Bitcoin L2 Stacks have returned to action following a 9-hour hiatus
The Bitcoin (BTC) layer-2 network Stacks is back in operation after a downtime of nine hours on Friday, June 14. Stacks reported in an X post that the delay in block production was due to unexpected mining behavior and a Bitcoin reorganization, where previously confirmed Bitcoin network blocks were replaced with new ones.
The Bitcoin scaler went offline at Stacks Block #153,917 around 4:13 am UTC on June 14, with the next block not being created until 1:20 pm UTC later that day. Following the resumption of block production, the network’s native token, Stacks (STX), experienced an 8% drop to $1.89 in the seven hours that followed, according to CoinGecko.
The price of STX has since further declined to $1.85 and is down by 17.8% over the past week, falling from a weekly peak of $2.45 on June 12.
Chinese telco set to acquire more crypto mining rigs
Coolpad Group, a telecommunications firm based in Shenzhen, revealed its plans to invest approximately $13.5 million in thousands of crypto mining rigs. In a filing on June 13, the company, listed on Hong Kong’s stock exchange, announced the purchase of 2,700 electronic computer servers for crypto mining from a Hong Kong-based company to be deployed in North America.
Coolpad did not disclose the manufacturer or the specific location in North America where the rigs would be deployed. However, it shared that its computing power would increase from 873,000 terahashes per second (TH/s) to over 1.5 million TH/s, equivalent to 1.5 exahashes per second (EH/s). For comparison, crypto miner Riot Blockchain reported a hashrate of 14.7 EH/s last month.
This move comes after the company announced last month that it would invest up to $28 million in United States-listed spot Bitcoin exchange-traded funds (ETFs) and shares of crypto miners, including CleanSpark (CLSK).
94% of central banks exploring CBDCs, survey shows
The Bank for International Settlements (BIS) disclosed on June 14 that there has been a significant increase in wholesale central bank digital currency (CBDC) experiments and pilots. The BIS survey revealed that 94% of central banks are exploring CBDCs, indicating diverse approaches and design features in progress.
The BIS noted that the likelihood of central banks issuing a wholesale CBDC within the next six years exceeds that of a retail CBDC. However, many features of CBDCs are still undecided. Wholesale CBDCs primarily support institutions with payments and settlements, unlike retail CBDCs intended for public use.
The survey also showed that stablecoins are rarely used for payments outside the crypto ecosystem. Two-thirds of respondents have or are developing a regulatory framework for stablecoins and other crypto-assets.
Slow adoption of Bitcoin ETFs due to cautious advisers, says BlackRock CIO
Samara Cohen, BlackRock’s chief investment officer of ETF and index investments, mentioned that the adoption of U.S. spot Bitcoin ETFs has been hindered by cautious financial advisers. Cohen stated at Coinbase’s State of Crypto Summit that 80% of Bitcoin ETF purchases are likely made by investors independently, often through online brokerage accounts.
BlackRock’s iShares Bitcoin Trust (IBIT) is among the ten ETFs launched in January, with around $17.6 billion in inflows. Cohen noted that registered investment advisers are hesitant about ETFs due to the high volatility of the asset class and the need to conduct thorough risk analysis and due diligence.
In other news, over $100 billion has been raised for crypto startups since the end of May 2014, and presidential hopeful Donald Trump has expressed his support for the crypto industry, aiming to end Joe Biden’s purported “war on crypto” and promote American-made crypto and Bitcoin.
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