Axie Infinity co-founder suffers $9.5M loss in wallet hack

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.

Metaplanet Inc., a Tokyo-listed crypto investment and consulting firm, has announced its adoption of Bitcoin as its strategic treasury reserve asset. This decision comes in response to the ongoing economic challenges facing Japan, including high government debt levels, prolonged negative real interest rates, and a weakened yen. Japan currently faces significant economic adversity, with the highest government debt-to-GDP ratio among developed countries at 254.6%, according to the International Monetary Fund. Despite the government's decision to raise interest rates in March, the Japanese yen experienced a sharp decline to its lowest level in 34 years last month, as reported by Reuters.Photo by Takashi Miyazaki on UnsplashBitcoin as a store of valueMetaplanet Inc. highlighted Bitcoin's attributes as a non-sovereign store of value that has demonstrated appreciation against fiat currencies. The firm noted that Bitcoin's monetary policy is predetermined and immutable, with a maximum supply of 21 million coins set to be reached by the year 2140. This characteristic distinguishes Bitcoin from traditional monetary metals and other cryptocurrencies subject to centralized control. Strategic approachIn its official release, Metaplanet Inc. stated its intention to leverage a variety of capital market instruments to enhance its bitcoin reserves. As of May 10, the company reportedly held 117.7 BTC, equivalent to $7.2 million, according to data from Bitcointreasuries.net. This move reflects Metaplanet's strategic response to Japan's economic conditions and its commitment to diversifying and growing its assets in the cryptocurrency space. 

Singapore’s Whampoa Plans Crypto-Friendly Bank in BahrainSingapore-based privately held investment firm Whampoa Group has announced that it plans to open a crypto-friendly digital bank in the Kingdom of Bahrain in the Persian Gulf.Photo by Charles-Adrien Fournier on UnsplashIsland state diversificationThe island state has been looking to diversify from its predominantly oil-based economy into fintech and finance. Whampoa Group CEO Shawn Chan said that the company was “impressed by Bahrain’s solid reputation in the financial services sector, transparent regulatory framework, and ongoing pledge to collaborate and innovate.”Chan added that Whampoa would commit to providing “secure and innovative digital financial solutions in line with global best practices” relative to the proposed digital bank, with an eye towards setting a benchmark for the industry where digitally-native banking is concerned.Persian Gulf crypto hubsThe Persian Gulf is proving to be a crypto-friendly region in recent times. Bahrain is one of a number of Gulf Cooperation Council (GCC) countries vying for digital asset-related business. The country’s financial services sector contributes in excess of 17% to Bahraini gross domestic product (GDP). Bahrain has been one of the first in the region to establish a regulatory framework for digital assets, together with a crypto asset licensing system.Its Persian Gulf neighbor, the United Arab Emirates, including the individual emirates of Dubai and Abu Dhabi, have followed a similar path, establishing a workable set of regulatory rules in relation to digital assets, alongside licensing of crypto businesses.CEO of the Bahrain Economic Development Board, Khalid Humaidan welcomed Whompoa’s decision to establish the business in Bahrain, emphasizing the importance of crypto-friendly digital banking to support further development of crypto business in Bahrain, while bolstering the infrastructure available to existing digital asset businesses operating within the Kingdom.Doors open in 2023The bank is scheduled to open later this year, providing integrated financial services covering traditional banking, together with crypto-specific banking activity. That will include digital asset trading and custody, as well as asset management-based products and services.Whompoa’s plan is to gear the bank towards meeting the needs of institutions, innovators and crypto start-up companies and sophisticated global investors. Crypto-friendly banking has been a perennial problem that has stymied the development of the digital assets sector since its emergence.That problem has gotten worse rather than better more recently, with a mixture of banking failures and a crypto sector crackdown leading to the closure of crypto-friendly banks like Silvergate and Signature in the United States in recent months.In East Asia, Hong Kong, while shaping up to compete on the global stage as a crypto-hub, has seen crypto businesses experience difficulty in terms of securing banking within the Chinese autonomous territory. Efforts are being made to alleviate that issue. Furthermore, Hong Kong’s largest virtual bank, ZA Bank, has set out to become the go-to bank for crypto start-up banking in the city.Experiences elsewhere exemplify how crucial banking infrastructure is to the embryonic digital assets sector. It underscores the important role that Whompoa could play in boosting crypto sector business in the island state of Bahrain as digital asset innovation continues to be rolled out.