The gain also came at a time when bipartisan support appeared for excluding miners from being named “brokers” in the U.S. infrastructure bill. Crypto mining stocks rallied on Monday because of the recent growth in Bitcoin’s price. As well as on support for an adjustment to the U.S. infrastructure bill that would precisely exclude miners from additional tax reporting requirements.
Crypto mining firms
BIT Mining (BTCM), CleanSpark (CLSK) and Bitfarms (BITF) were all up double-digit percentages on Monday. And increasing around 21%, 12%, and 11%, respectively. As Riot Blockchain (RIOT), Marathon Digital Holdings (MARA), Hive Blockchain Technologies (CVE) were also up 8%, 5% and 7%, respectively. Argo Blockchain (ARBKF), which reported earnings early on Monday, although, was down 2%.
“Mining stocks currently are levered plays on the price of Bitcoin (BTC, +4.83%),”. Michael Del Grosso, an analyst who covers Riot Blockchain and Marathon Digital Asset Holdings at Compass Point Research wrote about it. “All of that is occurring while the hash rate is relatively muted. Because of the Chinese miner disruption, which is still taking months to shake out.”
Bitcoin increased 6% over the last day, rising from around $43,600 to more than $46,000. The growth in mining stocks also comes at a time where bipartisan support appeared for an amendment to the U.S. infrastructure bill. Which it would keep out miners from being considered “brokers” under the crypto tax reporting provision of the bill. The U.S. Senate, although, rejection of the amendment in a vote on Monday afternoon.
- Tether reveals more details about its reserves: Tether Holdings Ltd., issuer of the BIGGEST stablecoin USDT, provided a new attestation report. This report is with more details than they ever shared before on the composition of its $62.8 billion of reserves. Based on the report, $30.8 billion, or 49% of Tether’s reserves, held in CP and CDs, out of which roughly 93% rated A-2 and above. And also 1.5% under A-3 as of June 30. Tether’s executives talked to CNBC that the commercial paper it held rated “overwhelmingly rated A-2 or better.”
- Circle says it wants to be a national crypto bank:Circle, which is planning to go public, said that it intends to become “a full-reserve national commercial bank.” If it gets regulatory acceptance, the proposed digital currency bank would function under the supervision of the U.S. Federal Reserve, U.S. Treasury, Office of the Comptroller of the Currency (OCC) and also the Federal Deposit Insurance Corp. (FDIC). “We are embarking on this journey alongside the efforts of the top U.S. financial regulators. Who through the President’s Working Group on Financial Markets are seeking to better manage the risks and opportunities posed by large-scale private-sector dollar digital currencies,”. Circle mentioned in a blog post.
Wormhole the communication bridge
- Wormhole Launches: Wormhole, a communication bridge among Solana and other top decentralized finance (DeFi) networks, started supporting inter-blockchain message transfers on Monday. In simple words, the protocol will aid crypto assets like tokens and non-fungible tokens (NFTs). And even price data, run between blockchain networks that don’t normally talk to each other. Wormhole supports the Binance Smart Chain, Ethereum and Terra.
- Binance to Perform Reverse Splits on UNIDOWN, LTCDOWN:The exchange will stablize UNIDOWN and LTCDOWN tokens by 100,000 to 1. Crypto exchange Binance told that it will do reverse splits on certain trading tokens linked to litecoin and uniswap. UNIDOWN and LTCDOWN, which produce leveraged gains when the underlying crypto assets fall in price, will go through a 100,000:1 reverse token split. The process consolidates existing tokens into a smaller number with higher value.