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Major Bitcoin miners Hut 8 Mining and U.S. Bitcoin Corp are set to merge to create a North American crypto mining giant.

If all goes according to plan, the U.S.-domiciled companynamed Hut 8 Corp.will have a market capitalization of $990 million and shareholders will have equal ownership of the companys stock.

As first reported by TheMinerMag, its new hashrate of 7.5 EH/s will make it one of the biggest public Bitcoin miners in North America, according to a U.S. Securities and Exchange Commission filing. Marathon Digital (MARA) is still far and away the most dominant with 23 EH/s of installed capacity. But the post-merger company will be closer in size to Riot Blockchain (RIOT), which has 10.5 EH/s capacity.

Hashrate refers to the computational power of the network. Each hash represents a guess at a cryptographic code. The miner whose rig correctly guesses it wins the right to verify a block worth of transactions and add it to the blockchain, thereby collecting a block reward. So having a higher hashrate means more chances to collect those rewards. One exahash is equal to one quintillion hashes.

Bitcoin miners were recently hit hard by the crypto winter. A dramatic drop in the price of the largest digital asset from its $69,044 November 2021 all-time high meant some mining operations were struggling to make profit and had to flog their crypto reserves or shut down completely.

At one point, publicly traded Bitcoin miners, Marathon Digital and Riot Blockchain, had to sell more Bitcoin than they produced. Other companies closed their doors completely.

But things are on-the-up: The price of Bitcoin has surged this year, outpacing the increases in difficulty, meaning more mining companies could keep the lights on and make profit. Hut 8 Mining is one of those companiesit has a healthy supply of working capital and negative net debts, according to TheMinerMag stats.

The benefit is Hut 8 is financially healthier than many others with nearly 10,000 BTC on its balance sheet and very minimal debt, MinerMag analyst Wolfie Zhao told Decrypt.

Hut 8s current holdings stand at 9,233 BTC, worth roughly $277 million at current prices, according to Bitcoin Treasuries. The only other publicly traded miner with a larger stash is Marathon Digital, which holds 12,232 BTCworth today over $364.2 million.

The miner can also boast of not having to sell large amounts of its BTC holdings when other public miners have had to during last year's market downturn.

This merger will help it take advantage of its financial position and grow its revenue with a larger self-mining capacity and a more diversified business model, Zhao added.

Hut 8 has told Decrypt about its model of diversification: the miner has five data centers, unrelated to Bitcoin mining, which provide an income stream that's detached from crypto market prices. The miner also earlier this month signed an agreement with Canadian public health company Interior Health to handle its data center needs.

And just today, it announced an agreement to host approximately 6,400 ASIC miners to grow its capacity. It said that the new machines will increase its installed hashrate to approximately 3.2 EH/s. Hut 8 has also successfully pivoted to the world of high performance computing, or HPC. CEO Jaime Leverton previously toldDecrypt that it wanted to potentially leveraging our GPU machines to provide AI, machine learning, or VFX rendering services to customers.

The U.S. is becoming an increasingly difficult place for the crypto industry to function: The SEC has hit high-profile crypto companies with lawsuit after lawsuit and its chair has even said that the States doesnt need more digital currency.

But Bitcoin miners dont seem particularly fazed. Experts told Decrypt that regulators are more focused on what they see as unregistered securities being sold on exchanges and are unlikely to enact a nationwide ban on Bitcoin mining, like with what was seen in China.

Editor's Note: This article was updated to reflect that by the end of May, Hut 8's Bitcoin treasury was 9,233 BTC.

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A New Bitcoin Mining Giant Prepares to Enter the Fray - Decrypt

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Outspokenbitcoinmaximalist Max Keiser has made a controversial allegation, branding Ripple as a Ponzi scheme, adding that the millions of dollars spent by its CEO, Brad Garlinghouse, have failed to rescue the blockchain company.

Keiser used examples from Wall Street and the banking industry to illustrate the importance of power and money. He referred to the views of Jamie Dimon of JP Morgan who thinks that Garlinghouses significant financial resources will not be enough to compete against the might of the federal government and influential individuals.

Of course the SEC is overreaching but that wont stop them from killing off XRP and every other shitcoin. (Except BTC, of course. Its untouchable).

Because there is virtually no rule of law whatsoever in Wall St/finance for those with $ and clout. Brad Garlinghouse has been https://t.co/NwH9sH6qk8

According to reports, Ripple has set aside more than $100 million to pay for legal expenses related to their ongoing dispute with the United States Securities and Exchange Commission (SEC).

On the other hand, Keiser believes that bitcoin will remain strong and that the fate of XRP, the native currency of the XRP Ledger and a coin used by Ripple in some of its products, is already sealed.

John Deaton, a well-known lawyer who supports XRP, challenged Keisers claims about the cryptocurrency.

Deaton argued that the SEC could not destroy the XRPL coin, pointing out that the regulatory body previously debated whether bitcoin should be considered a security.

He also stated that even if Ripple were found to have done something wrong, XRP would still be successful because a regulatory classification doesnt change its fundamental nature.

Max, the SEC cant kill XRP. Im sure youre aware that in 2013-2015 some people at the SEC were calling #Bitcoin a security (which is insane). is a video of Joe Grundfest in 2015 discussing it. Dont get me wrong the SEC can and has caused damage (ie dry up liquidity) and

Deaton criticized the SEC for favoring ethereum (ETH) over other cryptocurrencies due to pressure from confident investors. He believes in a fair system that allows innovative technologies to succeed.

The legal battle between Ripple and the SEC has made the future of XRP uncertain. The differing opinions of Keiser and Deaton demonstrate the regulatory challenges faced by Ripple, XRP, and the cryptocurrency industry as a whole.

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Bitcoin maximalist claims Ripple is a "ponzi scheme" - crypto.news

In a recent episode of CNBCs Closing Bell Overtime, Mark Yusko, the Founder, CEO & CIO of Morgan Creek Capital, shared his insights on BlackRocks spot Bitcoin ETF application and its implications for the future of both traditional finance and the crypto space.

Yusko began by expressing his enthusiasm for traditional financial services firms embracing the technological innovation that has been driving the crypto space for the last 14 years. He sees the entry of large firms like BlackRock into the crypto market as a validation of the technology and the business models that have been developed around it.

He also touched on the cyclical nature of the crypto market, explaining the concept of Crypto Summer, a period of accumulation leading up to a significant event in the Bitcoin blockchain known as the halving. This event, which occurs every four years, is followed by a speculative blowoff and then an overreaction on the downside, known as Crypto Winter. Yusko believes that the current rally is just the beginning of a new cycle.

In response to the suggestion that the narrative around crypto and Web3 has been lost, Yusko strongly disagreed. He pointed out that the digital assets market has grown from zero to $1.2 trillion in just 14 years, with Bitcoin alone accounting for half a trillion. He also emphasized that blockchain technology is one of the four pillars of the digital age, alongside AI, computer chips, and data.

Yusko further explained that blockchain technology is transforming how we store and exchange value, much like how the internet disrupted media. He envisions a future where every stock, bond, currency, commodity, piece of art, private business, and piece of real estate will be a token on a blockchain. This shift, he believes, will eliminate the need for trust and save over $7 trillion a year, which is currently wasted due to the friction of the trust industry.

When asked about the regulatory landscape for crypto, Yusko highlighted that Bitcoin is regulated as a commodity and is taking the place of gold as the base layer of currency. He sees Bitcoin as the new money on which the future of finance will be built. While he acknowledged that other applications of blockchain technology, such as Ethereum, may have a role, he emphasized that Bitcoin is the digital gold that will underpin the future of finance.

Featured Image Credit:Photo / illustrationbyTumisuviaPixabay

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Yusko on BlackRock's Bitcoin ETF & Crypto Future" - CryptoGlobe

The BRICS alliance, an influential coalition of five major emerging national economies, is assessing the viability of Bitcoin (BTC) as a potential alternative to the US dollar in the global financial architecture. The coalition, comprising Brazil, Russia, India, China, and South Africa, has previously stated its intention to introduce a new global reserve currency, asserting its readiness to collaborate with any nation or corporation that shares their vision.

Bitcoin presents itself as a compelling candidate for this role for two main reasons: firstly, positioning BTC as a reserve currency may help these economies diversify away from their reliance on the USD. Secondly, Bitcoins underlying blockchain technology promises a more streamlined and efficient financial system a pivotal need for these emerging nations to leapfrog the established powers.

The implications of this shift are considerable. Historically, any attempts to achieve financial sovereignty from the US dollar have been met with severe backlash from the United States. Thus, this deviation from the norm could indeed be construed as an aggressive strategic maneuver by the BRICS nations.

In sync with these developments, Russia has embarked on a particularly interesting initiative. As reported by TASS, a local news agency, Russias central bank is creating specialized entities solely focused on cryptocurrency mining. Elvira Nabiullina, the head of the Bank of Russia, suggested that cryptocurrencies will primarily be used for international settlements, excluding domestic transactions.

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This notion further fuels speculations that the proposed new global currency by the BRICS alliance may be a cryptocurrency. These theories gain traction as Russias explicit focus on cryptocurrency mining hints towards Bitcoins possible adoption.

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Amidst these unfolding events, the USA remains staunchly committed to safeguarding its economic interests. The Bank of America continues to uphold the supremacy of the US dollar, asserting that it remains unparalleled. As the BRICS nations extend their economic alliances, the USA intensifies its efforts to curb their ascent, indicating an emerging global financial power struggle.

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BRICS Considers Bitcoin as a Game-Changer: Will It Replace the ... - Crypto News Flash

BlackRock's new push into the battle for a bitcoin exchange-traded fund appears to be giving a boost to one of its potential rivals in the space and creating an arbitrage play for opportunistic traders. The Grayscale Bitcoin Trust (GBTC) , which has long traded at a steep discount to its net asset value, rose 12.8% Friday after BlackRock filed to launch a spot bitcoin ETF. The Grayscale fund continued to surge Tuesday, adding about 14%. While bitcoin has also been climbing , GBTC's large move has narrowed the discount to about 36% as of Friday, according to The Block , down from about 43% a week prior. Grayscale is in a legal battle with the U.S. Securities and Exchange Commission about converting its GBTC into an ETF. A decision in that case is expected later this year. "I would say that the narrowing of the discount is likely related to the BlackRock filing in part, and also due to increased perception of likelihood of Grayscale winning its lawsuit against the SEC," said Bryan Armour, the director of passive strategies research for North America at Morningstar. GBTC 5D mountain The Grayscale Bitcoin Trust has rallied more than bitcoin in recent days. Grayscale does not offer a redemption mechanism for GBTC, which would help close the discount gap, but it would with an ETF. If the GBTC were to be converted into an ETF, buying it at a discount now would allow a trader to capture additional upside if the price of bitcoin rises. Offering redemptions outside the ETF process could lead to large outflows that hurt the earning power of the fund for Grayscale, Armour said. The fund has about $16 billion in assets under management and charges a 2% annual fee. The move by BlackRock could be a sign some of Wall Street's heavy hitters are giving at least quiet support to the crypto industry and to bitcoin ETFs in particular. The proposed BlackRock fund would also use Coinbase as a custodian for cryptocurrency, even though Coinbase was recently sued by the SEC . The regulator has long opposed a spot bitcoin ETF, and Chair Gary Gensler has ramped up enforcement actions against the crypto industry in recent months. But even if Grayscale wins the case, there is some uncertainty about what the next step would be. Some experts have suggested the SEC could respond to the ruling by banning the bitcoin futures ETFs already on the market instead of allowing spot funds to proceed. The regulator could also choose to allow the BlackRock fund but not the Grayscale conversion, given differences in the filings, said Pat Tschosik, senior portfolio strategist at Ned Davis Research. "If BlackRock is getting an ETF, I would want to own the BlackRock ETF. I wouldn't want to own the Grayscale. I still don't see the clear path unless you can somehow alter Grayscale to do everything that BlackRock is doing," Tschosik said. Ned Davis Research recommended GBTC as a buy in January , but closed that trade suggestion in May. The trade had an on-paper gain of 32.3%, according to NDR. Tschosik said the discount tends to widen and narrow based on broader sentiment about the direction of bitcoin. In any case, it seems likely a bitcoin ETF wouldn't be launched until at least 2024, said William Cai, co-founder of Wilshire Phoenix, an asset management firm focused on crypto. "Actually, getting a bitcoin ETF launched is likely a year and a half away in the best-case scenario," Cai said. Wilshire Phoenix's wShares has a pending registration filing for its own bitcoin trust, but that product is not an ETF. Another consideration for investors betting on the discount closing is that GBTC trades over the counter, meaning it is subject to fewer rules and potentially less liquidity than traditional exchanges. "The difference between OTC and an exchange is that it's a broker-dealer network without a lot of the same protections and regulations that you would get on an exchange. For most people, that really won't affect trading in GBTC, but it does come with more risk," Armour said. Grayscale did not respond to CNBC's request for comment for this story.

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The Grayscale Bitcoin Trust is getting a boost from BlackRock ... - CNBC