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Cryptocurrency market continues to experience noteworthy developments. Following the addition of Tesla’s Bitcoin wallet to its dashboard by Arkham Intelligence, rumors are circulating about Elon Musk’s contribution to Tesla’s Bitcoin holdings. BlockFi and FTX have agreed on a settlement that could lead to full recovery for BlockFi’s creditors. Bitcoin mining company Hut 8 announced the permanent closure of its Drumheller facility in Canada, citing adverse conditions in the mining sector.
Tesla and Bitcoin Investments
After the crypto data analytics platform Arkham Intelligence added the feature to track Tesla’s Bitcoin wallet to its dashboard, Tesla’s Bitcoin assets have become a hot topic in the crypto community again. Tesla’s wallet currently holds approximately 11,509 Bitcoins, which is 1,789 more than the 9,720 Bitcoins reported in the last earnings report.
Under Musk’s leadership, Tesla purchased $1.5 billion worth of Bitcoin near the peak of the last bull run in February 2021 and announced plans to accept Bitcoin payments for vehicle orders. However, the company’s adoption of Bitcoin was short-lived, and it sold about 10% of its holdings in March 2021. The electric car manufacturer sold approximately 75% of its Bitcoin reserves in the second quarter of 2022.
While some users speculate that Tesla might be buying Bitcoin and could announce it during the next earnings call, others believe it could be an accounting error.
BlockFi and FTX Reach Agreement
Bankrupt crypto firms BlockFi and FTX have reached a preliminary agreement to resolve their disputes. According to a court filing dated March 6, FTX agreed to pay up to $874.5 million to BlockFi and to drop its claims against the company. The terms of the agreement are subject to the approval of United States Bankruptcy Judge John Dorsey in Wilmington, Delaware.
The agreement will resolve BlockFi’s claims against FTX, totaling about a billion dollars, and will see FTX waiving millions of dollars in avoidance claims and other counterclaims against BlockFi. A claim of $689.3 million against Alameda Research for loans received from BlockFi is also emerging.
Hut 8 Takes Notable Step
Bitcoin miner Hut 8 is closing its mining facility in Alberta due to power outages and rising energy costs. The US-based miner announced on March 6 that its Drumheller mining facility in Alberta would be immediately shut down. The facility was extracting roughly 1.4% of Bitcoin but at a cost equivalent to about 11% of the hash rate. This situation proved to be unsustainable in the long run. Hut 8 CEO Asher Genoot stated in his announcement:
“After a comprehensive analysis, we determined that the profitability of Drumheller was significantly affected by various factors, including high energy costs and underlying voltage issues.”
The Bitcoin mining industry faces a challenging period due to rising energy costs, record mining difficulty, and the upcoming Bitcoin halving event, which will automatically reduce block rewards by 50%. For the first time in Bitcoin history, the price of Bitcoin reached an all-time high before the halving event.
