1.
Bitmain-backed cloud mining platform BitFuFu is preparing to go public in the U.S. through a merger with special purpose acquisition vehicle Arisz Acquisition Corp. The combined company is expected to be renamed to BitFuFu Inc and will be listed on the Nasdaq in Q3 under the ticker FUFU.
The transaction includes a $70 million fully committed investment, led by Bitmain and mining pool firm Antpool, at $10 per share, the statement said. The merged firm will have pro forma value of $1.5 billion. Assuming that bitcoin prices go over $45,000, BitFuFu expects 2022 revenue to hit $330 million, up from $100 million in 2021, and its net income before deductions to be $100 million, according to the press release. It expects to increase its hashrate to 10 exahash/second (EH/s) by the end of 2022, from 3 EH/s at the end of 2021.
By November 2021, Bitdeer had entered into a definitive merger agreement with Nasdaq-listed Blue Safari. The transaction values Bitdeer at approximately $4 billion and is expected to complete its IPO in 2022.
2.
Luxor is working with large institutional miners, including Hut 8, and several retail miners in North America to provide a U.S.-based Ethereum mining pool, the company said in a statement on Monday.
“We've been tracking ETH 2.0 developments closely, and we're launching the pool even now because we believe there's a high probability that Ethereum's transition to proof-of-stake won't happen this year.”
3.
The credit rating agency Fitch has issued a statement defining Bitcoin mining as a potential threat to the stability of the American power supply system. Not only is crypto mining energy-intensive, Fitch says, but the plunge in Bitcoin prices could force farms to renege on their long-term electricity supply contracts.
4.
The Kazakh Power Company has cut off electricity supply to bitcoin mining companies in central Asia due to power shortages in Kazakhstan and Uzbekistan. A spokesperson for the Kazakh state electricity company said the same day, "From January 24 to January 31, we will stop supplying electricity to cryptocurrency mining companies. The power failure in Kazakhstan was caused by the disruption of the main power line in southern Kazakhstan."
5.
On January 26, the Inner Mongolia Development and Reform Commission announced the implementation of differential tariffs for electricity consumption for virtual currency "mining" projects. The implementation of the "elimination" enterprise tariff, the rate of increase of 1 yuan per kilowatt-hour. The Inner Mongolia Development and Reform Commission has updated the list of virtual currency "mining" projects in a timely manner, and the power grid company has collected the increased electricity charges in full amount in accordance with the list of projects to ensure the strict implementation of the differential electricity price policy.
6.
Irkutskenergosbyt, the local power distributer in Irkutsk Oblast, has filed 137 lawsuits against customers using subsidized electricity to mint digital currencies in mining facilities set up in basements and garages. Taking the cases to court, the utility hopes to recover 63 million Russian rubles (over $790,000) in compensation, Tass reported quoting its director, Andrey Kharitonov.
The company says these home miners are engaged in entrepreneurial activities while paying for their electricity at the tariffs for the population, which are four times lower than commercial rates. The owners of the underground crypto farms are also increasing the load on the grid in residential areas leading to breakdowns and outages.
7.
Texas governor seeks bitcoin miners’ help to solve electrical grid problems. He considers that Bitcoin miners would be able to help tackle the next power crisis in the state.
Governor Abbott believes that by inviting Bitcoin to the state it would be possible for power providers to invest in new infrastructure projects. There have been several blackouts over the last years due to a lack of investment from companies.
We have many times heard how Bitcoin miners consume large amounts of electricity. Basically, Bitcoin has been accused by certain groups of being a very expensive and contaminating industry. But things have changed over the course of the years. Bitcoin is becoming a cleaner and even more efficient blockchain network than in the past thanks to technological advancements and investments in clean energy.
It is also worth taking into consideration that several Bitcoin mining projects have also created their own electrical solutions. That means that thanks to a wide range of investments in renewable technologies such as solar panels, Bitcoin miners are becoming self-sufficient and reducing their energy grid consumption.
8.
Greenidge Generation announces a $264 million data center near Spartanbur. Greenidge says the data center will create 40 permanent technology jobs. A first phase is expected to open later this year, and expansions are planned through 2025.
9.
U.S. Sen. Elizabeth Warren (D-Mass.) expanded her inquiry of bitcoin miners’ energy usage and their environmental footprint, sending letters to six more miners on Thursday.
Warren wrote to Riot Blockchain, Marathon Digital Holdings, Stronghold Digital Mining, Bitdeer Group, Bitfury Group and Bit Digital, questioning their “extraordinarily high energy usage.”
Most recently, the U.S. held a congressional hearing to discuss the energy consumption related to the PoW. Meanwhile, the European Union's markets regulator called for a ban on the validation system, citing its energy intensity.
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