BT Daily News: Bitcoin Miner CleanSpark Buys 10K New Machines for $28M After Discounts, Credits
1. Bitcoin Miner CleanSpark Buys 10K New Machines for $28M After Discounts, Credits
Bitcoin (BTC) miner CleanSpark (CLSK) has purchased 10,000 new Bitmain Antminer S19j Pros for $28 million after credits and discounts, a significant markdown from the manufacturer's listed price.
Indeed, the price of mining rigs has fallen by 40% in the past few months as struggling bitcoin miners are offloading their machines for cash.
It's the latest in a number of moves by CleanSpark to find spots for growth during the bear market. The company in June bought contracts for 1,800 machines, and in July acquired another 1,061 rigs. In August, CleanSpark acquired a new mining facility with 3,400 machines. Taking into account all the acquisitions, the firm said it will reach 5 exahash/second of hashrate by the end of the year.
2. Bitcoin is a 'wild card' set to outperform —Bloomberg analystBloomberg analyst Mike McGlone has labeled Bitcoin (BTC) a “wild card” which is “ripe” to outperform once traditional stocks finally bottom out.
In a Sept.7 post on Linkedin and Twitter, McGlone explained that while the United States (U.S.) Federal Reserve tightening will likely determine the direction of the stock market, Bitcoin remains a “wildcard” that could buck the trend, stating: "Bitcoin is a wild card that’s riper to outperform when stocks bottom, but transitioning to be more like gold and bonds.”
The commodities strategist shared more details in a Sept. 7 report, which noted that Bitcoin was primed to rebound strongly from the bear market despite a “strong headwind” toward high-risk assets: “It's typically a matter of time for the fed funds gauge to flip toward cuts, and when it does, Bitcoin is poised to be a primary beneficiary.”
The report notes that while Bitcoin would follow a similar trend to treasury bonds and gold, Ethereum (ETH) “may have a higher correlation with stocks.”
3. How Will the Ethereum Merge Affect Bitcoin's Image?
Ethereum founder Vitalik Buterin said on Tuesday that the Ethereum merge is on target to happen "around" September 13 to September 15. That's when the world’s second largest cryptocurrency will jettison its energy-intensive proof-of-work consensus mechanism.
The merge is only the latest Ethereum blockchain upgrade aimed at creating a reliable decentralized ecosystem for the future of finance. In addition to alleviating energy concerns, the shift to proof of stake brings additional benefits.
In proof of stake, block transactions are verified by validators that have staked a number of their tokens. The more tokens an individual has associated with the blockchain, the higher probability they have of being randomly chosen as a network validator.
This differs from proof of work, which is an energy-intensive process that relies on computers to solve mathematical algorithms to mine tokens. This rate of energy consumption is a major criticism of proof of work, which will remain the basis of Bitcoin mining after Ethereum ditches the process.
Beyond the energy issue, and in addition to the recent meltdowns of crypto lenders, the crypto industry writ large is facing myriad macroeconomic concerns ranging from political tensions to high inflation rates to hawkish national monetary policies. These macro factors are credited with igniting the recent bear market.
4. The Ethereum 'Merge' is coming, but what does that mean?As thousands of people move money, create and play online games and build their businesses, millions of computers are buzzing away in almost every part of the globe powering the Ethereum blockchain. It's the power that all of these computers are drinking up that gives many people pause when considering getting involved with cryptocurrencies.
However, with the upcoming merge only a few weeks away, the greedy need for CPUs could become a thing of the past.
Even though Bitcoin first launched in 2009 and Ethereum in 2015, crypto is still considered to be in its infancy, with ample room for growth and evolution. The Merge is just a part of that continued evolution.
With a major change on the crypto horizon, investors and developers have been keeping a close eye on the news. Markets have been dipping and spiking as people weigh the potential risks and rewards of the new consensus algorithm.
Whether or not you're an investor in crypto, someone looking to get involved or just a curious bystander to the ever-changing online landscape, The Merge has potential to change not only crypto, but computing in general.
5. Despite ‘crypto winter,’ digital currency use remains high in TurkeySince its peak in November 2021, Bitcoin’s value has fallen about 70 percent. The leading cryptocurrency’s latest tumble reflects a broader trend with digital tokens, which altogether have lost about $2 trillion in the last 10 months.
Users call this bear market a “crypto winter,” but the negative trend hasn’t dissuaded many traders in Turkey, who make up one of the world’s most active crypto communities, according to a report published in July by the research company Morning Consult.
The study found 54 percent of crypto users in Turkey continue to buy or sell digital currencies at least once a month, second only to Nigeria. Ismail H. Polat, a new media lecturer at Istanbul’s Kadir Has University who tracks the sector, estimates about 10 million Turkish citizens have purchased cryptocurrencies at least once.
Like elsewhere, local interest in digital tokens surged last year along with the value of leading cryptocurrencies, like Bitcoin and Ether. In Turkey, trading crypto was seen as a way to hedge against high inflation and to defend earnings amid the continued devaluation of the Turkish lira, which has lost about 26 percent of its value against the US dollar this year.
Even with the ongoing steep losses from the crypto winter, traders in Turkey continue finding utility in digital tokens, despite the risks posed by crypto’s inherent volatility and looming state regulations.