Connect with us

Bitcoin

Bitcoin Miner Genesis Digital Assets Raises $431 Million in Funding

Published

on

While the market still reflects fierce price swings and a taxing mid-year slide, many investors have started engaging in the crypto space, shooting the prices of Bitcoins and altcoins.

Bitcoin miner Genesis Digital Assets has raised $431 Million in its recent funding round to expand its operations using clean energy. In the news announced on Tuesday, it was reported that the round was led by the crypto investment firm Paradigm. The list of other investors that took part in the funding round for Genesis Digital Assets included Bitcoin-centric technology and financial services firm NYDIG, crypto exchange firm FTX, venture capital firms Electric and Ribbit Capital, and investment management firm Kingsway Capital.

Recently in July, Kingsway Capital had invested around $125 Million in Genesis Digital Assets to purchase equipment and set up data centers in the United States and Nordic Region.

Advertisement

According to the co-founder and Chief Executive officer of Genesis Digital Assets, Marco Streng, the capital raised in this round will allow them to elaborately work on their operation in the clean energy space. The ongoing issue of creating a less ecologically harmful space for carrying out transactions in the crypto world has led to the elevated importance of greening Bitcoin. Streng claimed that to provide 1.4 Gigawatts online by 2023, the funds will be employed in regions where clean energy is available.

In a statement from Co-founder and Managing Partner of Paradigm, Matt Huang who has joined the Board of Directors of Genesis Digital Assets commented that the company’s team has impressively established itself as a Bitcoin miner over the past decade.

Genesis Digital Assets is one of the largest and most experienced Bitcoin mining organizations around the world. Established in 2013, the company’s founders have created around 20 industrial-scale mining farms and purchased over 300K miners.

Advertisement

While the market still reflects fierce price swings and a taxing mid-year slide, many investors have started engaging in the crypto space, shooting the prices of Bitcoins and altcoins.

In August, GDA purchased over 20K mining machines from China-based Manufacturer Canaan. While the price wasn’t disclosed, co-founder Abdumalik Mirakjmedov said that the machine order was a part of the ongoing operations to speedily scale Bitcoin mining operations in North America and the Nordic (where the company is targeting renewable energy sources).

News Source

Advertisement

VanEck

VanEck Filed for Digital Assets Mining ETF

Published

on

Global investment manager VanEck, with more than $60 billion assets under management, has filed an application to establish an exchange-traded fund that will track the price and yield performance of the Global Digital Asset Mining index.

Fund’s investment principles

The Global Digital Asset Mining index is being used to track the performance of companies that are somehow engaged in digital assets mining activities, including Bitcoin or altcoin mining operations. Additionally, companies that provide various services like software development, as well as hardware suppliers, also fall into the category of mining operations providers.

Advertisement

The fund will invest at least 80% of its total assets in securities in the DAMC but, at the same time, the company is not allowed to invest in digital assets by using derivatives products like options or futures. Hence, the fund is not going to track the price movement of any cryptocurrency.

The VanEck ETF will be able to provide exposure to companies that are in fact operating with digital assets or holding them on their balance sheet and are also being presented in the Global Digital Assets Mining index.

Risks for investors

The application also contains a section related to the risks behind the digital assets mining industry. According to the filing, the main risks for investors are technological obsolescence, supply chain issues and certain issues with obtaining new hardware.

Advertisement

Additionally, the fund agrees that most digital assets mining companies are exposed to the issue of relying on third-party companies that are located and functioning overseas.

Bitcoin Daily Chart
Source: TradingView

In addition to risks tied to hardware wearing, digital assets miners generate revenue from selling their assets on various cryptocurrency exchanges, and the price of their assets is a subject of high volatility that could lead to the value loss of their holdings.

While most cryptocurrency miners remain in high profit from their operations, rapid change of assets like Bitcoin may potentially lead to additional losses of those companies and, therefore, losses for investors that receive direct exposure to the aforementioned index.

News Source

Advertisement
Continue Reading

Bitcoin

Bitcoin Senator Rallies For Support Against Powell’s Renomination As Federal Reserve Chair, Here’s Why

Published

on


Popular Bitcoin Senator, Senator Cynthia Lummis is reportedly soliciting for the support of her fellow Republicans in her stance against Jay Powell after the latter got renominated to chair the Federal Reserve.

Bitcoin Senator Wary of Crypto-unfriendly Nominees

As reported by Decrypt who first broke the news, a source in Lummis’ office says her reasons border on her belief that there is an unlawful treatment of crypto-based institutions in her home state, Wyoming.

Meanwhile, the Bitcoin senator is not only against the nomination of Powell. The source still claims that Senator Lummis is also asking her Republican colleagues to help block Leal Brainard’s nomination as well. Brainard is another nominee of President Biden’s for the Fed positions.

Advertisement

Lummis’ skepticism might be as a result of the Special Purpose Depository Institutions or SPDIs as they are otherwise called. They are a new type of crypto-based bank that Wyoming lawmakers granted a special operational license to, just last year.

Two crypto-based companies that received the license in 2020 include Kraken exchange and Avanti — the stablecoin issuer. However, the Federal Reserve’s decision to not approve their applications for central bank-issued accounts has placed a hold on their banking ambitions.

Speaking about the Federal Reserve’s delay in a Wall Street Journal feature article by Lummis on Wednesday, she says it is an intentional and unlawful obstruction. She added that the Fed’s reasons are ambiguous at best. According to the Bitcoin Senator, Lummis claimed that the Wyoming entities have met all requirements for being a bank under the Federal Reserve Act.

Advertisement

Lummis insists that Powell and Brainard are only avoiding their legal obligations in their continued treatment of SPDIs and like many other U.S lawmakers, she wants to know why.

Could Lummis’ Pressure Affect Powell’s Confirmation?

As Lummis continues to apply even more pressure on her colleagues, the possible extent to which this pressure can truly go in affecting the confirmation process of both Powell and Brainard, remains to be seen.

But with the chair of the Senate Banking Committee, Sherrod Brown, reportedly holding a vote on the pair sometime this month, both of them could be confirmed.

Advertisement

Also, there’s a possibility of a potential tight vote now that some progressive Democrats — most notably Elizabeth Warren — are saying they will not be voting for Powell.

News Source

Advertisement
Continue Reading

Bitcoin

PlanB’s Floor Model First Miss: Bitcoin Price Closed Way Below $98K In November

Published

on

PlanB’s floor model was wrong about BTC’s November closing price. The stock-to-flow model, though, is still on track.

Bitcoin’s closing price for November below $60,000 meant that PlanB’s floor model, which was particularly accurate until now, was finally broken.

At the same time, though, the analyst confirmed that the more popular stock-to-flow model was still valid as BTC is on track towards $100,000.

Advertisement

PlanB’s Floor Model Fails

PlanB is among the most popular analysts in the cryptocurrency space, predominantly known for the Bitcoin stock-to-flow model, which he published in early 2019. However, he also posted another model, which he referred to as the “worst-case scenario,” in July this year.

Also known as the floor model, it’s based on technical aspects, such as the 200-day moving average, and saw BTC closing August at $47,000, September at $43,000, and October at $63,000.

The first two months were spot on. BTC closed in October at $61,000, which was still very near to the model’s predicted price, and PlanB said it was “good enough” for him.

Advertisement

However, November’s closing actual closing price of way below $60,000 was quite different from what the model envisioned – $98,000. As such, the analyst admitted that this was the model’s first miss after nailing the previous few months.

S2F on Track

As mentioned above, the floor model works separately from the stock-to-flow model, which sees the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of new bitcoins to the market.

Advertisement

It’s actually even more bullish as the original version sees bitcoin tapping $100,000 by the end of the year. The upgraded stock-to-flow cross-asset model, which introduced different phases of bitcoin’s development, predicted a price tag of $288,000 until 2024.

Although bitcoin still struggles below $60,000 at the time of this writing, PlanB believes that the original S2F hasn’t been broken as the asset is on its way towards $100,000. If BTC is indeed to go into a six-digit price territory, it would have to increase its USD value by more than 66% in the next 30 days.

News Source

Advertisement
Continue Reading