U.S. crypto ATM firm Bitcoin Depot enters Hong Kong market

Bgin Blockchain Limited, a crypto mining equipment manufacturer headquartered in Singapore, filed documentation last Friday with the Securities and Exchange Commission (SEC) with a view towards launching an initial public offering (IPO) in the U.S. The Feb. 21 filing, a Form F-1 registration statement, outlines that the company wishes to go forward with the IPO after the effective date of the filing has been established. Bgin identified itself as an “emerging growth company.”  The registration statement was filed on behalf of Bgin by Hunter Taubman Fischer & Li LLC, in conjunction with the underwriters represented by Robinson & Cole LLP. It proposes to offer the U.S. investing public 59.54 million Class A ordinary shares and 15.69 million Class B shares. As part of its plan, Class A shares would be listed on the Nasdaq stock exchange using “BGIN” as the ticker symbol.Photo by Leslie Lopez Holder on Unsplash$50 million raiseIn a statement published on Renaissance Capital's website, the independent investment bank outlined that Bgin is seeking to raise $50 million in capital through the IPO.  It’s understood that funds raised by way of the IPO will be utilized to ramp up research and development efforts. The bookrunners, responsible for managing the IPO, are Chardan Capital Markets and The Benchmark Company. As yet, no information has been provided with regard to how Bgin will price its share offering. Renaissance described Bgin as a digital asset technology company “with proprietary cryptocurrency mining technologies and a strategic focus on alternative cryptocurrencies.”  The company, founded in 2019, focuses on the design, manufacture and distribution of mining equipment relative to Kaspa (KAS), Alephium (ALPH) and Radiant (RXD) blockchain networks. Bgin supplies 8nm and 12nm ASIC chips dedicated to these alternative blockchain networks, which all depend on the use of a proof-of-work (PoW) consensus mechanism. Additionally, Bgin mines cryptocurrency itself while providing a hosting service for crypto mining, with facilities in the U.S. and Hong Kong. It hosts 4,020 mining rigs for customers, with 3,330 of these located within facilities in Iowa and Nebraska.  Across various subsidiaries Bgin manages 33,862 active mining rigs in the U.S. within its own mining operations. And additional 12,000 non-operational rigs are currently in storage facilities in the U.S. and Hong Kong. Over a 12-month period ending on June 30, 2024, the company recorded revenues of $392 million. In 2023, the firm recorded sales of 68,000 mining rigs. In H1 2024, the company sold over 47,000 mining machines. The filing disclosed that the company’s Hong Kong subsidiary was responsible for considerable crypto mining facilities in mainland China prior to China deeming the activity to be illegal in 2021. Providing full disclosure in the lead-up to its IPO, the firm warned that it continued to operate crypto mining facilities in China for a number of months in violation of that law. It identifies this item as a risk factor as potentially, the firm could be penalized and fined.

Thai Opposition Party Offers Election Crypto SweetenerThailand’s opposition party, the Pheu Thai Party (PTP), has made a controversial move ahead of next month’s general election by offering 10,000 baht (approximately $300) in digital assets to citizens above 16 years old in exchange for their votes.©Unsplash/Markus WinklerThe stated intention of the policy is to spread the use of blockchain-based assets and attract international digital currencies, as well as to distribute products made in Thailand abroad using blockchain technology. Prommin Lertsuridej, who runs the party’s economic policy committee has claimed that 55 million Thai citizens will benefit from the measure if the PTP wins the election.Populist policiesThe plan will cost $15 billion and it is claimed that it will serve to revive the country’s struggling economy while providing relief to those struggling with debt. Additionally other populist measures will be pursued including an increase in the minimum wage and a minimum monthly household income guarantee.The policy has been met with mixed reactions from citizens, with some welcoming the extra cash and others accusing the party of blatant, cynical manipulation. The PTP has tried to sidestep accusations of manipulation by stating that the money will be limited to spending on local economic stimulus projects. Additionally, it cannot be used for gambling or debt repayment, and must be spent within a four-kilometer radius. The party’s chief adviser on public participation and innovation, Paetongtarn Shinawatra, called this policy an attempt to draw the attention of international currencies to Thailand.New crypto regulationsThis policy announcement comes just two months after the Securities and Exchange Commission (SEC) of Thailand issued new regulations for crypto service providers. The regulations were implemented to prevent a situation similar to the recent FTX collapse and hack, which resulted in the loss of millions of dollars’ worth of digital assets. The SEC has required service providers to establish a digital wallet management system to ensure efficient custody and to have a contingency plan in case of a security breach.Unintended consequencesWhile the PTPs policy has been met with criticism, it has also been seen as a bold move towards promoting the use of blockchain-based assets and digital currencies in Thailand. By offering citizens an incentive to use digital assets, the policy may encourage more people to explore this emerging market, which has the potential to create new opportunities for investment and economic growth.Populist politics and policy comes with a heavy longer term cost. The PTPs policy may be successful in achieving its intended goals, or it could ultimately lead to unintended consequences. Regardless of the outcome, the PTPs policy is a significant development in Thailand’s growing digital asset market and may set a precedent for other countries seeking to promote the use of blockchain-based assets and digital currencies.From an international perspective, even if the move backfires economically within Thailand, ever greater use and normalization of digital assets as in this case can only lead to greater overall adoption.

Korbit hosts its first cryptocurrency investment leagueKorean cryptocurrency exchange Korbit announced yesterday (local time) its inaugural virtual asset investment league, set to begin at midnight between Nov. 26 and 27. This event, a first since Korbit’s establishment, invites any investor with a Korbit account to participate. Interested individuals can join the league by using the mobile app to click on the “Join League” button and consenting to the collection and disclosure of their personal information.Photo by Florian Schmetz on UnsplashRealized returns in Korean wonKorbit’s investment league ranks participants every week, from the start of Monday (00:00) to the end of Sunday (24:00). The ranking is based on the “realized return” in Korean won (KRW), which reflects the profits earned by investors from their cryptocurrency investments. To qualify for the ranking, participants must have made cryptocurrency sales totaling at least KRW 100,000 (approximately $77.4).The exchange will reward the top 100 performers each week in the investment league with KRW points, which can be used for investing in crypto assets on their platform. The first, second and third-place winners will receive KRW 200,000, KRW 100,000 and KRW 50,000, respectively. Additionally, all participants who rank in the top 100 will be awarded KRW 5,000 each.Social trading opportunityThe league offers a great opportunity for social trading, allowing investors to study and emulate the tactics of the market’s top traders. Users can click on the profiles of the top 100 traders to view the three cryptocurrencies those traders engaged with over the week.Moreover, each investor on Korbit will have the ability to monitor their cryptocurrency holdings in real-time. They can also view their total realized return, calculated from the beginning of their trading journey on Korbit up to the present moment, irrespective of the league.Pre-event bonusesTo encourage active participation in the upcoming competition, Korbit launched a pre-event yesterday, scheduled to run until Nov. 26. During this period, the first 10,000 investors who agree to the collection and disclosure of their personal information will instantly receive KRW 1,000. Additionally, the first 1,000 investors who sell crypto assets worth KRW 100,000 or more within the first four weeks following the league’s commencement will be rewarded with an extra KRW 5,000.Commenting on the event, Oh Se-jin, the CEO of Korbit, emphasized that unlike a simulation, this competition involves real investments, offering customers a more authentic and immersive experience. Oh expressed his hope to regularly host such events, aiming to foster a community where investors not only compete for returns but also share information. This approach, he believes, will contribute to cultivating a healthy culture of cryptocurrency investment.