Weekly Market Information Issue No.13

1. Mining Company Update

• Mining company Marathon Digital mined 2,811 Bitcoins in the first quarter
• Bitcoin mining company GDA partnered with Argentine power company YPF Luz to establish a Bitcoinmining in Argentina powered by burning gas
• Crypto mining company Phoenix Group acquired a 12.5% stake inRekt Studios to enter the Web3 gaming market
• Kenya appointed mining company Marathon Digital as an advisor to review the country's crypto system

• Mining company Marathon Digital mined 2,811 Bitcoins in the first quarter

Marathon Digital released a financial report stating that in the first quarter of 2024, the company mined a total of 2,811 Bitcoins, valued at approximately $176 million at the current price. Benefiting from the historic high Bitcoin prices during the same period, Marathon Digital saw a significant 184% increase in net profit in the first quarter compared to the same period last year, reaching $3.372 billion; revenue increased by 223% year-on-year to $1.652 billion. Marathon Digital revealed that 26% of the mined Bitcoins were sold in the first quarter to cover operating costs. The company currently holds $1.6 billion in capital reserves, including cash, cash equivalents, and Bitcoins.

• Bitcoin mining company GDA partnered with Argentine power company YPF Luz to establish a Bitcoinmining facility in Argentina powered by burning gas

YPF Luz, a subsidiary of Argentina's largest state-owned power company YPF, recently announced a significant agreement with Bitcoin mining company GDA (Genesis Digital Assets Limited) to establish a new Bitcoin mining facility in Argentina. This facility, powered by burning gas, will provide power to 1,200 Bitcoin mining machines and convert stranded gas into currency value that would otherwise be released into the atmosphere. This marks GDA's first foray into mining operations in Latin America.

• Crypto mining company Phoenix Group acquired a 12.5% stake in Rekt Studios to enter the Web3 gaming market

Golden Finance reported that Abu Dhabi-based crypto mining company Phoenix Group has acquired a 12.5% stake in Rekt Studios, a Web3 gaming and entertainment company. The specific acquisition amount has not been disclosed. This transaction, facilitated through Phoenix Group's wholly-owned subsidiary Phoenix INV Holdings, signifies the company's strategic move beyond the crypto mining sector. Rekt Studios primarily offers solutions for gamers to own, manage, and profit from their gaming experiences and assets.

 

• Kenya appointed mining company Marathon Digital as an advisor to review the country's crypto system

According to BlockBeats news, on May 6th, Kenyan President William Ruto announced that the government had appointed Bitcoin miner Marathon Digital as an advisor to consult with the Kenyan Ministry of Finance and Ministry of Energy on the crypto system. Marathon Digital will discuss energy requirements related to crypto mining with the Ministry of Energy.

 

2. Market Overview

• BTC.com data shows that as of May 9th, 19:00:14, the Bitcoinmining difficulty decreased by 5.63% to 83.15T, marking the largest decrease since December 2022.
• The U.S. House of Representatives will vote on a crypto bill.
• The crypto trading platform Revolut X has opened to professional crypto traders.
• The EU is considering including cryptocurrencies in an investment market worth €12 trillion, potentially surpassing the impact of American ETFs.

• com data shows that as of May 9th, 19:00:14, the Bitcoin mining difficulty decreased by 5.63% to 83.15T, marking the largest decrease since December 2022

Bitcoin mining difficulty underwent an adjustment at block height 842,688 (May 9th, 19:00:14), with the mining difficulty decreasing by 5.63% to 83.15T, marking the largest decrease since December 2022. The current average network hashrate is 575.70EH/s. The Bitcoin mining difficulty adjustment will witness the largest drop since the FTX crash, with a 10% significant decrease in network hashrate leading to a 4% reduction in mining difficulty.

• The U.S. House of Representatives will vote on a crypto bill

The U.S. House of Representatives will vote on the Financial Innovation and Technology Act of the 21st Century (FIT21) concerning the crypto market structure. This bill is the most comprehensive crypto legislation passed by a congressional committee to date and is a milestone in important digital asset regulatory legislation. The bill's proponent, House Financial Services Committee Chairman and Republican representative Patrick McHenry, stated that its passage would provide a clear regulatory framework for the digital asset market, strengthen America's leadership position in the global financial system, and enhance its role as an international innovation center. While progress is positive, the bill may face challenges in the Senate, requiring further observation.

• The crypto trading platform Revolut X has opened to professional crypto traders

The digital bank Revolut's crypto trading platform, Revolut X, is now open to professional crypto traders. Based in London, Revolut has over 40 million customers globally and is one of the first banks to establish an independent trading platform for customers to trade cryptocurrencies.

• The EU is considering including cryptocurrencies in an investment market worth €12 trillion, potentially surpassing the impact of American ETFs.

According to DL News, the European Securities and Markets Authority (ESMA) is consulting industry experts on whether to include crypto assets in investment products. This move aims to open up a broader market for cryptocurrencies, potentially surpassing the market size of current Bitcoin ETFs. The plan is to expand the scope of UCITS (Undertakings for Collective Investment in Transferable Securities) in the EU, with the UCITS market size reaching €12 trillion. If implemented, this would be a key step towards mainstreaming crypto assets in Europe.