. Bitcoin is private, global money on a decentralized, highly replicated leger. Monetary Technology Advances
@OrionX_net Bitcoin is a major asset: Table of Market Cap, Assets over $1 Trillion CompaniesMarketCap.com ©2024 OrionX.net Table 2. Bitcoin is a $1.25 Trillion asset, up from $0.73 T in our last report. The only other assets with larger market caps are gold and silver, 5 two-trillion-dollar-plus class American companies, and Saudi Aramco. Since the last list in November 2023, Bitcoin passed both Meta (Facebook) and Berkshire Hathaway. From companiesmarketcap.com
@OrionX_net ©2024 OrionX.net CryptoSuper Methodology ✦ We only consider Reusable Proof of Work mined (minted) coins, since they are the only ones using significant supercomputing power – Non-mined coins usually use Proof of Stake, Pre-mining (“air drop”), or some Byzantine Fault Tolerant algorithm. They either start with mining or an air drop ✦ The mining protocols and hash rates vary in very large degree between coins – Total Hashrate for Bitcoin is over 600 Exahash/s and other top coins are mostly in the Terahash/s domain, considerably less ✦ Most RPOW coins require ASICs to be profitably mined, GPU mining still possible with some ✦ We compare mining pools by using the Economic value of coins produced per year = number of blocks mined x number of coins per block x price per coin and adding transaction fee revenue – Pools are aggregators of many sources of hash rate including their own, other businesses, and individual miners. They act as brokers to share collective rewards in proportion to hashrate contributed to a pool, for modest fees ✦ We consider the top 12 operating pools for coins producing over ¼ $ billion per annum, there are only two: Bitcoin and Dogecoin ✦ Publicly traded, VC-funded Bitcoin mining startups are increasingly important and responsible for 25% of Bitcoin production including hosting, primarily in N. America, quickly filled the vacuum left by Chinese ‘shutdown’ of mining 3 years ago
@OrionX_net ©2024 OrionX.net Supreme Difficulty of Bitcoin Mining ✦ Figure 1. The log10 of the Difficulty parameter versus the log10 of Bitcoin’s age in Block years, currently just over 16. Difficulty is a parameter in the Nakamoto consensus that is directly proportional to average hash rate and its increase with adjustments at each 2016 blocks, keeps block times close to 10 minutes each. Straight line in log- log means a power law, note how tight the relationship is, R^2 = 0.98. ✦ The difficulty of Bitcoin mining is rising as the 11th power of time, a very steep power law. It seems to have slowed to about the 9th power the last few years. ✦ Mining is a brutally competitive business with millions of mining rigs ever-growing in number, using faster ASICs benefitting from Moore’s Law and recently switching more and more toward immersion cooling for faster systems.
@OrionX_net ©2024 OrionX.net ✦ Top dozen publicly traded Bitcoin mining companies have market caps at or above ~ $200 million and have over 25% of global hash rate (includes hosted) ✦ Strong price recovery in 2023 and early 2024 and higher fees have boosted profitability ✦ Most are HQ’d in the US and Canada, also UK, Australia ✦ Data from company web sites and companiesmarketcap.com, first ten days of May 2024 ✦ Because of Fourth Halving on 4/20/24, total available minted in April was an average of 19/30 x 900 + 11/30 x 450 = 735 per day (and after 450 per day). Publicly Traded Bitcoin Mining Companies ✦ Table 3. The top publicly traded Bitcoin mining companies, some of these companies have other business lines, such as AI/data center hosting, most are pure plays. In general, these are new businesses with significant venture capital invested and large capital expenses devoted to ramping up hashrate with new mining rigs, so although they may have good operating margins on mining most are not profitable. Many of these are also keeping much of the Bitcoin they mine in their treasuries, collectively over $1 billion in value. Data from companiesmarketcap.com and company web sites. Company Market Cap $Million Locations Stock Price $ Hash Rate installed Exahashes/sec ,self mining, (managed services/hosting) Bitcoin Held in Treasury Daily Bitcoin minted April 2024 Marathon Digital 4780 US, UAE, Paraguay 17.52 29.9 17,631 28.3 Clean Spark 3640 US 16.15 17.3 5,739 24.0 Riot Blockchain 3000 US 10.42 12.4 8,490 15.0 Cipher Mining 1220 US 4.14 7.7 2,033 10.0 Hut8 Mining 740 Canada 8.27 5.4 (31.3 services provision) 9,116 7.5 Bitdeer Technologies 670 US, Bhutan, Norway 5.74 6.7 (15.8 hosting, cloud offer) 0 10.0 Terawulf 660 US, 2.18 7.8 0 11.6 IREN (Iris Energy) 660 Canada, US 4.73 6.2 0 12.4 Bitfarms 600 Canada, US, Argentina 1.82 7.0 830 9.0 Core Scientific 590 US 3.35 20.4 (6.3) n/a 9.9 Canaan 260 US, Kazakhstan, Ethiopia 0.88 2.1 909 ~4 HIVE Blockchain 220 Canada, Sweden, Iceland 2.44 5.0 2,377 7.1 Totals 17,040 120.7 (53.4) 47,125 148.8
@OrionX_net ©2023 OrionX.net Supercomputing for decentralized monetary network Cryptocurrency Mining is Green Supercomputing ✦ Method: We estimate the annual economic value of mined crypto, only Proof of Work coins ✦ Bitcoin market cap $1260 billion ✦ Bitcoin daily production = $29 million (miners also receive about $1-2 million in transaction fees) – money supply inflation under 0.8% from April, 2024 – 24 hours x 6 blocks per hour x 3.125 coins x $64,000 ✦ Annual production run rate, Bitcoin, about $11 billion plus fees of order 10% (but highly variable) ✦ Ethereum #2 by market cap at $214 billion, has abandoned Reusable POW in late 2022 and moved to Proof of Stake; it is no longer a mined coin or supercomputing application; large owners collect yield by staking ✦ Top Mining Pools produce revenue of $xx billion annually across top 2 mined coins, including both new coins and transaction fees. Very little revenue from the next few proof of work coins at current prices ✦ Bitcoin mining is cleaner than average global use of energy; also, Bitcoin, unlike most electricity outputs, is not consumption, it is production that creates permanent value (mostly rising), only 3% goes to transaction fees, 97% to new economic value creation ✦ The Bitcoin Mining Council estimates that 60% the industry’s electricity inputs are from sustainable sources including nuclear, based on a survey of their miners representing 45% of all Bitcoin hashrate. They report that Bitcoin mining uses just 0.16% of global energy and is responsible for only 0.11% of CO2 emissions Bitcoin energy inputs > 50% green Bitcoin only 1/900 of all CO2e, says Bitcoin Mining Council
@OrionX_net ©2024 OrionX.net CryptoSuper Mining Trends ✦ Bitcoin dominance for mining (minting) is strongly established; Dogecoin very distant second since Ethereum departed the field ✦ A dozen pools broker (not mine) most of $12 billion worth of value, almost all Bitcoin, and about $1 billion of which is transaction fees ✦ Ever faster mining hardware, up to nearly 400 Terahashes/secdon including liquid cooling; new highs in global hashrate, rising about 85% per year ✦ North American dominance, public companies as major players have increased to 1/4 of all Bitcoin production, including hashrate hosting for clients ✦ 2023 and 2024 have seen much higher prices and miner margins ✦ The electrical input has trended toward increasingly green, some public companies have set carbon neutrality goals (one is at 95%) ✦ Some geographies are restricting electricity access but Bitcoin mining acts as a load balancer for utility operators
@OrionX_net ©2024 OrionX.net Five (+1/2) Year Review since Nov. 2018 Attribute Nov. 2018 May 2024 5.5 Year Growth Coins making cut for CryptoSuper report Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Monero Bitcoin, Dogecoin Consolidation Number of different cryptocurrencies 2000 Tens of thousands total Majority abandoned, or worthless Bitcoin Market Capitalization $111 billion $1260 billion 11.4 x Bitcoin Price $6,334 $64,000 10.1 x Bitcoin annual production rate and fees $4.2 billion $11.6 billion 2.8 x Bitcoin Hash Rate Exahash/s 57 600 10.5 x Cryptocurrency Market Cap $220 billion $1312 billion 6.0 x Top cryptos annual mining production w/ fees $5.6 billion $12.5 billion 2.2 x We dropped from 6 to 2 coins, despite the 10-fold increase in the number of cryptos Bitcoin price has grown 52% compounded annually Bitcoin hash rate has grown over 50% compounded Even with Ethereum dropping out, (and it once reached half of the value of production), the mining production has grown to over $11 billion Table 4. Key attributes of Bitcoin and major cryptocurrencies, comparing the first CryptoSuper report in 2018 with this report 5.5 years later. Recent data is as of 6 May 2024. Bitcoin has been growing in value at a Moore’s law-like rate (but in a power law relation with its age), and its supercomputing crypto hashing power has been growing faster than Moore’s law.
@OrionX_net Comparison to Top 500 Supercomputer List Attribute Frontier Supercomputer (#1) Top 500 (all) WhatsMiner 63S Hydro cabinet Bitcoin Network Equivalent Performance 1.2 Exaflops 8.2 Exaflops 4.68 Petahash/s 581 Exahash/s One year increase 9% 57% 50% (vs. 53S) 57% Chips 37,888 AMD Instinct GPUS 6nm; 9472 AMD Epyc CPUs Hundreds of millons of cores 12 multithread, 5 nm ASIC 1,489,744 ASICs Cabinets 74 1 124,145 cabinets Power consumption 23 MegaWatts 89.2 KW 11,074 MW Weight 296 tons 0.76 metric tons 94,600 metric tons Cost $600 million $107,000 $13.28 billion Output Science Science & Engineering & AI 1.32 Bitcoin per year 164,250 Bitcoin per year Value Priceless Enormous $93,400 per year $11.6 billion per year Table 5. Comparison of a hypothetical Bitcoin network based on the latest high-end WhatsMiner 63S Hydro system with the Department of Energy’s Frontier supercomputer and the Top 500 list as a whole. The cost to build out the global Bitcoin network is about 22 times that of the Frontier system while the economic output is measurable at $11.6 billion annually, currently. Interestingly both the Top500 and the Bitcoin network have recently experienced the same Moore’s Law growth rate of 57% per year.
@OrionX_net Top Proof of Work Coins Mining Rigs Largest Pool Operators Summary Tables
@OrionX_net ©2024 OrionX.net ✦ These 6 coins produce over $11 billion of annual economic value (AEV) ✦ Bitcoin has almost all the value at $10.7 billion, Dogecoin is the clear #2 as Ethereum has dropped out of the race. Transaction fees not included here. ✦ Only BTC and DOGE have production over $200 million ✦ Bitcoin has 600 Exahashes/sec of computer power, approaching Zettascale Top Six Proof-of- Work Coins ✦ Table 5. The three columns give the coin name, its market cap as of 5/6/24, and its cryptographic hash algorithm rate and type. The next three columns give the annual production value and the current and maximum supply. . Only Bitcoin is in the 100s of Exahashes/sec range, and as a result of that and first mover advantage, nearly all the economic value is in Bitcoin. Coin Market Cap (B$) Total hash rate and Algorithm Annual Production rate $B (nominal) Current Supply (millions) Max Supply (millions) Bitcoin 1288 582 Exa, SHA-256 10.73 19.69 21 Dogecoin 24 1190 Tera, Scrypt 0.88 144,200 infinite Litecoin 10 1020 Tera, Scrypt 0.12 74.5 84 Bitcoin Cash 6 4.59 Exa, SHA- 256 0.08 19.7 21 Monero 2 2.01 Giga, Random X 0.02 18.4 Infinite Ethereum Classic 4 170 Tera, ETCHash 0.17 146.9 210.7
@OrionX_net ©2024 OrionX.net ✦ These are 21 of the fastest Bitcoin mining rigs on the market, from the three largest vendors. ✦ The table shows hashrate, electricity required, and operating profit at 5 cents per kilowatt-hour ✦ Typical hashrates are over 150 TH/s and operating profit several dollars a day per machine. Energy consumption 3 kWatt or higher (especially hydro models at 5 to 7 kW) ✦ It would take 3 million of the Bitmain Antimner S21s to produce all 600 Exahashes/sec. of global hashrate ✦ This table from asicminervalue was produced May 6, 2024 Top Mining Rigs Table 6. Columns are model, announce date, hashrate, power consumption, noise level, SHA-256 is algorithm for Bitcoin, and gross profitability per day at 5 cents per kWh. Operating revenue after electricity costs only, ignoring equipment capital amortization. Several models are announced in advance of release. Source: asicminervalue.com
@OrionX_net ©2023 OrionX.net ✦ Top 12 Bitcoin Mining Operators of 16 pools ✦ Pools are not mining farms, they are brokers of hash rate for a modest fee, 1 to 4% typical ✦ Miners, large and small, typically choose to direct their hashrate to a pool for efficiency and for predictable payouts ✦ It is relatively easy for a miner to switch from one pool to another ✦ We also list the host country (Global typically are Chinese pools that relocated or hide their location) ✦ These top pools are responsible for 96% of the Bitcoin value brokered Largest Pool Operators Table 7. Top mining pools by value using Bitcoin price as of 5/6/24. Transaction fees add of order 10% (last 90-day average) on top of Bitcoin’s block subsidy reward. Pool Country Bitcoin Hashrate Exahashes/s % of all hashrate Annual Run Rate $M w/ 10% boost from fees Foundry Digital USA 167.3 26.6 3078 AntPool Global 162.2 25.8 2985 ViaBTC USA 78.3 12.5 1446 F2Pool Global 62.5 9.9 1145 Binance USA 28.2 4.5 520 Unknown N/A 21.6 3.4 394 Luxor Tech USA 18.2 2.9 336 Slushpoool Global 16.7 2.7 313 BTCdotcom Global 13.3 2.1 243 SBI Crypto Japan 12.8 2.0 231 SecPool Global 8.3 1.2 139 Poolin USA 7.5 1.2 139 Top 12 operators 580 95% 10,968 All Bitcoin Mining 620 11,571
@OrionX_net May 2024 Stephen Perrenod OrionX.net/research Thank you!
@OrionX_net ©2024 OrionX.net References ✦ https://21lessons.com/ - by Gigi, free online book on Bitcoin ✦ https://www.asicminervalue.com/ - list of top mining rigs and profitability ✦ https://bitcoinminingcouncil.com/bitcoin-mining-electricity-mix- increased-to-59-5-sustainable-in-q2-2022/ - Bitcoin Mining Council estimate of ‘greenness’ of electricity input ✦ Broken Money, Lyn Alden 2023, Timestamp Press ✦ https://www.btcpolicy.org/articles/great-power-network- competition-bitcoin - Matthew Pines 2023, “Great Power Network Competition and Bitcoin” ✦ https://ccaf.io/cbnsi/cbeci - Cambridge Centre for Alternative Finance Bitcoin energy statistics ✦ https://www.cfr.org/backgrounder/dollar-worlds-reserve-currency - Council on Foreign Relations, 2023. Discusses why the dollar remains the world’s reserve currency for the foreseeable future. ✦ CoinMarketCap.com - market cap for most cryptocurrencies ✦ coinwarz.com - profit margins for Bitcoin mining hardware ✦ companiesmarketcap.com - market prices and capitalization for largest companies and gold, silver, Bitcoin ✦ https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr23101 8~111a014ae7.en.html ECB statement on CBDC possibility ✦ https://www.educative.io/answers/what-are-the-different-steps- in-sha-256 - SHA-256 algorithm details ✦ https://ember-climate.org/insights/research/global-electricity- review-2023/ - Electricity review 2023 from Ember ✦ https://studio.glassnode.com/dashboards/btc-miners - Glassnode, mining metrics ✦ https://www.investopedia.com/ask/answers/100314/why-do- bitcoins-have-value.asp - Why does Bitcoin have value? ✦ https://medium.com/the-capital/aristotle-would-prefer-bitcoin- f0f825f87d3f - Aristotle would approve of Bitcoin ✦ https://medium.com/the-capital/bitcoin-and-the-circular- economy-f1a4db39480c – Bitcoin as a circular economy asset ✦ https://medium.com/@cryptoassets0417/tenth-cryptosuper500- report-72f66ee20850 - Tenth CryptoSuper 500 report June 2023 ✦ Miningpoolstats.stream - tracks hash rate for mined coins and larger mining pools ✦ https://www.educative.io/answers/what-are-the-different-steps- in-sha-256 - SHA-256 algorithm details ✦ Softwar, Jason Lowery 2023, MIT master’s thesis, Amazon (availability constrained)

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TopCryptoSupers 12thReport OrionX May2024

  • 1.
    @OrionX_net May 2024 Stephen Perrenod CryptoSuper500 – Twelfth Report Top Cryptocurrency Supercomputers Bitcoin Passes the Fourth Halving Five and half Years of Coverage
  • 2.
    @OrionX_net ©2024 OrionX.net Digital Moneyor Digital Property Store of value Safety, security, to what degree? Unit of account Fixed Supply or inflationary? Medium of exchange Stable or Volatile? Money 3.0 is: Money in the Internet “Money has become information. Bitcoin is energy securely encapsulated as information. Electrons to eternal bits.” - @moneyordebt a 600-year advance in accounting with triple-entry ledgers on a timechain Money 3.0
  • 3.
    @OrionX_net ©2024 OrionX.net ✦ Bitcoinand cryptocurrency represents technology for Money 3.0 – 0.x – decentralized: shells, beads, centralized: Yap rai stones – 1.0 – decentralized ownership but state minting: gold and silver coins – 2.0 – centralized: national fiat currencies – 3.0 – decentralized digital Money stored in, sent across the Internet – Some might say cryptocurrencies are simply digital assets ✦ There are tens of thousands of cryptocurrencies but only 83 have market cap over $1 billion as 5/5/2024 ✦ Very few use Proof of Work, only 6 of those have significant market cap above $2 billion ✦ Surprise: your Bitcoin is not located in your hardware wallet or mobile wallet or paper wallet. That just holds the keys. A decentralized safety deposit box but with transmission privileges, you can have one key only or set up multikey. OrionX position Money 3.0
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    @OrionX_net ©2024 OrionX.net It’s noteither/or with blockchain and bitcoin, it’s both They are each layers in an integrated stack Blockchain (or timechain) is the triple entry ledger of chained transaction blocks: sender wallet, blockchain, receiver wallet A consensus algorithm (e.g. Nakamoto) that enforces security and prevents double spending is required: Mining, it also enforces a monetary policy An incentive is required to cause the algorithm to be computed and transactions added to the chain: Cryptocurrency/Coin Smart contracts (ordinals, BRC-20, etc.) and second layer chains such as Lightning extend the functionality and scaling for fast, small transactions Blockchain or Bitcoin? Gold, Fiat or Bitcoin? Table 1. Advances in monetary technology. Aristotle defined the first four attributes required for money over two millennia ago. We have added Fungibility “one is as good as another” to the table. Bitcoin is private, global money on a decentralized, highly replicated leger. Monetary Technology Advances
  • 5.
    @OrionX_net Bitcoin is amajor asset: Table of Market Cap, Assets over $1 Trillion CompaniesMarketCap.com ©2024 OrionX.net Table 2. Bitcoin is a $1.25 Trillion asset, up from $0.73 T in our last report. The only other assets with larger market caps are gold and silver, 5 two-trillion-dollar-plus class American companies, and Saudi Aramco. Since the last list in November 2023, Bitcoin passed both Meta (Facebook) and Berkshire Hathaway. From companiesmarketcap.com
  • 6.
    @OrionX_net ©2024 OrionX.net CryptoSuper Methodology ✦ Weonly consider Reusable Proof of Work mined (minted) coins, since they are the only ones using significant supercomputing power – Non-mined coins usually use Proof of Stake, Pre-mining (“air drop”), or some Byzantine Fault Tolerant algorithm. They either start with mining or an air drop ✦ The mining protocols and hash rates vary in very large degree between coins – Total Hashrate for Bitcoin is over 600 Exahash/s and other top coins are mostly in the Terahash/s domain, considerably less ✦ Most RPOW coins require ASICs to be profitably mined, GPU mining still possible with some ✦ We compare mining pools by using the Economic value of coins produced per year = number of blocks mined x number of coins per block x price per coin and adding transaction fee revenue – Pools are aggregators of many sources of hash rate including their own, other businesses, and individual miners. They act as brokers to share collective rewards in proportion to hashrate contributed to a pool, for modest fees ✦ We consider the top 12 operating pools for coins producing over ¼ $ billion per annum, there are only two: Bitcoin and Dogecoin ✦ Publicly traded, VC-funded Bitcoin mining startups are increasingly important and responsible for 25% of Bitcoin production including hosting, primarily in N. America, quickly filled the vacuum left by Chinese ‘shutdown’ of mining 3 years ago
  • 7.
    @OrionX_net ©2024 OrionX.net Supreme Difficulty of BitcoinMining ✦ Figure 1. The log10 of the Difficulty parameter versus the log10 of Bitcoin’s age in Block years, currently just over 16. Difficulty is a parameter in the Nakamoto consensus that is directly proportional to average hash rate and its increase with adjustments at each 2016 blocks, keeps block times close to 10 minutes each. Straight line in log- log means a power law, note how tight the relationship is, R^2 = 0.98. ✦ The difficulty of Bitcoin mining is rising as the 11th power of time, a very steep power law. It seems to have slowed to about the 9th power the last few years. ✦ Mining is a brutally competitive business with millions of mining rigs ever-growing in number, using faster ASICs benefitting from Moore’s Law and recently switching more and more toward immersion cooling for faster systems.
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    @OrionX_net ©2024 OrionX.net ✦ Topdozen publicly traded Bitcoin mining companies have market caps at or above ~ $200 million and have over 25% of global hash rate (includes hosted) ✦ Strong price recovery in 2023 and early 2024 and higher fees have boosted profitability ✦ Most are HQ’d in the US and Canada, also UK, Australia ✦ Data from company web sites and companiesmarketcap.com, first ten days of May 2024 ✦ Because of Fourth Halving on 4/20/24, total available minted in April was an average of 19/30 x 900 + 11/30 x 450 = 735 per day (and after 450 per day). Publicly Traded Bitcoin Mining Companies ✦ Table 3. The top publicly traded Bitcoin mining companies, some of these companies have other business lines, such as AI/data center hosting, most are pure plays. In general, these are new businesses with significant venture capital invested and large capital expenses devoted to ramping up hashrate with new mining rigs, so although they may have good operating margins on mining most are not profitable. Many of these are also keeping much of the Bitcoin they mine in their treasuries, collectively over $1 billion in value. Data from companiesmarketcap.com and company web sites. Company Market Cap $Million Locations Stock Price $ Hash Rate installed Exahashes/sec ,self mining, (managed services/hosting) Bitcoin Held in Treasury Daily Bitcoin minted April 2024 Marathon Digital 4780 US, UAE, Paraguay 17.52 29.9 17,631 28.3 Clean Spark 3640 US 16.15 17.3 5,739 24.0 Riot Blockchain 3000 US 10.42 12.4 8,490 15.0 Cipher Mining 1220 US 4.14 7.7 2,033 10.0 Hut8 Mining 740 Canada 8.27 5.4 (31.3 services provision) 9,116 7.5 Bitdeer Technologies 670 US, Bhutan, Norway 5.74 6.7 (15.8 hosting, cloud offer) 0 10.0 Terawulf 660 US, 2.18 7.8 0 11.6 IREN (Iris Energy) 660 Canada, US 4.73 6.2 0 12.4 Bitfarms 600 Canada, US, Argentina 1.82 7.0 830 9.0 Core Scientific 590 US 3.35 20.4 (6.3) n/a 9.9 Canaan 260 US, Kazakhstan, Ethiopia 0.88 2.1 909 ~4 HIVE Blockchain 220 Canada, Sweden, Iceland 2.44 5.0 2,377 7.1 Totals 17,040 120.7 (53.4) 47,125 148.8
  • 9.
    @OrionX_net ©2023 OrionX.net Supercomputing fordecentralized monetary network Cryptocurrency Mining is Green Supercomputing ✦ Method: We estimate the annual economic value of mined crypto, only Proof of Work coins ✦ Bitcoin market cap $1260 billion ✦ Bitcoin daily production = $29 million (miners also receive about $1-2 million in transaction fees) – money supply inflation under 0.8% from April, 2024 – 24 hours x 6 blocks per hour x 3.125 coins x $64,000 ✦ Annual production run rate, Bitcoin, about $11 billion plus fees of order 10% (but highly variable) ✦ Ethereum #2 by market cap at $214 billion, has abandoned Reusable POW in late 2022 and moved to Proof of Stake; it is no longer a mined coin or supercomputing application; large owners collect yield by staking ✦ Top Mining Pools produce revenue of $xx billion annually across top 2 mined coins, including both new coins and transaction fees. Very little revenue from the next few proof of work coins at current prices ✦ Bitcoin mining is cleaner than average global use of energy; also, Bitcoin, unlike most electricity outputs, is not consumption, it is production that creates permanent value (mostly rising), only 3% goes to transaction fees, 97% to new economic value creation ✦ The Bitcoin Mining Council estimates that 60% the industry’s electricity inputs are from sustainable sources including nuclear, based on a survey of their miners representing 45% of all Bitcoin hashrate. They report that Bitcoin mining uses just 0.16% of global energy and is responsible for only 0.11% of CO2 emissions Bitcoin energy inputs > 50% green Bitcoin only 1/900 of all CO2e, says Bitcoin Mining Council
  • 10.
    @OrionX_net ©2024 OrionX.net CryptoSuper Mining Trends ✦Bitcoin dominance for mining (minting) is strongly established; Dogecoin very distant second since Ethereum departed the field ✦ A dozen pools broker (not mine) most of $12 billion worth of value, almost all Bitcoin, and about $1 billion of which is transaction fees ✦ Ever faster mining hardware, up to nearly 400 Terahashes/secdon including liquid cooling; new highs in global hashrate, rising about 85% per year ✦ North American dominance, public companies as major players have increased to 1/4 of all Bitcoin production, including hashrate hosting for clients ✦ 2023 and 2024 have seen much higher prices and miner margins ✦ The electrical input has trended toward increasingly green, some public companies have set carbon neutrality goals (one is at 95%) ✦ Some geographies are restricting electricity access but Bitcoin mining acts as a load balancer for utility operators
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    @OrionX_net ©2024 OrionX.net Five (+1/2)Year Review since Nov. 2018 Attribute Nov. 2018 May 2024 5.5 Year Growth Coins making cut for CryptoSuper report Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Monero Bitcoin, Dogecoin Consolidation Number of different cryptocurrencies 2000 Tens of thousands total Majority abandoned, or worthless Bitcoin Market Capitalization $111 billion $1260 billion 11.4 x Bitcoin Price $6,334 $64,000 10.1 x Bitcoin annual production rate and fees $4.2 billion $11.6 billion 2.8 x Bitcoin Hash Rate Exahash/s 57 600 10.5 x Cryptocurrency Market Cap $220 billion $1312 billion 6.0 x Top cryptos annual mining production w/ fees $5.6 billion $12.5 billion 2.2 x We dropped from 6 to 2 coins, despite the 10-fold increase in the number of cryptos Bitcoin price has grown 52% compounded annually Bitcoin hash rate has grown over 50% compounded Even with Ethereum dropping out, (and it once reached half of the value of production), the mining production has grown to over $11 billion Table 4. Key attributes of Bitcoin and major cryptocurrencies, comparing the first CryptoSuper report in 2018 with this report 5.5 years later. Recent data is as of 6 May 2024. Bitcoin has been growing in value at a Moore’s law-like rate (but in a power law relation with its age), and its supercomputing crypto hashing power has been growing faster than Moore’s law.
  • 12.
    @OrionX_net Comparison to Top 500 Supercomputer List Attribute Frontier Supercomputer (#1) Top500 (all) WhatsMiner 63S Hydro cabinet Bitcoin Network Equivalent Performance 1.2 Exaflops 8.2 Exaflops 4.68 Petahash/s 581 Exahash/s One year increase 9% 57% 50% (vs. 53S) 57% Chips 37,888 AMD Instinct GPUS 6nm; 9472 AMD Epyc CPUs Hundreds of millons of cores 12 multithread, 5 nm ASIC 1,489,744 ASICs Cabinets 74 1 124,145 cabinets Power consumption 23 MegaWatts 89.2 KW 11,074 MW Weight 296 tons 0.76 metric tons 94,600 metric tons Cost $600 million $107,000 $13.28 billion Output Science Science & Engineering & AI 1.32 Bitcoin per year 164,250 Bitcoin per year Value Priceless Enormous $93,400 per year $11.6 billion per year Table 5. Comparison of a hypothetical Bitcoin network based on the latest high-end WhatsMiner 63S Hydro system with the Department of Energy’s Frontier supercomputer and the Top 500 list as a whole. The cost to build out the global Bitcoin network is about 22 times that of the Frontier system while the economic output is measurable at $11.6 billion annually, currently. Interestingly both the Top500 and the Bitcoin network have recently experienced the same Moore’s Law growth rate of 57% per year.
  • 13.
    @OrionX_net Top Proof ofWork Coins Mining Rigs Largest Pool Operators Summary Tables
  • 14.
    @OrionX_net ©2024 OrionX.net ✦ These6 coins produce over $11 billion of annual economic value (AEV) ✦ Bitcoin has almost all the value at $10.7 billion, Dogecoin is the clear #2 as Ethereum has dropped out of the race. Transaction fees not included here. ✦ Only BTC and DOGE have production over $200 million ✦ Bitcoin has 600 Exahashes/sec of computer power, approaching Zettascale Top Six Proof-of- Work Coins ✦ Table 5. The three columns give the coin name, its market cap as of 5/6/24, and its cryptographic hash algorithm rate and type. The next three columns give the annual production value and the current and maximum supply. . Only Bitcoin is in the 100s of Exahashes/sec range, and as a result of that and first mover advantage, nearly all the economic value is in Bitcoin. Coin Market Cap (B$) Total hash rate and Algorithm Annual Production rate $B (nominal) Current Supply (millions) Max Supply (millions) Bitcoin 1288 582 Exa, SHA-256 10.73 19.69 21 Dogecoin 24 1190 Tera, Scrypt 0.88 144,200 infinite Litecoin 10 1020 Tera, Scrypt 0.12 74.5 84 Bitcoin Cash 6 4.59 Exa, SHA- 256 0.08 19.7 21 Monero 2 2.01 Giga, Random X 0.02 18.4 Infinite Ethereum Classic 4 170 Tera, ETCHash 0.17 146.9 210.7
  • 15.
    @OrionX_net ©2024 OrionX.net ✦ Theseare 21 of the fastest Bitcoin mining rigs on the market, from the three largest vendors. ✦ The table shows hashrate, electricity required, and operating profit at 5 cents per kilowatt-hour ✦ Typical hashrates are over 150 TH/s and operating profit several dollars a day per machine. Energy consumption 3 kWatt or higher (especially hydro models at 5 to 7 kW) ✦ It would take 3 million of the Bitmain Antimner S21s to produce all 600 Exahashes/sec. of global hashrate ✦ This table from asicminervalue was produced May 6, 2024 Top Mining Rigs Table 6. Columns are model, announce date, hashrate, power consumption, noise level, SHA-256 is algorithm for Bitcoin, and gross profitability per day at 5 cents per kWh. Operating revenue after electricity costs only, ignoring equipment capital amortization. Several models are announced in advance of release. Source: asicminervalue.com
  • 16.
    @OrionX_net ©2023 OrionX.net ✦ Top12 Bitcoin Mining Operators of 16 pools ✦ Pools are not mining farms, they are brokers of hash rate for a modest fee, 1 to 4% typical ✦ Miners, large and small, typically choose to direct their hashrate to a pool for efficiency and for predictable payouts ✦ It is relatively easy for a miner to switch from one pool to another ✦ We also list the host country (Global typically are Chinese pools that relocated or hide their location) ✦ These top pools are responsible for 96% of the Bitcoin value brokered Largest Pool Operators Table 7. Top mining pools by value using Bitcoin price as of 5/6/24. Transaction fees add of order 10% (last 90-day average) on top of Bitcoin’s block subsidy reward. Pool Country Bitcoin Hashrate Exahashes/s % of all hashrate Annual Run Rate $M w/ 10% boost from fees Foundry Digital USA 167.3 26.6 3078 AntPool Global 162.2 25.8 2985 ViaBTC USA 78.3 12.5 1446 F2Pool Global 62.5 9.9 1145 Binance USA 28.2 4.5 520 Unknown N/A 21.6 3.4 394 Luxor Tech USA 18.2 2.9 336 Slushpoool Global 16.7 2.7 313 BTCdotcom Global 13.3 2.1 243 SBI Crypto Japan 12.8 2.0 231 SecPool Global 8.3 1.2 139 Poolin USA 7.5 1.2 139 Top 12 operators 580 95% 10,968 All Bitcoin Mining 620 11,571
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    @OrionX_net ©2024 OrionX.net References ✦ https://21lessons.com/- by Gigi, free online book on Bitcoin ✦ https://www.asicminervalue.com/ - list of top mining rigs and profitability ✦ https://bitcoinminingcouncil.com/bitcoin-mining-electricity-mix- increased-to-59-5-sustainable-in-q2-2022/ - Bitcoin Mining Council estimate of ‘greenness’ of electricity input ✦ Broken Money, Lyn Alden 2023, Timestamp Press ✦ https://www.btcpolicy.org/articles/great-power-network- competition-bitcoin - Matthew Pines 2023, “Great Power Network Competition and Bitcoin” ✦ https://ccaf.io/cbnsi/cbeci - Cambridge Centre for Alternative Finance Bitcoin energy statistics ✦ https://www.cfr.org/backgrounder/dollar-worlds-reserve-currency - Council on Foreign Relations, 2023. Discusses why the dollar remains the world’s reserve currency for the foreseeable future. ✦ CoinMarketCap.com - market cap for most cryptocurrencies ✦ coinwarz.com - profit margins for Bitcoin mining hardware ✦ companiesmarketcap.com - market prices and capitalization for largest companies and gold, silver, Bitcoin ✦ https://www.ecb.europa.eu/press/pr/date/2023/html/ecb.pr23101 8~111a014ae7.en.html ECB statement on CBDC possibility ✦ https://www.educative.io/answers/what-are-the-different-steps- in-sha-256 - SHA-256 algorithm details ✦ https://ember-climate.org/insights/research/global-electricity- review-2023/ - Electricity review 2023 from Ember ✦ https://studio.glassnode.com/dashboards/btc-miners - Glassnode, mining metrics ✦ https://www.investopedia.com/ask/answers/100314/why-do- bitcoins-have-value.asp - Why does Bitcoin have value? ✦ https://medium.com/the-capital/aristotle-would-prefer-bitcoin- f0f825f87d3f - Aristotle would approve of Bitcoin ✦ https://medium.com/the-capital/bitcoin-and-the-circular- economy-f1a4db39480c – Bitcoin as a circular economy asset ✦ https://medium.com/@cryptoassets0417/tenth-cryptosuper500- report-72f66ee20850 - Tenth CryptoSuper 500 report June 2023 ✦ Miningpoolstats.stream - tracks hash rate for mined coins and larger mining pools ✦ https://www.educative.io/answers/what-are-the-different-steps- in-sha-256 - SHA-256 algorithm details ✦ Softwar, Jason Lowery 2023, MIT master’s thesis, Amazon (availability constrained)