Category: Bitcoin News

Tesla cashes out $936 million in Bitcoin, after a year of crypto turbulence

 

It’s amazing how a year can make a big difference. Tesla sold $936 million of Bitcoin worth in 2021 after making major investments in it in 2022. This was in order to reduce its Bitcoin holdings by 75%.

Tesla aggressively supported Bitcoin in 2021. They invested $1.5 billion in it as CEO Elon Musk praised Bitcoin’s benefits over fiat currency. Tesla customers could purchase cars with Bitcoin for a portion of the year.

However, Tesla’s profitability has been affected by Bitcoin impairment in the last few months, it stated in its financial summary for the second quarter.

Bitcoin reached delirious heights in 2021

Bitcoin saw record-breaking growth in 2021 thanks to the closely watched actions of Tesla. directly benefitted from Tesla’s crypto investments, which netted it more than $100,000,000 in profits.

Bitcoin, which is known for being volatile, was already on an upswing when Tesla announced its plans in February 2021. The cryptocurrency’s price quickly rose by tens or thousands of dollars.

Tesla stopped selling Bitcoin vehicles in May 2021 due to the negative environmental effects of using coal and other fossil fuels for mining the cryptocurrency. According to Coindesk, Bitcoin rose to $68,990.90 in autumn after a mid-summer slump.

Since last fall, markets have undergone a reorganization.

Since its inception, cryptocurrency has been a part of the attraction of digital currencies. Its independence from governments and promise of inflation and political independence were key factors.

However, a rising inflation and a deflated stock exchange have made Bitcoin more vulnerable to traditional market pressures. The U.S. central banks raises interest rates, and investors adjust their cryptocurrency holdings.

Tesla is one example of such investors, but one with huge resources and a CEO that can move markets with a tweet.

Before Tesla’s sale, a single Bitcoin was worth more than $24,000. Its value was well below $23,000 as of Thursday morning.

Almost all large-scale bitcoin miners in Texas pause activity as state braces for possible rolling blackouts

 

As the Texas energy grid collapses and officials warn of rolling blackouts Bloomberg reported that Bitcoin mining heavyweights have halted operations.

The state is experiencing a heatwave that has caused its power grid to break down and raised conservation concerns. Riot Blockchain Inc. and Argo Blockchain Plc are just a few of the companies that have moved to Texas to benefit from its low energy costs, which is favorable for bitcoin miners. These companies operate millions of computers across Texas to solve complex coding issues, which in turn awards bitcoin miners.

This cutback comes after peak usage Friday when miners reached 78,206 megawatts, breaking the July 5 record of 77.460. As Texas works out its energy crisis, companies could see additional revenue losses as computers are still off-line.

Miners already had to deal with increasing debt. currently has $4 billion in loans. Cryptocurrencies are suffering huge losses this year. Bitcoin, the most popular cryptocurrency, is still far from its record high of $69,000 in November 2021 and is currently trading at just over $20,000. Core Scientific sold 2,000 bitcoins to pay operating costs in June.

The volatility that cryptocurrencies are well-known for has driven rates for bitcoin miners’ loans higher as banks and other institutions flock to support ventures. As they run out cash, crypto firms are feeling the pinch and turning to , including FTX’s Sam Bankman Fried, for a source of financial assistance.

Investment Firm Cypherpunk Holdings Sells All of Its Bitcoin and Ether

Cypherpunk Holdings, a Canadian investment firm, has sold all its bitcoin and ether assets to take advantage of the current market risks.

C$293,000 ($227,000) was the price paid by the company for 205.8209 Ethereum (ETH), and 214.7203 Bitcoin (BTC) at C$6.09million ($4.7million). According to a Tuesday announcement, the company earned a total C$6.38million ($5,000,000) from sales.

According to the company, it has C$18.16million ($14.1 Million) in cash and stablecoins. It also has approximately C$1.93million ($1.5 Million) for structured products that have a redemption notice of 30 days.

Cypherpunk CEO Jeff Gao stated that the firm decided to sell all its bitcoin and ether holdings due to rising market volatility, which has made asset tokens more risky for investors.

Bitcoin and ether both lost more than half of their value over the past year. They fell to 52-week lows earlier in this month. Canadian stock exchanges have seen shares fall 50%.

Gao stated that he believes it is prudent to wait for volatility and illiquidity contagion’s conclusion to take place. He said that he sees weaker price action opening up the possibility of lower levels. Also, he mentioned reports about chains placing a temporary suspension on withdrawals.

Gao stated that Cypherpunk will have a long-term bullish outlook on cryptocurrency and will seek to capitalize on future investment opportunities in this space.

Winter

The cryptocurrency market has been plunged into an especially icy cryptocurrency winter because investors reacted to decades of high inflation by selling riskier assets, leading markets and markets to fall.

analysis of Arcane Research showed that bitcoin mining companies such as Riot Blockchain (RIOT), and Bitfarmss (BITF), collectively sold more than 100% off their total output in May, when the bitcoin price fell 45%.

Investors will likely continue to sell off cryptocurrency assets as economic headwinds continue to cause solvency problems for cryptocurrency lending and to spur large industry-wide layoffs. Until the market recovers, they will move their money into safer, more volatile store of value.

Moe Adham, Chief Investment Officer at Cypherpunk Holdings, stated that until the market turns the risks for cryptocurrency investors will remain’significant’.

Adham stated that “Crypto markets are still in a very risky environment.” He also said that there is still the possibility of significant price drops in crypto assets.

Nubank Now Allows 53 Million Brazilians To Buy Bitcoin

Nubank, Brazil’s biggest digital bank, has made it possible to buy bitcoins for all of its 53.9 millions customers.

, the Warren Buffett-backed fintech, announced the feature in May via a blog post. It explained how the feature would be implemented in phases. The company also allocated bitcoin treasury funds at that time.

Monday’s update to the blog post reflects the new status. All Nubank customers have now access to the Nubank Crypto tab, where you can negotiate bitcoin.

All customers now have the option to purchase cryptocurrencies through Nubank. The blog post has been updated.

Nubank Crypto section allows users to instantly buy and sell bitcoins. This is the most popular banking platform in Brazil for 2021. Customers can now acquire Bitcoin, but they cannot withdraw the coins purchased to an external wallet.

Bitcoin Magazine tried the new feature Tuesday.

Nubank charges a small commission for every buy or sale operation. This fee, although it can vary, is usually around 0.02%. Additionally, the app offers educational content in the Crypto section that explains bitcoin to novice investors.

As the user navigates to the page to purchase Bitcoin, Nubank’s app declares that it is the “first cryptocurrency to exist.” “Bitcoin was founded with the intent to decentralize financial systems and has influenced all other cryptocurrencies ever since. People often compare Bitcoin to gold, and they tend to store it in the future.

Nubank, a Unicorn-backed digital bank, is Brazil’s most popular. Warren Buffett’s Berkshire Hathaway has backed the fintech and it went public on Nasdaq in recent days.

According to a report, Nubank was acquired by the holding company for $500 million. It also purchased 30 million shares at $250 million. In December, it went public. The company recently doubled down with a $1 billion Brazilian fintech investment.

Nubank joins the race for Brazilian bitcoin investors. Banks compete to offer the best services in cryptocurrency. With their plans to offer Bitcoin services for consumers, investment banks like XP Investmentos and TG Pactual have increased their focus on this sector.

Brazil’s cryptocurrency market is preparing for a new set of rules that will govern the activities of custodians and exchanges in the country. In the next few weeks, the overhaul cryptocurrency bill will be up for vote in the House of Representatives.

Billionaire Stan Druckenmiller Prefers Bitcoin Over Gold in ‘Inflationary Bull Market’

Stanley Druckenmiller, the billionaire hedge fund manager, says that bitcoin is more valuable than gold in an inflationary bullish market. However, he said that gold would be better in a bearish market.

Stanley Druckenmiller: Crypto, Bitcoin, Blockchain

Stan Druckenmiller spoke out about cryptocurrency and bitcoin investing in a Saturday interview with the Sohn Conference Foundation.

Druckenmiller is the chairman and CEO at Duquesne Family Office LLC. Druckenmiller was previously a managing Director at Soros Fund Management, where he was responsible for funds with a peak assets value of $22 trillion. Forbes lists his net worth at $6.8 billion.

He stated, “If you think we will have an irresponsible monetary policy and inflation going forward,” adding that bitcoin is a good investment. However, gold should be avoided if it’s in the bear phase for other assets.

He stressed that he believes it to be true because he has been watching the markets for a long time. Druckenmiller stated, “I’m beginning to believe what I see.”

If we have an inflationary bullmarket, then I will definitely want bitcoin to be my primary investment.

He stated, “If I believed we will have a bear-market — you know, stagflation-type stuff — I would like to own gold.”

The billionaire said, “That’s my assumption going forward from here,” noting that his assumption of 85% is based on what he had observed.

The famous hedge fund manager, who spoke out about cryptocurrency investing, said that he uses “high-frequency signals” to make his decisions.

It seems that crypto and the Nasdaq have a strong connection.

He said that cryptocurrency’s future was uncertain. “It will surprise me if it isn’t a real force within our economy, say five years from now to ten years from now. And not a major disruptor.”

Druckenmiller said: “So, crypto is interesting.” But, the billionaire noted that Druckenmiller’s 69th birthday will be in a few weeks.

Although I am probably too old to be intellectually competitive with the young people in this area, I am certainly keeping an eye on it.

Goldman Sachs Reportedly In Talks With FTX For Bitcoin, Crypto Derivatives

According to a report by, Goldman Sachs is looking into derivatives trading using bitcoin and other cryptocurrencies as part of a possible partnership.

In an interview with Barron’s, Brett Harrison, president of FTX’s U.S. Division, stated that’multiple FCMs [futures Commission Merchants] have already committed to integrating technologically,’. “There are many large ones that you can probably name.

FTX is reportedly seeking a modification to its license from the Commodities Futures Trading Commission, which would permit the exchange to operate as both a cryptocurrency exchange (CryptoX) and as an intermediary for leveraged derivatives trade (FCM). This role is currently held, interestingly enough, by institutions like Goldman Sachs.

This is a clear sign of a dramatic wind change in institutions that would normally handle counterparty transactions with leverage. They are now switching to more experienced services. The report stated that FTX appears to be absorbing some market share from those who were historically considered direct competitors on Wall Street.

If FTX succeeds in this endeavor, it could threaten the removal of intermediaries like Goldman. FTX will provide derivatives in-house and not require the cooperation of any other financial institution. The Futures Industry Association has been a source of friction as it represents many intermediaries that would be affected by FTX. They fear that FTX will expand beyond cryptocurrencies to other markets.

According to reports, the FTX integration might include direct trading of futures contracts, intermingling clientele, a possible on ramp being provided to Goldman for access to the exchange or capital topping ups (stock options that increase equity positions for clients).

 

El Salvador Debt Risk Looms as Bitcoin Bond Has Yet to Launch

According to Moody’s, El Salvador is the nation that first tried Bitcoin as a national currency. It may not be able to pay the debt due to the country’s anticipated ‘Bitcoin Bond,’ which is still in development.

There are many sources that contradict each other regarding the number of investors who are interested in this bond. It has received no support while it is 50% oversubscribed by the nation’s finance minister. The clock is ticking, even though the government has yet to pass legislation that would allow the bond to be approved.

The bond was announced by Nayib Bukele, El Salvador’s President, in November. This comes just two months after Bitcoin became legal tender throughout the country. It is intended to raise $1billion: $500m in Bitcoin to finance the Treasury and $500m to support development of a ‘Bitcoin City,’ which will be powered by geothermal Bitcoin miner technology. The country currently holds just over 1,800 bitcoin, which is worth approximately $70 million.

The bond was originally supposed to go live in March but it has been delayed until September. It was the inopportune moment to launch the product because Russia’s war against Ukraine had already affected the price of Bitcoin. This was the nation’s finance minister at that time. Bukele suggested that the delay could be attributed to internal pension reform.

The delay, regardless of the reason, means that the Salvadoran government cannot access the much-needed funds they need. The worst national drop was in Ukraine, when the prices for its debt fell by 15.1%. Its benchmark bond 2032 yields 24%, a level that raises concerns about buyers defaulting.

It’s not surprising that El Salvador has a very strained relationship with the International Monetary Fund. It lends money to member countries that have balance-of-payment problems. The country ended talks with the IMF. They disapproved of El Salvador’s and the Central African Republic adoptions of Bitcoin. The former president of El Salvador’s central bank has stated that El Salvador’s relationship to the IMF is now ‘practically dead’.

According to, the president and the finance minister both maintain that there is no risk of default. These words are in direct contradiction to the views of Fitch and other institutions, who have both reduced El Salvador’s credit rating over recent months. Bukele for his part isn’t listening. The president has been well-versed in both the IMF and Fitch opinions.

Microbt Reveals Latest Bitcoin Mining Rigs – Machines Produce up to 126 TH/s With Custom 5nm Chip Design

The latest machines from Bitmain and Microbt show that Bitcoin miners are becoming more sophisticated. Bitcoin.com News previously reported on Bitmain’s new mining machines, which offer hashrate speeds of up to 255 TH/s.

The first was the S19 XP, which was revealed in November 2021. It boasts a hashrate rate of 140 TH/s and the second was S19 Pro+ Hyd., with up to 198 THP of computing power. Bitmain also revealed the Antminer XP Hyd. hydro ASIC unit. This unit produces a staggering 255 TH/s, according to the company.

The company has revealed new Microbt-brand Howsminer ASIC Bitcoin mining rigs. It expects to ship its latest series in the third quarter 2022. Although the devices aren’t as powerful as Bitmains new mining machines, Microbt’s rigs are still more powerful than those currently in production.

Microbt’s latest Whatsminer M50 series was unveiled at the Bitcoin 22 conference. The top-of-the-line machine features a fully custom chip design and 126 T/s computational processing power. Further, the Whatsminer M50S boasts a power efficiency rating (26 joules per trillion hash (J/TH)) and runs on 3,276 Watts (W).

This full-custom chip design was made using a 5nm process. It is an improvement on the M30S++’s 110 TH/s. Microbt announced a hydro-cooling mining system that can produce ‘240 THP of computing power at 29 J/TH power efficiency’. The Whatsminer M53 machine has not been shown or is not available for purchase on the Whatsminer website.

The M50S (126 T/s) rig currently costs $10.924.20 per unit, while the M50 (114 T/s rig) is $8,857.80. Referring to today’s BTC exchange rates, $0.12 per kilowatt hour (kWh) in electricity, a 110-TH/s mining machine will generate an estimated $10.48 per daily in BTC profits.

According to current data, the Whatsminer M50 series machines are more profitable at today’s Bitcoin prices. Microbt stated that it is available to support new bitcoin mining areas like North America. According to Microbt’s press release, “Microbt can produce and ship more than 30,000 pieces per months from its production site in Southeast Asia this fiscal year,” the company states.

Microbt’s COO Jianbing Chen stated that the M50 series will allow customers to enter the 2X J/T mining age and remain in power for ESG-friendly mining. Microbt’s machines will start shipping in Q3 2022, while Bitmain’s Antminer S19 XP Series is expected to be available to the public by July 2022.

Regulatory Uncertainty Is a Barrier for Wider Bitcoin Adoption

MIAMI BEACH (Fla.) – Uncertainty over how cryptocurrency regulation will be implemented in the future, especially in the U.S. remains a major barrier to wider adoption of digital assets like bitcoin, according to panelists Wednesday at one the biggest bitcoin conferences of the year.

However, speakers at the Bitcoin 2022 conference held in Miami Beach, Fla. were optimistic that regulators and policy makers would be more interested in understanding the technology and supporting innovation in the sector.

Many in the industry see consumers being able pay for services and products with crypto as a way to increase acceptance of digital currencies. According to a Checkout.com report, regulatory uncertainty is the main reason merchants have not started offering crypto as a payment option. Based on a survey of more than 3,000 businesses in 10 countries, most of which are online marketplaces and financial technology, the report found that regulatory uncertainty will continue as national legal frameworks have been slow and inconsistent in creating crypto regulations.

Mike Novogratz is the chief executive of investment company Galaxy Digital. He stated that Washington’s attitude towards cryptocurrency crackdowns has changed.

“The tone of the president’s executive orders has changed recently.” It was a shift in tone from being negative towards being balanced,” Mr. Novogratz stated Wednesday.

Last month, President Biden signed an executive directive directing federal agencies to report on digital currency and consider new regulations. The order highlighted the potential risks that cryptocurrencies pose for the economy, climate and national security, but it also pointed out the economic benefits of the currency, which is not the case with previous government pronouncements.

Bitcoin prices surged after the announcement of the executive order, indicating that the industry welcomed the government’s change of tone.

Novogratz is a former manager at Fortress Investment Group and an early investor of bitcoin. He said that he doesn’t expect any new crypto legislation to be released this year. He stated that despite the fact that politics is set up in a way that makes it seem like we will be in gridlock, the likelihood of them actually damaging things has decreased.

He stated that the shift in Washington’s tone was due to when the crypto community mobilized for the infrastructure bill, which was passed last year and aimed to increase tax enforcement on crypto transactions. Although the crypto industry was unable to amend the legislation, the united effort showed Washington’s growing influence and financial industry.

According to Mr. Novogratz, he called every senator he knew at that time. He said that it was a wake-up call because of the number of calls made against the provision by cryptocurrency advocates. They realize that this is a powerful voting bloc and often a single-issue bloc. Don’t mess with my bitcode.

Panelists also emphasized the importance regulators providing standards for cryptocurrency asset custodians. Henson Orser is the president of Komainu Holdings Ltd. He said that there has not yet been a framework for issues such as data entry and segregation fees.

Michael Shaulov is the chief executive officer of Fireblocks Inc., which builds tools to secure the storage and transfer bitcoins and other cryptocurrencies. He also stated that the industry was using best practices despite a lack standard regulations.

“I believe that most regulators…they are somewhat behind getting the point where they’ll actually create a standardization around it,” Mr. Shaulov stated.

Bank of England Says Crypto Assets ‘Present Financial Stability Risks,’ Bank Begins Sketching Regulatory Framework

The Bank of England (BOE), told the media on Thursday that it is preparing a regulatory framework to regulate digital currencies. The statements of the Bank of England (BOE) are derived from the Financial Policy Committee (FPC), which mentioned sanctions related to the ongoing Russia-Ukraine conflict. Financial regulators and bureaucrats around the world have been concerned in recent years that Russia could bypass economic sanctions through crypto assets.

The BOE statement on Thursday stated that while crypto assets may not be able to circumvent current sanctions at scale, such behavior highlights the need to ensure innovation in crypto assets is accompanied with effective public policy frameworks to…maintain broader trust in the financial system.

BOE says crypto assets could ‘Present Financial Stability Risks.’ Central Bank is Concerned about Stablecoins

The cryptocurrency economy has been criticized by members of the BOE for a long time. Andrew Bailey, the governor of Bank of England, raised concerns in mid-November about El Salvador legalizing bitcoin as a currency in South America. In December 2013, Sir Jon Cunliffe (the BOE’s deputy Governor for Financial Stability) stated that crypto assets could fall to zero.

Financial stability was mentioned in the FPC report that was released on Thursday. “The FPC continues its assessment that crypto assets pose no direct threat to the stability and health of the UK’s financial system. This is due to their small size and interconnectedness to the wider financial system,” the central bank committee stated. Further, the FPC added:

Crypto assets could pose financial stability risks if they continue to grow at the same pace as in the past.

Since the beginning of the Russia-Ukraine conflict in 2014, politicians around the world have either discussed, proposed or even implemented legislation to regulate and research digital currencies. The BOE also wants crypto assets to be under the same regulatory umbrella that traditional financial assets, according to statements from the FPC meeting.

The FPC also discussed stablecoins and how a major crypto asset without a reliable deposit guarantee might pose a threat. The FPC stated that a systemic stability coin that is backed with a deposit from a commercial bank would pose a risk to financial stability.