Riot Blockchain Claims Bitcoin Mining Is Getting Harder

This seeming contradiction reflects the evolving state of the mining landscape. Riot's operational footprint has expanded considerably. The firm currently commands 357 PH/s of computing power, with management projecting a jump to 566 PH/s before the end of the third quarter. When the previous year ended its second quarter, that capacity stood at just 101 PH/s.

The company's financial performance tells a brighter story. Mining margins broadened from 20.5% to 33.5%, while revenues climbed by half a billion dollars during the first half of the year through June. Previously, Riot had maintained a diversified strategy, processing blocks for Bitcoin, Litecoin, and Bitcoin Cash simultaneously.

The broader mining sector faces mounting pressure. July brought reports that Bitcoin's difficulty rating hit unprecedented territory, jumping roughly 10% to reach 17.35 T—likely driven by sophisticated hardware entering the network after extended lead times from earlier orders.

Elsewhere, the Central Asian nation of Kazakhstan is charting a new course for the industry. Facing mounting pressures from the pandemic, regulators there proposed imposing a 15% levy on mining operations. The nation has cultivated an attractive climate for miners, boasting some of the world's lowest power costs and minimal regulatory oversight. That advantage has translated into serious market presence—Kazakhstan now accounts for as much as 6% of worldwide Bitcoin mining capacity, trailing only China. The proposed tax framework would treat cryptocurrency miners as a distinct category of taxpayers, requiring separate registration and declaration mechanisms on filing paperwork. Officials view the revenue source as a potential tool for combating Covid-19's mounting toll and economic impact across the region.