Project Weekly | Tether Plans to Invest $500 Million in Bitcoin Mining over the Next 6 Months

Project Weekly Tether to Invest $500 Million in Bitcoin Mining in Next 6 Months

LianGuai Weekly is a blockchain industry summary column launched by LianGuai, covering key news, market and contract data, mining information, project updates, and technological advancements. This article is a project update, taking you through the progress of mainstream and star projects this week.

Bitcoin

Tether plans to invest $500 million in Bitcoin mining over the next 6 months

On November 16th, according to Bloomberg, Tether Holdings Ltd., the world’s largest stablecoin issuer, plans to become one of the world’s top Bitcoin miners by investing approximately $500 million over the next six months. Tether’s future CEO, LianGuaiolo Ardoino, stated in an interview that the company will achieve this goal by building its own mining farms and investing in other companies. Tether has previously provided a $6.1 million credit facility to publicly listed Bitcoin mining company Northern Data AG and acquired a stake in the company in September this year. Tether will establish Bitcoin mining farms in Uruguay, Paraguay, and El Salvador, with each farm having a capacity ranging from 40 to 70 megawatts. Ardoino added that Tether plans to reach a self-operated mining capacity of 120 megawatts by the end of 2023 and expects to reach 450 megawatts by the end of 2025. This initiative will give Tether a 1% share of the total computing power of the Bitcoin network, making it one of the top 20 Bitcoin mining companies worldwide.

Bitcoin held without movement for over a year reaches 70.47%, hitting a historical high

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On-chain data shows that Bitcoin held without movement for over a year has reached 70.47%, reaching a historical high.

Bloomberg analyst: SEC recommends cash creation for spot Bitcoin ETFs, requiring revisions to be submitted in the next few weeks

Bloomberg analyst Eric Balchunas stated on the X platform that the SEC’s Division of Trading and Markets communicated with exchanges this week regarding the spot Bitcoin ETF 19b-4 filing, suggesting that the ETF should be created with cash (cash creates) rather than physical holdings, and requesting exchanges to submit revisions in the coming weeks. Balchunas stated that cash creates makes sense because broker-dealers are unable to trade Bitcoin, so cash creates holds issuers responsible for Bitcoin transactions and eliminates the need for broker-dealers to use unregistered subsidiaries or third-party firms to trade Bitcoin, resulting in fewer restrictions overall. Currently, only 2-3 applicants plan to adopt cash creates, while the rest prefer physical holdings, so adjustments or delays may be necessary. However, this does not change our 90% probability of approval, which is a positive sign, and the process is moving forward.

K33 Research: Bitcoin ETP sees record inflows

On November 15th, according to K33 Research, institutional demand for Bitcoin through exchange-traded products (ETPs) has significantly increased in the past month, with an inflow of 27,095 BTC, reaching a record level and surpassing the flow in June and July after BlackRock submitted a spot Bitcoin ETF. Vetle Lunde, Senior Analyst at K33 Research, and Anders Helseth, Vice President, stated that in addition to inflows into Bitcoin ETPs, CME’s sustained high open interest indicates strong institutional demand for Bitcoin as the deadline for the latest spot Bitcoin ETF by the U.S. Securities and Exchange Commission approaches.

Will Clemente: Bitcoin Options Open Interest Reaches All-Time High, Surpassing $16 Billion

Will Clemente, co-founder of Reflexivity Research, stated on social media that Bitcoin options open interest has hit a record high, currently exceeding $16 billion.

Coinbase: Bitcoin Spot ETF Will Attract a Wider Range of Investors

In a report released on Monday, Coinbase (COIN) stated that if the Bitcoin Exchange Traded Fund (ETF) is approved in the United States, it will open up the cryptocurrency market to a new category of investors. This includes registered investment advisors (RIA), retirement funds, and institutions that have historically been unable to access this asset class. Furthermore, the report suggests that having investment tools that meet “critical regulatory and compliance requirements may also open the doors for new products,” potentially increasing the adoption of cryptocurrencies for qualified investors and expanding its scope. In the long run, this could increase the cryptocurrency market capitalization by billions of dollars and lay the foundation for a “more regulated environment, greater inclusivity, and significant growth in demand.”

Ethereum

Fidelity Files Application for Ethereum Spot ETF

James Seyffart, an analyst at Bloomberg, mentioned on X platform that Fidelity has filed a 19b-4 document for an Ethereum spot ETF, becoming the seventh applicant for an Ethereum spot ETF. Fidelity stated in the document that the approval of a spot ETH ETP would represent a significant victory for protecting U.S. investors in the crypto asset field.

Ethereum Foundation Grant Provider Transfers 1,065 ETH to a Multisig Address

According to X user @ai_9684xtLianGuai, one hour ago, the Ethereum Foundation Grant Provider transferred 1,065 ETH worth $2.1 million to a multisig address, likely for ecosystem funding (possibly related to the upcoming 19th round of grants by Gitcoin).

Ethereum Core Developer Call #122: Discussion on the Launch of Devnet #12 Next Week

On November 17th, Christine Kim, Vice President of Galaxy Research, summarized the Ethereum Core Developer Call #122 (ACDC) stating that developers agreed to begin discussing the launch of Devnet #12 during the ACDE meeting next Thursday. They also discussed a proposal made by Geth developer Péter Szilágyi to address concerns about the diversity of execution layer (EL) clients. The consensus layer (CL) client teams are improving Blob propagation, which will significantly reduce the complexity and issues related to Blob propagation observed in the past 11 devnets. Most CL client teams plan to complete the implementation of the Deneb specification update this week or next week.

Ethereum Developers Initiate RIP-7560 Native Account Abstraction Proposal, Aims to Introduce Consensus Layer Protocol Changes

On November 17th, Ethereum developer Alex Forshtat initiated the RIP-7560 Native Account Abstraction proposal with the aim of introducing changes to the consensus layer protocol instead of solely relying on higher-level infrastructure. This proposal merges EIP-2938 and ERC-4337 to form a comprehensive native account abstraction proposal. The proposal suggests dividing the transaction process of Ethereum into multiple steps, including verification, execution, and post-transaction logic. The validity of a transaction will be determined by the result of the verification step. This means that the proposal aims to improve the transparency and efficiency of transactions by introducing more layers of steps.

Other Projects

Ankr partners with Optimism to launch Rollup as a Service, allowing developers to quickly customize dedicated OP chains

On the 11th and 15th of the month, decentralized blockchain infrastructure provider Ankr announced a partnership with Optimism to launch Rollup as a Service (RolluLianGuaisa Service). This allows enterprises and developers to rapidly customize and deploy dedicated OP chains that inherit the technical and governance advantages of the ecosystem’s superchain. Ankr will provide engineering and infrastructure for this new solution, offering an easy way to launch new OP chains. The RaaS functionalities include blockchain engineering, Rollup infrastructure, development tools, security and auditing, continuous support, and more, making it easier for developers to launch and manage Rollups.

Ethereum Layer 2 network Kinto with KYC authentication mechanism raises $5 million this year

Kinto, an Ethereum Layer 2 (L2) network with a KYC authentication mechanism, has raised $5 million in funding this year. According to a press release on Tuesday, Kinto received $1.5 million as seed funding earlier this year from Kyber Capital Crypto. Recently, it secured an additional $3.5 million in a funding round led by Kyber Capital Crypto, SLianGuairtan Group, and LianGuairafi. SkyBridge Capital, Kraynos, Soft Holdings, Deep Ventures, Modular, Tane, and Robot Ventures also participated in this funding round.

Solana-based credit protocol Credix completes $60 million credit financing

On November 18th, Chaim, the Chief Growth Officer of Credix, a credit protocol based on Solana, announced that Credix has completed $60 million in credit financing. The loan was obtained through a collaboration with a US alternative investment management company specializing in asset lending opportunities, which manages a portfolio of $3 billion. This round of credit financing will provide priority debt to support small and medium-sized enterprises in tech startup platforms in Latin America. The initial $7.5 million of the loan will help Brazilian small and medium-sized enterprises through accounts receivable financing. Previously, Credix completed a $11.25 million Series A funding round in September 2022, led by Motive LianGuairtners and LianGuairaFi Capital.

Web3 game studio Bazooka Tango raises $5 million in funding, led by Bitkraft Ventures

Bazooka Tango, a Web3 game studio founded by former developers of the fantasy MOBA game Vainglory, announced that it has raised $5 million in funding. The round was led by Bitkraft Ventures, with participation from RW3 Ventures, Sfermion, and 1Up Ventures. Bazooka Tango plans to use the new funds to expand its team and further develop its upcoming game Shardbound, which is committed to launching on the soon-to-be-released Immutable zkEVM network.

Sushi expands to ZetaChain, offering native BTC support for the first time

Decentralized finance (DeFi) platform Sushi has announced its expansion to layer 1 blockchain ZetaChain. ZetaChain can connect any L1 and L2 networks, from Ethereum to Bitcoin. This integration will introduce native BTC support for the first time, allowing Sushi users to swap native BTC across 30 networks. The integration will be carried out in two key phases. In the coming months, Sushi plans to introduce a decentralized exchange (DEX) on the ZetaChain testnet, supporting basic asset swaps and liquidity provision. As part of this launch, there will be opportunities for beta testing, including incentive activities for testing applications. Once ZetaChain’s mainnet is live, Sushi will become one of its primary launch partners. With this release, the platform will achieve full functionality for Bitcoin interoperability, expanding its service range.

Blockchain Interoperability Developer Union Labs Raises $4 Million

Blockchain interoperability developer Union Labs has raised $4 million in seed funding to develop a cross-chain bridge based on zero-knowledge proofs. The investment was led by venture capital firms Galileo, Semantic Ventures, Tioga Capital, and Nascent. Other investors in this funding round include Lightshift and Chorus One. The funds raised will be used for recruitment and expansion efforts.

LianGuaincakeSwap Launches Game Marketplace, Supporting Nine Blockchains

Decentralized exchange LianGuaincakeSwap has launched a game marketplace. The new platform allows developers to build, launch, and update games using web3 elements such as cryptocurrencies and NFTs. The platform supports nine blockchains: Ethereum, Polygon zkEVM, Base, BNB Chain, OpenBNB, zkSync Era, Arbitrum One, Linea, and Aptos. After the launch of LianGuaincakeSwap, two games will be released on the platform: “LianGuaincake Protectors” developed in collaboration with GameFi platform Mobox, and “LianGuaincake Mayor” created in partnership with GameFi protocol Binary X.

Disclaimer: LianGuai, as a blockchain information platform, publishes articles for informational purposes only and does not constitute actual investment advice. Please establish the correct investment philosophy and be sure to increase risk awareness.

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