• Core Scientific announced an expanded deal with CoreWeave worth $6.7 billion over 12 years.
• The company will provide an additional 112 megawatts of computing infrastructure to CoreWeave.
• Core Scientific’s shares rose by 18% following the announcement.
• The deal represents a shift from bitcoin mining to AI infrastructure for Core Scientific.
• CoreWeave will finance the modifications to Core Scientific’s infrastructure.

Core Scientific, a major player in the bitcoin mining industry, has announced a significant expansion of its partnership with CoreWeave, an AI-focused cloud provider.

The deal, valued at $6.7 billion over 12 years, marks a pivotal shift in Core Scientific’s business strategy from cryptocurrency mining to artificial intelligence infrastructure.

Under the new agreement, Core Scientific will expand its high-performance computing (HPC) infrastructure by 112 megawatts (MW) to a total of 382 MW. This additional capacity will be used to host CoreWeave’s NVIDIA graphics processing units (GPUs), which are crucial for AI and machine learning applications.

The expanded deal is expected to generate an additional $2 billion in revenue over 12 years, on top of the $4.7 billion anticipated from existing agreements. This brings the total potential revenue from the CoreWeave partnership to $6.7 billion, starting in the first half of 2026.

Core Scientific’s CEO, Adam Sullivan, stated,

“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure and the unique ability of our team to deliver it.”

The announcement had an immediate impact on Core Scientific’s stock price, which surged by approximately 18% following the news. As of the latest report, the company’s shares were trading at $9.74.

CoreWeave will finance all capital investments required to transform Core Scientific’s existing infrastructure into state-of-the-art, application-specific data centers tailored for dense HPC. The modifications are scheduled to begin in the latter half of 2024, with operations expected to commence in early 2026.

This expansion comes at a time when many bitcoin mining firms are retrofitting their existing facilities to serve AI clients. The shift is driven by decreased profitability in crypto mining, particularly following the recent bitcoin halving event.

Core Scientific’s move reflects a broader trend in the industry, as companies leverage their existing infrastructure and power contracts to meet the growing demand for AI computing resources.

The transition from bitcoin mining to AI infrastructure is not without challenges. As Needham analysts pointed out in a May report, much of the existing mining infrastructure would need significant modifications to accommodate HPC requirements.

Despite these challenges, Core Scientific’s Sullivan remains optimistic about the company’s future. He highlighted the planned integration of Block’s new 3-nanometer ASIC chip for next year and the thriving HPC business as key factors in the company’s growth strategy.

This deal represents a turnaround for Core Scientific. In January 2024, the company was emerging from bankruptcy and facing challenges from angry lenders. Since its return to the stock market that month, Core Scientific’s share price has risen by 140%, largely driven by its aggressive push into the AI business.

The company also continues its bitcoin mining operations. In July, Core Scientific mined 411 BTC from its fleet of owned miners, operating around 172,000 BTC miners with a total hash rate of 20.1 EH/s.

The post Bitcoin Miner Core Scientific Expands AI Infrastructure Deal with CoreWeave appeared first on Blockonomi.

• Marathon Digital reported Q2 revenue of $145.1 million, missing analyst estimates of $157.9 million
• The company posted a net loss of $199 million, or $0.72 per share, compared to a $9 million loss in Q2 2023
• Marathon’s Bitcoin production decreased 30% year-over-year to 2,058 BTC in Q2
• The company’s energized hash rate increased 78% to 31.5 EH/s in the second quarter
• Marathon Digital held over 20,000 Bitcoin on its balance sheet after purchasing an additional $100 million worth

Marathon Digital Holdings, a leading Bitcoin mining company, released its second-quarter earnings report for 2024 on August 1, revealing significant challenges in the post-halving era of cryptocurrency mining.

The company reported revenue of $145.1 million for Q2, falling short of Wall Street expectations of $157.9 million. Despite missing estimates, this figure represents a 78% increase from the $81.7 million reported in Q2 2023. The revenue growth was primarily attributed to a higher average price of Bitcoin mined and revenues from newly acquired hosting services.

However, Marathon Digital faced a substantial net loss of $199 million, or $0.72 per diluted share, a stark contrast to the $9 million loss reported in the same quarter last year. This loss was largely driven by a $148 million fair market value drop in digital assets. Analysts had forecasted an earnings-per-share of -$0.19, but the actual figure missed by $0.53.

The company’s Bitcoin production saw a significant decline, with 2,058 BTC mined during the quarter, down 30% from the 2,926 BTC produced in Q2 2023. On average, Marathon mined 22.9 Bitcoin per day, which is 9.3 less than the previous period. The decrease in production was attributed to several factors, including unexpected equipment failures, increased global hash rates, and the impact of the Bitcoin halving event in April.

Fred Thiel, Marathon’s CEO, acknowledged these challenges in a statement, citing unexpected equipment failures and maintenance issues at their Ellendale site, as well as intensified competition in the mining sector.

“Our BTC production was impacted by unexpected equipment failures and transmission line maintenance at the Ellendale site operated by Applied Digital, increased global hash rate, and the April halving event,” Thiel explained.

Despite these setbacks, Marathon Digital reported some positive developments. The company’s energized hash rate increased 78% year-over-year to 31.5 EH/s in the second quarter, reaching an all-time high. Thiel stated that the company continues to target 50 exahash of energized hash rate by the end of 2024, with additional growth planned for 2025.

Marathon Digital’s financial position remained strong, with $1.4 billion in unrestricted cash, cash equivalents, and Bitcoin as of June 30. The company held 18,488 Bitcoin on its balance sheet at the quarter’s end and subsequently purchased an additional $100 million worth of Bitcoin, bringing total holdings to more than 20,000 Bitcoin.

The challenging quarter led Marathon to sell 51% of its mined Bitcoin to cover operating expenses. The company noted that the average price of BTC mined in Q2 2024 was 136% higher than in the prior year period, helping to offset some of the production declines.

Following the earnings report, Marathon Digital’s stock price fell 7.78%, ending the trading day at $18.14. This decline occurred amid a broader market slide driven by overheated tech stocks.

Marathon Digital’s Q2 results reflect the broader challenges facing the Bitcoin mining industry following the halving event. Other miners, such as Riot Platforms, have reported similar difficulties, with Riot posting an $84.4 million net loss for the same quarter.

The post Marathon Digital Reports $199 Million Net Loss in Q2 as Bitcoin Production Declines appeared first on Blockonomi.

• Northern Data, a European bitcoin mining firm, is fighting a whistleblower lawsuit filed by two former executives.
• The company filed a motion to dismiss the case, calling it “bad faith litigation.”
• The ex-employees allege Northern Data lied about its financial health and committed tax evasion.
• Northern Data claims the plaintiffs were terminated for cause and are seeking to profit from false allegations.
• The company is reportedly considering a U.S. IPO for its AI unit, valued at up to $16 billion.

European bitcoin mining firm Northern Data is pushing back against a whistleblower lawsuit filed by two former executives, calling the allegations “false” and “financially motivated.” The company has filed a motion to dismiss the case in a California court, describing it as a “textbook example of bad faith litigation.”

The lawsuit, filed by ex-employees Gulsen Kama and Joshua Porter, alleges that Northern Data lied to investors about its financial condition and committed tax evasion. The plaintiffs claim they were wrongfully terminated after raising concerns about these issues to their supervisors.

In its motion to dismiss, Northern Data argues that the California court lacks jurisdiction over the case, as the company’s U.S. subsidiaries are incorporated in Delaware and based in Virginia. The mining firm also contends that the fraud claims lack sufficient detail and specificity.

Northern Data’s lawyers stated in the filing that Kama was fired for cause, and Porter was laid off due to “lack of productivity.” They further alleged that when the ex-employees made “extortionate demands for ‘severance’ payments,” the company rejected them, leading to the current lawsuit.

The motion also points out that this is not Kama’s first whistleblower suit against a former employer. In 2019, she filed a similar case against tax preparer Jackson Hewitt, and in 2023, she sued Quest Diagnostics for workplace discrimination.

The allegations come at a sensitive time for Northern Data, as we recently reported that the company is considering a U.S. initial public offering (IPO) of its artificial intelligence unit, potentially valuing it at up to $16 billion.

The company’s lawyers noted in their filing that “the period leading up to an IPO is a particularly sensitive time for a company,” and that “public accusations of fraud – no matter how irresponsible – can disrupt that process.”

In their lawsuit, Kama and Porter alleged that Northern Data had a

“$30 million German tax liability and additional liabilities of almost $8 million while simultaneously having only $17 million cash on the balance and a monthly burn rate of $3-$4 million.”

They also claimed the company committed “rampant tax evasion” in its early years with no plan to address it, potentially leaving them liable for “tens of millions of dollars” in U.S. tax liabilities if audited.

A spokesperson for Northern Data strongly refuted these allegations, stating,

“It is no coincidence that these allegations from disgruntled former employees were publicized just days after unconfirmed media speculation that the company is evaluating a potential capital markets event and just ahead of the publication of our 2023 accounts.”

The company maintains that it is “well capitalized” and has a “very robust growth plan,” with revenue expected to more than triple in 2024. Northern Data also announced a 20% capital increase, aiming to raise €214 million ($233 million) through the issuance of new shares.

The funds will be used to enhance its cloud platform and expand data centers in Europe and the United States.

A hearing to discuss the motion to dismiss is scheduled for August 19, 2024, in a Los Angeles court.

The post Bitcoin Miner Northern Data Fights Whistleblower Lawsuit Amid IPO Rumors appeared first on Blockonomi.

• Hut 8, a Bitcoin mining company, has secured a 205-megawatt power purchase agreement in West Texas
• This deal expands Hut 8’s energy infrastructure to approximately 1.3 gigawatts of capacity
• The site is adjacent to a wind farm and connected to the ERCOT grid, offering low wholesale power prices
• This is the first conversion from Hut 8’s previously announced 1,100 megawatts development pipeline
• The site is positioned to support both Bitcoin mining and AI applications

Hut 8 Corp., a leading North American Bitcoin mining company, has taken a step in expanding its operations by securing a 205-megawatt power purchase agreement (PPA) in West Texas.

This strategic move, announced on July 9, 2024, marks a pivotal moment in the company’s growth strategy and its adaptation to the evolving landscape of cryptocurrency mining.

The deal represents the first conversion from Hut 8’s previously announced development pipeline of 1,100 megawatts of energy capacity under exclusivity.

With this acquisition, Hut 8 has expanded its energy infrastructure platform to approximately 1.3 gigawatts of capacity across various verticals, including self-mining, hosting, managed services, high-performance computing, and power generation.

Asher Genoot, CEO of Hut 8, emphasized the unique nature of this agreement, stating,

“This is the first time a large data center load has been approved under the complex regulatory framework in this particular market.”

The deal showcases Hut 8’s ability to navigate intricate commercial, legal, and regulatory challenges, setting it apart in the competitive mining industry.

The newly acquired site in West Texas offers several strategic advantages. Located adjacent to a wind farm and connected to the Electric Reliability Council of Texas (ERCOT) grid, the facility provides Hut 8 with access to some of the lowest locational wholesale power pricing in North America.

This connection to ERCOT, which manages the flow of electric power to about 90% of the state’s electric load, positions Hut 8 to benefit from Texas’s unique energy market.

The site already features an operational substation, and Hut 8 has initiated engineering, procurement, and construction efforts for a new data center.

This infrastructure is designed to support a variety of high-density compute applications, extending beyond Bitcoin mining to include artificial intelligence (AI) operations. The company is in the process of finalizing a commercialization plan to maximize the site’s value.

This expansion comes at a crucial time for the Bitcoin mining industry, which has been adapting to challenges posed by the recent Bitcoin halving in April 2024.

The halving event, which reduces the block reward for miners by half, has put pressure on mining companies to increase efficiency and diversify their operations. Hut 8’s move to secure additional power capacity and expand into AI applications aligns with this industry-wide trend.

The company’s strategy also reflects broader movements in the mining sector. Many Bitcoin miners have been taking steps to diversify revenue streams and increase their hashrate in response to the halving.

This has included mergers, acquisitions, and partnerships, as well as securing substantial equity financing.

For instance, public Bitcoin mining companies secured $2 billion in equity financing ahead of the revenue cut, with major players like Marathon Digital, CleanSpark, and Riot Platforms leading the fundraising efforts.

Hut 8’s expansion in Texas follows its merger with US Bitcoin Corp in December 2023, a deal valued at $725 million. Since then, the company has been steadily increasing its presence in the United States.

In February, Hut 8 began construction on a new 63-megawatt mining facility in Culberson County, Texas, which is expected to deliver 30% lower mining costs compared to its other U.S. sites.

The post Hut 8 Expands Bitcoin Mining Operations with Major Power Deal in West Texas appeared first on Blockonomi.

• Bitcoin’s hash rate has declined 7.7% since its April peak, indicating possible miner capitulation.
• Miners are experiencing reduced profitability due to the recent halving event and lower Bitcoin prices.
• Daily miner outflows have spiked, suggesting increased selling of Bitcoin reserves by miners.
• Historically, miner capitulation has often coincided with Bitcoin price bottoms before significant rallies.
• The current situation is reminiscent of December 2022, when Bitcoin bottomed before a 300% surge.

Bitcoin miners are showing signs of capitulation, according to recent data from blockchain analytics firm CryptoQuant. This development could potentially signal a bottom in Bitcoin’s price, paving the way for a future rally.

The Bitcoin network’s hash rate, which measures the total computational power used to mine Bitcoin, has declined by 7.7% since reaching a record high of 623 exahashes per second (EH/s) on April 27.

As of the latest data, the hash rate stands at 576 EH/s, its lowest level in four months. This significant drop in hash rate is reminiscent of a similar decline in December 2022, which preceded a more than 300% surge in Bitcoin’s price over the following 15 months.

The recent halving event in April, which cut the block rewards for miners in half, has put considerable pressure on the mining industry. CryptoQuant’s report indicates that miners have been “mostly extremely underpaid” since April 20, forcing many to shut down mining machines that have become unprofitable.

Daily revenues for miners have plummeted by 63% since the halving, factoring in both reduced block rewards and lower transaction fee revenue.

This financial strain has led to increased selling pressure from miners. CryptoQuant data shows that daily miner outflows have spiked to their highest levels since May 21, indicating that miners are moving coins out of their on-chain wallets at a faster pace than usual.

Crypto analyst Ali Martinez noted that Bitcoin miners have sold more than 2,300 BTC in the past three days alone, amounting to approximately $145 million.

In the past 72 hours, #Bitcoin miners have sold over 2,300 $BTC, valued at approximately $145 million! pic.twitter.com/swXl61VqkB

— Ali (@ali_charts) July 2, 2024

The average mining revenue per hash, known as the hash price, has also fallen to near all-time low levels. Currently standing at $0.049 per EH/s, it’s just above the all-time low of $0.045 reached on May 1st. This metric is crucial for miners as it directly affects their revenue based on the computational power they contribute to the network.

Historically, periods of miner capitulation have often coincided with significant price bottoms for Bitcoin. When miners, who are typically strong holders of Bitcoin, are forced to sell their reserves, it can lead to a substantial reduction in selling pressure once the capitulation phase ends. This reduction in selling pressure can set the stage for a price recovery.

Market expert Scott Melker points out that the market may be nearing a crucial signal. He suggests that if a daily candle closes below the $60,300 level, it could lead to a bullish divergence, with the daily Relative Strength Index (RSI) moving out of oversold territory. This situation would be similar to last August when Bitcoin’s price was around $26,000.

$BTC DAILY

We are close to the signal I have been watching for.

If a daily candle closes below ~$60,300, we will likely get bullish divergence with RSI coming out of oversold on the daily.

RSI hit oversold for the first time since last August, when price was around $26,000.… pic.twitter.com/hsQj7fg4zF

— The Wolf Of All Streets (@scottmelker) July 3, 2024

However, crypto analyst Andrew Kang offers a more cautious perspective. He highlights the significance of a potential loss of the four-month trading range for Bitcoin, drawing parallels with the range observed in May 2021 following a parabolic rally.

Kang notes that over $50 billion in crypto leverage is currently near all-time highs, compounded by an 18-week consolidation phase without extreme washouts. He suggests that a more significant reset to the $40,000s could be possible, potentially requiring several months of choppy or downward price action before a reversal.

The post Bitcoin Miner Capitulation: A Signal for the Next Bull Run? appeared first on Blockonomi.

• Northern Data, Europe’s largest Bitcoin miner, is considering an IPO for its AI and data center businesses in 2025
• The IPO could value the company between $10 billion and $16 billion
• Northern Data has expanded from Bitcoin mining into AI and cloud computing
• The company secured $610 million in debt financing from Tether in 2023
• Other Bitcoin miners are also diversifying into AI as mining profits decrease

Northern Data, a German company known as Europe’s largest Bitcoin miner, is looking to go public in the United States.

The company is planning an initial public offering (IPO) for its artificial intelligence (AI) and data center businesses. This move could value the company between $10 billion and $16 billion.

The IPO is planned for the first half of 2025 on the Nasdaq stock exchange. Northern Data is talking to potential advisers about the listing. The company might also sell a small part of the business to investors before the IPO.

Northern Data’s plan involves listing two of its business units. One is called Taiga, which handles cloud computing. The other is Ardent, which manages data centers. The company might also list its Bitcoin mining business, Peak Mining, separately.

This isn’t the first time Northern Data has thought about going public in the U.S. In 2021, the company considered an IPO for its cryptocurrency mining business, but it didn’t happen.

Northern Data started as a Bitcoin mining company in 2009, making it one of the oldest in the industry. Over time, it has grown and changed. Now, it does more than just mine Bitcoin. The company has moved into cloud computing and AI, which are fast-growing areas of technology.

This shift is part of a larger trend in the Bitcoin mining industry. As profits from mining have gone down, many companies are looking for new ways to use their resources. Northern Data, along with other miners like Core Scientific, TeraWulf, and Hut 8 Corp, are now working in AI and cloud computing.

Northern Data’s move into AI comes at a time when there’s a lot of interest in this technology. Many companies are investing heavily in AI, and Northern Data wants to be part of this growth. The company plans to use 20,000 of Nvidia’s H100 chips, which are some of the most advanced AI chips available.

To support its growth plans, Northern Data got $610 million in debt financing from Tether, a company known for its stablecoin, in November 2023. This money is being used to buy advanced computer chips and expand the company’s operations.

Northern Data’s Bitcoin mining unit, Peak Mining, is still a significant part of the business. It has nearly 700 megawatts of data centers being built or developed in the U.S. This makes it one of the largest crypto miners in the country.

The company’s move towards an IPO comes as the cryptocurrency industry faces challenges. Other crypto companies like Circle and Kraken have had trouble going public due to regulatory issues. However, Northern Data’s focus on AI and cloud computing might help it avoid some of these problems.

It’s important to note that Northern Data’s IPO plans are not final. The details could change, or the company might decide not to go ahead with the IPO. The company has not officially commented on these plans.

As Northern Data prepares for a possible IPO, it represents a shift in the Bitcoin mining industry. Companies are adapting to changing markets by expanding into new areas of technology.

The post Northern Data: European Bitcoin Miner Considers $16 Billion U.S. Listing appeared first on Blockonomi.

• Hut 8, a Bitcoin mining company, received a $150 million investment from Coatue Management.
• The investment is aimed at building AI-related infrastructure.
• This deal reflects a growing trend of AI firms seeking power and infrastructure from Bitcoin miners.
• Hut 8’s shares rose following the announcement, as did other Bitcoin mining-related data center stocks.
• The investment is through convertible notes with an 8% annual interest rate.

Hut 8, a prominent Bitcoin mining company, has announced a significant $150 million investment from Coatue Management. This move highlights a growing trend in the tech industry: artificial intelligence (AI) firms turning to Bitcoin miners for their power and infrastructure needs.

The investment, made through convertible notes, comes with an 8% annual interest rate and a conversion rate of $16.395 per share. This price represents a 45% premium over Hut 8’s 10-day volume-weighted average price through June 20, 2024. The deal is expected to close by July 11, 2024.

Hut 8, based in Miami, is known primarily as a Bitcoin miner but is now positioning itself to become a leader in the AI infrastructure market. The company plans to use its experience in developing and operating complex energy infrastructure to meet the increasing demand for AI computing power.

Philippe Laffont, Founder and Portfolio Manager of Coatue, explained the reasoning behind the investment:

“We are committed to supporting innovators advancing AI and believe that compute capacity is crucial to unlocking significant growth across the ecosystem. We believe that Hut 8 is well-positioned to accelerate new compute capacity and can capitalize on the opportunity it will bring.”

The news had a positive impact on Hut 8’s stock, which rose about 4% following the announcement. Other Bitcoin mining-related data center stocks also saw gains, with Soluna Holdings surging nearly 17% and Applied Digital adding about 10%.

This investment reflects a broader trend in the tech industry. AI and high-performance computing (HPC) firms are increasingly looking to the Bitcoin mining industry to secure their need for computing power. Bitcoin miners often have the necessary computing capacity and favorable deals with power suppliers that AI and HPC companies require.

Hut 8 CEO Asher Genoot commented on the partnership:

“We are thrilled to be partnering with Coatue, given the firm’s deep expertise and long track record of investments in the AI ecosystem. We believe this partnership will allow us to unlock significant opportunities and connectivity to the broader space as we enter this next phase of growth.”

The company highlighted the current gap in the market, stating,

“Many traditional data center operators are failing to meet the surging demand for AI compute capacity due to power shortages, long lead times to bring new capacity online, and the extensive upgrades required for existing data centers to support the latest generation of high-density compute.”

Hut 8 isn’t alone in this shift towards AI infrastructure. Other cryptocurrency miners, including Core Scientific and TeraWulf, have also entered the high-performance computing business, hosting data centers or making deals with AI companies.

This trend has caught the attention of major financial institutions. JPMorgan suggested that the demand for power by large-scale data centers and AI firms could spark a new era of mergers and acquisitions for Bitcoin miners with attractive power contracts.

Coatue Management is also an investor in CoreWeave, a cloud computing provider that recently offered to buy Core Scientific, another Bitcoin miner, for over $1 billion. Core Scientific rejected the offer, saying it undervalued the company.

As of March 31, 2024, Hut 8 ranked second among listed miners in terms of Bitcoin holdings, with 9,102 Bitcoins held in reserve, worth approximately $557 million at the time of the announcement. The company operates a portfolio of 19 sites.

This pivot towards AI infrastructure comes at a crucial time for Bitcoin miners. With the Bitcoin halving event in April 2024, many mining firms have been seeking ways to diversify their revenue streams and remain competitive amid profitability challenges.

The post Bitcoin Miner Hut 8 Secures $150 Million Investment for AI Infrastructure Development appeared first on Blockonomi.

• Riot Platforms claims the “poison pill” adopted by Bitfarms to protect itself from takeover attempts is in conflict with legal and governance standards.
• Riot will continue to address the “serious corporate governance issues” at Bitfarms despite the recently adopted “poison pill.”
• Bitfarms defended its decision, stating that the shareholder rights plan was unanimously approved by the board to preserve the integrity of its strategic alternatives review process.
• Riot Platforms currently holds 13.1% of Bitfarms’ shares and recently signaled its intention to acquire all of Bitfarms’ issued and outstanding common shares for $950 million.
• Bitfarms believes Riot’s interests are not aligned with those of its shareholders and that Riot is attacking its board and corporate governance to push its “low-ball bid.”

The ongoing battle for control between Bitcoin mining companies Riot Platforms and Bitfarms has intensified, with Riot claiming that Bitfarms’ recently adopted “poison pill” conflicts with established legal and governance standards.

The shareholder rights plan, commonly known as a “poison pill,” was implemented by Bitfarms to protect itself from takeover attempts, particularly from Riot Platforms.

In a press release on June 12, 2024, Riot Platforms stated that the decision made by Bitfarms is “further evidence of the Bitfarms board of directors disregarding good corporate governance.”

The Colorado-based company pledged to continue addressing the “serious corporate governance issues” at Bitfarms, despite the adoption of the “poison pill.”

#Bitfarms Issues Statement re: Riot’s Comments & Actions

• Board is committed to maximizing shareholder value & continues to welcome Riot in strategic alternatives review
• Shareholder Rights Plan preserves integrity of process
• Riot’s interests are not aligned with BITF…

— Bitfarms (@Bitfarms_io) June 13, 2024

Riot Platforms CEO Jason Les emphasized the company’s commitment to ensuring that Bitfarms’ shareholders have a say in the company’s future direction.

Les also highlighted the recent decision by Bitfarms’ board to vote out the company’s co-founder Emiliano Grodzki, less than two weeks ago, as an indication of internal discontent.

In response to Riot’s accusations, Bitfarms defended its decision to adopt the shareholder rights plan.

The Canadian Bitcoin mining firm asserted that the plan was unanimously approved by the board to “preserve the integrity” of its strategic alternatives review process and is “in the best interests of all Bitfarms’ shareholders.”

The dispute between the two companies began when Riot Platforms, which currently holds 47,830,440 common shares, representing 13.1% of Bitfarms’ shares, signaled its intention to acquire all of Bitfarms’ issued and outstanding common shares for $950 million.

Under the “poison pill” plan, Bitfarms would issue additional shares to dilute an investor’s stake if an entity aims to hold 15% or more of the firm’s shares.

Bitfarms believes that Riot’s interests are not aligned with those of its shareholders and accused the company of attempting to undermine the integrity of the acquisition process.

The Canadian firm stated that Riot is “attacking Bitfarms’ Board and corporate governance in an effort to push its low-ball bid and disrupt the Strategic Alternatives Review Process.”

The post Poison Pill: Bitfarms Defends Shareholder Rights Plan Amid Riot’s Accusations appeared first on Blockonomi.

• Donald Trump recently met with executives from U.S. bitcoin mining firms CleanSpark Inc. and Riot Platforms at Mar-a-Lago.
• Trump expressed support for bitcoin mining in the U.S., saying it could help the country become “energy dominant” and that miners contribute to energy grid stability.
• Trump said he wants all remaining bitcoin to be “made in the USA” and claimed bitcoin mining is the last defense against central bank digital currencies.
• This comes as Trump has recently taken a more pro-crypto stance in his 2024 presidential campaign, accepting crypto donations and hosting a dinner for NFT holders.
• The bitcoin mining industry has faced political pressure in the U.S. over emissions and energy use, with President Biden proposing a 30% electricity tax on miners.

Former U.S. President and current Republican presidential candidate Donald Trump recently met with executives from American bitcoin mining companies at his Mar-a-Lago resort in Florida.

In the meeting, Trump reportedly expressed strong support for the U.S. bitcoin mining industry.

According to Bloomberg, the meeting on Tuesday night included representatives from Nasdaq-listed mining firms CleanSpark Inc. and Riot Platforms. Following the meeting, Trump made a post on his Truth Social platform reiterating his backing of U.S. bitcoin mining.

“Bitcoin mining may be our last line of defense against a CBDC,” Trump wrote, referring to central bank digital currencies. “We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT.”

Trump reportedly told the mining executives that he believes bitcoin miners can help contribute to the stability of the U.S. energy grid.

The attendees of the meeting, including CleanSpark executive chairman Matthew Schultz, later posted photos with Trump and shared positive comments about the discussion.

This show of support marks a shift in tone for Trump compared to his comments on bitcoin while president in 2021, when he claimed it “seems like a scam.”

However, as the 2024 presidential election approaches, Trump has taken a more favorable public stance toward the crypto industry.

In May, Trump began accepting cryptocurrency donations for his presidential campaign. He also recently hosted a dinner at Mar-a-Lago for holders of his “Mugshot” NFTs. These moves appear aimed at courting the crypto industry and its well-funded political lobbying groups.

Trump’s appeals to the bitcoin mining sector in particular come as the industry faces increasing political pressure within the United States. The energy-intensive mining process has drawn criticism over its environmental impact and power consumption.

President Joe Biden’s administration has proposed a 30% tax on electricity usage for crypto miners, and the White House has broadly taken a more cautious and critical view of cryptocurrencies compared to Trump.

However, the former president claimed in his social media post that Biden’s stance against bitcoin “only helps China, Russia and the Radical Communist Left.” Trump presented support for U.S. mining as a matter of national energy independence and dominance.

With about 10% of the total 21 million bitcoins still left to be mined globally, Trump’s call for that mining to happen domestically within the United States could provide a political boost to U.S.-based mining operations.

The post “All Remaining Bitcoin Made in the USA”: Inside Trump’s Closed-Door Meeting with Top Miners appeared first on Blockonomi.

• OCEAN, a Bitcoin mining pool backed by Jack Dorsey and led by Bitcoin Core developer Luke Dashjr, has established a new international hub in San Salvador, El Salvador.
• This move is part of OCEAN’s mission to decentralize Bitcoin mining globally, and El Salvador’s supportive stance on Bitcoin adoption made it an attractive location.
• El Salvador became the first country to adopt Bitcoin as legal tender in 2021, aiming to boost financial inclusion and economic growth.
• OCEAN plans to contribute to Bitcoin education and community development in El Salvador, particularly in areas like “Bitcoin Beach” at El Zonte.

OCEAN Mining Pool, a non-custodial and transparent Bitcoin mining platform, has made a strategic move by establishing its global headquarters in San Salvador, El Salvador.

This decision is backed by notable figures in the Bitcoin community, including Jack Dorsey, the former CEO of Twitter, and Luke Dashjr, a prominent Bitcoin Core developer who serves as OCEAN’s Chief Technology Officer.

The choice to set up OCEAN’s international hub in El Salvador aligns with the company’s mission to decentralize Bitcoin mining operations worldwide.

Bitcoin Country, here we come! ????

We are thrilled to announce that OCEAN has expanded into El Salvador ????????. OCEAN MINING S.A. de C.V. will serve as our global hub of business development as we continue to bring features to market that push the envelope of decentralization in… pic.twitter.com/USyB08LOgj

— OCEAN (@ocean_mining) May 29, 2024

El Salvador’s proactive approach to Bitcoin adoption played a crucial role in this decision, as the country became the first nation to recognize Bitcoin as legal tender in 2021.

According to Mark Artymko, OCEAN’s President, El Salvador’s welcoming stance on Bitcoin stood in stark contrast to regions like Venezuela and the European Union, where legislation to ban Bitcoin mining has been enacted.

This supportive environment provided a beacon of hope for the industry and made El Salvador an attractive destination for OCEAN’s global operations.

El Salvador’s journey with Bitcoin began in 2021 when President Nayib Bukele’s government enacted the Bitcoin Law, making the cryptocurrency a legal tender alongside the U.S. dollar.

This move aimed to boost financial inclusion and economic growth within the country. Despite facing mixed reactions domestically, the international cryptocurrency community largely supported this bold initiative.

In addition to adopting Bitcoin as legal tender, El Salvador has also pursued Bitcoin mining using geothermal energy from its volcanoes.

The government has incentivized Bitcoin adoption through initiatives like the Chivo Wallet, which offered $30 in Bitcoin to users and discounts on fuel purchases. However, the adoption process has faced challenges, including technical issues and public skepticism.

OCEAN’s decision to establish its headquarters in El Salvador reinforces the country’s position as a hub for innovative Bitcoin business operations. Stacy Herbert, the director of El Salvador’s Bitcoin Office, welcomed OCEAN’s move, stating that it reaffirms the Bitcoin-centric culture the country is building and provides entrepreneurs with the tools needed to thrive in a Bitcoin economy.

One of OCEAN’s key objectives is to promote decentralization within the Bitcoin mining industry. The company plans to implement technologies like Stratum V2, which aims to shift power away from a few large mining pools and distribute it among a broader base of miners. By operating from their new hub in El Salvador, OCEAN aims to ensure maximum reach and adoption of these decentralization features in a favorable regulatory environment.

In addition to its mining operations, OCEAN is committed to contributing to Bitcoin education and community development within El Salvador. The company plans to support initiatives like “Bitcoin Beach” at El Zonte, a coastal town that has developed a thriving local Bitcoin-based economy. OCEAN’s presence in the country aims to foster similar initiatives and promote the growth of Bitcoin communities.

By investing in local education and development, OCEAN hopes to support the organic growth of circular economies based on Bitcoin within El Salvador. This aligns with the country’s broader goal of promoting financial inclusion and economic growth through the adoption of cryptocurrencies.

OCEAN Mining Pool’s decision to establish its global headquarters in San Salvador, El Salvador, represents a significant milestone in the decentralization of Bitcoin mining and the adoption of cryptocurrencies on a national scale.

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