Overview

• Bitcoin miners are beginning to enjoy some respite in the current year after struggling in 2022.
• The market has seen a little BTC distribution from miners in January 2023 compared to the previous year.
• Miners appear to be in a healthier position compared to the previous year as BTC’s price has risen by around 50%, and hash rate hit a new all-time high of 300 TH/s.

Bitcoin Miners’ Holdings

As of Jan. 2022, Bitcoin miners held 36,003 BTC, with mining firms like Core Scientific, Riot, Hut8, Marathon, and Bitfarms holding over 30,000 coins. However, the landscape appears to have changed in the current year as Hut 8, Marathon, and Riot are now the dominant miners, holding 87% — 27,760 BTC — of the miners‘ BTC holdings. Bitfarms and Core Scientific fell off as they struggled in 2022 — the latter filed for bankruptcy while the former dealt with debt obligations.

Miners Selling their BTC at Low Levels

According to Glassnode’s data analyzed by CryptoSlate shows that miners are selling their BTC to exchanges at extremely low levels compared to previous years due profitability is beginning to return to the mining industry as BTC’s price has risen by around 50% in 2023 . This suggests that miner’s financial health is improving when compared with last year.

Rise In Shares Of Different Miners

The shares of several miners have risen by three figures on the year-to-date (YTD) metric. Miners like Hut8, Riot, Iris, Marathon etc., have all seen their shares increase by over 100% YTD which indicates an overall improved financial health for public bitcoin miners despite 12.1% YoY drop in its holdings.

Mining Bitcoin is Cheaper

The Difficulty Regression Model (DRM), a metric used measure cost of mining Bitcoin is currently cheaper which presents an opportunity for more people to enter into bitcoin mining business with minimal risks involved and further improve public bitcoin miner’s financial health moving forward.

• Tether reported a $700 million profit for the fourth quarter of 2022, according to its latest attestation report.
• It has an excess reserve of at least $960 million and total assets stood at $67.04 billion, while its liabilities were $66.08 billion.
• During the chaotic events of the year, Tether processed over $21 billion dollars in redemptions and issued over $10 billion USDT.

Tether Reports Profits for Q4’22

Tether, a stablecoin issuer, recently published an attestation report which revealed that it had earned a profit of $700 million in the fourth quarter of 2022. Its total assets amounted to $67.04 billion, with liabilities standing at $66.08 billion; most of which were related to its issued digital tokens. The company also stated that it had an excess reserve of at least $960 million as of Dec 31st.

Redemptions and Issuance

CTO Paolo Ardoino commented on the report by stating that it showed Tether’s resilience and stability in handling bear markets and black swan events; citing that despite chaotic events during the year, Tether smoothly processed over $21 billion dollars in redemptions and issued over 10 billion USDT – indicating continued organic growth adoption for their token..

Removal Of Secured Loans

The crypto market plunged to record lows last year, leading to several crypto firms capitulating while facing increased regulatory scrutiny following the collapse of Terra’s algorithmic stablecoin – causing a mini bank run whereby Tether experienced withdrawals amounting to 10billion within two weeks time span. As such they removed all secured loans and commercial paper from their reserves following heightened community fears.

Continued Assurance

To ensure trustworthiness amongst their users as well as regulators alike, Tether repeatedly maintained that they have no exposure to any firm affected by the crypto contagion; thereby showing commitment towards adhering to regulations whilst still providing services within this space.

Conclusion

Summary of Article

• Cathie Wood’s ARK Invest expects that Bitcoin will reach $1 million by 2030.
• ARK’s investment thesis is based on five converging technological innovations, such as public blockchains, artificial intelligence, energy storage and multiomic sequencing.
• Digital assets are expected to drive an increase in online spending per capita due to the establishment of property rights.

Overview

Cathie Wood’s ARK Invest has released a report that predicts that Bitcoin’s price could rise to $1M per coin by 2030. The report is based on five converging technological innovations, namely; public blockchains, artificial intelligence (AI), energy storage, robotics and multiomic sequencing. Digital assets are expected to drive an increase in online spending per capita due to the establishment of property rights. Furthermore, digital wallets are predicted to save payment transactions nearly $50 billion in costs with 3.2 billion users already onboarded.

ARK’s Investment Thesis

ARK’s overall investment thesis is predicated on five converging technologies; public blockchains which allow for secure transfer of value between individuals without intermediaries; AI which can be used for a variety of tasks including decision making and data analysis; energy storage which allows for storing energy generated from renewable sources such as solar or wind; robotics which can automate manual processes such as manufacturing or logistics; and multiomic sequencing which allows for analysis of genetic data at large scales. These technologies have the potential to revolutionize our world and create economic opportunity for those who embrace them early.

Property Rights & Digital Assets

The establishment of property rights is expected to bolster the value of digital assets in the coming years as well. Historically, property rights have shown a positive relationship with GDP per capita – commonly used as a measure of standard of living – therefore it stands to reason that digital asset values should also increase with this trend. According NFT transaction volume is estimated grow from today’s $22 billion up to $120 billion by 2027 – more than a 5-fold increase – hence providing great potential opportunities for investors.

Digital Wallets & Payment Transaction Savings Conclusion

In conclusion , Cathie Wood’s ARK Invest predicts that Bitcoin’s price will reach $1 million by 2030 backed up by several technological advancements such as those mentioned above . Property rights along with digital asset values are expected rise concurrently while digital wallets present cost savings opportunities worth billions dollars yearly .

• Digital Surge creditors have agreed to a 5-year repayment plan following the company’s exposure to FTX.
• Customers with a balance of up to AU$250 will be repaid in full and those with a balance above that will receive 55% of their balance within the next few months.
• Digital Surge will receive a loan of AU$1.25 million (approx. US$885,000) from Digico, an associated business, to remain in operations.

Digital Surge, an Australia-based crypto exchange, has agreed to a rescue plan with its creditors to pay them over five years from the firm’s quarterly net profits. The agreement comes following the company’s exposure to FTX, an online trading platform which collapsed in November 2022.

Digital Surge had roughly $23 million in FTX which caused the company to suspend withdrawals and deposits for its 22,545 customers and enter into administration in December 2022. As part of the rescue plan, customers with a balance of up to AU$250 will be repaid in full and those with a balance above that will receive 55% of their balance within the next few months. The remaining balance will be repaid from Digital Surge’s quarterly profits over the next five years.

The firm will also receive a loan of AU$1.25 million (approx. US$885,000) from Digico, an associated business, to remain in operations. The proposal was put forward by Digico and Digital Surge directors Daniel Ritter and Joshua Lehman, and was approved by the firm’s administrator KordaMentha. It was said that the proposal provided a superior return and more certainty than liquidation.

Digital Surge has stated that they got involved with FTX because its directors believed that it would be beneficial to the company by providing liquidity for its customers. The company has since moved to ensure that this will not happen again, and has implemented strict risk management protocols.

The repayment plan is expected to be completed within the next five years and is said to be the best option for creditors. Digital Surge is hoping that the successful completion of the repayment plan will help to restore customer confidence in the platform and give them the assurance that their funds are safe.

• Hashkey Capital announced its third fund, HashKey FinTech Investment Fund III, with a total commitment of $500 million.
• Fund III will deploy capital to advance crypto and blockchain initiatives globally, focusing on emerging markets.
• Fund III will invest primarily in infrastructures, toolings, and applications that have the ‚potential for mass adoption.‘

Hashkey Capital recently announced the launch of their third fund, the HashKey FinTech Investment Fund III, committing a total of $500 million to advance crypto and blockchain initiatives globally. This fund will primarily focus on emerging markets, providing institutional-grade access to all aspects of blockchain and crypto technology.

The new fund will deploy capital to invest in infrastructures, toolings, and applications that have the potential for mass adoption. It follows the firm’s time-tested investment principles while also looking for game-changers that will propel the industry forward.

The announcement of Fund III has been met with strong support from a number of institutions, including sovereign wealth funds, corporations, and family offices. Since its launch in 2018, Hashkey has managed over US$1 billion in clients‘ assets, investing in firms such as Cosmos, Coinlist, Aztec, Blockdaemon, dYdX, Animoca Brands, FalconX, Polkadot, Moonbeam, and Galxe.

In addition, during the bear market of 2022, Hashkey served as an investor in the $12 million Series A funding round of the decentralized finance platform Akropolis, which focuses on providing retirement plans for the unbanked.

With the launch of HashKey FinTech Investment Fund III, the firm is looking to further advance the crypto and blockchain sector, providing financial support for initiatives that have the potential for mass adoption and have the potential to revolutionize the industry.

• Huobi Korea will be becoming an independent entity, breaking ties with Huobi Global
• Jo Guk-Bong, the Huobi Korea Chairman, will buy the majority stakes from Huobi Global founder Leon Lin
• Huobi Global has recently faced backlash from the community after ordering its employees to accept salaries in USDT/USDC or face dismissal

Huobi Korea, the South Korean subsidiary of Huobi Global, is making moves to become an independent entity and cut its ties with the world’s largest digital asset exchange. News1, a Korean news outlet, reported that Leon Lin, the founder of Huobi Global, owned more than half of Huobi Korea. Among the next major shareholders are Huobi Korea Chairman Jo Guk-Bong and Korea Land Trust. Jo, who owns a crypto mining business, will buy the majority stakes from Lin.

The move to become an independent entity has been met with some controversy. Recently, Huobi Global has been facing backlash from the community after ordering its employees to accept salaries in USDT/USDC or face dismissal. Justin Sun, the firm’s general adviser, was accused of withdrawing more than $1.5 billion since last October. Several reports also claimed that the exchange shut down communication channels with its internal employees.

The move from Huobi South Korea to become an independent entity is likely to have significant implications for the digital asset trading industry. Huobi Global is the world’s largest digital asset exchange and the move could potentially open up competition in the industry. It remains to be seen how this move will affect Huobi Global and the digital asset trading industry as a whole.

• Hut 8, a Canadian Bitcoin mining firm, saw a sequential drop in Bitcoin production in December 2022.
• The firm sold power back to the provider due to high energy prices, resulting in a decrease in production.
• Hut 8’s Bitcoin treasury reached 9,086, up 65% from its balance at the end of 2021.

Hut 8, a Canadian Bitcoin mining firm, saw a sequential drop in Bitcoin production in December 2022. The firm sold power back to the provider due to high energy prices, resulting in a decrease in production. Hut 8’s Bitcoin treasury reached 9,086, up 65% from its balance at the end of 2021.

In December 2022, Hut 8 increased its Bitcoin holdings by 161, representing a decline of 32.35% from November’s 238 Bitcoins. Further, the firm mined Bitcoin at an average of 5.2 Bitcoin/day in December – a fall from the November average of 7.9 Bitcoin/day. The Company’s total Bitcoin count on December 31 stood at 9,086.

The decrease in production is due to high energy prices that led the mining firm to sell power back to the provider. As part of its efforts to mitigate the impact of the issues with the energy supplier, Hut 8 is exploring organic and inorganic growth options. To protect its Bitcoin holdings, the firm deposited 100% of the self-mined Bitcoin in December into its custody in accordance with its long-standing strategy.

The decrease in production had an adverse effect on the company’s revenue. Hut 8’s net revenue decreased from $50.3 million in Q3 2021 to $31.7 million in Q3 2022, a decline of $18.6 million. Despite this, the Company mined 982 Bitcoin in Q3 2022, an 8.5% increase over Q3 2021 due to the expansion of the Company’s fleet of miners and mining activities.

Despite the drop in production and revenue, Hut 8 was one of the few mining firms to increase its Bitcoin holdings in the face of a market downturn. Companies in the mining industry suffered heavily from the bear market and this made it difficult for them to remain profitable. Hut 8 was able to weather the storm, however, and its Bitcoin treasury stands as a testament to its resilience.

• Canadian Bitcoin mining firm, Hut 8 increased its Bitcoin holdings by 161 in December 2022 – a decline of 32.35% from November’s 238 Bitcoins.
• Hut 8 sold power back to the provider because of high energy prices, resulting in a fall in production.
• Hut 8’s net revenue decreased from $50.3 million in Q3 2021 to $31.7 million in Q3 2022, a decline of $18.6 million.

Canadian Bitcoin mining firm, Hut 8, experienced a decrease in production in December 2022 due to high energy prices, which prompted the company to sell power back to the provider. As a result, the firm increased its Bitcoin holdings by 161 in December 2022, a decline of 32.35% from November’s 238 Bitcoins. Furthermore, the average Bitcoin mined by Hut 8 in December was 5.2 Bitcoin/day, a decrease from the November average of 7.9 Bitcoin/day. The company’s total Bitcoin count on December 31st was 9,086.

In addition, Hut 8’s net revenue decreased from $50.3 million in Q3 2021 to $31.7 million in Q3 2022, a decline of $18.6 million. Despite this, the company managed to mine 982 Bitcoin in Q3 2022, an 8.5% increase over Q3 2021 due to the expansion of the Company’s fleet of miners and mining activities.

In order to mitigate the impact of the issues with the energy supplier, Hut 8 is exploring organic and inorganic growth options. To adhere to its long-standing strategy, the firm deposited 100% of the self-mined Bitcoin in December into its custody. As of November 2022, Hut 8 was one of the few mining firms to increase its Bitcoin holdings in the face of a market downturn. Companies in the mining industry suffered heavily from the bear market, and Hut 8’s effort to increase its Bitcoin holdings is a testament to its commitment to the industry.

• The New York Attorney General, Letitia James, has filed a lawsuit against the former CEO and co-founder of Celsius Network LLC, Alex Mashinsky, for defrauding investors.
• The lawsuit alleges that Mashinsky misled investors about Celsius’s safety and misrepresented and concealed Celsius’s deteriorating financial condition.
• The lawsuit demands Mashinsky pay damages, restitution, and disgorgement and be barred from doing business in the state of New York.

The Attorney General of New York, Letitia James, has recently taken action against Celsius Network LLC, a cryptocurrency firm, and its former CEO and co-founder, Alex Mashinsky. James has filed a lawsuit against Mashinsky for misleading investors about billions of dollars of cryptocurrency.

The lawsuit alleges that Mashinsky misled investors about Celsius’s safety in order to lure them into depositing billions of dollars. He also misrepresented and concealed Celsius’s deteriorating financial condition when the network lost assets worth millions of dollars. Furthermore, Mashinsky did not register as a Celsius salesperson or a securities and commodities dealer. During his appearances at cryptocurrency conferences and social media to promote Celsius, he claimed that the network was safer than a bank, which many investors lost funds as a result.

The lawsuit demands Mashinsky pay damages, restitution, and disgorgement, in addition to being barred from doing business in the state of New York. This is not the first time the Attorney General has taken action against crypto firms. In her lawsuit, Letitia James also claimed that Mashinsky made false and deceptive statements about Celsius’s safety, its number of users, and its investment strategies to attract investors.

The Attorney General’s office is seeking to hold Mashinsky accountable for his alleged fraudulent activities. If found guilty, Mashinsky could face severe financial penalties and jail time for his actions. In addition, the Attorney General’s office is looking to protect investors from future harm by preventing Mashinsky from engaging in any similar activities in the future.

This case is yet another example of the need for proper regulation of the cryptocurrency industry. It is essential that investors are protected from fraudulent activities and that the industry is held to the same standards as the traditional financial markets. The Attorney General’s office is committed to protecting investors and ensuring that those who violate the law are held accountable.

• Coinbase to pay $50 million penalty for inadequate AML measures.
• The NYDFS found Coinbase’s Know Your Customer and Customer Due Diligence (KYC/CDD) program to be “immature and inadequate.”
• Coinbase will invest another $50 million over the next 2 years to update its compliance systems.

Coinbase, the largest cryptocurrency exchange by trading volume, is facing the repercussions of inadequate Anti-Money Laundering (AML) measures. The New York State Department of Financial Services (NYDFS), which has licensed Coinbase since 2017, has announced that the exchange will pay a penalty of $50 million as well as invest another $50 million over the next two years to update its compliance systems.

The NYDFS conducted an examination and then an enforcement investigation to evaluate Coinbase’s AML measures. The regulators found that the exchange’s Know Your Customer and Customer Due Diligence (KYC/CDD) program was “immature and inadequate,” both in terms of how it was designed and implemented. Essentially, Coinbase only required users to check a few boxes in order to verify their identity and did not conduct due diligence.

Furthermore, due to the high number of users — Coinbase has over 108 million verified users — it failed to keep up with the high volume of alerts from its Transaction Monitoring System (TMS). This resulted in a backlog of more than 100,000 unreviewed TMS alerts by late 2021, leading to Coinbase’s failure to timely investigate and report suspicious activities.

To address the deficiencies in its AML measures, Coinbase has agreed to pay a penalty of $50 million as well as invest another $50 million over the next two years to update its compliance systems. The plan has been approved by the NYDFS.

Coinbase was founded in 2012 and operates in many countries around the world. It is considered one of the most trusted exchanges and has over 108 million verified users. However, its failure to maintain adequate AML measures has resulted in a hefty fine and the need for improvements to its compliance systems.