Weekly Market Information Issue No.3

1. Mining Companies Update

• CoinShare: After the Bitcoin halving, the price needs to maintain above $40,000 for most miners to be profitable.
• Bitcoin mining company DMG produced 72.1 Bitcoins in December, with a current total holding of 455 Bitcoins.
• ArkonEnergy raised $110 million, with the funds mainly used to support Bitcoin mining companies in the United States.

• Bitcoin mining company DMG produced 72.1 Bitcoins in December, with a current total holding of 455 Bitcoins

Bitcoin mining company DMG Blockchain Solutions Inc. announced that in December 2023, with a hashrate of 1.0 EH/s, it produced 72.1 Bitcoins. As of December 31, 2023, the company’s total holdings reached 455 Bitcoins. (January 15, BlockBeats)

• Arkon Energy raised $110 million, with the funds mainly used to support Bitcoin mining companies in the United States

Data center infrastructure company Arkon Energy completed a $110 million financing, led by Bluesky Capital Management, with participation from Kestrel 0x1 and Nural Capital. Josh Payne, CEO of Arkon Energy, stated that the new funds will be used to expand the company's business, with $80 million allocated to acquire an additional 200 megawatts of capacity for new data centers in Ohio, North Carolina, and Texas. Payne also mentioned that the company's US data center investment portfolio is primarily occupied by institutional-level Bitcoin mining firms. (January 15, TechCrunch)

• CoinShare: After the Bitcoin halving, the price needs to maintain above $40,000 for most miners to be profitable

According to the mining report published by CoinShares in 2023, Bitcoin mining has seen a 104% increase in hashrate, leading to questions about its environmental sustainability and profitability, particularly regarding the network's efficiency and energy costs. The expected average production cost per Bitcoin after halving is $37,856. Most miners will face the challenge of costs related to sales and administrative expenses and will need to reduce costs to remain profitable. Unless the Bitcoin price remains above $40,000, only miners like Bitfarms, Iris, CleanSpark, TeraWulf, and Cormint will be able to continue making a profit. (January 15, BlockBeats)

2. Ranking of PoW

This week, currencies were ranked by annual production value; Syscoin was newly added; Both coin prices and hashrate fluctuated within a small range.

1. Market Overview

• Data: Current Bitcoin spot ETF issuers now hold 3.9% of the total supply of Bitcoin.
• UXUY will launch the world's first Token and Inscription Launchpad based on the Bitcoin Lightning Network on February 1st.
• Bitcoin ecosystem auction protocol BIDprotocol has reached a partnership with KuCoin Labs.
• Data: BitMEX Research reported that the net inflows of 7 Bitcoin spot ETFs have reached a total of $400 million.
• Vanguard will no longer accept investor purchases of crypto products, including Bitcoin futures ETFs.
• CryptoQuant: Over $1 billion in BTC has been sent to exchanges, with miner outflows reaching a 6-year high.

 

• UXUY will launch the world's first Token and Inscription Launchpad based on the Bitcoin Lightning Network on February 1^st

This next-generation decentralized multi-chain trading platform, incubated by Binance Labs, will officially initiate its Lightning Launchpad service centered around Bitcoin. Leveraging the high efficiency, low cost, and strong consensus of the Lightning Network, the UXUY Lightning Launchpad will commence its first round of Free Launch, ensuring fairness. It aims to become the first global platform to issue Tokens and inscriptions based on the Bitcoin Lightning Network, supporting over eight Bitcoin L2 technologies including Taproot Assets, Ordinals BRC20, AtomicalsProtocol, Stacker, RGB, RootStock, Runes, and others, while also bridging with mainstream public blockchains such as BNB, AVAX, Polygon, and Tron. (January 15th, The Block)

• Data: Current Bitcoin spot ETF issuers now hold 3.9% of the total supply of Bitcoin

According to HashKey Exchange's social media post, Bitcoin spot ETF issuers currently hold 3.9% of the total supply of Bitcoin. The world's largest asset management company, BlackRock, now holds about 11,500 bitcoins. (January 16th, Bloomberg)

• Bitcoin ecosystem auction protocol BIDprotocol has reached a partnership with KuCoin Labs

The Bitcoin ecosystem auction protocol BID protocol has reached a partnership with KuCoin Labs. Reportedly, the BID protocol aims to prevent front-running, Sybil attacks, and gas wars through Dutch auctions, ensuring a fair token issuance environment. (January 15th, Twitter)

• BitMEX Research reported that the net inflows of 7 Bitcoin spot ETFs have reached a total of $400 million

BitMEX Research has indicated on social media that to date, the net inflows for 7 Bitcoin spot ETFs with available data have reached a total of $400 million. Among them, FBTC has a net inflow of $227 million, IBIT has a net inflow of $112 million, EZBC has a net inflow of $50.1 million, and HODL has a net inflow of $10.6 million. (January 15th, BlockBeats)

• South Korea's Samsung Securities and Mirae Asset Securities suspend overseas Bitcoin spot ETF services due to regulatory warnings

Several major South Korean securities companies have suspended brokerage services for spot Bitcoin ETFs, including the securities division of Samsung Group and Mirae Asset Securities. According to the local news media Dailian, as of the end of 2022, Samsung Securities managed assets of approximately $220 billion, while Merrill Lynch's assets under management were about $215 billion as of the end of June 2023.

The Financial Services Commission of South Korea reiterated its stance to maintain restrictions on financial institutions issuing crypto ETFs, citing financial market stability and investor protection as reasons for maintaining the current restrictions. Currently, South Korea's Capital Market Act limits the underlying assets of investment contract securities such as ETFs to financial investment instruments, currencies, and general goods, which do not include cryptocurrencies. (January 14th, Bloomberg)

• CoinDesk: Bitcoin miners' capital outflows have reached a multi-year high, with tens of thousands of bitcoins, valued at over $1 billion, being sent to trading platforms

CryptoQuant analyst Bradley Park indicated that the majority of the Bitcoin was transferred out of the mining pool company F2Pool, a move due to the increasing costs faced by miners. Park noted that the cost increase associated with F2Pool's move to Kazakhstan, as well as the need to upgrade to the latest Antminer T21 before the halving, has led to reduced mining rewards and consequently decreased output per machine, which is the reason for the capital outflow. F2Pool's hash power has begun to increase, indicating that they have started upgrading their capacity. (January 15th, CoinDesk)