Bitcoin

Crypto catches M&A frenzy as Bitcoin miners chase AI boom

Published

7 months ago

27 June, 2024

Whinstone CEO Chad Harris takes CNBC on a tour of North America’s largest bitcoin mine.

Meanwhile, mining companies need to diversify. Following the bitcoin halving In April, an event that happens once every four years, the business of generating new tokens has become much less profitable. Analysts at JPMorgan Chase wrote in a report earlier this month that “some operators are feeling the financial pinch from the recent block reward halving, which has cut industry revenues in half, and are actively exploring exit strategies.”

With the growing AI sector in need of capacity and bitcoin miners looking for new ways to generate returns on their large capital investments, mergers, financings and partnerships are coming to fruition quickly.

On Tuesday, US bitcoin miner Scientific Center announced an expanded agreement with CoreWeaveone Nvidiasupported startup that is one of the chipmaker’s main technology providers for running AI models. Core Scientific will provide 70 megawatts of computing infrastructure to support CoreWeave’s operations.

Scientific Center said the agreement will generate additional revenues of US$1.2 billion over 12 years, on top of an existing agreement expected to generate US$3.5 billion. In total, the company plans to provide about 270 megawatts of infrastructure to CoreWeave by the second half of 2025, with the possibility of adding an additional 230 megawatts to other Core Scientific facilities.

Earlier this month, CoreWeave offered to buy Core Scientific for $1.02 billion, not long after the initial deal. Core Scientific rejected the offer. The company, which returned to the public market in January, after going through bankruptcy, it is currently worth about $1.8 billion.

“The world is changing and many data centers built in the last 20 years are not suited to support future computing requirements,” Core Scientific CEO Adam Sullivan said in Tuesday’s press release.

A day before this announcement, bitcoin mining group Hut 8 said this raised $150 million in debt from private equity firm Coatue to help you build your AI data center portfolio.

Cabin 8, based in Miami, is one of many crypto mining companies adopting AI. The company said in its first quarter earnings report Last month, it purchased its first batch of 1,000 Nvidia graphics processing units (GPUs) and secured a customer contract with a venture capital-backed AI cloud platform. Hut 8 generates 6% of AI sales, according to CoinShares.

“The broader market is beginning to appreciate the scarcity of high-quality energy assets, and Hut 8 has built a deep pipeline of highly attractive expansion assets,” said Robert Yin, partner at Coatue, in the financing announcement.

Cabana 8 CEO Asher Genoot recently told CNBC that his company has “finalized commercial agreements for our new AI vertical under a GPU-as-a-Service model, including a customer agreement that provides for fixed infrastructure payments plus revenue sharing.”

Bit Digital, a bitcoin mining company that now derives about 27% of its revenue from AI, he said on Monday that it had entered into an agreement with a customer to supply 2,048 Nvidia GPUs over three years, doubling the number of processors it supplies to the unspecified customer.

To fulfill the contract, Bit Digital ordered 256 servers from Dell Technologiesand will soon deploy them in a data center in Iceland. The company said the contract is expected to generate $92 million in annual revenue. It is paying for the GPUs, in part, by ditching some cryptocurrencies.

“The company intends to fund the deal with a mix of cash and on-balance sheet digital assets,” Bit Digital said.

Bit Digital has also entered into a so-called sale and lease agreement for half of the new GPUs, “which will proportionately reduce the company’s capital outlay.” With leasing, another company owns these GPUs and Bit Digital rents them back, generating revenue by providing the technology to customers.

People wait in line for t-shirts at a pop-up kiosk of online brokerage Robinhood on Wall Street after the company went public with an IPO early on July 29, 2021 in New York City.

Spencer Platt | Getty Images

While most recent crypto deals involve miners, there has been at least one major notable exception.

Earlier this month, the trading platform Robinhood agreed to a agreement to buy Bitstampa Luxembourg-based cryptocurrency exchange, for around $200 million in cash.

Bitstamp has 50 active licenses and registrations around the world and is popular in Europe and Asia. Buying helps Robinhooda retail-focused trading app, bolsters its crypto operation to better take on Binance and Coin base.

The deal, which is expected to close next year, comes as Robinhood faces regulatory challenges in the US over its crypto trading. In May, the company said he received a warning from Wells for your cryptographic operations. The Securities and Exchange Commission has also sued Coinbase and Binance.

Robinhood had $4.7 billion in cash and cash equivalents at the end of the first quarter. Its shares are up 75% this year.

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Bitcoin

What to watch for in the markets

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

6 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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