What’s Happening with Bitcoin Mining in China?

Bitcoin Miners in United States Warehouse

In late May, the Chinese government cracked down on crypto mining sending markets into a crash over the past month. The crackdown follows a series of policy announcements aimed at curbing crypto mining operations due to environmental concerns. However, the recent clampdown is nothing new but merely a reiteration of regulations proposed years ago. The Chinese central bank has been concerned with cryptocurrency’s growing popularity because it directly challenges the nation’s current financial stability. To protect the economy from the wild volatility of the crypto market, Beijing halted the facilitation of crypto payments from leading financial institutions in the country and doubled down on bitcoin mining regulations as well. This has set off what many are calling “the great mining migration.” The crypto mining exodus has already begun with new and used cryptocurreny miners flooding the market, and many believe the rigs will be relocated to North America. 

This is an end to an era for China, which has hosted 65% – 75% of the world’s hash rate. Due to its established technology, supply chain, and cheap electricity, parts of the country were ideal for large scale mining operations. Regions like inner Mongolia, Xinjiang, Sichuan, and parts of Yunnan were major hubs for mining rigs. Since the crackdown, province leaders have provided two months for miners to clear out. In addition, cryptocurrency prices have plummeted. Earlier in the year, Bitcoin peaked at $64k and is now sitting just under $36k. Though there are several variables responsible for the heavy decline, it would be difficult to deny China’s giant impact on the market. Despite China’s anchored stance on crypto, miners are looking to relocate to the United States and Canada. Texas is now a potential location for the miners in exodus from China because of its libertarian regulatory environment and abundant cheap green energy. In addition, Texas has the cheapest electricity in the United States. The exodus stresses the opportunity for miners to diversify their global hashrate. This migration provides the bridge for other countries to implement small crypto zones and further expose people to digital assets.  

Since the inception of the Bitcoin, studies have shown that there has been an astronomical surge in carbon emissions. This undermines President Xi Jinping’s promise to make China carbon neutral by 2060. Thanks to the heavy rain during China’s summer season, miners were able to rely on sustainable power sources to fuel the rigs. However, the arid winters caused miners to seek out an alternative cheap electricity source: coal. Burning coal to create currency has quickly become a huge factor for the mining exodus. In addition, many believe that the Chinese Communist Party is speculative and apprehensive toward anything outside of their control. The crackdown was a result of these factors. Now, some of the world’s largest mining farms are halting operations in China and migrating across the globe to set up shop in other countries. 

Marathon Patent Group and DMG Blockchain Solutions to Form the Digital Currency Miners of North America (DCMNA) and Launch North America’s First Cooperative Mining Pool

Marathon Patent Group and DMG Blockchain Solutions Logos

Article originally posted by Globenewswire.comSource: Marathon Patent Group, Inc.; DMG Blockchain Solutions Inc.

VANCOUVER, British Columbia, Jan. 05, 2021 (GLOBE NEWSWIRE) — Marathon Patent Group Inc. (NASDAQ: MARA), (“Marathon”) and DMG Blockchain Solutions Inc. (TSX-V: DMGI) (DMGGF: OTC US) (FRANKFURT: 6AX) (“DMG”) have entered into a non-binding memorandum of understanding to form Digital Currency Miners of North America (“DCMNA”), which will be a U.S.-based non-profit entity whose mission is to create a better mining environment for North American miners, to help improve their financial performance, and to create North America’s first cooperative mining pool.

Marathon Patent Group and DMG’s U.S. subsidiary, Blockseer, are working together to establish DCMNA, a non-profit entity focused on North American digital currency opportunities, including decentralizing the Bitcoin hashrate and providing more transparency for North American miners. DCMNA’s principal initiative is to create North America’s first cooperative mining pool by licensing Blockseer’s mining pool to all DCMNA members in a cooperative structure. Mining partners who are members will receive rebates based on the hash rate they contribute to the overall pool, thus improving the mining profitability of DCMNA members.

As a founding member of DCMNA and one of North America’s largest enterprise Bitcoin mining companies, Marathon will put all of its mining hashrate (equivalent to 10.36 EH/s, or 7.6% of the total Bitcoin network’s hashrate, if all miners were deployed today at current levels) into the pool.

Benefits of the mining pool include, but are not limited to:

  • Profit sharing, whereby miners receive rebates based on their contributed hashrate
  • Increased transparency as all financial information will be audited by a third-party U.S.-based financial audit firm
  • Lobbying efforts to improve the policies and regulatory environment in North America for miners
  • “Clean block mining” that adheres to the Office of Foreign Asset Control’s (OFAC’s) compliance standards and reduces the risk of mining blocks that include transactions linked to nefarious activities

DCMNA is focused on increasing transparency, trust, and accountability in the emerging mining industry, particularly as more institutions embrace Bitcoin as a store of value. Unlike other Bitcoin mining pools, Blockseer’s pool will be audited by an independent auditing firm, ensuring that the miners receive accurate rewards and that auditors and regulators can trust the data provided. Using DMG’s proprietary patent pending technologies, the pool will also create transaction blocks that specifically omit any transactions deemed risky by Walletscore, and which may not meet OFAC standards. As a result, North American miners who are DCMNA members will reduce the risk of the blocks they mine containing transactions tied to criminal or terrorist-related activities.

DCMNA will also act as unified group to lobby government bodies and regulators on behalf of its membership. The organization will be governed by its mining members, while Marathon’s executive chairman, Merrick Okamoto, will serve as DCMNA’s inaugural chairman. A membership committee will also be formed to develop and regulate DCMNA’s operations and investments in North American digital currency mining issues, which will be identified by its membership.

“We are tremendously proud to lead the launch of DCMNA, a non-profit organization, whose first mandate is to bring its members a vast improvement in mining pool operations by licensing the Blockseer pool to serve our North American mining members,” said Marathon’s executive chairman, Merrick Okamoto. “To date, companies such as ours have relied on pools primarily based in Asia to connect to the Bitcoin network, and we have been frustrated by the lack of transparency and audited data. Marathon has been a leader both in terms of market capitalization and also in terms of lobbying regulators on behalf of our industry, and we look forward to working diligently to build the capabilities of DCMNA on behalf of our mining partners and DCMNA’s new members.”

Dan Reitzik, DMG’s CEO added, “It is an honor to work with Marathon to establish the DCMNA and to provide the technological components for the DCMNA organization. When DMG acquired Datient, the parent of Blockseer in 2018, our intention was to create solutions that would benefit our industry as a whole and increase trust in the Bitcoin ecosystem. Mining is a unique industry, in that miners do not necessarily compete with one another for customers or contracts, but instead work together to secure the blockchain on which Bitcoin transactions are processed. It simply makes sense to amalgamate North American miners toward common goals, and the Blockseer pool is the ideal way in which to lead this process in a safe, transparent, and compliant way.”

Terms of the memorandum of understanding include DMG licensing Blockseer’s technology and associated intellectual property to DCMNA, as well as the management of pool operations. Upon completion of a definitive agreement, detailed terms and conditions will be provided in an upcoming news release. Pool operations are expected to commence shortly after entering into a definitive agreement.

About Marathon Patent Group
Marathon is a digital asset technology company that mines cryptocurrencies, with a focus on the blockchain ecosystem and the generation of digital assets.

About DMG Blockchain Solutions Inc.
DMG is a vertically integrated blockchain and cryptocurrency company that manages, operates, and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG’s businesses are segmented into three main divisions: data centre operations, data analytics and forensics and developing enterprise blockchains. DMG’s data centre operations focus on earning revenues from block rewards and transaction fees by mining primarily bitcoin as well as providing hosting services for industrial mining clients. DMG’s data analytics and forensic services provide technical expertise software products such as Blockseer Pool, Mine Manager and Walletscore, as well as working with auditors, law firms, and law enforcement organizations. DMG’s permissioned blockchain technology is focused on developing enterprise software for the supply chain management of controlled products. DMG’s strategy is to become the domain experts across the business verticals it focuses on. DMG’s management team includes seasoned crypto experts, forensic & financial professionals and blockchain developers with deep relationships throughout the industry.

For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com

On behalf of the Board of Directors,
Daniel Reitzik, CEO & Director

For further information, please contact:

Marathon Patent Group Company Contact:
Jason Assad
Telephone: 678-570-6791
Email: [email protected]

Marathon Patent Group Investor Contact:
Gateway Investor Relations
Matt Glover and Charlie Schumacher
Telephone: 949-574-3860
Email: [email protected]

DMG Blockchain Solutions Inc.
Email: [email protected]
Web: www.dmgblockchain.com

Cautionary Note Regarding Forward-Looking Information
This news release contains forward-looking information based on current expectations. Statements about the Company’s plans for the potential establishment of this new DCMNA pool and definitive agreement, to increase petahash (PH) by self-mining, price of bitcoin, plans and intentions, other potential transactions, acquisition of customers, product development, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as “may”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company’s financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoins; security threats, including a loss/theft of DMG’s bitcoins; DMG’s relationships with its customers, distributors and business partners; the inability to add more power to DMG’s facilities; DMG’s ability to successfully define, design and release new products in a timely manner that meet customers’ needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to secure sufficient capital to complete its business plans, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements.

The securities of DMG are considered highly speculative due to the nature of DMG’s business.

Factors that could cause actual results to differ materially from those in forward-looking statements include, failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, the impact of Covid-19 or other viruses and diseases on the Company’s ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoins from DMG or its customers, consumer sentiment towards DMG’s products, services and blockchain technology generally, failure to develop new and innovative products, litigation, increase in operating costs, increase in equipment and labor costs, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by third parties in respect of the matters discussed above.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Introducing the Canaan Avalon 1246 90TH/s Bitcoin Miner

Avalon 1246 Bitcoin Miner

Blokforge is excited to start the new year by introducing the all new Canaan Avalon 1246 90 TH/S Bitcoin Miner with PSU. The Avalon 1246 is the latest high efficiency, high hashrate asic miner the comes generating a hashrate of 90 TH/S and has a power consumption of 3420Watts. It mines ASIC SHA-256 coins such as Bitcoin, BitcoinSV, BitcoinCash, Acoin, Curecoin, Joulecoin,Unbreakable, Peercoin, eMark, Terracoin, and more.

The Avalon 1246 is debuting in January 2021 and is set to be one of the best Bitcoin miners on the market today. Featuring an innovative new design, the miners 17.5 x 16 x 12 inch body weighs in at 33 pounds and was built with durability in mind. Made from a strong alloy material, the 1246 can be placed either horizontally or vertically when mining for maximum convenience and space saving flexibility. In addition, the miner operates with incredible efficiency while producing a maximum volume of 75db. When compared to the AvalonMiner 1146, the energy efficiency of the 1246 has improved by 37% from 52 J/TH to 38 J/TH.

Tested and reviewed by Cybtc.com, the A1246 offers a easy deployment and seamless operation. Once running, the hashrate quickly recahed 90TH/s with a fan speed of about 6800 and an average long running hashrate of 90.05TH/s. The test saw a maximum hash rate of about 105T and a minimum hashrate of 78T with no large fluctuations while running for long periods of time.

With a plug and play deployment, built-in power, excellent stability and a leading hashrate, the Avalon 1246 ASIC Miner is one of the best Bitcoin miners on the market today.


Learn more or preorder your Canaan Avalon 1246.

Bulk discounts are available – contact us for more details.