GoMining Expands to Solana; Bitcoin Miners Deploy Ways for More Profits
GoMining expands to Solana before its NFT launch on Magic Eden. Bitcoin miners raise billions in funding amid increasing energy costs and competition.
GoMining, a Bitcoin miner service, has announced its expansion into the Solana blockchain to diversify its offerings further. The platform allows retail users to earn BTC rewards by tokenizing its Bitcoin mining hash rate.
Solana’s Ecosystem is Ideal for Bitcoin Miners – GoMining CEO
The expansion into Solana is a step ahead of GoMining’s highly-anticipated NFT launch on Magic Eden later this month. Moreover, GoMining’s token will also be tradable as an SPL token on Solana DEXs (decentralized exchanges).
This move represents a major step for GoMining’s quest to capture a bigger audience in the fast-growing cryptocurrency ecosystem. It seeks to reach out to users who prefer Solana while keeping its core Bitcoin mining offerings.
GoMining CEO Mark Zalan said Solana’s ecosystem perfectly fits Bitcoin miners who prefer user-friendly platforms. Since Bitcoin mining is often energy-intensive, Zalan acknowledged that Solana offers a scalable and cost-effective solution for miners keen on diversifying from Bitcoin’s native blockchain.
Zalan’s comments reflect a growing demand for platforms allowing easy access to Bitcoin mining rewards without the high capital costs associated with such operations.
Tokenized Hash Rate Revolution
GoMining was one of the first firms to tokenize Bitcoin mining hash rates, allowing users to receive BTC without investing in expensive mining hardware. GoMining will enable users to invest in digital miners through the purchase of NFTs without the need to have physical mining rigs.
So far, 216,000 of these mining NFTs have been sold by the Bitcoin miner.
Bitcoin Miners’ Methods to Stay Profitable
As Bitcoin miners face escalating energy costs, many turn to substantial funding rounds to stay competitive. Accordingly, Bitcoin miners in the US have raised over $3.7 billion since November 2024, primarily through zero or near-zero coupon convertible notes.
These firms use these funds to fortify their Bitcoin reserves and expand mining operations amid growing competition and the last Bitcoin halving event, which cut mining rewards in half.
Companies such as Marathon Digital, Riot Platforms, and CleanSpark have used this method aggressively. For instance, Marathon holds close to 45,000 BTC, which at the price of over $4.4 billion is a big reserve positioning the company for future growth.
With the market value of Bitcoin scaling beyond $100,000, Marathon and other companies focus on acquiring as much Bitcoin as possible. Besides increasing reserves, this strategy will also enhance overall market share.
Bitcoin miners’ profitability continues to decline due to various factors. Surging energy costs and a Bitcoin hash rate at an all-time high make operations even more expensive.
Hence, these mining firms are exploring other ways to remain profitable. Companies such as Hut 8 and Hive lease their data centers to artificial intelligence companies, with demand for them rising lately.
Other firms like Marathon have spread operations in regions like Kenya and Paraguay to enjoy surplus energy.
Riot’s Successive Growth
Riot Platforms, one of the leading Bitcoin mining companies, has recorded a year-on-year growth in its BTC production and deployed infrastructure. In its December report, the company announced a 155% surge in its deployed hash rate for 2024.
The result follows Riot’s efforts to ramp up production after the April Bitcoin halving event that increased network difficulty and hash rate. The expansion also includes completing the first phase of its Corsicana facility in Texas, which currently has 400 MW of operational infrastructure.
Further expansion is planned in Kentucky, with the company aiming to grow its hash rate from 31.5 EH/s to more than 100 EH/s by 2027, indicating its commitment to long-term growth amidst increasing competition.
Riot’s BTC Holdings Soar
The company’s BTC holdings rose 141% in the last twelve months. It currently has 17,722 BTC, in addition to the mined BTC, to expand its corporate treasury.
The company mined 516 BTC in December of 2024, a 4% increase over the previous month. However, its daily production dropped from 20 BTC/day in December 2023 to 16.5 BTC/day in December 2024 due to the halving event’s impact on mining rewards.
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