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New York, NY – September 7, 2021 – China’s crackdown on bitcoin mining has given miners outside China tremendous opportunity and bitcoin miners around the world have jumped on the opportunity to expand their operations. Before the crackdown, China held the helm of bitcoin production generating about half of the world’s total output. The crackdown has made it easier for global miners to source miners competitively, expand their operations, and reduce the cost of producing bitcoin. Hello Pal (CSE: HP) (OTCQB: HLLPF), Marathon Digital Holdings, Inc. (NASDAQ: MARA), Riot Blockchain, Inc. (NASDAQ: RIOT), HUT 8 Mining Corp. (NASDAQ: HUT), and Bitfarms Ltd (NASDAQ: BITF) (TSXV: BITF) have been major beneficiaries of the crackdown as their earnings reports show an increase in bitcoin production and revenue.
Hello Pal (CSE:HP) (OTCQB:HLLPF) hit yet another income milestone with its August revenue which passed the $3 million mark, a significant increase in income from July’s $2.54 million. The rapidly growing international live streaming, language learning, and social-crypto platform recorded a gross margin of 61% and 8% for its crypto mining and live streaming operations respectively.
The $3M+ record marks a new milestone for Hello Pal as it continues its expansion into non-Chinese markets in the Middle East and Southeast Asia. “This new record revenue is another important milestone for us, and it shows that our efforts in the earlier part of this year in relation to our live streaming market expansion and crypto-mining initiatives are bearing fruit,” said KL Wong, Hello Pal’s Founder, and Chairman.
Hello Pal’s relocation to more suitable locations in July is one of the factors that contributed to the higher earnings recorded in August 2021. This relocation also promises more long-term stability and profitability for the company.
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Marathon Digital Holdings, Inc. (NASDAQ:MARA) saw a 220% revenue increase to $29.3 million in Q2 2021 from $9.2 million in Q1 2021 and a 10,147% year-over-year increase from $286,000 in Q2 2020. The company increased the number of miners deployed to 19,395 and held approximately 5,784 bitcoin as of June 30, 2021. Marathon produced 654 newly mined bitcoins in Q2 2021 out of 846 newly minted bitcoin as of June 30, 2021. Aside from increasing its bitcoin production, Marathon increased its hash rate by 196% from 0.7EH/s by the end of Q1 2021 to 2.9EH/s by June 30, 2021. The company’s increasing production continued into July with the company recording a 66% increase in BTC production to 442.2 new BTC in July.
Revenues for Riot Blockchain, Inc. (NASDAQ:RIOT) grew in bounds with the company reporting a record second quarter as its mining revenue increased by 1,540% to $31.5 million in Q2 2021 compared to $1.9 million in Q2 2020. Riot’s focus on bitcoin mining and expanding its operations coupled with the boost from the decreased global hash rate has paid off based on Q2 earnings. The company also anticipates exciting financial opportunities as it expands its capacity at Whinstone, one of North America’s largest hosting and mining companies by developed and future capacity.
Hut 8 Mining Corp. (NASDAQ:HUT) is also riding the wave of crypto’s massive boon with a new record-breaking quarter. Hut 8 realized yet another quarter of increased revenues with its Q2 2021 revenues hitting a new high of $33.5 million, $31.4 of which came from its self-mining operations. The company mined 553 bitcoin in Q2 2021 bringing its total bitcoin balance to 1,824 as of June 30, 2021. Hut 8 also enjoyed increased bitcoin production at a lower cost thanks to China’s crackdown on bitcoin.
Like MARA, RIOT, and HUT, Bitfarms LTD (NASDAQ:BITF) (TSXV:BITF) has gained significantly from China’s bitcoin market diffusing across the globe. Bitfarms saw a 29% increase in its quarter-to-quarter revenue in Q2 2021 and an increase of about 389% from Q2 2020. The company’s bitcoin production also increased by 26% from Q1 2021. According to Bitfarm’s CEO, China’s ban on bitcoin mining reduced the network hash rate by about 50% and allowed the company to increase its market share to about 1.5% up from less than 1% at the beginning of 2021. The crackdown also allows Bitfarms to source miners competitively and leverage its infrastructure and capabilities to expand even further.
As more Chinese BTC miners exit the market, a 50% share of what China previously produced is up for grabs for miners such as Hello Pal. The company is expanding its mining operations outside China in countries that offer more long-term stability as it works to capture a bigger market share.
For more information about Hello Pal International, please click here.
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