Crypto News

U.S. Mining Stocks Drop Almost 50% Despite Hashrate Increasing

The Cambridge Center for Alternative Finance, a financial research institute affiliated with Cambridge University, has found that the Bitcoin hashrate was up by 4% in August from the previous year, from 35% to 39%. But, still, the mining stocks have seen declines in the last month, with Bitcoin prices going down. The concluded figure involves BTC.com, Via BTC, and Pooling data. Cryptocurrency mining involves verifying and broadcasting the transactions on the relative blockchain ledger. It is a computationally-intensive process that opens doors for validators (who validate transactions) to earn rewards. Validators verify the transaction by guessing a unique hash number associated with each transaction. And it requires computing power more than simple PCs. Related Reading | New Data Shows China Still Controls 21% Of The Global Bitcoin Mining Hashrate Similarly, it needs a more powerful computer when verifying transactions on the Bitcoin network. Because the Bitcoin algorithm creates difficulty when too many validators come online simultaneously. Mining Bitcoin through a home computer was feasible a decade ago. However, considering the problems that arose with the growth of BTC mining, U.S. public companies such as Marathon Digital Holdings, Riot Blockchain, and Core Scientific owned server forms have made this type of work more accessible. Mining Stocks Dropped Nearly 50% The most recent bloodbath in the crypto market, which has seen the collapse of TerraUSD and the price dips of many cryptocurrencies, also caused a slump in the price of the shares of these mining companies. Since April 18, mining stocks of Core Scientific and Marathon have nearly lost 47% of their value. Likewise, Riot’s shares are reduced by its one-half, and Canadian-based Hut 8 Mining Corp has similarly diminished by 41% of the value of its shares. A few crypto traders point out that seeing the last month’s decline of 25% in Bitcoin price and the increasing correlation of crypto with the stock market, investors would now be cautious about cryptocurrency investment. The level of correlation between crypto and stocks has lasted between 0.67 to 0.78, with the BTC falling 10% on the day of peak correlation. Here 0 refers to no relationship, and 1 implies being completely correlated. Richard Craib, chief of the San-Francisco-based hedge fund Numerai, stated that digital assets are now “part of the mainstream financial system, and that’s not good for its viability as an alternative asset class. It’s not serving its original purpose as an uncorrelated asset.”  Related Reading | Bitcoin Bearish Signal: Whales Ramp Up Dumping Analysts say that some traditional investors have ended up their crypto trading. The plummet of tech stocks has become the reason behind the exit of many investors. So they are selling their virtual assets to raise funds.  In addition, the raised concerns about the environmental impacts of mining could also play their role in dropping stock prices. As of now, 160 crypto mining bills are waiting for the consideration of the government authorities in over 30 states. Featured image from Pixabay and chart from TradingView.com

Altcoins Analysis Bitcoin Blockchain

World’s Largest Asset Manager Debuts Blockchain ETF

ProShares Bitcoin ETF To Go Live Tomorrow, Marking Major Milestone For Crypto World

BlackRock has launched an ETF to enable investors to gain exposure to the growing blockchain space. The asset managers have also tipped the blockchain industry to drive irreversible change in various fields. The BlackRock Blockchain And Tech ETF On Wednesday, trillion-dollar asset manager BlackRock launched a blockchain ETF as part of their megatrend lineup. BlackRock […]

Altcoins

Altcoin That’s Exploded 3,509% in 2022 Set for Imminent Launch on Coinbase

The top US-based crypto exchange Coinbase is preparing to list two explosive crypto assets, including one that has soared 3,509% in 2022. The exchange says it will soon add both STEPN (GMT) and Green Satoshi Token (GST) to its altcoin lineup. The health and fitness-focused crypto assets will be accompanied by the Experimental label, which […]

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Bitcoin Crypto News

MicroStrategy Acquires 4,167 BTC And Marathon Holds 1,259 Self-Mined BTC

Another day, another MicroStrategy bitcoin buy. The Michael Saylor-led company is relentless in its BTC accumulation strategy. In a similar position, the bitcoin mining giant Marathon Digital Holdings doubles down on its no-selling policy. Which is also a BTC accumulation strategy. Will these two giants go down in history as pioneers?  Related Reading | Treasury Management Firm Says CFOs Avoid Risk, Bitcoin Won’t Become Corporate Vehicle These companies are adopting the Bitcoin Standard as a way of life. Let’s look at MicroStrategy and Marathon’s stats, where do these new acquisitions put them on the BTC leaderboard? And, how did the market react to both news? MicroStrategy, Even More Aggressive The man himself, Michael Saylor announced the acquisition via his very active Twitter: “MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per bitcoin. As of 4/4/22 MicroStrategy hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin.” MacroStrategy has purchased an additional 4,167 bitcoins for ~$190.5 million at an average price of ~$45,714 per #bitcoin. As of 4/4/22 MicroStrategy #hodls ~129,218 bitcoins acquired for ~$3.97 billion at an average price of ~$30,700 per bitcoin. $MSTRhttps://t.co/Z45OuJU5KI — Michael Saylor⚡️ (@saylor) April 5, 2022 To clarify, MacroStrategy is a MicroStrategy subsidiary. This seems to be the buy the company did with the $200M bitcoin-collateralized loan they took a week ago. Our sister site Bitcoinist explains and clarifies: “The company took the loan via MacroStrategy, a subsidiary created with the purpose of holding its parent company’s Bitcoin funds. As per the release, the $205 million loans were issued under the Silvergate Exchange Network (SEN) and its Leverage program and will mature on March 23, 2025. The SEN was launched in 2020, the release clarified, to address the demand for BTC collateralized loans.” Even though 129,218 BTC is a lot for just one entity, it’s beneficial to remember that those are not Michael Saylor’s coins. The treasury belongs to MicroStrategy, a public company owned by many. Still, they own almost triple what Tesla owns. And MicroStrategy keeps on buying.  Many people talk about buying the dip. But when the dip comes, they panic and sell (as oppose to buy). This is how you do it.👍 https://t.co/VcAB6NeQoc — CZ 🔶 Binance (@cz_binance) April 5, 2022 Binance’s CEO Changpeng Zhao reacted to the news with high praise. “Many people talk about buying the dip. But when the dip comes, they panic and sell (as oppose to buy). This is how you do it,” he wrote. BTC price chart for 04/05/2022 on Kraken | Source: BTC/USD on TradingView.com Marathon, Even More “Hodling” In a recent press release, Marathon Digital Holdings announced very healthy-sounding numbers. The company “produced a record 1,258.6 self-mined bitcoin during Q1 2022, a 556% increase from 191.8 self-mined bitcoin in Q1 2021 and a 15% sequential increase from 1,098.2 self-mined bitcoin in Q4 2021.” Plus, in March alone, they “successfully deployed 1,320 miners.” About the increase, the company’s CEO Fred Thiel said:  “In the first quarter of 2022, we increased our bitcoin production 15% from the prior quarter and produced a record 1,259 bitcoin even as the global hash rate rose by approximately 17%,” Where does that put them on the bitcoin leaderboard? Well, Marathon “increased total bitcoin holdings to approximately 9,373.6 BTC with a fair market value of approximately $427.7 million.” The company’s accumulation strategy began in October 2020, the last time Marathon sold bitcoin.  Related Reading | Allied Payment Partners NYDIG, Adds Bitcoin To Corporate Treasury  MicroStrategy, The Leaderboard, And The Market According to the Bitcoin Treasuries list, these acquisitions put both companies at the bookends of the Top 5. That is: MicroStrategy, 125,051 BTC Tesla Inc., 42,902 BTC Galaxy Digital Holdings, 16,400 BTC Voyager Digital LTD, 12,260 BTC Marathon Digital Holdings, 8,956 BTC Nevertheless, the market seems to have reacted negatively to the news. At 9 am, BTC traded in the $47K range. It dropped continually during the day and around noon it was trading in the $45.5K range. Is MicroStrategy to blame? Or was it just a coincidence? Featured Image by terimakasih0 on Pixabay | Charts by TradingView

Bitcoin Crypto News

Why Crypto Mining Firms Will Be More Secure Due To A Ledger And Blockware Partnership

Ledger Enterprise and Blockware Solutions have partnered to help secure the crypto mining sector at scale. The cooperation will enable Blockware’s client to leverage Ledger’s “world-class security and highly customizable governance workflows”, according to a press release shared with Bitcoinist. Related Reading | Bitcoin 2022 Miami Preview: What To Expect From Crypto’s Biggest Conference The […]

Bitcoin

What Is Behind The Bitcoin Miner Expansion?

North America, and especially the United Estates, has become a top destination for the bitcoin mining industry. States such as Texas and Kentucky are racing to become the world’s mining hub. Public bitcoin miners are planning on huge increases in hashrate in 2022, seeking to grow their bitcoin production. Bitcoin Mining Expansion A recent Arcane […]

Bitcoin Crypto News Mining

US Crypto Miners Are Determined To Boost Their Hash Power Despite Bitcoin’s Drop

Bitcoin’s price has fallen by more than three months, but US crypto miners aren’t backing down from adding more powerful computers to their operations. A large chunk of Bitcoin mining occurred in the US, based on IP addresses from so-called hashers that employed certain crypto mining pools last year, according to Statista, a German company […]