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July’s Crypto Mining Highlights: Russia’s New Law, Iris Energy’s Funding, and More
July 2024 saw interesting developments in the crypto mining industry. Significant legal advancements and strategic corporate developments shaped the sector.
From Russia’s implementation of stringent regulations to key investments in mining infrastructure, these series of events showcase the sector’s swift evolution.
Crypto Mining Gets Legal Framework in Russia
Russia’s State Duma passed a law in late July to regulate crypto mining and digital asset circulation. The legislation targets large-scale operations by requiring them to be listed in the mining infrastructure operators’ registry.
Home miners can continue without registration, provided they adhere to government-set energy consumption limits. However, this law excludes individuals with criminal records related to economic crimes. The exclusion is designed to ensure that only compliant and trustworthy entities can participate in Russia’s growing crypto mining industry.
President Vladimir Putin further solidified these regulations by signing the law on August 8, introducing official terminology like “digital currency mining” and “mining infrastructure operator.” This legal framework clarifies the operational settings, recognizing mining as part of the turnover process, which may influence future regulatory and taxation policies.
Read more: What is Cryptocurrency Mining?
Australian Bitcoin Miner Iris Energy Boosts Capacity with New Funds
Iris Energy, a Bitcoin miner based in New South Wales, raised $413 million in July. The company plans to use these funds to boost its operational capacity, adding 30 EH/s and 510 megawatts (MW) of data centers, fully supporting its 2024 expansion goals.
This financial maneuver also strengthens Iris Energy’s position and provides flexibility for future procurement, additional power capacity, and strategic monetization opportunities. Particularly in the US, the company focuses on its 1,400 megawatt (MW) project in West Texas.
Riot Platforms Expands with $92.5 Million Block Mining Acquisition
Riot Platforms also made headlines in July by acquiring Block Mining, a Kentucky-based Bitcoin miner, for $92.5 million. This acquisition is part of Riot’s strategy to diversify and expand its operations across the US.
The deal, funded through a mix of cash and stock, provides Riot with an additional 60 MW of developed capacity, with the potential to scale to over 300 MW. Riot’s CEO, Jason Les, highlighted that this acquisition is crucial for achieving their growth target of 100 EH/s and expanding into new power markets.
“The acquisition of Block Mining also diversifies Riot geographically into new power markets and brings onboard a proven operating team,” Les added.
Northern Data Eyes U.S. IPO for AI and Data Center Units
European Bitcoin miner Northern Data is reportedly exploring an initial public offering (IPO) for its AI cloud computing and data center businesses in the US. The potential IPO, targeted for the first half of next year, could value the combined businesses between $10 billion and $16 billion.
The Frankfurt-based company is considering listing its cloud computing activities, Taiga, and its data centers, Ardent, on the Nasdaq. This move could boost Northern Data’s market presence and supply the capital needed for its US expansion. Additionally, the firm’s decision to pursue a US IPO reflects its strategy to capitalize on the growing intersection of AI, cloud computing, and crypto mining.
This news has also positively impacted Northern Data’s stock price. Data revealed that on July 2, NB2 jumped from €25 to as high as €32.85. However, during the market after-hours on August 9, its price had stabilized at €20.60.
Read more: Best Crypto Mining Stocks to Buy or Watch Now
Former Executive Wins $138 Million Verdict Against Marathon Digital
Marathon Digital was penalized $138 million in late July following a jury’s decision. The company had violated a non-disclosure agreement with its former executive, Michael Ho, who now serves as Chief Strategy Officer at Hut 8.
David W. Affeld and Edward E. Johnson, from Affeld England & Johnson LLP, represented Michael Ho in a trial against Marathon’s counsel at Weil Gotchal and Manges LLP. Affeld explained that the unanimous jury verdict of $138 million vindicates Michael Ho’s efforts and expertise. Furthermore, it reinforces the importance of honoring contractual obligations and respecting professional relationships.
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