Crypto miner Hut 8 surpassed 5K Bitcoin held in reserves

November 11, 2021 Coin Telegraph

Bitcoin

According to the firm, it mines close to 20 BTC per day.

In its third-quarter earnings release, Canadian cryptocurrency miner Hut8 announced that it surpassed the goal set earlier this year of holding 5,000 Bitcoins (BTC) in reserves through mining. Its Bitcoin balance now amounts to 5,053, for a total market value of $430 million.

During the quarter, Hut 8 generated 50.34 million (CA$) (worth around $40 million) in revenue and CA$23.37 million (about $18.57 million) in net income, up from CA$5.75 million in revenue (about $4.57 million) and a loss of CA$0.90 million (or $750,000) in the prior year's quarter. The company hosts a sizable fleet of Application-Specific Integrated Circuit, or ASIC, machines used for Bitcoin mining. In addition, it deploys NVIDIA GPUs to mine Ethereum (ETH).

The company's total hash rate (Bitcoin and Ethereum mining combined), or the number of guesses per second needed to obtain a mathematical solution to mine a new block on a proof-of-work blockchain, amounts to 1.7 exahashes per second (1.7*10^18 hashes/s, EH/s). In context, the total hash rate of the entire Bitcoin network is 162 EH/s, according to data provided by Blockchain.com. As for Ethereum, that number stands at 817.06 terahashes per second (817.06*10^12 hashes/s, TH/s), according to data provided by 2Miners.com. The firm's contracted mining capacity for Ethereum stands at 1.6 TH/s.

Hut 8 adopts a hold-on-for-dear-life, or HODL, strategy when it comes to mining Bitcoin; that is, it does not seek to sell them under most circumstances. The firm also lends out its BTC to farm yields, and claims to mine close to 20 BTC per day.

Location of Hut 8's crypto mining operations. | Source: Hut 8 Q3 2021 Earnings Call Presentation

The company operates in the Canadian province of Alberta with plans to expand to Ontario. It uses a mixture of natural gas, wind and green energy for its mining operations.

Carbon neutral crypto spot ETFs to launch in Canada

November 9, 2021 Coin Telegraph

Canada

Purpose Investments will measure the carbon footprint associated with its portfolio and purchase carbon offsets accordingly.

Two carbon neutral cryptocurrency-backed exchange-traded funds are poised to launch in Canada offering a greener alternative for institutional investors.

Canada-based asset manager Purpose Investments is readying to launch two new crypto-based ETFs on the Toronto Stock Exchange on Nov. 9, both of which offer investors a carbon offset.

Purpose will launch their Bitcoin and Ethereum ETFs under the BTCC.J and ETHH.J tickers. Unlike the funds recently launched in the U.S. which are futures contract backed, these funds will be backed and settled using BTC as the underlying asset.

Tomorrow @PurposeInvest is launching new share classes for their #Bitcoin and #Ethereum ETFs -- $BTCC and $ETHH. They will be "Carbon Offset" share classes and will be denoted "/J". Pages below. pic.twitter.com/W9QYS4232U
— James Seyffart (@JSeyff) November 8, 2021

The Toronto-based firm has partnered with Patch, a firm that will help it measure the carbon footprint of the crypto portfolios and offer carbon-removal solutions. Measuring the carbon footprint of crypto mining is no easy task as there are so many variables, but the firm has detailed its efforts and the math in a whitepaper.

Purpose will then invest in vetted carbon offsetting projects with the aim to give clients carbon neutral exposure to BTC. Some of the projects it will invest in include direct air capture, biomass, mineralization or carbon dioxide removal, forestry, ocean fertilization, and soil management.

According to the firm's prospectus,Purpose's new BTC fund held 24,167 BTC (approx. $US1.6 billion) as of Nov. 8, while the Ether fund had 86,906 ETH (worth roughly $US417 million) as of Nov. 8.

The Purpose Bitcoin ETF (BTCC-B.TO) was North America’s first Bitcoin fund launched in February. It currently has more than a million dollars in volume and has returned almost 20% over the past month according to Yahoo! Finance.

The Purpose Ethereum ETF (ETHH.TO) is not as popular with just $210,000 in daily volume but it has made a better return of 38% over the past 30 days.

The company also launched the first ETF that incorporates carbon offsetting in Europe in June. The fund trades on the London Stock Exchange under the ticker ZERO and tracks the S&P Global Clean Energy Select Index.

Hive Blockchain Secures Order for 6,500 Next-Generation Bitcoin Miners From Canaan

October 30, 2021 Bitcoin.com

Canadian city plans to supply residents’ heat using Bitcoin mining

October 14, 2021 Coin Telegraph

Bitcoin

The recovered energy will be used to heat 100 residential and commercial buildings in North Vancouver, with a population of roughly 155,000.

MintGreen, a Canada-based cleantech cryptocurrency miner, will be partnering with the Lonsdale Energy Corporation to supply heat to residents of North Vancouver in British Columbia starting in 2022.

In an Oct. 14 announcement, MintGreen said its “digital boilers” — which it claims can recover more than 96% of the electricity used for Bitcoin (BTC) mining — will prevent 20,000 metric tons of greenhouse gases per megawatt from entering the atmosphere during its arrangement with North Vancouver. The recovered energy will be used to heat 100 residential and commercial buildings in the Canadian city with a population of roughly 155,000.

Colin Sullivan, the CEO of MintGreen, said the partnership was aimed at tackling issues related to climate change. According to a December 2020 report from the Global Alliance for Buildings and Construction, building operations and their construction accounted for roughly 38% of carbon dioxide emissions in urban areas.

Crypto users battling the cold during the winter season have often turned to mining rigs as a solution to supply heat. MintGreen has already partnered with the Vancouver Island Sea Salt facility and the Canadian whiskey company Shelter Point Distillery to sell off its heat waste generated from BTC mining to power parts of their operations.

MintGreen said it plans to begin the initiative in 2022, likely before one of Canada’s harsh winters begins. The lowest recorded temperature for North Vancouver is roughly -20° C.

Geographic Distribution Data Shows US Takes Leading Bitcoin Mining Position After China’s Crackdown

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Canadian Bitcoin mining firm Link Global faces $5.6M penalty

October 5, 2021 Coin Telegraph

Bitcoin mining

Link Global has received an extension to Oct. 14, 2021, as the deadline for filing its response to the action.

Link Global Technologies, a Bitcoin (BTC) mining company listed on the Canadian Securities Exchange, is facing major potential penalties for operating unauthorized power plants in the province of Alberta.

The Alberta Utilities Commission (AUC), the province’s power utility regulator, issued Sept. 24 another enforcement submission against Link Global, with enforcement staff recommending several penalties for violations of Alberta’s legislative requirements.

According to a document shared with Cointelegraph, the AUC’s enforcement staff recommended that Link Global should pay an economic disgorgement of about 2 million Canadian dollars (CAD) ($1.6 million) for financial gains from the unlawful electricity generation.

The regulator is seeking over 5 million CAD ($4 million) from Link Global’s Bitcoin mining operations, based on the AUC’s calculations of Link Global’s alleged gross economic benefit for two plants. Additionally, the AUC is seeking an additional 81,000 CAD ($64,000) in two administrative penalties.

According to the document, the AUC estimated Link Global’s economic benefit based on the “more conservative generation rate of 1.2 Bitcoins per day” and “the more conservative of 95,000 TH of computing power versus 10 MW.” The authority noted that Link Global’s revenue source is mainly based on hosting or selling electricity to third-party digital asset miners, “with a smaller proportion of revenue coming from self-mining activities.”

“The enforcement staff report and recommendations are only part of the information that will be assessed and considered by the AUC tribunal panel of Commission members,” a spokesperson for the AUC told Cointelegraph. Link Global has received an extension to Oct. 14, 2021, as the deadline for filing its response. “All of this information will be considered at an oral hearing before a final ruling is issued. The date of this hearing has not yet been scheduled,” the representative said.

Following the AUC’s submission, Link Global CEO Stephen Jenkins subsequently issued a statement on Sept. 30, stating that the company has acknowledged wrongdoing and has been working hard to rectify mistakes:

“Our business works to respect the laws, the people and the environment, and we believe that our submission to the AUC will make this apparent. [...] I apologize to our shareholders who do not deserve this. We will work tirelessly to ensure the outcome is positive.”

Link Global did not immediately respond to Cointelegraph’s request for comment.

If applied, the disgorgement would mark only the second disgorgement penalty the AUC had ever levied after approving a 56 million CAD settlement for electricity power generator TransAlta Corporation back in 2015.

As previously reported, the AUC initially asked Link Global to shut down operations in late August after local residents complained about noise from a nearby power plant.

Global CBDC bridge needs public and private cooperation, says BIS

October 1, 2021 Coin Telegraph

BIS

Cooperation between public and private sectors would be vital for a global CBDC system, says a new joint report.

The Bank for International Settlements (BIS) continues investigating the development of the global central bank digital currency (CBDC), publishing a new joint report with seven central banks.

Released Sept. 30, BIS’ latest CBDC report refers to joint efforts to explore a retail CBDC alongside the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the United States Federal Reserve, Sveriges Riksbank and the Swiss National Bank.

The report provides an executive summary of investigation progress made since publishing a report in October 2020, which pointed out common foundational principles and core features of a CBDC. The BIS also published three detailed CBDC reports related to CBDC system design and interoperability, user needs, adoption and financial stability implications.

According to the new report, an effective CBDC system would “need to involve both public and private actors to ensure interoperability and coexistence with the broader payment system.”

The central banks participating in the report agreed that any CBDC ecosystem would involve the public and private sectors in a balance to provide “desired policy outcome and enable innovation that meets users’ evolving payment needs.” The ability to bridge between CBDCs and traditional payment systems would be crucial for the financial system, the report stated:

“Yet a theme that cuts through almost every consideration is interoperability. Domestic interoperability would be key to ensuring a CBDC system coexists with other national payment systems and contributes to broader accessibility, resilience and diversity.”

The central bank group will continue further exploring CBDC issues, planning to increase global and domestic outreach to maintain an open and informed dialogue on CBDC. “Collectively, we are sharing insights from our work with other central banks, including in developing economies,” the banks noted.

The new joint central bank report comes amid payment giant Visa officially introducing its own blockchain interoperability project on Sept. 30, aiming to bring a “universal adapter” connecting multiple cryptocurrencies, stablecoins and CBDCs. Previously, tech giant Microsoft won a blockchain patent describing a cross-chain system allowing individuals and organizations to create and manage tokens across multiple distributed ledger networks and platforms.

Canadian regulators warn against ‘gambling style’ advertising and marketing in guidelines for crypto companies

September 23, 2021 Coin Telegraph

Canada

“Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avoid," said CSA chair Louis Morisset.

The Canadian Securities Administrators, or CSA, and Investment Industry Regulatory Organization of Canada, or IIROC, have issued guidelines for crypto trading platforms operating in the country to avoid “advertising and marketing materials that could mislead investors.”

In a Sept. 23 publication, the Canadian regulators’ guidelines warn crypto companies not to advertise “gambling style” promotions in which an investor is encouraged to sign up within a given time limit to take advantage of a reward or opportunity. Though the guidance was seemingly vague on restrictions concerning social media posts, the regulators recommended trading platforms designate an individual to review and approve communications and set up a system to ensure all messages are in compliance with regulatory guidelines.

“Misleading advertisements and improper marketing strategies may encourage investors to take on risks they would normally avoid, and not respecting the requirements under securities law and IIROC rules may raise concerns about a crypto trading platform’s fitness for registration,” said CSA chair Louis Morisset.

Some of the seemingly egregious examples the regulators provided included exchanges suggesting that they are registered under current securities laws or otherwise approved by regulators. The CSA and IIROC encouraged trading platforms to consult with their legal teams prior to releasing advertising and marketing announcements to the public.

The IIROC is a self-regulatory body that proposes measures to protect investors and support healthy domestic capital markets while the CSA is a national standards group covering Canada’s ten provinces and three territories. The two securities bodies have previously issued joint statements regarding rules on crypto industry players and worked together to clarify the use of crypto with the country’s securities laws.

Netflix to release documentary about QuadrigaCX CEO’s mysterious life and death

September 23, 2021 Coin Telegraph

Business

Many claimed Gerald Cotten had faked his death and absconded with millions in crypto, even briefly demanding his body be exhumed.

Online streaming platform and production company Netflix will be producing a film on deceased crypto exchange QuadrigaCX founder Gerald Cotten.

In a Sept. 23 tweet from Netflix, the platform announced Trust No One: The Hunt for the Crypto King documentary will premiere in 2022. The story, which follows “a group of investors turned sleuths,” will focus on the events around the death of Cotten, who reportedly died while doing volunteer work at an orphanage in India and leaving QuadrigaCX users out of pocket for roughly $190 million in crypto.

Details are sparse regarding the casting or direction the documentary takes, but the trailer hints at plastic surgery and avoiding authorities on a yacht. Netflix has become well known around the world for producing documentaries revealing disturbing accounts of controversial figures including Michael Jackson and singer R. Kelly.

Cotten died in December 2018 reportedly due to complications from Crohn’s disease. At the time, he was the only person to have access to millions in crypto from more than 100,000 users with wallets on the QuadrigaCX exchange. This led many in the crypto space to initially suspect Cotten had faked his death and absconded with the funds, but there has never been any evidence to suggest this. A later investigation revealed Panama-based payments processor Crypto Capital may have had control of many of the funds.

Following Cotten’s death, QuadrigaCX trustee Ernst & Young began selling other assets from the founder’s estate, raising roughly $30 million as of November. However, the firm said it received 17,053 claims from QuadrigaCX users totaling more than $170 million.

The crypto space has had its share of controversial and charismatic figures in the 12 years since the technology was first introduced. This year, computer programmer and crypto evangelist John McAfee died in his prison cell in Spain following a court ruling that he could have been extradited to the United States for charges including failing to submit tax returns from 2014 to 2018 and allegedly not reporting income related to pushing crypto projects and consulting work.

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