Crypto Miner on Record Bitcoin Production, Bear Market Over?
Bitcoin (BTC) mining and data center hosting company Riot has recently announced its production and operations update for January 2023. It has produced a new all-time high of 740 Bitcoin in the past month.
Can the latest reports on eased inflation and change in tightening policy from the Federal Reserve (FED) in 2023, plus return of capital to the crypto market, be a sign of the end of the bear market and the renaissance of the new bull cycle?
Another sign of recovery for Bitcoin
After the rapid collapse of the crypto exchange FTX and the crypto winter, Riot faced intense headwinds. Mining difficulty rose against Bitcoin prices, which fell nearly 64% in 2022.
With the new year and the favorable conditions in the global economy, companies like Riot have significantly increased their mining output following the Bitcoin price action.
Riot has been able to increase their Bitcoin mining output by 62% compared to January 2022. Last month they produced 740 BTC, a significant change from January 2022’s 458 BTC.
According to the Riot report, the company currently held approximately 6,978 BTC as of January 31, all produced by the company’s self-mining operations. Furthermore, Riot sold 700 BTC in January, generating net revenue worth $13.7 million. Riot CEO Jason Les said:
(…) I am proud to announce that Riot’s track record of month-on-month increases in total Bitcoin production continued, with a new all-time high of 740 Bitcoin produced in January. Despite a reduction in our deployed fleet and hashrate capacity driven by recent damage to our Rockdale facility, Riot has continued to deliver new records, mining more Bitcoin in January than any previous month.
Riot reached a target of 12.5 exa-hashes per second (EH/s) in total hash rate capacity in Q1 2023. Due to recent injuries and difficult weather conditions in Texas in late December, this is still expected to be delayed by the company . Lee added:
(…) We will provide further updates as we gain greater clarity on the impact of our planned deployment schedule.
After the interval that formed in most of 2022, Riot’s share price has increased significantly since January 2023 despite losses in infrastructure and delayed production increases from the company. RIOT is currently trading on the Nasdaq at $6.70.
As the number of hashes generated and solved per second increases, so does the hash rate of the Bitcoin network. As the number of hashes increases, so does the security of the Bitcoin network. And with the recent capital pouring into the most prominent cryptocurrency on the market, as revealed by a CoinShares report, there is a sign of improvement for 2023 in Bitcoin price action and the start of a new trend.
After a month of high volatility, Bitcoin is consolidating above the $22,600 support level. Currently trading at $23,000, Bitcoin is targeting the $24,200 resistance wall to reduce the bull trend and break new levels.
Featured image from Unsplash, charts from Trading View.
