On April 5, 2022, bitcoin miner Bit Digital and BitMine Immersion Technologies announced the signing of a letter that establishes a hosting relationship for mining equipment. The two companies agreed to start the plan with 7,000 modern ASIC miners.
Bit Digital to Improve BTC Mining Experience
The current-generation hardware will be stored in BitMine’s immersion coolers to boost mining output and lower energy consumption. New York-based Bit Digital plans to deliver the ASIC miners until the end of August, at which point the immersion plan should reach full capacity.
Bit Digital CEO Bryan Bullett hailed the move to leverage immersion-cooled containers for efficient bitcoin mining:
“We have been intrigued by mining using immersion technology, and we are happy we found an ideal hosting scenario allowing us to utilize the benefits offered by immersion cooling of our machines,” the CEO stated.
Bit Digital and BitMine Immersion have agreed to share revenue from the mined coins under a mutually beneficial multi-year deal.
The Great Mining Migration Benefits North America
Until the summer of last year, about three-quarters of the computational power used to mine BTC came from China. Authorities in the Asian nation have long had an on-again, off-again relationship with digital assets.
In August of last year, China finally pulled the plug on BTC mining, citing environmental concerns and a threat to the nation’s sovereign currency. The sweeping ban on crypto-related activity sparked the “great mining migration,” which saw Chinese mining rigs migrate to other jurisdictions with legal protection over private property.
Miners exiled from China are currently enjoying a BTC minting spree in more crypto-friendly jurisdictions that offer more geopolitical certainty. The primary beneficiary of the mining migration has been North America, which now boasts the highest global hashrate.
A 2021 report by the Cambridge Center for Alternative Finance highlighted the continent’s growing dominance in the bitcoin mining sector. The data showed that most global mining operations are shifting to the US, which boasts over 35% of the Bitcoin network’s hashrate.
The growth has been bolstered by leading crypto miners like Bit Digital moving operations from China to the West. Bit Digital’s Bryan Bullett forecasts that North America will continue grabbing a bigger share of the mining market as more companies flock to the region.
The CEO argued that the influx of miners to the US would be driven mainly by the democratic values and improving regulatory environment in the jurisdiction.
Miners Are HODLing Despite Choppy BTC Price Action
The total computing power on the Bitcoin network has soared to over 200 exahashes as miners continue shifting westwards in the wake of China’s widespread crypto ban. Per the latest on-chain data, mining entities are holding on to their coins despite turbulent price movement that has seen BTC hover between $30k and $50k in 2022.
The continual accumulation by bitcoin miners, the most heavily-leveraged entities on the blockchain, is a bullish signal for investors; the move points to a healthy and more secure network in the long haul.