Wu said weekly mining information 0802-0809

Wu Shuo Author | Wu Zhuocheng

Editor of this issue | Colin Wu

1. Genesis Digital Assets raises $125 million to fuel expansion in the U.S. and Northern Europe

On August 3, Genesis Digital Assets announced on its official website that it had raised $125 million in equity financing led by Kingsway Capital. The funds are planned to be used to purchase equipment and build new data centers in the United States and Northern Europe.

Public data shows that Genesis purchased 10,000 mining machines from manufacturer Canaan in April. Currently, Genesis' hash rate accounts for about 1.3% of the entire network. Founder Abdumalik Mirakhmedov expects that Genesis' hash rate will at least double in the next few months.

2. COMPASS provides tax-efficient Bitcoin mining for US customers

According to Bitcoin Magazine, Compass’ U.S. customers can now mine bitcoin directly into Choice individual retirement accounts without triggering a taxable event.

Choice is an independent qualified custodian regulated by the South Dakota Department of Banking and a product of Kingdom Trust Company. In May 2020, Choice became the first retirement services provider to offer a single account for all of its clients’ retirement assets and currently has more than 125,000 retirement accounts with more than $18 billion in assets under custody.

Under current tax law, when miners sell Bitcoin, they must pay capital gains taxes. But by mining in a Choice account, miners can avoid paying taxes on their Bitcoin income in the short term, and potentially indefinitely, depending on which type of IRA they use.

3. Marathon, one of the largest Bitcoin mining companies in North America, announced a contract with Bitmain

According to Coindesk, on August 2, Marathon, one of the largest Bitcoin mining companies in North America, announced a contract with Bitmain to purchase an additional 30,000 Antminer S19j Pro (100 TH/s) mining machines for US$120.7 million, with shipments in January and June 2022. By then, it will have 133,000 mining machines with a computing power of 13.3EH/s.

4. Canaan signs a new batch of orders for 4,000 mining machines with mining giant HIVE Blockchain

According to Coindesk, Canaan Technology has signed a new batch of orders for 4,000 mining machines with HIVE Blockchain, a Canadian listed mining giant. According to the agreement, Canaan Technology will deliver 2,000 Avalon mining machines to HIVE Blockchain in August and September this year, and it is expected to be put into operation within the next 60 days. At the beginning of this year, Canaan Technology signed an order for 6,400 Avalon mining machines with HIVE Blockchain.

5. Electric Coin Co. proposes to change the ZEC mining method from POW to POS

Wu said blockchain learned that on August 4, Zcash (ZEC) development team Electric Coin Co. (ECC) proposed to change the ZEC mining method from POW to POS. ECC pointed out that POS can not only reduce mining costs and environmental pollution, but also help reduce the selling pressure of ZEC and enhance its practical value. ECC hopes to increase the number of long-term holders of ZEC through this mortgage token mechanism to achieve a steady increase in the price of the currency. At present, this proposal is in the stage of listening to community suggestions. ZEC mining machines include Antminer Z15. Ethereum's POS transformation may cause some other mining coins to transfer to POS.

6. At 20:34 Beijing time, the Ethereum blockchain reached a block height of 12,965,000, and the London upgrade was officially launched.

At 20:34 Beijing time, the Ethereum block reached 12,965,000, and the London upgrade was officially launched. Miners need to raise the gas limit to 30,000,000 after the fork. Wu said that the Ethereum London upgrade burned about 4,700 Ethereum a day, totaling about 13 million US dollars. Spark Mining Pool data showed that the 24-hour income of Ethereum miners (calculated in ETH) decreased by 12.6%, and the fee income on August 6 was reduced by half compared with August 5.

7. Yibang reported to the China Securities Regulatory Commission that Huatie Emergency was involved in a 400 million yuan mining machine dispute

Hu Dong, chairman of Yibang International, said that the company had publicly reported Huatie Emergency to the China Securities Regulatory Commission, Shanghai Stock Exchange and Zhejiang Provincial Securities Regulatory Bureau on August 6. The source of the report came from a transaction dispute between the two listed companies three years ago.

POC News

1. Swarm delays mining, and some miners transfer computing power to Filecoin

Wu said blockchain learned that the mining of Swarm BZZ, which was originally scheduled to start at 8 am on August 3rd, Beijing time, has been delayed indefinitely. Each check of the previous airdrop can only be exchanged for about 0.04 BZZ. Some mining companies' technical teams have contacted Swarm officials, and the official revealed that they are modifying the mining economic model in order to increase miners' income. In response, major miners have successively introduced countermeasures. Some large miners with strong funds can accept a full refund; most small and medium-sized miners choose to use FIL computing power instead of BZZ computing power, and the exchange standard is generally 1 BZZ node for 1T fully packaged FIL computing power.

2. Listed company Codechain Newland announced the completion of the acquisition of Filecoin service provider Doo

According to IPFS Chinese news reports, recently, the listed company Codechain Newland Co., Ltd. (CCNC.US) announced that it has completed the previously announced acquisition of all assets of Filecoin (FIL) mining service provider Doo Limited (Doo). According to the asset purchase agreement signed between the company and Doo on July 28, 2021, the total purchase price is RMB 106,388,672.43 (approximately US$16,442,109.95), paid in the form of 7,647,493 shares of the company's common stock, with a value of US$2.15 per share. After the acquisition is completed, Doo will become a wholly-owned subsidiary of Codechain Newland. Doo is headquartered in Hong Kong and is engaged in FIL mining business. Doo has a mining center in Shanghai, with 10 PiB of FIL computing power and 100,000 units of digital currency, accounting for 0.221% of the global FIL digital currency.

Risk Warning

According to the "Risk Warning on Preventing Illegal Fund Raising in the Name of "Virtual Currency" and "Blockchain"" issued by the China Banking and Insurance Regulatory Commission and other five departments, readers are requested to abide by the laws and regulations of their region. The content of this article does not endorse the promotion of any business or investment activities. Investors are requested to raise their awareness of risk prevention. Wu said that the content of the blockchain is not allowed to be reproduced or copied without permission, and violators will be held accountable.