Crusoe acquires peer mining firm

• Crusoe Energy Systems has just acquired the operating assets of Great American Mining
• BTC Price at the time of writing – $18,404.05
• The deal will add over 10 megawatts (MW) to its mining output

Crusoe Energy Systems, a Bitcoin miner based in Colorado, has announced that it will acquire the operating assets of Great American Mining (GAM), a portable BTC mining company, in light of the rising difficulty and decreasing profitability of Bitcoin mining.

Crusoe claims that the deal will result in the integration of GAM’s operations into Crusoe’s, increasing Crusoe’s capacity by roughly 9% and adding over 4,000 application-specific integrated circuits (ASIC) crypto mining rigs.

Crusoe will have roughly 125 of these gas-powered waste containers

Following the acquisition, Crusoe will have approximately 125 of these gas-powered waste containers operational, which it claims could reduce the annual emission of approximately 170,000 cars.

The sector is under pressure from both the traditional and cryptocurrency markets, and the ever-increasing difficulty of BTC mining is hurting miner profitability. The consolidation of these two mining operations comes at this time.

Digital asset services platform Matrixport’s head of research and strategy, Markus Thielen, told Cointelegraph that the majority of the mining hash rate that has moved to the United States over the past two years had “significant consequences” for the industry’s position in the wider economic downturn.

He explained that orders for new mining machines were placed a year in advance and were anticipated to come online in the third quarter of 2022. 

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CleanSpark purchased a $33 million facility in the United States

Some miners sold significant portions of their BTC reserves to recoup expenses while they waited for the equipment, but Thielen states that this has not been enough and anticipates an outright industry restructuring.

CleanSpark, a crypto miner, has already demonstrated an interest in snatching up cheap assets in the face of challenging market conditions by purchasing 1,800 Antminer S19 XP rigs and over 1,000 ASIC mining rigs at a substantially discounted price in July.

CleanSpark spent an additional $9.5 million in September to acquire Australian-based miner Mawson’s $33 million facility in the United States and its 6,468 ASIC mining rigs.

Compute North, a mining hosting company, filed for Chapter 11 bankruptcy in September due to rising energy costs and the bear market in cryptocurrencies. The company owed $500 million to 200 creditors and had assets worth $100 million to $500 million.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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