CleanSpark acquires GRIID for $155 million, expands mining operations
CleanSpark (NASDAQ:CLSK), a Bitcoin mining company, announced the acquisition of GRIID Infrastructure (NASDAQ:GRDI) for $155 million. The acquisition includes an exclusive hosting agreement, providing CleanSpark with 20 MW of power. The purchase comes at a challenging time for Bitcoin miners due to recent cuts in mining rewards, leading many to diversify into altcoin mining and technologies like AI. The transaction still requires approval from GRIID shareholders and other regulatory conditions.
Marathon Digital diversifies with altcoin mining after Bitcoin halving
Marathon Digital (NASDAQ:MARA), a leading Bitcoin miner by market value, announced it has started mining the altcoin Kaspa (COIN:KASUST) to diversify its revenue sources following the recent Bitcoin halving. In September 2023, the company deployed its first Kaspa ASIC miners. Marathon acquired approximately 60 PH/s of mining capacity in Bitmain ASICs, expecting high profit margins. Currently, half of this capacity is active in Texas, with the rest expected to be operational by the end of the third quarter. While Marathon mined $176 million in Bitcoin in the first quarter, by June 25, the company had already mined 93 million KAS, valued at approximately $15 million. The price of the Kaspa token rose 6% in the last 24 hours to $0.180610.
VanEck proposes first Solana ETF in the US despite regulatory challenges
VanEck, a cryptocurrency asset management company, stirred the market by applying to launch the first Solana ETF in the US, following a recent application for an Ethereum ETF. Matthew Sigel, head of digital asset research at VanEck, announced that the planned SOL ETF would be listed on the Cboe BZX Exchange. Although the SEC classifies Solana and other altcoins as securities, complicating approval, the announcement positively impacted the market, with Solana (COIN:SOLUSD) appreciating about 9.10% in the last 24 hours.
The recently proposed ETFs for Ethereum and Solana face significant challenges due to regulations prohibiting staking, essential for the operation of these proof-of-stake (PoS) networks. The exclusion of staking from the ETFs, required to meet regulatory standards, could paradoxically weaken the networks they aim to benefit. This could reduce security and increase centralization, countering the decentralization goal of PoS blockchains. Additionally, it creates a disconnect between ETF investors and active network participation, negatively impacting governance and network health.
State Street and Galaxy Digital launch diversified cryptocurrency ETFs
State Street Global Advisors, one of the leading ETF issuers, announced on June 26 a partnership with Galaxy Digital to expand its offering of cryptocurrency ETFs, covering more than just Bitcoin. The new fund, the SSGA Active Trust, will be diversified, investing in various aspects of the cryptocurrency market, including shares of cryptography companies and exchange-traded products. This move aims to provide investors with broader access to the digital assets ecosystem, valued at $2.4 trillion.
US Bitcoin ETFs register inflows on Wednesday
On June 26, recent data from Farside shows an increase in inflows to Bitcoin exchange-traded funds (ETFs), with an addition of $21.4 million. This increase suggests renewed investor interest. Fidelity’s ETF (AMEX:FBTC) led with inflows of $18.6 million, totaling $9.2 billion. Grayscale’s ETF (AMEX:GBTC) had its first inflow since early June, while BlackRock’s ETF (NASDAQ:IBIT) remained stable.
Bitcoin stabilizes around $60,000
Bitcoin (COIN:BTCUSD), which had fallen to around $59,000 on Monday, saw a stalled recovery, priced at $61,760, a 1.56% increase in the last 24 hours. Fernando Pereira, an analyst at Bitget, suggests that the Bitcoin price is expected to remain consolidated at this level for a while. “After reaching an important support level of $60,000, sentiment indicators for BTC (such as fear and greed and funding rate) show neutrality. Meanwhile, we see BTC’s major moving averages quite distant from the price. This situation should result in BTC’s price being consolidated around $60,000 for a few more days“, said Pereira.
On Thursday, the dollar index (DXY) reached 106, the highest value since May 2, restricting risk appetite. Today, economic data was released including the US GDP for the first quarter, durable goods for May, and a weekly unemployment report. Cryptocurrency investors and traders are attentive to the Biden-Trump presidential debates, and are expecting May’s PCE inflation data on Friday and the potential impacts of the November elections on the industry.
Gradual progress in Ethereum Layer 2 decentralization
Ethereum’s (COIN:ETHUSD) Layer 2 is on its way to complete decentralization, expected to occur in the coming years, according to Cointelegraph. Several teams indicate progress towards “Stage 2” of decentralization, a significant milestone that would drastically limit the possibility of censorship on the networks. This stage represents the final implementation of the decentralization goals proposed by Vitalik Buterin. After prioritizing updates that improve security and user experience, teams are now focusing on advancing to this decisive stage of decentralization.
Binance adjusts Link program to eliminate arbitrage gaps
Binance is modifying its Link Program to close a loophole that allowed some top-tier brokers to capitalize on a differentiated fee structure. According to reports, these brokers benefited from significant trading fee discounts, which were passed on or used for arbitrage on behalf of clients, generating additional profits. This change aims to ensure greater equality and prevent abuses in the fee structure. Binance also encouraged users to report any suspicious activity, reinforcing its commitment to regulatory compliance.
Coinbase sues SEC and FDIC for access to cryptocurrency documents
Coinbase (NASDAQ:COIN), through History Associates Inc., is suing the SEC and FDIC for not releasing documents related to cryptocurrencies under the Freedom of Information Act. The exchange seeks to clarify regulators’ positions on which digital assets are considered securities, including Ethereum. The legal action comes after the SEC indicated the conclusion of its analysis of Ethereum 2.0 as a security, which could make it difficult for the agency to reject future document requests.
GMX integrates Chainlink Data Streams to accelerate futures trading
GMX, a perpetual futures trading platform, integrated Chainlink’s (COIN:LINKUSD) Data Streams technology to access market data more quickly. Unlike “push” systems, which send data periodically or under certain conditions, the “pull” model used by Data Streams allows GMX to request and receive market data in real-time, as needed. This approach ensures data is obtained with low latency, crucial for the fast-paced futures market.
New regulatory era for cryptocurrencies in the EU with MiCA implementation
The cryptocurrency environment in the European Union is set to undergo significant change with the implementation of the Markets in Crypto-Assets Regulation (MiCA). The new regulations will begin to take effect in phases, with specific rules for stablecoins starting June 30 and other measures impacting crypto service providers expected by December. This regulatory milestone, pioneering on the continent, aims to establish a uniform standard for the crypto asset market in the EU, providing greater legitimacy and security for the industry.
US Supreme Court strikes down SEC’s internal adjudications in historic decision
The US Supreme Court ruled, by a vote of 6-3, that the SEC’s practice of using internal judges for enforcement proceedings is unconstitutional. This decision forces the SEC to conduct all enforcement proceedings through federal courts, impacting not only the SEC but potentially other federal agencies that also use internal administrative proceedings. This decision highlights a debate over the separation of powers and the constitutional rights of defendants in fraud cases.
US transfers some of its confiscated Bitcoins to Coinbase Prime
On June 26, the US government transferred 3,940 Bitcoins to Coinbase Prime, an institutional trading platform of Coinbase Global (NASDAQ:COIN). The transaction was highlighted by blockchain analytics firm Arkham Intelligence. These Bitcoins were previously confiscated from Banmeet Singh, a convicted drug dealer, who lost over 8,100 Bitcoins after his arrest. The US government’s Bitcoin reserves total approximately 214,000 units, valued at over $13 billion.
Dfinity launches Utopia, innovative cybersecurity platform for governments and enterprises
The Dfinity Foundation introduced Utopia, a new platform based on the Internet Computer Protocol (COIN:ICPUSD), designed to modernize cybersecurity for governments and business organizations. Utopia, a serverless private cloud infrastructure, promises to be a robust solution against cyber threats, enabling secure operations of artificial intelligence and digital asset management. The platform aims to provide greater sovereignty to governments, allowing them to securely and independently maintain sensitive data.
Sharp increase in cryptocurrency losses due to hacks and scams in Q2
In the second quarter of this year, the cryptocurrency industry suffered losses of $572.7 million in 72 incidents of hacks and scams, a 70.3% increase from the previous quarter and 112% compared to the same period in 2023. Ethereum and BNB Chain were again the most targeted networks, as in the first quarter. The significant increase in losses is primarily related to attacks on centralized finance infrastructure, which now surpass attacks on decentralized finance (DeFi). Despite fewer DeFi hacks, two major attacks accounted for nearly 63% of the total losses this quarter. DMM Bitcoin represented the largest attack, with over $55 million stolen from the Turkish cryptocurrency exchange BtcTurk on June 23. In total, $28.7 million, or 5% of the funds stolen in the second quarter, were recovered from four exploits: Bloom, ALEX Lab, Gala Games, and YOLO Games.
Polymarket to contest UMA oracle’s DJT token bet resolution
The decentralized betting platform Polymarket disagreed with UMA oracle’s decision to resolve a betting market about Barron Trump’s involvement in the creation of the DJT token as “No”. Polymarket argues that the decision was incorrect and plans to announce a short-term solution. The UMA oracle (COIN:UMAUSD), which uses token holder voting to resolve disputes, initially determined that there was insufficient evidence of Barron’s involvement. Over $1 million was bet on this market.
MegaLabs raises $20 million to develop real-time Ethereum protocol
MegaLabs, the entity behind the new Ethereum scaling protocol called MegaETH, raised $20 million in a seed round led by Dragonfly Capital. The initiative aims to launch a testnet in the coming months, promising a “real-time” blockchain capable of processing 100,000 transactions per second with millisecond response times. The protocol uses a heterogeneous blockchain architecture and an optimized EVM execution environment to improve performance and efficiency, inspired by Vitalik Buterin’s scaling vision.