The Bitcoin (BTC) mining and data center hosting company Riot has recently announced its production and operations update for January 2023. It has produced a new all-time high of 740 Bitcoin in the last month.
Can the recent reports of eased inflation and the change of tightening policies by the Federal Reserve (FED) in 2023, plus the return of capital to the crypto market, be a sign of the end of the bear market and the renaissance of the new bull cycle?
Another Sign Of Recovery For Bitcoin
After the reeling collapse of the crypto exchange FTX and the crypto winter, Riot faced intense headwinds. The mining difficulty rose against Bitcoin prices, which fell almost 64% in 2022.
With the new year and the favorable conditions of the global economy, companies like Riot have increased their mining production considerably following the Bitcoin price action.
Riot has been able to increase its Bitcoin mining production by 62% in comparison with January 2022. Last month they produced 740 BTC, a substantial change from January 2022 of 458 BTC.
According to the Riot report, the company currently held approximately 6,978 BTC as of January 31, all produced by the company’s self-mining operations. Furthermore, Riot sold 700 BTC in January, generating net proceeds worth $13.7 million. Jason Les, CEO of Riot, said:
(…) I am proud to announce that Riot’s track record with month-over-month increases in total Bitcoin production continued, with a new all-time high of 740 Bitcoin produced in January. Despite a reduction in our deployed fleet and hash rate capacity driven by recent damage to our Rockdale Facility, Riot has continued to deliver new record highs, mining more Bitcoin in January than in any month prior.
Riot reached a goal of 12.5 exa hashes per second (EH/s) in total hash rate capacity in Q1 of 2023. Still, due to recent damages and difficult weather conditions in Texas in late December, this is expected to be delayed by the company. Lee added:
(…) We will provide additional updates as we obtain greater clarity on the impact of our planned deployment schedule.
After the range formed in most of 2022, Riot’s stock price has increased considerably since January 2023 despite losses in infrastructure and the delayed increase of production from the company. RIOT is currently trading on the Nasdaq for $6.70.
As the number of hashes generated and solved per second increases, so does the hash rate of the Bitcoin network. As the number of hashes increases, so does the security of the Bitcoin network. And with the recent capital flowing into the most prominent cryptocurrency on the market, as revealed by a CoinShares report, it is a sign of improvement for 2023 in Bitcoin price action and the start of a new trend.
Following a month with high volatility, Bitcoin is consolidating above its support level of $22,600. Currently trading at $23,000, Bitcoin aims at the resistance wall of $24,200 to reduce the bull trend and break new levels.
Featured image from Unsplash, charts from Trading View.