Bit Digital claims that following China’s decision to prohibit bitcoin mining, the company “accelerated” its relocation to North America.
Following China’s recent ban on bitcoin mining, the company Bit Digital (Nasdaq: BTBT) announced on July 13 that it was relocating 14,500 bitcoin miners to the United States. The migration data comes from the firm’s unaudited report detailing its bitcoin production and mining operations in Q2 2021.
Bit Digital said that as of June 30, it controlled approximately 32,500 miners producing approximately 1.92 exahash per second (EH/s) of hashpower. Bit Digital noted that during the first quarter, the firm repositioned its fleet, liquidated particular older mining rig types, and created possibilities for customers to purchase newer machines.
Bit Digital earned a “small gain on miner sales” and intends to invest $5.4 million in “newer vintage miners.” Bit Digital purchased 3,515 mining rigs in Q2 on the spot market and intends to purchase additional miners with additional funds.
Bit Digital reported in the unaudited report that it earned 562.9 bitcoins in the second quarter of 2021.
“The reduction from the first quarter was due to the accelerated migration program, in which more miners were offline while in transit to or awaiting installation in North America, as well as miner sales and disposals. Treasury holdings of bitcoin increased to 588.4,” according to Bit Digital’s financial report.
Bit Digital reveals in the report’s conclusion that it has been migrating miners to North America since October 2020. As a result, a higher proportion of the company’s fleet was offline than in the preceding quarter, owing to the increased number of miners in transit to or awaiting installation in North America, Bit Digital explained. The corporation continued in their statement:
The corporation shipped 14,500 miners to the United States throughout the quarter. The business anticipates concluding the relocation of its remaining Chinese-based miners to North America in the early third quarter of 2021.
The data comes in the wake of a recent update to the Cambridge Bitcoin Electricity Consumption Index (CBECI) study, which revealed that China accounts for 46 percent of Bitcoin hashrate.
The projection is far lower than 2020 statistics, which indicated that China accounted for around 65 percent of network hashrate.
However, the CBECI bitcoin mining map only tracks data through April 2021. Nonetheless, statistics clearly demonstrate that similar to Bit Digital’s announcement that it would begin migration plans in October 2020, many companies appear to have done the same.