Senator Cynthia Lummis officially presented the Bitcoin Strategic Reserve Bill that plans to create a national Bitcoin Reserve Fund. Politicians like RFK Jr., Donald Trump and others have already endorsed the bill. The crypto community awaits the impact of accelerated payments to Mt. The price of BTC will likely be affected by the high hashrate and creditors from Mt. Riot Platforms, a Bitcoin miner, reported an increase in costs for Q2, despite its revenue increasing due to the price rise of Bitcoin.
Wyoming Senator Pushes National Bitcoin Reserve
Senator Cynthia Lummis officially presented the Bitcoin Strategic Reserve Bill that seeks to direct the United States Government to create a Bitcoin reserve fund. The bill proposes establishing a network of decentralized secure Bitcoin vaults that are under control of US Treasury. It also includes strict physical and cyber security measures for the protection of funds.
The aim is to collect 1 million BTC or approximately 5% by purchasing BTC at amounts that reflect the Treasury’s gold allocation. Lummis said that it was time to make bold moves to tackle inflation and the national debt. He also stated that the reserve will create a better future for all generations.
This bill also affirms that Bitcoin can be kept in self-custody by the United States. Some lawmakers have questioned this right. This ambitious plan is supported so far by politicians such as RFK Jr., and Donald Trump’s presidential bid for the Republican Party in 2024.
After Trump pledged not to sell the US Bitcoin holdings the government sent 29,800 Bitcoins worth close to $ 2 billion to a wallet that was unmarked. Galaxy Digital CEO Mike Novogratz referred to this move as “tone-deaf.”
Some people believe that the current US inflation issues and the national debt will increase the demand for assets such as Bitcoin. Matt Bell, CEO of Turbofish said that fiat currency sustainability is a concern for the world population. This could result in a greater interest by investors to buy assets such as Bitcoin, which can be used as a hedge from inflation and instability.
Mt. The Gox repayments are accelerating
The price of the crypto-king will be affected by the US Government’s decision to sell or buy BTC. Many believe that this will also be the case with Mt. Some experts are also in disagreement about the repayments for Mt.
Lookonchain reports that Mt. Gox moved recently $3.13 Billion worth of Bitcoin into various wallets. The repayments began in May and accelerated by July. The market could have underestimated the pressure of Mt. Many Bitcoin owners have moved their bitcoins to cold storage rather than selling.
Bitcoin’s price is $63,887.73 as of press time. It has dropped over 2% in the last day. More than 40% of coins were distributed so far to Mt. The Gox creditors.
Anthony Scaramucci, founder of SkyBridge Capital, has downplayed Mt. The market is still absorbing the impact of Mt.
Mt. Gox, once the world’s leading cryptocurrency exchange collapsed after a massive hack in 2014. At its height, the exchange was responsible for 70% of all global trading. Mt. In May, Mt.
Glassnode is a crypto research company that believes the repayments are a bearish market factor. Blockstream CEO Adam Back also dismissed these repayments as being insignificant and forecast that Bitcoin would reach an all-time high very soon.
BTC price could be stabilized by a mining hashrate surge
CryptoQuant’s analysts think that the Bitcoin hashrate, which is a measure of how much power a computer can generate, could stabilize BTC. Since July 9, the hashrate is recovering, which corresponds with Bitcoin’s rebound from $69,000 to $63,000 before it corrected to $63,000.
The hashrate currently is only 2 percent below its previous peak. This compares to a 8% drop earlier in the month. This recovery usually occurs in conjunction with an extended rally of Bitcoin prices. CryptoQuant’s report on the market shows that miners are increasing their hashrate because they have been fairly compensated following the recent price rise. This is in contrast to earlier this year, when the miners received underpayment.
Bitcoin Network hashrate (CryptoQuant )
The data shows that on Monday, when Bitcoin surged over $69,000 and the hashrate peaked at 667 EH/s, it dropped to 636. Since then however this has slightly decreased. The Bitcoin withdrawals from the miner’s wallets has also decreased, while large-scale miners have been actively collecting Bitcoin. The daily outflows are now between 5,000 BTC and 10,000 BTC. This is down from earlier levels in the year. The large miners also now hold 65,000 BTC. This is up from the 61,000 BTC they held at the beginning of 2024. Smaller miners, however, have decreased their holdings, from 59,000 BTC down to 51,000 BTC.
The hashrate recovery has also been boosted by a significant increase in miner revenues. Total daily revenue has increased almost 50%, to $32,000,000. The report revealed that the profitability of miners is highly dependent on Bitcoin due to the low transaction fees. These have fallen from 150 BTC to 8 BTC.
The revenue of Riot Platforms has fallen
Riot Platforms, a bitcoin miner, reported an $84.4 million net loss for Q2, or $0.32 per common share. This is more than double the forecasted loss per share of $0.16 by Zacks. Riot has not had a quarterly loss since the Q4 2022. This was primarily due to an increased amount of $61.2 Million in sales, general and administrative costs.
Riot’s revenues fell by 8.75% on an annual basis to $70 Million, just missing Zacks estimates. This decline was due to lower engineering revenue, which was partially offset by higher Bitcoin mining revenue.
Riot also saw a 52% drop in its Bitcoin production to 844 BTC during Q2, which it attributed to the halving that took place on April. Due to the halves and the 68% increase in Bitcoin’s hash rate, the cost of mining a Bitcoin increased by 340%, from $5734 to $25.327.
Riot’s Bitcoin mining revenues increased 12% despite this. This was due to a nearly 1000% increase in Bitcoin’s price from June 30, 2023 until June 30, 2024. In Q2, Riot almost doubled the installed hashrate to 22 exahashes/second and is expecting to achieve 36 EH/s at the end of 2020.
According to a filing dated July 31, Riot also intensified its strategy of acquisition against Bitfarms by purchasing approximately 10 million more shares. Riot tried to buy Bitfarms for $950 million in mid-June but later conceded defeat due to the difficulty of interacting with Bitfarms board.
Share price of Riot pLatforms Incorporated (Google Finance ).
Google Finance’s data shows that the share price of Riot fell by 1.74% after hours trading following its Q2 report. By 2024, it is expected to be down nearly 33.8%.
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