The cryptocurrency mining industry continues to expand at a rapid pace in August 2021, with major players placing significant hardware orders to capitalize on Bitcoin’s sustained momentum above $46,000. Meanwhile, Ethereum’s landmark EIP-1559 upgrade has reached a symbolic milestone that could reshape the network’s economic model for years to come.
TL;DR
- HIVE Blockchain Technologies ordered 1,800 Antminer S19j Pro units from Bitmain, adding 180 PH/s of hash power
- Deliveries scheduled in six monthly tranches from January through June 2022
- HIVE holds 25,000 ETH and 875 BTC in cold storage, valued at approximately $100 million
- EIP-1559 has burned over 100,000 ETH ($311 million) in just 21 days since the London hard fork
- Ethereum is now effectively functioning as a deflationary asset
HIVE Doubles Down on Mining Expansion
HIVE Blockchain Technologies, one of the first publicly traded cryptocurrency mining companies with a green energy and ESG strategy, announced a major purchase of 1,800 Antminer S19j Pro mining machines from Bitmain Technologies. The order represents an aggregate hash power of 180 Petahash per second (PH/s) and marks the first order under the company’s 2022 mining purchase program.
Delivery of the new miners is scheduled in six equal tranches of 300 units each, commencing in January 2022 and running through June 2022. The staggered delivery approach reflects ongoing global supply chain challenges, particularly semiconductor shortages and logistics delays in shipping equipment from Asia due to COVID-19.
Frank Holmes, Executive Chairman of HIVE, emphasized the company’s commitment to fleet optimization. "We are constantly upgrading our ASIC fleet to have the most efficient miners we can buy from cash flow," Holmes stated. "This purchase with Bitmain enables us to maintain our strategy to diversify the manufacturers we purchase from."
HIVE has established deep relationships with three of the top global ASIC manufacturers — Bitmain, MicroBT, and Canaan — in an effort to reduce reliance on any single supplier. The company intends to continue using cash flow to make opportunistic investments and upgrade its mining equipment on a regular monthly basis.
HODL Strategy and Financial Position
Unlike many mining operations that liquidate coins immediately, HIVE has maintained a strong HODL strategy. As of the latest update, the company holds 25,000 ETH and 875 BTC in secure cold wallets, with the combined inventory valued at approximately $100 million. All Bitcoin held by HIVE has been mined using green energy sources.
At Bitcoin’s current price near $46,942 and prevailing mining difficulty levels, HIVE reports an annual run rate of approximately $220 million. The company’s next milestone is reaching 1 Exahash in Bitcoin mining capacity by the end of August 2021, a target that would solidify its position among the largest publicly traded mining operations worldwide.
EIP-1559 Reaches 100,000 ETH Burned
While Bitcoin miners expand their operations, Ethereum miners are adjusting to a radically changed landscape following the implementation of EIP-1559. The fee-burning mechanism, which was activated as part of the London hard fork on August 5, has now destroyed over 100,000 ETH — worth approximately $311 million at current prices — in just 21 days.
The milestone was highlighted by Bitfly (etherchain_org), a prominent Ethereum mining pool and analytics provider. The rate of ETH destruction underscores the significant volume of on-chain activity on the Ethereum network, even as transaction fees themselves have moderated compared to the peaks seen earlier in 2021.
The fee-burning mechanism has effectively turned Ethereum into a deflationary asset during periods of high network usage. Ethereum proponents have embraced the term "ultra-sound money" to describe this new economic model, in contrast to Bitcoin’s "sound money" narrative with its fixed 21 million supply cap.
Analysts Project Continued ETH Supply Reduction
Analysts estimate that approximately two million ETH could be permanently removed from circulation over the following year if current network usage patterns persist. This supply reduction, combined with the growing adoption of decentralized finance (DeFi) protocols and NFT marketplaces, could create significant upward pressure on Ether’s price.
However, not all observers are convinced. Critics argue that Ethereum’s monetary policy remains too unpredictable, especially compared to Bitcoin’s deterministic supply schedule. The Ethereum community itself faced challenges in determining the exact total supply of ETH — an issue that briefly sparked debate about the network’s transparency.
Why This Matters
The parallel developments in Bitcoin mining expansion and Ethereum’s deflationary shift represent two fundamentally different approaches to cryptocurrency economics. Bitcoin mining companies like HIVE are investing heavily in hardware to secure the network and accumulate BTC, while Ethereum is actively reducing its circulating supply through protocol-level fee burning. For investors and miners alike, understanding these divergent models is crucial for positioning in the evolving digital asset landscape. As Bitcoin trades around $46,942 and ETH holds above $3,100, both networks appear to be strengthening their respective value propositions.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Prices mentioned reflect historical data from August 26, 2021. Always conduct your own research before making investment decisions.
HIVE buying 1800 S19j Pros right before the 2022 crash is peak miner timing. those machines were underwater within 4 months of delivery
Timo S. HIVE timed the top perfectly on hardware orders. those S19j Pros were delivered right as BTC crashed below 30k. Canadian hydro couldnt save margins on that
100K ETH burned in 21 days was when the ultra sound money narrative got real data behind it. before EIP-1559 it was just memes
hive buying 1800 s19j pros is a big bet on btc staying above 40k through 2022. those machines are paperweights below 30k
s19j pros at 100 TH/s each were top tier in 2021. 180 PH/s total from this order alone was a massive expansion for hive
rig_calculator hive got those machines at around 100 TH/s each but by the time they were all delivered BTC had crashed below 20k. the timing was brutal
rig_calculator 100 TH/s per S19j Pro was top tier in 2021 but those machines became paperweights during the 2022 winter. Hive timed this purchase terribly
s19_truth_ Hive had cheap Canadian hydro so their break-even was way below most miners. they survived 2022 because of energy costs not because of timing
those s19j pros were profitable down to about $0.08/kWh at btc prices above 35k. hive had cheap canadian hydro so they were fine for a while
Andrei P. hit the nail on the head. cheap hydro was the only reason hive stayed alive past may 2022. everyone praising the timing of this order forgets the 7 month delivery window
Elise R. calling 30k the floor was generous. those S19j pros were underwater by November 2022 at sub-16k BTC
100k eth burned in 21 days after eip-1559. that is insane. eth is basically deflationary now and people are still calling it ultrasonic money skeptically
the term is ultra-sound money and yeah, 311 million dollars worth burned already. the supply shock is just getting started
ultra sound money narrative aged well though. eth supply has been net deflationary multiple times since eip 1559. the burn mechanic changed everything
ultra sound money is cool until gas fees spike and nobody wants to use the chain. the burn only matters when network activity is high
100K ETH burned in 21 days was the moment EIP-1559 skeptics had to sit down. the deflationary thesis played out exactly as designed
HIVE holding 25K ETH and 875 BTC while expanding hash power was smart treasury management. most miners sold everything at market price and had nothing left when the bear hit
hive holding 25000 eth and 875 btc in cold storage worth 100m at the time. crypto miners being their own treasury companies is an underrated business model
Tomasz K. miners as treasury companies works until you realize theyre forced sellers during bear markets to cover electricity costs. hive dumped most of their ETH stack below 2k
180 PH/s sounds massive until you realize Foundry USA added that in a single month last year. hive was always a rounding error on global hash
100K ETH burned in 21 days was the moment ETH supply dynamics fundamentally changed. the deflationary thesis became data not theory
burn_rate_ 100K ETH burned in 21 days was when the ultra sound money people finally had data on their side. before that it was just vibes and memes