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.
180 PH/s from 1,800 s19j pros. hive is going all in on the halving cycle timing. the math works if btc stays above 40k post-2024
hive holding 25k eth and 875 btc in cold storage is the real story here. they are basically a crypto etf with mining operations attached
100,000 ETH burned in just 21 days after EIP-1559. That is $311 million worth of ETH permanently removed from circulation. The deflationary case for Ethereum is no longer theoretical.