Nano Labs lines up $500M to fund BNB treasury

Singapore’s Whampoa Digital collaborates on establishment of $100M Web3 fundWhampoa Digital, the Web3 subsidiary of privately-held Singaporean investment firm Whampoa Group, has entered into a collaboration with an Asian gaming company to establish a $100 million Web3 fund.Photo by Towfiqu barbhuiya on UnsplashFocus on Web3 in the Middle EastThe WEMIX Foundation, a subsidiary of South Korean blockchain gaming firm Wemade, announced details of the new fund via a press release published to its website on Friday.Wemade is renowned for its massively multiplayer online role-playing game (MMORPG) series Legend of Mir. This strategic collaboration aims to catalyze the expansion of the digital asset industry, with a specific focus on the rapidly growing Web3 sector in the Middle East.Reciprocal deal and project referralsThe Web3 fund initiated by Wemade is set to play a pivotal role in supporting developers at the Wemix Play Center situated in Dubai. Both Wemade and Whampoa Digital plan to engage in reciprocal deal and project referrals, particularly within the Web3 industry, and explore potential co-investment opportunities in promising projects.Aureole Foong, senior partner of Whampoa Group, expressed optimism about the partnership’s potential impact. Foong highlighted the significance of this collaboration in expanding the digital asset industry beyond established sectors and fostering innovation in the Middle East, recognized as one of the world’s fastest-growing regions in the Web3 space.Web3 gaming experienceWemade has extensive experience in the gaming sector, dating back to its establishment in 2000 and its notable creation of the Legend of Mir series, positioning it as a key player in the gaming industry. The company has diversified its portfolio by venturing into the blockchain space, launching Wemix, a tech ecosystem offering Web3 services.Wemade’s blockchain gaming platform, Wemix Play, boasts a player base of over 250,000 users. Last week the Wemix Foundation announced the launch of its una Wallet, associated with the company’s omnichain network and interoperable Web3 gaming platform.In addition to co-investing in gaming studios and blockchain projects in the Middle East and North Africa (MENA) region, Wemade is planning to establish a global Web3 gaming hub at the Dubai International Financial Centre (DIFC). The company will also set up an office for the newly formed Web3 fund at this location. The DIFC’s Innovation Hub, coupled with Wemade’s hub, will provide essential facilities and mentorship for the fund’s portfolio firms.Whampoa Digital, the investment arm of Whampoa Group, is well-versed in supporting global tech firms, including notable names like TikTok’s parent company ByteDance and crypto major Binance. In May Whampoa announced that it had plans to establish a crypto-friendly bank in Bahrain.2023 has presented challenges for Web3 investors seeking new funds. According to a report by the research arm of crypto investment firm Galaxy Digital, the average new Web3 fund size for the first nine months was $238.4 million, with a median of $50 million — both figures significantly lower than the same period last year.

Hong Kong Bank to Act as Settlement Bank for Crypto FirmsZA Bank, Hong Kong’s largest virtual bank, is looking to become the go-to bank for crypto startups. The online bank has been given permission to serve as the settlement bank for regulated Web3 companies in the city. This development was announced at Hong Kong’s Web3 Festival, an event supported by the local government and attended by crypto startups and institutions from across Asia.©Pexels/Frank BarningHashKey and OSL collaborationZA Bank is expected to facilitate crypto-fiat conversions with two licensed exchanges in Hong Kong, HashKey and OSL, where customers can swap crypto into fiat currencies. ZA Bank will also offer basic banking services to local Web3 startups, a category that is currently underserved by traditional financial institutions.ZA Bank is focusing on assisting local Web3 startups and small-medium enterprises (SMEs).The bank linked up to the city’s company registry data, allowing for minimal information input and cross-checking. According to Devon Sin, alternate chief executive of ZA Bank, the bank currently conducts AML scrutiny against the usual checklists to satisfy the regulatory requirements. No AML issues have emerged during the recent months of work.Competing for global crypto businessHong Kong is trying to establish itself as a crypto-friendly alternative to other hubs, such as the US and Singapore, and a sandbox for Web3 businesses from China, where crypto trading is illegal. The city is revamping its digital assets regulatory framework, with plans to legalize retail trading of major cryptocurrencies like Bitcoin and Ether. Ronald Lu, CEO of ZA Bank, said that ZA Bank’s online account opening for Web3 startups is a major step forward in integrating traditional banking services with the Web3 world.According to Lu, ZA Bank will act as a settlement bank for clients to allow withdrawals in Hong Kong, China, and US currencies after they deposit crypto tokens with exchanges. The business model is already operational through HashKey and OSL, the only two licensed crypto exchanges in Hong Kong. The bank will provide the same service for other exchanges as they become licensed.HK China’s crypto “trial run”Hong Kong is opening up to the beleaguered sector in a move that aims to revive its status as a financial center following years of COVID restrictions and political upheaval. However, access to banking has been a major hurdle for the city’s ambitions. The city’s banking and securities regulators are hosting a round-table for crypto players and bankers to share experiences and perspectives on banking services later this month.Many have speculated about a softening stance on cryptocurrency by the Chinese authorities. However, it’s more likely that they continue with strict regulation and control relative to crypto in mainland China while happy to monitor a more open approach to it within Hong Kong. Crypto analyst Myles Deutscher likens the approach to a “trial run” that is being monitored by China.Launched in March 2020, ZA Bank is one of Hong Kong’s eight licensed virtual banks and had the most net assets as of last year, despite remaining unprofitable. The virtual lender doesn’t expect it will need to boost its headcount to handle the crypto client push. Although the revenue model is still unclear, Lu said that more clients, more deposits, and more business opportunities are always great for the bank. The lender doesn’t offer services for clients from mainland China, given the restrictions in place there.

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.