• Bitcoin mining hardware maker Canaan Inc. has secured new orders from Cipher Mining and Stronghold Digital.
• Bitcoin mining firms jostle to bolster their position ahead of the next halving event.

Canaan Inc., a prominent high-performance computing solutions provider, has recently secured follow-on purchase orders from Cipher Mining Inc., and Stronghold Digital Mining Inc., totaling over 17,000 Bitcoin (BTC) mining machines.

Canaan’s Success and Strategic Partnerships

According to a recent release, Cipher Mining, a prominent developer and operator of Bitcoin mining data centers, finalized an agreement through two joint venture entities, in which it holds a 49% interest, to purchase 16,700 A1466 model mining machines from Canaan.

These machines boast an average hash rate of 150T/s and are scheduled for delivery in April and May 2024.  The deployment will take place at Cipher’s Bear and Chief data centers in Texas, complementing the 11,000 A1346 model mining machines previously purchased and installed at the company’s Odessa data center.

Similarly, on December 26, 2023, Stronghold Digital Mining agreed with Canaan to purchase 1,100 A1346 model mining machines with an average hash rate of 123T/s. These machines are set to be delivered this month for use at Stronghold’s Scrubgrass Plant. 

Additionally, Stronghold holds an option to purchase an extra 2,500 A1466 model mining machines with an average hash rate of 140T/s-150T/s. Notably, the 2,000 A1346 model mining machines acquired on July 27, 2023, have already been delivered and installed at Stronghold’s Patha Creek Plant.

Mr. Nangeng Zhang, Chairman and Chief Executive Officer of Canaan commented on the deal noting that these “follow-on orders underscore our robust partnerships with publicly traded mining companies and affirm the capabilities of our new A14 product series.” 

He highlighted the surge in computing power sales, indicating a growing demand across various channels as the crypto space evolves.

Tether’s $500 Million Investment in Bitcoin Mining

In a parallel development, Tether Holdings Ltd., the company behind the widely-used USDT stablecoin, revealed plans to invest $500 million in Bitcoin mining operations. Tether aims to establish mining facilities in South America and Central America, with a capacity of 40-70 megawatts in Uruguay, Paraguay, and El Salvador. 

This ambitious global expansion positions Tether as a major player in the Bitcoin mining industry, contributing one percent of the total computing power to the BTC network. Currently, BTC is trading at $42,939, down by 4.6% in 24 hours with a market capitalization of $841 billion, and a 24-hour trading volume of $47.2 billion.

Tether’s involvement in Bitcoin mining could change the competitive landscape, taking advantage of its financial strength and market reach. This move brings in another big participant to the market, which could have an impact on the race for Bitcoin’s remaining limited supply.

However, JPMorgan Chase & Co, a renowned financial giant, has raised concerns about Bitcoin’s potential challenges that may arise following its halving event in April 2024. The report highlights the interplay between Bitcoin’s price, transaction fees, miner income, and hashrate, pointing out the reduction in transaction fees as a potential hurdle for miners’ income. 

Analysts at JPMorgan expressed skepticism about Bitcoin’s hashrate maintaining its historical growth trajectory post-halving, emphasizing the importance of sustained growth in Bitcoin’s price for the continued expansion of its hashrate.