BlockFi and FTX have agreed to a settlement deal that could see BlockFi get closer to full recovery for its creditors. Bitcoin mining company Hut 8 has announced the permanent closure of its Drumheller, Canada, facility, citing adverse conditions in the mining industry and the nonfungible token (NFT) ecosystem anticipates a price surge after the Bitcoin halving event.
FTX, Alameda reaches ‘in principle’ settlement with BlockFi, paying $874M
Bankrupt crypto firms BlockFi and FTX have reached an “in principle” agreement to settle their disputes, with FTX agreeing to pay up to $874.5 million to BlockFi and drop its claims against the firm, according to a March 6 court filing.
Terms of the settlement are subject to approval by U.S. Bankruptcy Judge John Dorsey in Wilmington, Delaware.
The settlement would resolve BlockFi’s claims against FTX, totaling approximately a billion dollars, and will also see FTX waive “millions of dollars of avoidance claims and other counterclaims” against BlockFi.
The $874.5 million is made up of a $185.2 million claim against FTX.com — which represents the value of BlockFi customer assets held on the exchange — along with a $689.3 million claim against Alameda Research for the loans it received from BlockFi.
Hut 8 shuts down Bitcoin mining site
Bitcoin miner Hut 8 is closing its mining cite in Alberta, Canada, due to power disruptions and rising energy costs.
On March 6, the U.S.-based miner said its Drumheller, Alberta, mining facility will be closed immediately. The site mined roughly 1.4% of th ecompany’s BTC but at a cost of around 11% of its hash rate. In the long run, this turned out to be unsustainable.
“Following a comprehensive analysis, we have determined that the profitability of Drumheller has been impacted significantly by various factors, including elevated energy costs and underlying voltage issues,” Asher Genoot, CEO of Hut 8, said in a statement.
❖ CRYPTO STOCKS RISE AS BITCOIN PRICES REBOUND FROM PREVIOUS SESSION’S LOSSES
❖ RIOT PLATFORMS UP 4.8%, U.S.-LISTED SHARES OF HUT 8 MINING UP 1.7%, MARATHON DIGITAL UP 3.9%
❖ COINBASE GLOBAL UP 6.2%, BITFARMS UP 2.6%, MICROSTRATEGY UP 12.0%
Mar 06, 2024
The Bitcoin mining industry faces imminent headwinds tied to rising energy costs, record mining difficulty and the upcoming Bitcoin halving, which will automatically reduce block rewards by 50%.
In the first time in Bitcoin’s history, the BTC price touched an all-time high before the halving event. The largest crypto peaked north of $69,300 on March 5 before correcting lower.
Bitcoin halving will spur ‘surge’ in NFT volume
Professionals working in the NFT space believe that the upcoming Bitcoin (BTC) halving will not only affect crypto tokens but may also positively impact the NFT ecosystem.
Oscar Franklin Tan, the chief financial officer of Atlas Development, a core contributor to the NFT platform Enjin, showed optimism about a price surge in NFTs after the Bitcoin halving. He told Cointelegraph:
“Prices and volumes should eventually surge after the halving as part of the known cycle. Because NFTs are established segments of ecosystems, interest from Bitcoin will spill over into NFTs together with altcoins.”
According to Tan, the halving will impact NFT adoption as new NFTs or marketplaces focusing on digital collectibles may emerge.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Additional reporting by Geraint Price, Sam Bourgi and Felix Ng.