Monat: Februar 2023

Summary

• The hash rate of the top 10 public Bitcoin miners has increased by 82% YoY.
• Leading the pack is Core Scientific with 30% of the hash rate share.
• Mining difficulty is set to adjust by over 10% on Friday, Feb. 24th.

Overview of Public Mining Companies

Public mining companies have seen an exponential growth in recent years, with the hash rate share of the top mining companies increasing from 23.93 EH/s to 56.98 EH/s between Jan. 2022 and Jan. 2023 – representing a staggering 82% growth in hash rate YOY. CryptoSlate analyzed ten of the top public Bitcoin miners and their hash rates to gain further insight into this growth, leading the pack being Core Scientific with approximately 30% of the hash rate share followed by Riot and Marathon in second and third place respectively – combined accounting for almost 60% of the hash rate share taken up by public companies. The majority of these ten public miners have either increased or equaled their hash rate share YOY, holding approximately 60 EH/s which accounts for roughly 20% of total 7DMA (seven-day moving average) has rate though estimated to be closer to 25%.

Hash Rate & Difficulty Increases

The increase in Bitcoin’s hash rate is depicted in a chart showing a solid positive trend line since July 2021 following China’s mining ban – resulting in an increase in mining difficulty set to adjust by over 10% on Friday, Feb. 24th marking it as one of biggest positive adjustments since October 2022 and September 2021. This growth indicates both ever-increasing demand for Bitcoin technology as well as more robust network security due to higher difficulty levels.

Effects on Mining Industry

This significant increase will affect all sectors within cryptocurrency mining industry from hardware manufacturers and service providers through to small-scale miners who may struggle with competition from larger players such as those mentioned here that benefit from economies of scale when it comes to energy costs among other things. It is also likely that some smaller players will exit or consolidate their operations due this shift, leaving fewer but larger players occupying an even larger market share than before – providing them with greater control over mining rewards and setting difficulty parameters among other decisions affecting crypto users worldwide.

Conclusion

The substantial rise in BTC’s hashrate shows no signs of slowing down anytime soon, indicating its increasing popularity amongst investors looking for asset diversification or quick profits via trading activities as well as long term HODLers looking forward towards potential gains down the line when institutional adoption takes hold further down road.. With current estimates suggesting that only around 20%-25 %of total BTC hashing power is held by publicly listed companies however there are still plenty more opportunities available out there for smaller operations but they must act fast if they want secure their piece pie before bigger fish move fully into space taking up most lucrative positions available at present time

• GBTC’s discount has widened to over 47%, a record low for the current year.
• This follows the struggles of its parent company Digital Currency Group (DCG) and its subsidiary Genesis filing for bankruptcy.
• Other Grayscale cryptocurrency trusts are trading at higher discounts against NAV, such as Grayscale Ethereum Trust at 52.80% and Grayscale Ethereum Classic Trust at 68.13%.

Grayscale Bitcoin Trust Discount Widens to Record Low

GBTC’s discount has widened to over 47% following the struggles of its parent company, Digital Currency Group (DCG). As of Feb. 15, GBTC shares are trading for $10.85 after increasing by 4.43% in the last 24 hours, according to ycharts data.

Troubles with Genisis Bankruptcy

The troubles stem from financial problems at one of DCG’s subsidiaries — Genesis — which filed for bankruptcy on Jan. 19. The crypto lender’s bankruptcy brought increased fears about the financial health of DCG and how it could impact Grayscale.

Digital Currency Group Raising Funds

Since then, DCG has been trying to raise funds by selling some of its assets. The asset management firm sold $22 million of its shares in Grayscale’s Ethereum (ETH) fund and is also looking to offload its news outlet CoinDesk.

Other Cryptocurrency Trusts Trading At Higher Discounts

Meanwhile, other Grayscale cryptocurrency trusts are trading at higher discounts against NAV. Grayscale Ethereum Trust is at a 52.80% discount while Grayscale Ethereum Classic Trust is at a 68.13% discount, according to ycharts data.

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Conclusion

Although GBTC currently holds a record low discount rate, other trust funds remain highly discounted due to the troubles that have arisen from Genesis‘ bankruptcy filing and Digital Currency Group’s attempts to raise funds through asset sales.

• The U.K. Financial Conduct Authority (FCA) warned crypto companies to comply with the country’s new financial promotions regime or face up to two years imprisonment.
• Crypto promotions must be „clear, fair, and not misleading“ and companies must use specific risk warnings and positive frictions like a 24-hour cooling-off period that allows investors to cancel their investments.
• The U.K. government has continued with plans to turn the country into a crypto hub by extending regulations to cover crypto exchange’s operations.

FCA Warns Crypto Companies of Imprisonment

The U.K. Financial Conduct Authority (FCA) warned crypto companies to comply with the country’s new financial promotions regime or face up to two years imprisonment, according to a Feb 6 statement. The FCA said its crypto promotions regulations would be similar to those guiding other high-risk investments and added that companies would also need to use specific risk warnings and positive frictions like a 24-hour cooling-off period that allows investors to cancel their investments for them to be “clear, fair, and not misleading” as per the regulator’s requirement.

U.K Working Towards Becoming Crypto Hub

The U.K government is continuing its plan of turning the country into a crypto hub by extending regulations intended for covering crypto exchanges‘ operations in addition to clamping down on misleading crypto ads which have been enforced by Advertising Standards Authority since 2022.

Early Preparations For FCA Regulations

The FCA noted that while the regulations are still subject to parliamentary approval, early preparations would allow firms targeting UK consumers legally promote their services without much difficulty when they eventually come into effect; suggesting that firms take steps towards meeting these requirements ahead of time in order not experience any issues once they come in force officially

Other Regulatory Agencies Enforcing Compliance

Aside from the FCA, another agency working towards enforcing compliance is the Advertising Standards Authority who have brought several enforcement actions against firms with misleading ads since 2022 in an effort reduce fraudulent activities within this space further protecting investors from potential losses caused by such practices .

Conclusion

In conclusion, it is important for all UK based firms engaging in cryptocurrency related activities understand and adhere strictly any relevant regulatory frameworks put forth by agencies such as FCA & ASA ensuring their promotional activities are compliant at all times so as avoid severe repercussions including imprisonment should these rules be violated by them or anyone associated with them directly or indirectly .