The cryptocurrency market has gotten even more complex as the blockchain technology has been integrated into our world. For example, one of the largest crypto exchanges, Coinbase, announced this week that it is delving deeper into traditional financial services, allowing users to deposit paychecks directly into their online accounts. “With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase,” Max Branzburg, Vice President of Product at Coinbase, said in a blog post. “We’re determined to deliver the most trusted full suite of crypto-first financial services to our 68 million users.” ISW Holdings Inc. (ISWH), HIVE Blockchain Technologies Ltd. (HVBT), Marathon Digital Holdings, Inc. (MARA), Hut 8 Mining Corp. (HUT), The9 Limited (NCTY)
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In the meantime, the U.S. is now one of the new hubs of the Bitcoin mining market. This is in large part due to the Chinese government’s crackdown on cryptocurrencies. Local agencies, including the country’s securities regulator and the People’s Bank of China (PBOC), recently said in a statement that all cryptocurrency-related business activities are illegal and promised to punish illicit activities involving digital currencies. As a result, the U.S. in now the second-biggest mining destination on the planet, accounting for nearly 17% of all the world’s Bitcoin miners as of April 2021. That’s a 151% increase from September 2020, according to CNBC.
ISW Holdings Inc. (ISWH) transitioning to “BlockQuarry,” pending name change, just announce breaking news that, “the Company surpassed agreed upon milestones related to the performance of its common stock price and will therefore receive an additional 150 Bitmain S19 95TH/s miners from Minerset, a Delaware LLC, due to negotiated milestone clauses included in the asset purchase agreement (the “Agreement”) reached between the two companies in August.
These 150 miners are supplemental to the 400 miners already paid for and received as part of the original Agreement.
The Company leveraged its shares of Preferred B stock to purchase its initial tranche of 400 miners. As a part of the contract, ISW Holdings President and Chair, Alonzo Pierce, and Minerset Managing Member, Elias Fernandez Sanchez, negotiated a graduated milestone provision deeming that ISW Holdings would earn 75, 150, or 225 additional Bitmain S19 95TH/s miners based on the performance of the Company’s common stock at or above $2, $3, or $4, respectively.
The Company has now triggered two of those milestones and looks forward to the opportunity to reach the next – the stock price for common shares of ISWH closed at $3.44 on Monday after hitting a 52-week intraday high of $3.78 during the session.
‘This contract was a win for both companies: We didn’t have to part with $3.8 million in cash and Minerset was able to quickly move its inventory,’ noted Pierce. ‘With the appreciation of our stock price, both companies have already been amply rewarded for this partnership.’
Upon delivery, the miners will be prepped and deployed in POD5 units at the Company’s Pennsylvania mining project.
‘In addition to being a surprise reward for our shareholders on the asset side, this new tranche of miners will drive significant further bottom line performance gains over coming quarters,’ added Pierce. “We also continue to work with FINRA on our name and symbol change, which is our first step of many on our way toward a NASDAQ listing.'”
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HIVE Blockchain Technologies Ltd. (HVBT) reported last month that it has ordered 1,800 Antminer S19j Pro miners from Bitmain Technologies Ltd. (“Bitmain”). These new miners have an aggregate hash power of 180 Petahash per second (PH/s). HIVE is proud to reconnect with Bitmain one of the leading manufacturers in our industry and is excited to make this initial order of S19j Pro miners from Bitmain. These 1,800 miners are the first of our 2022 mining purchase program and will be delivered in 6 equal tranches of 300 miners, commencing in January 2022 through June 2022. “We are constantly upgrading our ASIC fleet to have the most efficient miners we can buy from cash flow,” Frank Holmes, Executive Chairman of HIVE continued, “This purchase with Bitmain enables us to maintain our strategy to diversify the manufacturers we purchase from. Over the past year, we have been expressing our concerns about global shortages in chips and logistics delays in shipping equipment from Asia due to Covid 19. We have deep relationships Bitmain, MicroBT, and Canaan which are all top global manufacturers in our industry.”
Marathon Digital Holdings, Inc. (MARA) reported earlier this month that DMG Blockchain, (DMGI) (DMGGF) (6AX), a vertically integrated blockchain and cryptocurrency technology company, will become the first North American Bitcoin miner, excluding Marathon, to join Marathon’s mining pool, MaraPool. On Monday September 13, 2021, DMG Blockchain will begin pointing 100% of its hash rate towards MaraPool, as the pool opens to additional Bitcoin mining companies. MaraPool is a U.S.-based Bitcoin mining pool that is focused on reducing the environmental impact of Bitcoin mining through carbon neutral mining. The pool, which is fully audited by a third-party firm in the U.S., provides its members with industry leading transparency, an intuitive reporting system, and access to exclusive services from NYDIG.
Hut 8 Mining Corp. (HUT) announced last month its financial results for the quarter ending June 30, 2021 (“Q2-2021”) Hut 8 continues to strategically emphasize its “hodl” strategy, taking active steps to generate Canadian and US dollars to help fund operating expenses, so as to avoid selling Bitcoin. During Q2-2021, 100% of self- mined Bitcoin was deposited into custody. As of June 30, 2021, the Company had a total Bitcoin balance of 3,824 with a market value of $166 million. Hut 8’s current Bitcoin balance, including 2,000 Bitcoin loaned as part of the Company’s fiat yield strategy, is approximately 4,240 Bitcoin, reflecting a market value of approximately $245 million. Hut 8 currently has an installed hashrate of 1.37 exahash (“E/H”). Given pending orders, we have additional contracted hashrate of 1.3 E/H (including 1,600 gigahash equivalent), bringing contracted hashrate to approximately 2.7 E/H. Based on current network dynamics, we anticipate daily settlement once all contracted equipment is hashing will equate to 20 – 25 Bitcoin per day.
The9 Limited (NCTY) announced last month that its wholly-owned subsidiary NBTC Limited (“NBTC”) and a Kazakhstan company LGHSTR Ltd. (“LGHSTR”) have signed a non-binding investment memorandum to establish a joint venture in Kazakhstan. According to the investment memorandum, NBTC and LGHSTR will own 51% and 49% of the joint venture respectively. NBTC will control the board of directors of the joint venture. The joint venture plans to invest and build cryptocurrency mining sites with a total capacity of 200MW within two years. NBTC will have the priority to deploy cryptocurrency mining machines owned by NBTC or its partners. When the 200MW mining sites construction is fully completed, taking S19 Antminers as an example, the sites are expected to be able to deploy more than 50,000 S19 Antminers and accommodate about 5EH/s of hash power. The joint venture will also carry out operation and maintenance of cryptocurrency mining machines in Kazakhstan. The joint venture plans to complete the construction of 20MW in September 2021; a total of 100 MW is expected to complete by the end of 2021 cumulatively; and a total of 200MW is expected to be completed by the end of 2022 cumulatively.
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