Bitcoin monthly digest: August 2023

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Welcome to the third edition of our monthly Bitcoin newsletter. Our dedication to providing you with essential insights into the Bitcoin ecosystem remains unwavering. Whether you're a seasoned expert or new to the world of Bitcoin, we delve into key developments, regulatory updates, technological innovations, market dynamics, and beyond. Join us as we uncover Bitcoin's potential to revolutionize various sectors and society at large. Let's get rolling.

• Bitcoin mining is enabling renewable energy

Genesis Digital Assets (GDA), a prominent Bitcoin mining company, has recently unveiled its new mining facility located in northern Sweden. The facility, which commenced operations in June 2023, boasts a current capacity of 8 megawatts (MW) and plans for further expansion in the near future. GDA strategically chose this location near the 417 MW Porjus Hydroelectric Power Station, renowned for its environmentally friendly electricity production, primarily derived from renewable sources. The aim is to leverage this sustainable energy source for Bitcoin mining activities.

Meanwhile, Nodal Power, a company focused on mitigating methane emissions at landfills by harnessing the energy for Bitcoin mining data centers, has successfully secured $13 million in seed funding. Their mission is to significantly reduce methane emissions from landfills while tapping into the latent energy potential of these sites.

A substantial portion of the funding has already been invested in constructing and operating two power plants in the United States. The first power plant, located in the southeast U.S., converts electricity generated from landfill gas into the local utility grid and features a data center for efficient energy distribution. The second site, situated in the mountain west region, hosts an innovative off-grid Bitcoin mining data center powered by landfill gas. Plans are in motion for a third site scheduled for early 2024. All three sites share the common goal of harnessing renewable electricity generated by methane gas during the decomposition of organic waste in landfills.

Nodal Power's initiative has the potential to make a substantial impact by significantly reducing methane emissions, a potent greenhouse gas that traps heat 25 times more effectively than carbon dioxide. The company's approach involves combusting methane gas in generators, mitigating methane emissions and reducing carbon emissions compared to traditional flaring or venting methods. This process effectively transforms previously wasted resources into a valuable energy source, contributing to environmental sustainability and local energy markets.

• Institutional adoption re-igniting?

Tether, a blockchain-enabled company and platform designed to facilitate the use of fiat currencies in a digital manner, purchased 1,529 bitcoins in Q2 2023 for approximately $45.4 million. This move aligns with Tether's earlier plans to allocate up to 15% of quarterly profits to bitcoin. In a similar vein, MicroStrategy, listed on Nasdaq, acquired 467 BTC in July, further adding to their gargantuan reserves of 152k BTC (worth approximately $4B at the time of writing).

In the larger context, Blackrock, the world's largest asset manager filed, for a spot bitcoin ETF in June, prompting other asset managers to reapply after previous denials. The SEC has postponed the decision deadlines for several applicants, including BlackRock, Fidelity, WisdomTree, Invesco & Galaxy, VanEck, Bitwise, and Valkyrie, in the process of obtaining a spot Bitcoin ETF. These delays extend the review period by 45 days, with the next set of deadlines scheduled for mid-October 2023.

In a recent development, Grayscale successfully won its lawsuit against the SEC, prompting the DC Circuit court of appeals to vacate the SEC's denial of Grayscale's conversion of $GBTC, a bitcoin investment trust, into a spot Bitcoin ETF. While this doesn't guarantee the automatic conversion of GBTC, it brings the possibility of SEC approval closer. The court found fault with the SEC's rationale for denying Grayscale's application, highlighting a lack of reasoned decision-making. As a result, Bloomberg analysts Seyffart and Balchunas have raised their odds for SEC approval of a spot Bitcoin ETF to 75% by the end of this year and 95% by the end of 2024. This development signals a significant shift in the race for a U.S. spot Bitcoin ETF.

That's a wrap for this month! We hope you enjoyed the read. Make sure to get in touch with us by using the "Contact us!" button at the top of this page if you have any questions or comments.