Bitcoin monthly digest: May 2024

It's summertime! As June starts, we're thrilled to be back with the newest instalment of our monthly Bitcoin digest. This newsletter is your go-to resource for keeping up with everything Bitcoin in 5 minutes or less. Let's jump right into the events of May and explore the newest developments in the Bitcoin world.

• Institutional adoption heat check: who's buying? May brought numerous developments from an institutional adoption standpoint. Let's review below the most significant ones:

BlackRock report

BlackRock, the largest fund manager and asset allocator in the world, has noticed increasing interest in Bitcoin ETFs from institutional investors like sovereign wealth funds and pension funds. This follows the successful launch of BlackRock's Bitcoin ETF, iShares IBIT, approved by the SEC earlier this year. The U.S. spot Bitcoin ETF market has surpassed $200 billion in trading volume in 2024. Despite recent outflows due to market volatility, BlackRock remains optimistic about long-term institutional demand. Robert Mitchnick, BlackRock's head of digital assets, noted that BlackRock has been educating these institutions about Bitcoin for years. Even after iShares IBIT saw its first outflows following 71 days of inflows, Mitchnick believes a new wave of institutional buying is imminent.

With iShares IBIT quickly accumulating over $20 billion in Bitcoin, BlackRock has shown the significant demand for custodied Bitcoin investment vehicles. Despite short-term outflows, the long-term outlook remains highly positive.

Semler Scientific adopts a Bitcoin strategy

Wisconsin bought Bitcoin for their State pension fund

• Argentina state-owned energy company starts mining Bitcoin

Argentina's energy sector is increasingly turning to Bitcoin, with a state-owned facility now using stranded natural gas from oil fields that would otherwise be wasted. YPF Luz, a subsidiary of state-owned energy firm YPF, has partnered with Genesis Digital Assets (GDA) to launch a gas flare-powered mining facility. This facility will utilize 1,200 machines to monetize gas that is currently being flared into the atmosphere. This initiative follows the election of Bitcoin-friendly President Javier Milei in late 2023 and highlights Argentina's growing embrace of Bitcoin.

GDA estimates that repurposing stranded gas, which is typically burned as waste, could reduce carbon emissions by up to 63%. This demonstrates how Bitcoin mining can convert energy byproducts into productive use. GDA founder Abdumalik Mirakhmedov stated, "This will be yet another opportunity to show the world that Bitcoin mining can have a positive effect on the environment and can be fully integrated into local communities."

For YPF Luz, monetizing stranded gas helps offset costs and promotes sustainability. For GDA, it means access to competitive energy pricing and reduced carbon output. For Argentina, it signals leadership in using Bitcoin mining to enhance energy infrastructure. This project mirrors efforts in other countries to "clean up" energy grids with Bitcoin mining. Bhutan uses renewable hydropower to mine Bitcoin, consuming its seasonal excess, while El Salvador employs geothermal energy for mining with no carbon footprint.

That's a wrap for now, folks! Don't be shy: get in touch with us by using the "Contact us!" button at the top of this page, or leave a comment down below with any questions or comments. We look forward to keeping you posted on the latest developments in Bitcoin-land. See you in a few weeks with our June updates!