TeraWulf

Bitcoin hash rate spikes as analysts say miners coming back online

Analysts are speculating that the Bitcoin hash rate has seen a significant spike recently as miners come back online to reap the rewards of the BTC price hike.

Bitcoin’s (BTC) hash rate spiked to all-time highs of 398 terahashes per second (TH/s) on March 23, with analysts speculating miners are starting to turn their rigs back on as BTC’s price rises.

According to data aggregator YCharts, the Bitcoin network hash rate dropped to 344.63 TH/s as of March 27, an increase from 335.32 TH/s on March 26, but still up from 178.77 TH/s one year ago.

In a March 26 post, Sam Wouters, a research analyst at Bitcoin financial service provider River Financial, speculated that the spike in hash rate is connected to unused mining inventory coming online, new facilities going live and entrepreneurs finding cheap sources of mining.

“While Bitcoin’s price was so low and as much inventory as possible was brought online last year, at some point, maximum capacity of what the network could handle was reached,” he said.

“Now that the price has been rising again and some time has passed, more of this inventory has been able to go online,” Wouters added.

In addition, Wouters says that Hydro models are starting to get into the market with “250+ TH/s per machine, which adds tremendous hash rate.“

A March 20 analysis from investment banking company Stifel shared a similar sentiment, speculating that the recent spike could be connected to miners bringing hardware back online.

“We anticipate overall network hash rate will continue to climb higher as a result of attractively priced hardware being bought up by well-capitalized miners.“

Speaking to Cointelegraph, Nazar Khan from Bitcoin mining company TeraWulf, explained the company is currently maximizing the hash rate of all its rigs and has recently brought more online at its new Nautilus Cryptomine facility. 

“Wulf has the opportunity to add 80 MW of capacity at LMD and 50 MW at Nautilus. The recent price movement is an indication of the long-term value of the ability to expand at low-cost energy sites,” Khan said.

According to Khan, while some have speculated the lower prices forced miners to shut down their rigs and wait for the BTC price to improve, TeraWulf was able to continue mining Bitcoin at lower price levels because of their lost cost from “efficient mining fleets.”

Related: Crypto miner explains how Bitcoin mining stabilizes grids

However, regardless of the reason for the spike, Khan says TeraWulf is not expecting the network hash rate to continue to increase through the first half of the year, irrespective of the BTC price.

“There is a lag between when investment decisions are made, and when that capacity comes online,” Khan explained.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips

TeraWulf goes nuclear: 8,000 rigs spool up in Nautilus mining facility

Bitcoin mining company TeraWulf has fired up a new “behind the meter” mining facility powered by 100% nuclear power in Pennsylvania.

United States-based Bitcoin mining company TeraWulf has fired up a new crypto mining facility in Pennsylvania — solely running on nuclear power generated on-site. 

In March 6 statement, TeraWulf said the Nautilus Cryptomine facility is its first “behind the meter” Bitcoin (BTC) mining facility, meaning it uses energy directly at the generation site without traveling through the grid.

The Nautilus Cryptomine directly sources carbon-free baseload power from the 2.5 gigawatt (GW) Susquehanna nuclear generation station on site.

Paul Prager, chairman and CEO of TeraWulf, claims the Nautilus mining facility now has “arguably the lowest cost power in the sector, just $0.02/kWh for a term of five years.”

The company also revealed they have now brought online nearly 8,000 mining rigs representing computing power, or hash rate, of 1.0 exahashes per second (EH/s), with plans for another 8,000 miners by May, increasing the hash rate to 1.9 EH/s.

TeraWulf has a 50 megawatt (MW) share in phase one of the new facility, a joint venture with Cumulus Coin, but can add an additional 50 MW of BTC mining capacity in future phases.

According to TeraWulf’s website, the Nautilus Cryptomine is expected to reach 300 MW when complete and will be among the largest mines in North America.

The Nautilus Cryptomine facility in Pennsylvania is solely nuclear powered. Source: TeraWulf

First announced back in August 2021, the Nautilus Cryptomine facility is the result of a partnership between TeraWulf’s nuclear mining facility subsidiary and power generation and infrastructure company Talen Energy Corporation. 

Phase 1 of the joint venture included the 180-MW “Nautilus Cryptomine” built on Talen’s digital infrastructure campus adjacent to its nuclear power generation station.

TeraWulf generates domestically produced BTC powered by nuclear, hydro, and solar energy with a goal of utilizing 100% zero-carbon energy.

Related: US legislators renew call for EPA investigation of crypto mining emissions data

Concerns around the potential environmental impacts of BTC mining have ramped up in the last few years with heated debates around the environmental and energy impact surrounding the mining of crypto assets. 

Last year, New York signed a two-year moratorium banning any new fossil-fuel-powered Bitcoin miners from setting up shop within the state.

Last October, Europe made moves toward regulatory action on crypto’s alleged environmental impact as well.