Jun 18, 2024 at 11:11Contents
Stacks Recovers After Nine-Hour Downtime
Stacks, a layer-2 network on Bitcoin, encountered a nine-hour outage on June 14 due to “unexpected mining behavior” and a Bitcoin reorganization event. The disruption started at Stacks Block #153,917 at 4:13 am UTC and block production resumed at 1:20 pm UTC. The Stacks (STX) token dropped more than 8% to $1.89 shortly after block production resumed and further declined to $1.85, marking a 17.8% decrease from its weekly high of $2.45 on June 12.
Coolpad Group Expands Crypto Mining Operations
Coolpad Group, a telecommunications firm based in Shenzhen, revealed a $13.5 million investment to purchase 2,700 crypto mining rigs. This acquisition will increase its computing power from 873,000 terahashes per second (TH/s) to over 1.5 million TH/s (1.5 exahashes per second, EH/s). The new mining rigs will be deployed in North America, though the specific locations and the manufacturer were not disclosed. This follows Coolpad’s earlier announcement to invest up to $28 million in U.S.-listed Bitcoin ETFs and shares of crypto mining companies.
Central Banks Intensify CBDC Exploration
The Bank for International Settlements (BIS) reported a significant rise in central bank digital currency (CBDC) trials and pilot programs. According to BIS, 94% of surveyed central banks are exploring CBDCs. The likelihood of issuing a wholesale CBDC within the next six years now exceeds that of issuing a retail CBDC. Wholesale CBDCs are intended for institutional payment and settlement systems, whereas retail CBDCs are meant for public use. The BIS survey also indicated that stablecoins are rarely used for payments outside the crypto ecosystem, with two-thirds of respondents working on regulatory frameworks for stablecoins and other crypto-assets.
Cautious Advisers Slow Bitcoin ETF Adoption
BlackRock’s Chief Investment Officer of ETF and Index Investments, Samara Cohen, highlighted that cautious financial advisers have slowed the adoption of U.S. spot Bitcoin ETFs. Speaking at Coinbase’s State of Crypto Summit, Cohen noted that 80% of Bitcoin ETF purchases are made by individual investors, often through online brokerage accounts. Despite BlackRock’s iShares Bitcoin Trust (IBIT) attracting around $17.6 billion in inflows since January, registered investment advisers remain cautious, focusing on risk analysis and portfolio construction. Coinbase CFO Alesia Haas remarked that Bitcoin is on a “slow journey of adoption.”
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