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Will Your Bank Soon Hold Bitcoin?
Mining News Brief
“I think that we need to allow banks in this space” – FDIC Chair
Jelena McWilliams, chair of the Federal Deposit Insurance Corporation (FDIC) has stated that she desires more clarity from federal regulators so that banks may freely engage in cryptocurrency services without fear of agency enforcement actions. (Reuters)
“If we don’t bring this activity inside the banks, it is going to develop outside of the banks…The federal regulators won’t be able to regulate it,” (Chair Mcwilliam’s Statements)
Regardless of whether you believe that Bitcoin and other virtual assets can succeed outside of the regulatory framework, the benefit of support from the FDIC and other regulators is clear. These remarks indicate a promising future in which banks help to facilitate the adoption of virtual assets and innovative financial services, like bitcoin-backed loans.
Financial Action Task Force (FATF) Announces New Cryptocurrency Guidelines
Financial Action Task Force (FATF) is an agency with international jurisdiction that searches for evidence of money laundering and the financing of terrorism. (FATF Site) FATF also compiles a list of “Non-Cooperative Countries or Territories” (NCCTs) that have engaged in financial crimes. (FATF Blacklist)
FATF has released Updated Guidance for a Risk-Based Approach for Virtual Assets, and Virtual Asset Providers, an extensive report detailing how to avoid being placed on the FATF blacklist. (Yahoo Finance) Interestingly, in paragraph 291 of the document, FATF hints at the possibility that a VASP may have discretion to refrain from sharing customer data with another VASP that has been deemed to pose a risk to that sensitive data. (FATF Guidance) Equipping VASPs with the ability to assess the risk of a counterparty before sharing sensitive data is an important step in preserving the privacy of individuals who own virtual assets.
NYDIG And Wolters Kluwer Partner To Facilitate Institutional Bitcoin Compliance Programs
Wolters Kluwer provides a broad range of risk management and regulatory compliance solutions to help banks, credit unions, brokerage funds, mutual funds, hedge funds and insurance companies meet their dynamic compliance and regulatory obligations. (Wolters Kluwer)
In a recent company announcement, NYDIG detailed a partnership with Wolters Kluwer to offer compliance programs for entities that hold bitcoin deposit accounts. Wolters Kluwer will be the exclusive vendor of the new Bitcoin Deposit Disclosure Program. (Press Release)
Flexible Data Centers Can Reduce Grid Carbon Emissions In Texas
A recent white paper published by Lancium, a company specializing in software and technical solutions that enable the faster decarbonization of the electrical grid, detailed how flexible data centers can reduce grid carbon emissions in Texas. (News Nation USA)
The Electric Reliability Council of Texas (ERCOT) administers electric utility services to more than 26 million Texas customers, representing approximately 90 percent of the state’s electric load. The white paper analyzed the hypothetical impact of deploying 5,000MW of flexible data center capacity to support Texas’s energy grid. (Lancium Report)
The paper arrived at the following conclusions:
- “Operating flexible data centers that can rapidly vary their load can result in a net-reduction of carbon emissions.”
- “Higher levels of flexible demand response results in a lower probability of the grid reaching critical levels of reserves that would require firm load shed (i.e., blackouts).”
- “Siting such centers in power-congested locations with historically depressed prices can decrease congestion and the need to build new transmission capacity, reducing overall system costs.”
- “Net CO2 reduction could exceed four million tons per annum by 2030.”
A Proposed Bill In Mexico Would Increase State Control Of Electricity Market
The Mexican President, Andrés Manuel López Obrador (AMLO), has introduced a proposed constitutional reform to boost state control of the electricity market.
AMLO foresees giving the Mexican Comision Federal de Electricidad (CFE) control over 54% of the power market. In this scenario, the CFE would be responsible for setting the terms for private generators. (Reuters)
Proponents of this amendment posit that authorizing the CFE to control a majority of the power market would keep prices low for consumers and end preferential treatment for private firms, which AMLO argues has been excessive. (Forbes Energy)
Network Health and Hash Rate
Fundamental Bitcoin Mining Metrics
Bitcoin Miner Earnings
Over the last week, bitcoin miners around the world have earned an impressive $428.8 million (6,873.72 ₿) in revenue. (Dylan Leclair)
El Salvador Bought The Dip
El Salvadoran President, Nayib Bukele, tweeted that El Salvador had purchased an additional 420 bitcoin for a total cache of 1120 bitcoin. The country has bought bitcoin to serve as a reserve asset on several occasions, typically during periods of brief and rapid downward price movement, dating back to its first acquisition on September 6, 2021. (Alex Mcshane, BTC Magazine)
Stronghold Digital Shares Spike on First Day of Trading
Stronghold Digital is reclaiming and remediating a legacy problem from decades of coal mining in Pennsylvania using waste coal to produce power, which is then used to generate electricity for its bitcoin miners.
The company priced its stock at $19 a share and the stock closed its first day at $28.90, after peaking at $31.90, for an estimated market cap of $1.3 billion. Interestingly, Stronghold Digital chose to go public through an IPO rather than by using a Special Purpose Acquisition Company (SPAC). The CEO stated, “I think we’re getting a lot more interest from investors, because we have been vetted by the SEC the regular way,” (CNBC)
Mining Media
Miningstore To Attend WDMS Summit In Dubai
Several of the world’s leading producers of cryptocurrency mining hardware will hold the World Digital Mining Summit (WDMS) 2021 in Dubai, from November 09-10. WDMS brings together the top mining and energy companies from all around the world.
MiningStore’s Director of Investor Relations, Zac Safron, will be attending the summit and representing our company.
Hardware Profitability Analysis: Understanding the Bitcoin Mining Rig Market
In a brilliant article, Daniel Frumkin of Braiins and Slushpool, helps demystify the complex world of purchasing and deploying ASICs. His work helps readers confidently start and scale a profitable bitcoin mining operation.
Daniel begins by breaking down the history of bitcoin mining rigs and why understanding the evolution of mining is important for a successful operation. He then analyzes the profitability and quality of user experience for many of the most common and popular bitcoin miners.