The ongoing dispute between Bitcoin mining giants Riot Platforms and Bitfarms has taken a significant turn in recent days. On Aug. 13, Riot Platforms announced the acquisition of an additional one million Bitfarms common shares through open market purchases.
The acquisition increased Riot’s holdings to 85.3 million shares, up from 84.3 million, and was valued at approximately $2.28 million. As a result, Riot now holds an 18.9% stake in the Canadian firm.
The acquisition is part of Riot’s broader strategy to influence changes within Bitfarms, including the push for more independent members on the Bitfarms board. Just a day before Riot’s announcement, Bitfarms revealed a significant overhaul of its board of directors, which now comprises four independent members out of five total directors. Nicolas Bonta, who served as interim president and CEO of Bitfarms, has stepped down from the board.
In an official statement, Riot hinted at the possibility of further increasing its stake in Bitfarms. Neither company has responded to Cointelegraph’s inquiries about these recent developments.
This week’s Crypto Biz also examines Bitdeer’s earnings boost, Hamster Kombat’s rejection of venture capital offers, Grayscale’s new crypto fund, and an upcoming Solana (SOL) exchange-traded fund (ETF) in Brazil.
Bitdeer clocks 50% gross profit jump amid Bitcoin mining ramp up
Bitdeer Technologies Group posted a roughly 50% year-over-year increase in gross profits in the second quarter of 2024, largely as a result of nearly doubling its in-house Bitcoin (BTC) mining capacity, according to the company’s Aug. 12 earnings report. Gross profit for the second quarter of 2024 increased to $24.4 million from $16.2 million in 2023, according to Bitdeer. Bitdeer increased its capacity for “self-mining” — or mining Bitcoin for its own account — from 3.8 exahashes per second to 7.3 EH/s.
Hamster Kombat turns down venture capital offers
The team behind Hamster Kombat announced that they had declined several offers from top venture capital firms in the crypto space. According to an announcement, the decision seeks to protect its player base and maintain a focus on providing a meritocratic gaming experience that rewards players for participation.
This contrasts with other crypto projects that accept venture capital funding, which the team argues may prioritize investor interests over the long-term well-being of players. Hamster’s team did not disclose which firms had shown interest in funding their Telegram-based game.
Grayscale launches investment fund for MakerDAO token
Grayscale Investments has launched a new investment fund specifically for MakerDAO’s governance token, Maker (MKR). The fund is available only to qualified investors and adds to Grayscale’s portfolio of single-asset crypto investment products. According to Grayscale, the move is part of its strategy to expand crypto offerings and provide more opportunities for investors to gain exposure to decentralized finance ecosystems. Grayscale is already the world’s largest crypto fund manager, with over $25 billion in assets under management.
Brazil poised to launch world’s first spot Solana ETF ahead of global markets
Asset manager Hashdex has filed for Brazil’s first spot Solana ETF. If approved, it would allow investors to gain exposure to Solana’s blockchain without directly holding the cryptocurrency. The ETF is still awaiting regulatory approval, reflecting a growing interest in crypto investments in Brazil. The United States is unlikely to immediately follow suit since Bitcoin ETFs were in the pipeline for years before receiving formal approval, according to Alejo Pinto, former IBM blockchain growth lead and founder of Solana layer-2 network Lumio.
Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.
