In the early Asian trading on Thursday (September 7), Bitcoin fell to $25,731. The US Securities and Exchange Commission has been reluctant to approve the Bitcoin spot ETF, and there are signs of continued weakness and downward consolidation in the short term. China and Bitcoin have joined forces. The report shows that the recovery of Bitcoin mining orders will accelerate the development of Huawei's Kirin Chip. SMIC's encrypted mining orders have been exposed, and companies such as Canaan Creative are important promoters of China's chips.
The latest report from The Miner Mag, which focuses on the Bitcoin mining industry, shows that Bitcoin mining companies are among the first to purchase SMIC's N+1 process, ordering wafers and providing quantities to help SMIC increase its 7nm production. The study pointed out that Huawei has faced challenges in obtaining advanced chip production since being included on the US trade blacklist in 2019.
After its previous supplier TSMC was cut off, Huawei turned to SMIC to produce its new products, the Kirin chips. However, SMIC was initially unable to produce advanced 7nm chips. According to the report, companies such as Bitcoin mining machine maker Canaan Creative began to adopt SMIC's first-generation 7nm N+1 process for chip design at the end of 2020.
Also interesting is that Canaan sold 22.34 EH/s of computing power in 2021, almost all of which came from SMIC's Avalon 1246 model, indicating that Canaan's wafer purchases from SMIC must have increased significantly in the bull market. The company said in its September 2021 earnings call that the increase in wafer orders also seems to have helped Canaan and SMIC increase the yield of A1246 to more than 90%.
Researchers said other bitcoin mining machine manufacturers including Innosilicon and Miner-VA also use SMIC's N+1 process.
Research shows that the growth of orders from Bitcoin miners has helped SMIC improve its 7nm production capabilities. This may speed up Huawei's development of new Kirin chips using SMIC's enhanced N+2 process. Although it is difficult to measure the exact impact of Bitcoin mining, The Miner Mag's findings highlight that Bitcoin miners are early buyers and continued customers of SMIC's emerging 7nm production.
Bitcoin.com commented that the report is crucial to help solve problems and increase production. The report concluded that this practical experience may help China's SMIC produce Huawei's advanced new smartphone processors. "This also has important implications for Chinese chip companies because it helps reduce China's dependence on Western technology during a period of restricted access."
Are Chinese miners entering the US secretly transferring funds back to China?
Bison Blockchain, a U.S. bitcoin miner, told the Legislature's Management Audit Committee on Wednesday that a conglomerate of eight Chinese entities was suspected of "hostile acquisition of U.S. land" and purchased land next to its bitcoin mining operations, leading to the termination of its agreement with Wyoming. The company's representative revealed that the Chinese conglomerate includes the world's largest bitcoin mining machine manufacturer.
"This is a conglomerate of businesses run by Chinese nationals with varying degrees of ties to Chinese companies that have driven our companies out of Wyoming," Bison Blockchain said in a strong accusation. "This is a diverse, complex flow of Chinese national-run companies that have the potential to exploit Wyoming's business and land use laws."
Bison pointed out that Chinese conglomerates acquired private land next to the Black Hills substation and took over Bison Blockchain's service agreement with Black Hills. Now, these companies will use Black Hills' electricity to mine their own Bitcoin, and he believes that all the proceeds will eventually flow to China.
Further reading: Breaking news between China and the United States! Eight Chinese business groups accused of "maliciously acquiring U.S. land" and U.S. companies: suspected of competing for Bitcoin mining business
Grayscale urges the US Securities and Exchange Commission to approve the Bitcoin spot ETF conversion as soon as possible
Grayscale Investments told the SEC that the regulator had “no reason” to refuse to convert the Grayscale Bitcoin Trust (GBTC) into an ETF, according to CoinDesk. Last week, the D.C. Circuit Court of Appeals asked the SEC to review its previous decision to reject Grayscale’s application.
Circuit Judge Neomi Rao agreed with Grayscale’s position that its proposed product is not materially different from Bitcoin futures ETPs that are already traded in the U.S. Grayscale’s attorneys wrote to the SEC on Tuesday: “After fully analyzing the court’s opinion, including the reasons for dismissal presented, we believe that the SEC should conclude that there is no reason to treat GBTC differently from ETPs that invest in Bitcoin futures contracts.”
The letter emphasized: “The best use of resources at this time is for the SEC to issue an order approving NYSE Arca’s Rule 19b-4 application and authorizing staff to work with Grayscale and NYSE Arca to finalize the timely listing of GBTC.”
In addition to the Bitcoin spot ETF, according to a document filed with the U.S. Securities and Exchange Commission on Wednesday, asset management companies ARK Invest and 21Shares have submitted an application for an Ethereum spot ETF. The fund, called ARK 21Shares Ethereum ETF, will invest directly in Ethereum and trade on the CBOE BZX exchange.
21Shares is the sponsor of the trust, Delaware Trust Company is the trustee, and Coinbase Custody Trust Company is the custodian. In addition, Cboe BZX also submitted the 19b-4 document for VanEck Ethereum spot ETF, and Coinbase will serve as a monitoring sharing partner. According to previous news, ARK Invest and 21Shares have jointly submitted two Ethereum futures ETF applications, and the US Securities and Exchange Commission is expected to make a decision before mid-October.
The decision on the seven Bitcoin spot ETFs postponed by the U.S. Securities and Exchange Commission will also be finalized in October. This means that if there are any dynamic updates in the past two months, it is expected to bring about drastic fluctuations in the Bitcoin market.
Bitcoin Technical Analysis
CMTrade said that from the 4-hour chart, Bitcoin maintained a weak consolidation at a low level in the short term, the market bearish sentiment continued, and there were signs of continued weak consolidation and downward movement in the short term. The MACD indicator was in the bearish area and maintained consolidation, and the RSI indicator was weak and hovered below the 50 equilibrium line.
Resistance: 26104 26356
Support level: 25437 25222
Trading strategy: short below 25852, target 25437 25222
