The largest Bitcoin miners - how they work and influence the market

Mining cryptocurrencies in general and bitcoins in particular is becoming an increasingly time-consuming and complex process over time. This leads to the fact that the main opportunities and resources are concentrated in the hands of large miners, gradually displacing smaller market players. To get a general idea of how the industry giants are doing, you can use the analysis of the MVIS Global Digital Assets Mining Index, which includes data on the 20 largest miners, including companies such as Riot Blockchain, Bitfarms and Iris Energy. Let's talk about them in more detail.

Riot Blockchain, originally from the USA, was founded in 2000 and specializes in bitcoin mining on a truly industrial scale. This is confirmed by the company's statement dated November 2021, according to which it has at its disposal 4464 BTC and an impressive arsenal of 30 thousand ASIC miners who are able to perform complex operations as efficiently as possible. The computing power of the company (hashrate) is so high that it allows you to mine hundreds of bitcoins equivalent to tens of millions of dollars every month, and these indicators will only grow further.

Galaxy Digital is another American giant founded in 2017, but has already achieved notable success in its field. The company operates on low-cost energy, manages computing centers around the world, repairs and maintains its own equipment on site. It is focused on long-term contracts and constant innovation, for which it regularly recruits talented specialists.

Iris Energy is an even younger market participant from Australia, who started work in 2019 and bet on bitcoin mining in the most environmentally friendly way, seeing in this a new fast-growing trend supported by such global influencers as Elon Musk. The company uses renewable energy in its activities, which ensures the functioning of the computing infrastructure. Additional emphasis is placed on supporting the safety of mining in order to protect the interests of employees and investors.

The bitcoin market and the position of the largest miners are closely linked. For example, the fall of bitcoin by more than 70% in 2022 caused a serious crisis in the industry, which inevitably affected its giants. As one of the strategies to attract investors, these companies used the retention of coins for their future sale at the highest possible price. But the market situation forced a revision of plans, as a result of which many large miners were forced to start a sale and in 11 months of 2022 got rid of 99% of the mined coins or about 40 thousand BTC.

According to a number of influential analysts, this is what led to the fact that the price of bitcoin could not gain a foothold above 20 thousand dollars. At the same time, the recovery of the exchange rate, which is observed at the beginning of 2023, caused the growth of the MVIS Global Digital Assets Mining Index, which was mentioned earlier, by as much as 64%.

Thus, large miners and the bitcoin market, if not a single organism, are at least strongly connected with each other and demonstrate an obvious correlation, which will only increase over time.

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