Zkrypto Partners with LG CNS to Develop Blockchain-Powered Business Models

B. Riley Financial Agrees Strategic Bitdeer Share PurchaseBitdeer, the Singapore-based crypto mining firm that emerged as a spin-off from the renowned mining manufacturer Bitmain, has solidified a significant pact with financial services firm B. Riley Financial, through a share purchase deal. This accord entails the sale of up to $150 million worth of Bitdeer’s Class A ordinary shares.Photo by Kelly Sikkema on UnsplashOption to buyIn a filing dated August 9 with the United States Securities and Exchange Commission (SEC), the terms of the agreement unveil a strategic arrangement. B. Riley will possess the option, albeit not the obligation, to procure a designated quantity of Bitdeer’s shares over a span of three years. Parameters of this agreement include a maximum acquisition of either 1 million shares or 25% of the shares of Bitdeer traded on the Nasdaq throughout this stipulated purchase timeframe.The filing states: “Pursuant to the Purchase Agreement, the Company has the right to sell to B. Riley Principal Capital II, up to US$150,000,000 of its Class A ordinary shares, par value US$0.0000001 per share (the “Class A Ordinary Shares”), subject to certain limitations and conditions set forth in the Purchase Agreement.”Amplified voting privilegesIn essence, this arrangement affords B. Riley a distinct position within Bitdeer’s echelons. Class A shares, which typically elude public trading, grant shareholders amplified voting privileges in contrast to their Class B counterparts. Ergo, this deal furnishes B. Riley with a tangible stake in the domain of crypto mining.Underpinning this transaction, Bitdeer has committed to compensating B. Riley with 0.5% of the deal’s total value in acknowledgment of its commitment to procuring these shares. Additionally, B. Riley will be indemnified for legal expenses and outlays, extending up to a cap of $50,000.Broader mining interestIt’s not the first time that B. Riley has shown an interest in crypto mining. It signed a $100 million equity deal with Iris Energy last year. Additionally, it’s one of the largest creditors of Core Scientific.Noteworthy is the fact that Bitdeer embarked on its journey to public status via a Special Purpose Acquisition Company (SPAC) deal with Blue Safari Group back in April. This strategic maneuver enabled Bitdeer to become public without taking the conventional route of an initial public offering (IPO).Marking a departure from the throes of the crypto winter, this SPAC deal entailed the fusion of a special purpose acquisition company with a private entity. Bitdeer’s subsequent Nasdaq debut wasn’t without its problems. Investors were lukewarm in the interest shown in the Bitdeer proposition, resulting in an immediate 30% price drop.Bhutan mining collaborationNotably, Bitdeer made headlines when it inked a partnership with Druk Holding and Investments (DHI) in May, signifying a collective stride towards establishing an ecologically-conscious, carbon-neutral digital asset mining venture within the realm of the Kingdom of Bhutan.Rooted in the visionary pursuits of Jihan Wu, the former Co-Founder of Bitmain, Bitdeer is distinguished for its cloud-mining services, a pursuit realized through its data centers stationed in Tennessee, Washington, and Texas. The company’s most recent operations report attests to the mining of 220 Bitcoin (BTC) via its self-mining enterprise in July, constituting an impressive year-over-year escalation of 41%.

Bitdeer Records Revenue Growth Amid Q2 LossesSingapore-based crypto mining company, Bitdeer, experienced a notable boost in cash flow during Q2 2023. However, this upswing was counterbalanced by substantial acquisition costs and share-based compensation expenses.It’s been a mixed couple of days for Bitdeer. On Thursday it emerged that the company had struck a deal with B.Riley Financial that has seen the financial services firm sign a $150 million share purchase options agreement with Bitdeer. Twenty-four hours later, there’s further good news in that the firm has increased its mining hash rate. However, it has also recorded a significant loss for Q2, 2023.Photo by David Clarke on UnsplashHash rate increaseIn its recent earnings report released on Friday, Bitdeer revealed a remarkable increase in its mining hash rate. The figures surged from 2.1 exahashes per second to an impressive 3.8 exahashes per second throughout the second quarter of 2023 by comparison with the same period in 2022. Furthermore, Bitdeer’s self-mining operations yielded 758 bitcoins in contrast to 521 bitcoins mined during the same period in the preceding year.This surge in hashing power contributed to a Q2 revenue of $93.8 million, marking a 5% year-over-year increase. Bitdeer attributed this revenue growth to its bolstered hashing power, setting a solid foundation for its financial performance.Linghui Kong, CEO of Bitdeer, shed light on pivotal developments driving the company’s growth trajectory. Kong highlighted the successful completion of the mining site in Bhutan and the establishment of a cutting-edge immersion cooling data center.Operational expansionKong emphasized: “Our 100MW mining datacenter in Bhutan is in the process of power-on testing, and the mining machines are beginning stable operation.” Additionally, he mentioned that a 175MW immersion cooling data center is currently under construction at the Tydal mining facility in Norway, with an expected completion date of 2025.Bitdeer’s expansion endeavors have led to a significant increase in its mining operations. The company now manages 199,000 mining machines, a considerable rise from the previous year’s count of 119,000. Over the past year, Bitdeer’s business model has evolved, with a majority of machines being hosted rather than self-owned.Despite the growth in operations, Bitdeer reported a net loss of $40.4 million in Q2, marking a substantial increase from the previous year’s quarterly loss of $15.6 million.Merger overheadThe Q2 losses were largely attributed to Bitdeer’s merger with the special purpose acquisition company (SPAC), Blue Safari Group Acquisition Corp. Notably, the listing fee alone for this merger amounted to $33.2 million, and share-based payment expenses added up to $9.6 million during the quarter.Bitdeer’s stock had experienced a 26% decline in the 30 days leading up to the report. However, the losses were quickly recouped, with the stock rallying by over 27% on the day of the report’s publication. This market response underscores the dynamic nature of the cryptocurrency sector and the investor sentiment surrounding it.Bitdeer’s Q2 performance showcases the company’s revenue growth propelled by enhanced hashing power. The expansion of its mining operations, coupled with strategic developments like the Bhutan mining site and immersion cooling data center, position Bitdeer for further growth.

Japan’s Mt.Gox to commence creditor repayments shortlyCreditors of Mt. Gox, the Japanese Bitcoin exchange that suffered a devastating hack in 2014, have received a glimmer of hope with an announcement from the administrators of the Mt.Gox estate that repayments are imminent.The recent announcement from Nobuaki Kobayashi, the trustee overseeing Mt. Gox’s estate was made on Tuesday when Kobayashi initiated the distribution of emails to rehabilitation creditors, hinting at the commencement of repayments. Social media reports have fueled optimism, suggesting that creditors may start receiving repayments in cash in 2023.Photo by Manuel Cosentino on UnsplashFirst round repayments in 2023The email, sent in both Japanese and English, outlined Kobayashi’s plan to initiate the first round of repayments in 2023, with the process extending into 2024. The email highlighted the complexity of the task, citing the large number of rehabilitation creditors, diverse types of repayments and varied processing times required. Despite the lack of specific timelines for individual creditors, the email conveyed a cautiously optimistic tone about progress.Cash vs. bitcoinReaction within the Mt. Gox community has been mixed. Some commentators view Kobayashi’s email as “cautiously promising,” interpreting it as a positive sign that repayments are finally on the horizon. Long-suffering creditors had been informed of a one-year extension to the repayment deadline in September. Additionally, some observers have raised concerns, noting that the email specifically references cash payments, whereas many victims of the Mt. Gox hack anticipate the return of large amounts of bitcoin.The Mt. Gox trustee currently holds 135,890 BTC across known addresses, valued at nearly $5 billion. An additional 3,795 BTC (worth $130 million) are held on unknown addresses.While the email signals progress, questions remain about the nature and extent of the repayments, with the community keenly observing developments. The email stated:“The specific timing of repayment to individual rehabilitation creditors is undetermined, and therefore, it will not be possible to provide advance notice to each rehabilitation creditor regarding the specific timing of their repayment.”Deadlines were also pushed back on other occasions, including March of this year when creditors were sent a “change of deadline“ notification.Redemption of trust assetsThis news coincided with the Mt. Gox trustee’s announcement on Wednesday regarding the redemption of trust assets. A substantial sum of 7 billion Japanese yen (equivalent to $47 million) was redeemed, intended for funding the repayment of claims. Following the redemption, the remaining trust assets stood at 8.8 billion yen, or approximately $59 million. The trustee, as per the official statement, is actively preparing for the base repayment, early lump-sum repayment and intermediate repayment.The recent events surrounding Mt. Gox have sparked discussions within the broader crypto community about the potential for a bitcoin sell-off. It’s long been speculated that the sudden release of bitcoin to creditors could lead to the market being flooded with sellers. However, as it appears that cash is being distributed as well as bitcoin, this should soften any potential bitcoin sell-off.Despite the optimism in some quarters, skepticism lingers due to the history of delays in Mt. Gox repayments. Creditors remain cautiously hopeful for the most part, awaiting further updates and tangible progress in the rehabilitation process.