Riot- Bitfarms Dispute Heightens, Tether's Billion Dollar Startup Plan, and Key Cryptocurrency Developments
Summary:
The recent escalation between crypto miners Riot Platforms and Bitfarms, with Riot acquiring a significant stake in Bitfarms, is highlighted, while Bitfarms' internal strife continues after the firing of its CEO. Cryptocurrency news also includes Tether's plan to invest $1 billion in startups, Ripple Labs' acquisition of digital asset custodian Standard Custody, Circle's plans for programmable wallets on Solana, and the Fireblocks-Coinbase partnership aimed at expanding trading services. Lastly, the US state of Indiana aims to lure the data center and crypto mining industries by ensuring continuous low-cost energy.
The corporate tension between cryptocurrency miners Riot Platforms and Bitfarms is escalating. On June 11, Riot Platforms publicly announced a significant share purchase in Bitfarms, buying around six million shares to the tune of more than $111 million. This move saw Riot's total holdings increase from 9.25% to 13.1%. This comes in the wake of Bitfarms proposing a “poison pill” tactic to obstruct Riot from boosting its stake to 15% or higher. This defense strategy is conceived to reduce the value of shares and impede Riot's takeover ambitions. In April, Riot offered to purchase Bitfarms, proposing a substantial premium on the current market price of its shares. The Bitfarms’ board rejected the offer. There is significant internal turmoil at Bitfarms following the controversial dismissal of its CEO, Geoffrey Morphy, in May. Morphy subsequently sued the company for breach of contract, wrongful dismissal, and damages, seeking $27 million. The clash between the firms appears far from a resolution.
This week's edition of Crypto Biz will also delve into Tether's $1 billion investment plans for startups, a new custodian agreement by Ripple Labs, Circle's plans for programmable wallets on Solana, and partnership between Fireblocks and Coinbase. Tether, a leading player in the stablecoin sector, is looking to invest a considerable part of its revenue into areas like emerging markets, artificial intelligence, and biotech, according to CEO Paolo Ardoino. Tether is planning at least $1 billion of investment in deals over the next year through its venture capital section, Ardoino said in a recent Bloomberg interview. Under Ardoino’s leadership, Tether’s venture capital department has already invested around $2 billion over the past two years on technology including AI and unique financial infrastructure.
Ripple Labs has finalized the acquisition of digital asset custodian Standard Custody, a move that could prove crucial to Ripple’s plans for releasing a United States dollar stablecoin and ambitions for tokenizing real-world assets. Standard Custody’s CEO, Jack McDonald, will take on the additional role of Ripple’s senior vice president of stablecoins while keeping his CEO position at Standard Custody. Ripple has also announced support for the Solana blockchain across its Web3 services, incorporating features like programmable wallets and gas stations.
Fireblocks is partnering with Coinbase to extend its trading services by incorporating perpetual futures and spot trading through the Coinbase International Exchange; this move is predominantly aimed at institutional investors. The partnership allows Fireblocks to support spot contracts and perpetual futures, expanding trading options under specific security and governance guidelines. These capabilities are only available to users outside of the United States, with the regions they serve not mentioned either on their website or in their Terms of Service.
To wrap up, the US state of Indiana is planning to cultivate the data center and crypto mining sectors by promising continuous, cost-effective energy. Crypto Biz is your weekly round-up of the business behind blockchain and crypto, delivered straight to your inbox every Thursday.
Published At
6/14/2024 11:30:00 PM
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