Amberdata Expands into Asia-Pacific with New Hong Kong Office

Beijing-headquartered crypto mining equipment manufacturer Canaan recently revealed its financial results for the fourth quarter of 2023, demonstrating that it continues to struggle with profitability despite positive numbers relative to revenues and growth.Photo by Sasun Bughdaryan on UnsplashIncreased revenues and salesAccording to the company’s filing, during the last quarter of 2023 Canaan reported a surge of 45.7% in total computing power sold compared to the preceding quarter, reaching 5.5 million Thash/s. This ascent, which reflects a 191.9% increase from the same period in 2022, signifies not just a recovery but a robust resurgence in demand and operational ability. The company's dispatch of 19.6 million Thash/s throughout the year, marking a 29.6% leap from 2022, aligns with the rebound in bitcoin prices observed in Q4 2023, a pivotal factor shaping Canaan's operational revitalization. 47% growth on previous quarterA closer examination of the financials reveals not only surpassing total revenues but also a notable 47.3% quarter-over-quarter growth. Canaan's foray into international markets, bolstered by securing substantial orders from esteemed public company clients, underscores a buoyant sales performance and a positive outlook for the computing sector. Despite the buoyant sales and revenue figures particularly in the mining machine market, the sector has faced ongoing regulatory uncertainties and market fluctuations. Nonetheless, the company's strategic initiatives, alongside the positive market effects of the approval and listing of spot bitcoin exchange-traded funds (ETFs), have been positive. Moreover, Canaan's investments in wafer supply capabilities and strategic financial maneuvers garnered approximately US$136 million through at-the-market (ATM) programs and preferred shares. Recording a lossYet, the company’s journey in 2023 was not without its hurdles. Q4 2023 witnessed a significant increase in product revenues from the previous quarter but a decline from Q4 2022, attributed to dwindling sales prices as the halving event loomed, underscoring the volatility inherent in the cryptocurrency market. Results published last year are indicative of the company’s difficulty. In Q2 2023, revenues were strong, yet the company wasn’t turning a profit.With Q4 results, it’s now clear that the firm lost $421 million in 2023. In Q4, Canaan recorded a net loss of $139 million. That compares with a loss of $91 million in Q4, 2022. The company also expects tough market conditions in 2024. In its forward-looking outlook, it stated:”For the first quarter of 2024, and the second quarter of 2024, the Company expects total revenues to be approximately US$33 million and US$70 million, respectively, considering the challenging market conditions across the industry. This forecast reflects the Company’s current and preliminary views on the market and operational conditions, which are subject to change.” The crypto mining sector remains a very challenging market. With the upcoming Bitcoin halving event set to occur in April, it’s expected that as much as 20% of mining capacity could be forced offline, as some equipment would simply fail to mine on a profitable basis. Indicative of the challenges within the sector, crypto miner Core Scientific was forced into bankruptcy due to market difficulties in December 2022. It has only recently exited that bankruptcy process and now expects to generate revenues of $600 million in 2024. Another Bitcoin miner, Riot Platforms, has warned that profitability may be difficult to achieve in 2024 due to chip shortages.   

Finblox Launching Tokenized US Treasury BondsHong Kong-based cryptocurrency firm Finblox has unveiled a groundbreaking solution aimed at meeting the growing demand among crypto investors for traditional assets that generate yields. By launching tokenized rights to US Treasury Bills (T-Bills), the company seeks to bridge the gap between the crypto and traditional financial worlds.In a tweet thread posted on Tuesday, the company set out some detail on the product offering it has been working on. In collaboration with smart-contract vault OpenEden, Finblox aims to tap into the trillion-dollar market of Web3 users. Finblox is a crypto app, with the enterprise being backed by leading venture capital firms such as Dragonfly Capital, Sequoia Capital, and Saison Capital. This innovative offering provides crypto investors with access to a highly secure AAA-rated financial asset, leveraging the advantages of blockchain technology.Photo by Karolina Grabowska on PexelsYield generationUnlike stablecoins, which have failed to deliver substantial returns, and crypto lending, which carries notable risks as recent defaults and insolvencies in the digital asset sector have shown, tokenized US T-Bills provide a reliable investment option.By converting the rights to these assets into digital tokens that can be traded and held within the blockchain ecosystem, Finblox enables fractional ownership. This means that users can invest small amounts and still earn proportional yields, opening up investment opportunities to a wider range of individuals.Through the Finblox platform, users can directly benefit from the yield generated by these tokenized T-Bills. Historically, Treasury Bills have been regarded as blue-chip financial assets, offering reliable returns and serving as a benchmark for global financial markets.OpenEden integrationTo ensure transparency and security, Finblox has integrated the T-Bill vault of Singapore-based OpenEden with decentralized blockchain Chainlink. This integration provides on-chain verification, guaranteeing that Finblox’s T-Bill tokens are backed by US Treasury securities, USDC stablecoins, and US dollars on a 1:1 basis.Finblox founder Peter Hoang emphasized the seamless and secure bridge that T-Bills offer between traditional and emerging markets in an interview with Tech in Asia. He stated: “With T-Bills, we are offering users a real-world asset while also benefiting from the custody of a regulated financial institution. It’s a seamless and secure bridge for both traditional and emerging markets, bringing safer yields to a wide range of users.”To access Finblox’s T-Bill tokens, investors need to follow a straightforward process. Initially, they must obtain USDC from a reputable exchange, either through Finblox or other exchanges. Once the know-your-customer (KYC) verification process is completed, users can swap their USDC for T-Bills within the Finblox platform.To enhance transparency, Finblox makes its wallets publicly available, enabling users to track deposits and withdrawals and verify the accuracy of transactions. The company also holds working capital in hot wallets to facilitate withdrawals below 2% of the entire pool, ensuring swift processing within three business days.It’s understood that Finblox will market the product offering to users in the Philippines, Indonesia, India, and Vietnam, among other jurisdictions within Asia.

Bakkt Holdings, a software as a service (SaaS) and API platform for owning and trading cryptocurrency, has unveiled its plans for an extensive expansion into Asia and other crypto-friendly international jurisdictions. Focus on Hong Kong and SingaporeAccording to a recent press release, Bakkt has broadened its footprint into two additional Asian markets, namely Hong Kong and Singapore. This strategic expansion aligns with the company's key objectives for 2024. Data from South Korean Web3 advisory and research firm Tiger Research suggests that Asia is poised to become the epicenter of the global crypto landscape within the next five years. In particular, Singapore and Hong Kong have emerged as dominant forces in the Asian crypto landscape. Their well-defined regulations, favorable tax structures and status as international financial hubs have attracted major players in the crypto industry. The announcement emphasizes Bakkt's commitment to making cryptocurrencies more accessible globally. The company envisions that crypto has the potential to enhance financial inclusivity and connect communities within the global economy. CEO Gavin Michael expressed excitement about the opportunities these regions present, highlighting the company's dedication to reaching millions of people through its crypto services.Photo by Jigar Panchal on UnsplashBroader global expansionBakkt's international expansion is not limited to Asia. Additionally, the company is targeting Latin America. Brazil, Argentina and Mexico lead the way in the adoption of crypto assets in Latin America. The digital assets solutions firm has successfully established crypto trading and on-ramp capabilities in Brazil and Guatemala, adding to its existing operations in Argentina and Mexico. Furthermore, Bakkt has plans to establish a presence in the United Kingdom and Australia in the coming months.   The decision to expand into these specific jurisdictions is influenced by the rapid growth of the crypto economy and the regulatory clarity observed in these regions. Despite global market fluctuations and recoveries, certain countries continue to welcome crypto-related businesses with robust regulatory frameworks. In collaboration with Bakkt Holdings, Hapi and SogoTrade have launched new crypto trading capabilities, expanding their offerings across Asia, Europe, North America and South America. Hapi, a stock trading platform, has extended its crypto trading services to Brazil, Guatemala and Spain, deepening its relationship with Bakkt. On the other hand, SogoTrade, a digital brokerage, has initiated crypto trading in Hong Kong and Singapore, marking the beginning of its foray into Asian markets. Bakkt, established in 2018, is focused on providing institutional-grade custody, trading and on-ramp capabilities. The company positions itself as a partner for sustainable, long-term crypto involvement. The firm was established with Intercontinental Exchange (ICE), the owners of the New York Stock Exchange, having a 66.7% controlling interest in the company.  Bakkt's strategic expansion into diverse international jurisdictions, including the Asian region, underscores its intention to enable global platform accessibility, together with its belief in the transformative power of cryptocurrencies within the financial landscape.