Autor Cointelegraph By Zhiyuan Sun

Hive Blockchain revenue declines by 44% Y/Y despite overall mining production surge

Hive Blockchain revenue declines by 44% Y/Y despite overall mining production surge

Uverejnil používateľ | nov 15, 2022 |

According to its second-quarter (ending Sept. 30) earnings presentation released on Nov. 15, Vancouver-based digital assets mining company Hive Blockchain’s revenue declined by 44% year over year to $29.6 million. During the same period, the company’s net income also decreased from $59.8 million in the prior year’s quarter to a loss of $37 million. Hive Blockchain’s net income was notably higher than its revenue in Q2 2022, as the company also recognized over $22 million worth of gains on the Bitcoin (BTC) and Ether (ETH) it mined. Although the company did not suffer material capital losses on coins in Q2 2023, it did, however, record a $26.2 million impairment expense to its mining rigs.The company’s losses appear to have intensified even though its Bitcoin mining capabilities have further scaled. Year over year, Hive Blockchain mined 31% more BTC than in Q2 2022 for a total of 858 coins, which still has more value after accounting for a 15.9% year-over-year decline in its ETH mining, which amounted to 7,309 coins in the quarter.The overall production increase was attributed to the opening of the firm’s New Brunswick Bitcoin mining facility over the past 12 months, which brought over 17,300 application-specific integrated circuit (ASIC) miners online. Expressing his optimism about the company’s operations, executive chairman Frank Holmes commented:“Strategically, we have not borrowed expensive debt against our mining equipment or pledged our Bitcoins for costly loans, thus our balance sheet remains healthy to weather this storm. We believe our low coupon fixed debt; attractive green renewable energy prices and high performing energy efficient ASIC chips will help us navigate through this crypto winter.”However, the company has warned of higher operating expenses going forward due to record-high mining difficulty. Currently, Hive Blockchain encompasses approximately 0.85% of the Bitcoin network’s hash rate. At the quarter’s end, Hive Blockchain reported holding 1,116 BTC, worth $48.4 million, and 25,154 ETH, worth $74.7 million, on its balance sheet.

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Former Huobi-linked entity says it has $18.1 million stuck on FTX

Former Huobi-linked entity says it has $18.1 million stuck on FTX

Uverejnil používateľ | nov 14, 2022 |

According to a new filing with the Stock Exchange of Hong Kong on Monday, investment holdings company New Huo Technology, formerly known as Huobi Global, said that it has $18.1 million worth of deposits stuck on troubled cryptocurrency exchange FTX. Of this amount, $13.2 million consisted of client’s deposits, and $4.9 million comprised of assets belonging to Hbit, another subsidiary. New Huo Technology is majority-owned by Chinese businessman Lin Li, who also created Huobi Global, the 20th largest crypto exchange worldwide by trading volume. On November 13, the company disclosed that it had reached an agreement with Li for an unsecured, non-interest-bearing credit facility up to a maximum of $14 million to cover customers’ liabilities. Nevertheless, the company wrote:”However, the Board anticipates that the financial performance of the Group might be materially and adversely affected in the event that the Incident is not resolved. The Board will discuss with the Group auditor to discuss the impact of the Incident on the Group’s financial position.”The news appeared to have stirred investors’ nerves on Twitter after initial confusion surrounding the company’s former name, Huobi Global. Regarding this matter, the exchange issued the following clarification: “On Oct 8, Huobi’s controlling shareholder company transferred all the shares of Huobi Global it holds to the fund of About Capital. New Huo Tech are independent entities. All ops of Huobi are normal, & we will continue to provide customers with safe & reliable services.”The news also arrived at a time of heightened panic over exchanges’ solvency issues following FTX’s collapse. Cointelegraph previously reported on Nov. 13 that both Huobi and Gate.io came under fire for allegedly sharing snapshots of reserves using loaned funds.

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Crypto.com CEO addresses whereabouts of $1B in stablecoins sent to FTX

Crypto.com CEO addresses whereabouts of $1B in stablecoins sent to FTX

Uverejnil používateľ | nov 14, 2022 |

During a live ask-me-anything (AMA) session with users on Monday, Crypto.com CEO Kris Marszalek explained that the firm sent large-sum stablecoins to troubled cryptocurrency exchange FTX to fulfill liquidity within customers’ orders at the time when FTX was still functional. As told by Marszalek: “Over a year, $1B was moved to FTX and we recovered all of this. We only had exposure of under $10 million when FTX shut down. And FTX was a trading venue where this is one of the few trading venues with decent liquidity for some of the coins like the ones I mentioned earlier.”During the session, Marszalek reassured users that the exchange was not halting withdrawals. Although, a higher volume of requests has led to a backlog of customer service tickets. The Crypto.com chief then stated that only three coins, two of which are FTX tokens and the other being a securitized token, currently have their withdrawal functions suspended on the exchange.Marszalek also denied allegations that the exchange was using its native token, CRO, as collateral for loans: “We’ve never used it, and we haven’t needed to use it,” he said, pointing out that the exchange has a “very simple business that generates a fairly decent amount of revenue,” opting to focus on that direction instead.Finally, in response to users questioning why approximately 20% of the exchange’s reserves are in memecoin Shiba Inu (SHIB), Marszalek explained that they were simply customer deposits:”And it so happens that last year DOGE, and SHIB were two extremely hot meme coins. And people bought a lot. And they’re holding it; they didn’t sell it. We have no control over what you guys buy. You buy it; we will start it will keep it safe.”Like many other exchanges, Crypto.com has seen a flurry of withdrawals in the aftermath of FTX’s collapse. The firm also became the target of wide-ranging conspiracy theories on Twitter after it was uncovered that the exchange accidentally sent 320,000 Ether (ETH) to Gate.io before recovering the funds shortly after. 

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Breaking: FTX appears to have resumed withdrawals, blockchain data shows

Breaking: FTX appears to have resumed withdrawals, blockchain data shows

Uverejnil používateľ | nov 10, 2022 |

According to data from Etherscan on Nov. 10, troubled cryptocurrency exchange FTX appears to have resumed withdrawals. The exchange’s hot wallet address, which has remained inactive after FTX announced on Nov. 8 it would be halting all user withdrawals, has resumed activities as of 3:50 pm UTC. Blockchain data shows that multiple types of tokens and large sums of transactions have since left the hot wallet, which has a balance of $469 million at the time of publication. Earlier in the day, Sam Bankman-Fried, CEO of FTX, stated on Twitter that FTX had about $16 billion of total assets against $10 billion of total liabilities. However, the exchange is suffering a major liquidity crunch as its native FTX Token (FTT), which FTX uses partly as collateral, plunged by over $8 billion in the past week. This was compounded by over $5 billion of consumer withdrawal requests on Nov. 6, as well as allegations that the exchange was lending out deposits to crypto trading firm Alameda Research. Bankman-Fried stated that he was attempting to raise new capital to resolve the situation after a failed Binance bailout.19) A few other assorted comments:This was about FTX International. FTX US, the US based exchange that accepts Americans, was not financially impacted by this shitshow.It’s 100% liquid. Every user could fully withdraw (modulo gas fees etc).Updates on its future coming.— SBF (@SBF_FTX) November 10, 2022This is a developing story, and further information will be added as it becomes available.

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Report: Tether freezes $46M of FTX's USDT, setting new precedent

Report: Tether freezes $46M of FTX's USDT, setting new precedent

Uverejnil používateľ | nov 10, 2022 |

According to blockchain transaction data provided by WhaleAlert.io on Nov. 10, Tether appears to have frozen 46,360,701 USDT ($46,274,472) owned by troubled cryptocurrency exchange FTX in its Tron blockchain wallet. The move comes one day after the U.S. Securities and Exchange Commission and the U.S. Justice Department began investigating FTX over its liquidity crisis. A spokesperson from Tether stated on Oct. 11 that the firm only freezes privately held wallets when it firm receives a legitimate request from a verified law enforcement agent to do so and that “we do not freeze wallets of exchanges or services.” If confirmed, the freeze imposed against FTX’s wallet would be the first of its kind. The same day, Japanese authorities ordered FTX to halt operations in the country after the exchange halted withdrawals.Update Nov. 10, 15:45 UTC: A Tether spokesperson to whom Cointelegraph reached out to stated: “While we cannot specifically comment, Tether routinely has an open dialogue with law enforcement agencies, including the U.S. Department of Justice, as part of our commitment to cooperation, transparency, and accountability.”“Amid rumors of insolvency at crypto exchange FTX and worries about the financial conditions of Alameda Research, we would like to first and foremost, act as a mouthpiece for the entire crypto ecosystem and reiterate that one crisis does not make an industry.”In response to multiple unconfirmed rumors that Tether held USDT exposure to the ailing exchange, the spokesperson reiterated that Tether has no credit towards FTX nor its affiliate trading firm Alameda Research. “Tether tokens are 100% backed by our reserves, and the assets that are backing the reserves exceed the liabilities. Tether holds a strong, conservative, and liquid portfolio, which includes cash, cash equivalents, and U.S. treasuries,” the source said, adding: “Tether will continue to focus on safeguarding those reserves.”This is a developing news story and will be updated accordingly.

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