Shell, one of the world’s largest oil and gas companies, is considering getting into Bitcoin mining. The company will also sponsor the 2023 and 2024 Bitcoin Conference in Miami. This announcement comes as Bitcoin miners are facing enormous challenges around the world.
Shell in mining despite bear market
The bear market continues to eat away at the crypto ecosystem and miners are not spared. This is not stopping major players from getting into the mining industry.
This is notably the case for Shell, which is planning to expand its business into Bitcoin mining. The announcement was made on November 10, 2022 by Bitcoin Magazine.
One of the world’s largest oil and gas companies, Shell, will launch a Bitcoin mining initiative at the Miami 2023 conference.Bitcoin Magazine
In addition, Shell has been announced as a sponsor of the 2023 and 2024 editions of the Bitcoin Conference.
This annual event brings together Bitcoiners from around the world in Miami to discuss the development of Bitcoin. The event is currently the largest gathering of Bitcoiners in the world.
Big difficulties for crypto mining players
Shell is expanding into bitcoin mining as the industry faces significant challenges.
On the economic front, the bear market has seriously affected the business of miners. Some mining players have even reached the point of selling machines or more Bitcoins than they produce to replenish cash flow.
The explosion in energy prices due to the war in Ukraine has further complicated an already difficult situation for crypto miners.
One example of the current difficulties of crypto miners is the situation that Argo Blockchain is going through.
After initiating an inconclusive fundraising, the Bitcoin mining company sold 3,843 mining machines. This sale only brought in 5.6 million US dollars. An insufficient amount compared to the economic deficit of the company which could go bankrupt like others.
Beyond the economic difficulties, miners in some countries are facing significant social pressures. This is particularly the case in the United States, especially in the State of New York, where miners are accused of noise pollution. They are sometimes forced to spend millions to build noise fences in order to avoid legal proceedings.
In some states, such as Paraguay, the regulatory ambiguity around bitcoin mining largely undermines the emergence of the industry.
It is probably because of these multiple difficulties that Binance, the world’s leading crypto exchange, has come to the rescue of miners. The exchange has indeed set up a $500 million fund to support the mining industry.
Thanks to this initiative, struggling cryptocurrency miners will be able to access debt financing for 5% to 10% interest over 18 to 24 months.
At a time when the crypto mining industry is going through one of its worst moments, Shell’s entry into the mining industry is great news. David Bailey, CEO of Bitcoin Magazine, rightly calls this entry “a win for Bitcoin.” Let’s remember again, without mining, there is no verification of transactions. To a large extent, there is no Bitcoin without mining.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.