Weekly Market Information Issue No.10

1. Mining Company Update

• Bitcoin mining company Arkon Energy plans to list on the Euronext Amsterdam Stock Exchange
• Mining company Digihost's assets grew by 60% month-over-month due to a hosting agreement with a miner
• Bitfarms spends $240 million to upgrade its Bitcoin mining equipment

• Bitcoin mining company Arkon Energy plans to list on the Euronext Amsterdam Stock Exchange

On March 26, it was reported that the U.S. data center infrastructure and Bitcoin mining company Arkon Energy plans to go public on the Euronext Amsterdam Stock Exchange in the Netherlands through a merger with the Cayman Islands-registered BM3EAC Corp. It was noted that the parties agreed on a 90-day mutual exclusivity period on February 21 to reach a final agreement. If all goes well, Ohio-based Arkon will become the first Bitcoin mining company to list on the Euronext.

• Mining company Digihost's assets grew by 60% month-over-month due to a hosting agreement with a miner

Golden Finance reported that as of March 31, 2024, Bitcoin mining company Digihost held approximately $6.2 million in cash, Bitcoin, and cash deposits (with the price of Bitcoin accounted at $71,200), which is an increase of about 60% from the $3.9 million the previous month. The increase was due to a multi-year hosting agreement executed with one of the digital currency mining server manufacturers on March 5. Under the executed agreement, Digihost received a prepayment deposit and 4,640 S19 XP machines (21.5W/TH), equivalent to about 14MW of hosting capacity.

• Bitfarms spends $240 million to upgrade its Bitcoin mining equipment

Golden Finance reported that Bitcoin mining company Bitfarms is investing nearly $240 million to upgrade its Bitcoin mining equipment, aiming to remain profitable after the Bitcoin halving in 2024. Bitfarms CFO Jeffrey Lucas stated that the company purchased 88,000 high-efficiency Bitcoin miners. In March 2024, Bitfarms mined 286 BTC, with a monthly operating hashrate of 6.5 exahashes (EH/s).

2. Market Overview

• The International Monetary Fund (IMF) urges Ukraine to complete cryptocurrency legislation
• RootData data shows that financing in the crypto sector exceeded $1.16 billion in March, a 52% jump from February
• Bitcoin mining difficulty adjusts up 3.92% to 86.39 T, setting a new historical high
• Paraguay reconsiders the Bitcoin mining ban, considering selling surplus energy from a hydroelectric plant to miners

• The International Monetary Fund (IMF) urges Ukraine to complete cryptocurrency legislation

Ukraine's Deputy Minister of Digital Transformation for IT industry development, Alex Bornyakov, revealed that the International Monetary Fund (IMF) has urged Ukraine to complete cryptocurrency legislation. Alex indicated that Ukraine must take full advantage of various opportunities to develop new economic sectors and emphasized that the legalization of the cryptocurrency sector could generate a strong economic effect, bringing in billions of dollars in turnover. Previously, in March 2022, Ukrainian President Volodymyr Zelenskyy signed the "Virtual Assets Law" aimed at regulating the Ukrainian cryptocurrency market. In April last year, Yuriy Boyko, a member of the Ukrainian National Securities and Stock Market Commission, disclosed that Ukraine planned to implement cryptocurrency market rules approved by the European Parliament.

 

• RootData data shows that financing in the crypto sector exceeded $1.16 billion in March, a 52% jump from February

Golden Finance reported that according to data released by RootData, financing in the crypto sector exceeded $1.16 billion in March, the second-highest amount in the past 12 months, representing a 52% surge compared to February. The data shows that most of the funds were invested in cryptocurrency infrastructure and decentralized finance (DeFi) projects, especially those built on the Ethereum blockchain. Other popular blockchains include Polygon and BNB Chain. About a third of the funds were allocated to projects based in the United States.

• Bitcoin mining difficulty reaches a new historical high

According to BTC.com data, Bitcoin mining difficulty adjusted up 3.92% to 86.39 T at block height 838,656 (April 11, 2024, 5:17:33), setting a new historical high, with the current network average hashrate at 683.31 EH/s.

• Paraguay reconsiders the Bitcoin mining ban, considering selling surplus energy from a hydroelectric plant to miners

Paraguayan senators have put a hold on the progress of a cryptocurrency mining ban, considering selling surplus energy from the Itaipu hydroelectric plant to miners instead of exporting it to Brazil and Argentina. Senator Lilian Samaniego confirmed that a hearing will be held on April 23 to debate the pros and cons of Bitcoin mining. Previously, lawmakers were concerned about illegal mining operations stealing electricity and proposed a temporary ban. However, lawmakers have changed their stance, supporting investment in infrastructure and expecting to gain higher profits by selling energy to miners. Senators estimate that by 2025, licensed mining operations could bring in more than $125 million in revenue for the National Power Administration. The low cost of electricity from Paraguay's Itaipu hydroelectric plant and sales to miners could yield a 45% net profit margin, with annual revenues of $73 million and additional taxes of $17 million. This move could help the Power Administration avoid bankruptcy and create more job opportunities.