Bitfarms Ventures into the U.S as Holograph's Value Tumbles; Ethereum ETFs Expected to Trade Soon
Summary:
Bitfarms is expanding its U.S operation with a new 120 MW site in Pennsylvania, amid Riot Platforms' increasing stake in the company. Holograph's token value plunged nearly 80% following a system exploit. Additionally, SEC Chair Gary Gensler expects spot Ether ETFs trading to begin this summer.
Bitfarms broadens its business reach in the U.S. as its rival, Riot Platforms, acquires a larger share in the company. A significant dip occurred in Holograph's token after a system exploit occurred. Meanwhile, Gary Gensler hinted that trading of Ethereum ETF spot might commence soon.
Bitfarms, a key player in bitcoin mining, declared its further penetration into the U.S. market on June 14 by setting up of a new 120 megawatts (MW) facility in Sharon, Pennsylvania. This move aims to enhance Bitfarms' operational reach, facilitate an 8 EH/s capacity by 2025, and magnify the company's total power capacity to 648 MW — a surge of 170% from its existing capacity. On a parallel note, Riot Platforms declared an increased stake of 14% in Bitfarms. The extra 1,432,063 common shares purchased by Riot account for nearly 0.35% of Bitfarms' released and outstanding shares.
The value of Holograph's token nosedived by almost 80% subsequent to a hacker's attack on the protocol’s operator contract, which minted 1 billion HLG tokens equal to $14.4 million on June 14. A breach in the smart contract caused 1 billion HLG tokens to be minted across nine transactions within 10 minutes, causing the price of HLG to collapse. The token's value plummeted by 79.4% from $0.014 to a low of $0.0029 over the subsequent nine hours, trailing a decline in its market capitalization from nearly $22 million to a mere $4.8 million. Matt Casto, a distinguished crypto researcher at CMT Digital, assumes the hacker to be a “rogue dev” who financed Holograph's operator contract address 26 days prior. In response to this, Holograph launched its investigation and is in communication with law enforcement.
Gary Gensler, the SEC Chair, hinted at a tentative timeline for the commencement of spot Ether (ETH) ETFs trading in the U.S. by this summer. During a June 13 hearing with the Senate Banking Committee, Gensler revealed that he anticipates the regulator will endorse S-1 registration statements for ETH asset managers “sometime over the course of the summer.” On May 23, the SEC greenlighted 19b-filings for a series of asset managers. However, S-1 filings need to receive approval before the ETH ETFs can be traded. Gensler stated he hopes the registration to sail smoothly for issuers, and if so, spot Ethereum exchange-traded products should start trading by summer.
News contribution by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
6/14/2024 2:15:09 PM
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