MINING

50% of Bitcoin Mining Now Performed on Renewable Energy, Says Bloomberg

The Scoop: New research from Bloomberg’s Jamie Coutts reveals a rapid increase in the use of sustainable energy sources in Bitcoin mining. The data highlights significant improvements in Bitcoin's energy use, especially since China's mining ban, with sustainable energy sources accounting for more than 50% of the energy mix.

Data-Driven Updates: Recent research by Daniel Batten, Coinmetrics, and Jaran Mellerud has improved data visibility and modeling in Bitcoin's energy usage. The revised 2022 estimate of electricity consumption is 95.5 terawatt-hours (TWh), down from a previous 105.3 TWh, mainly due to more accurate assessments of ASIC machines used in mining.

Falling Emissions: Since China's mining ban in mid-2021, emissions from Bitcoin mining have dropped by 37.5%. Despite a fourfold increase in hashrate since 2019, carbon emissions have only risen by 6.9%, suggesting concerns about Bitcoin's environmental impact may be overstated.

Money on Fire: The shift toward sustainable energy sources could influence global energy dynamics, especially as energy accounts for about 50% of miners' costs.

WHAT WE'RE WATCHING

🌍 Approximately $50B worth of Bitcoin is now being held by ETFs, countries, and public and private companies, illustrating just how far Bitcoin has become as an asset class. You can see the full list of all companies and countries on the bitcoin treasuries page.

🤝 F2Pool has returned 19.8 BTC to crypto services firm Paxos after an overpayment of $510,000 on a $2,000 transaction due to a "bug." The refund sparked a debate in the Bitcoin community about whether it should have been returned at all. Blockchain data confirms the funds were returned to Paxos on Friday after identity verification.

🚨 The U.S. National Debt has hit an all-time high of $33 trillion, up nearly $2 trillion since January 2023. This surge is attributed to various factors including COVID relief and aid to Ukraine. Lawmakers have only seven legislative days to prevent a government shutdown, with a key Defense Appropriations Bill still pending.

 🇺🇸 U.S. Senators Kirsten Gillibrand (D-NY) and Josh Hawley (R-MO) have introduced a bipartisan bill, the Ban Stock Trading for Government Officials Act, aimed at preventing stock trading and ownership by members of Congress. The legislation would impose strict stock trading bans and increase penalties for violations. The move comes amid evidence of potential conflicts of interest involving stock trades by government officials.

EXCHANGES

BinanceUS Sees More Resignations; Judge Denies SEC Inspection Request

The Scoop: The U.S. Securities and Exchange Commission (SEC) has escalated its legal actions against Binance US. In a recent court filing, the SEC has asked for approval to inspect the cryptocurrency exchange and to compel Binance to produce requested documents and communications. This move comes as part of an ongoing lawsuit launched against Binance in June of this year. However, a Judge has declined the SEC’s request.

Shell Game: The SEC is primarily concerned that Binance, its global parent Binance Holdings, and founder Changpeng "CZ" Zhao are operating an unlicensed securities exchange. The SEC also suspects that Binance might be using a rebranded entity, Ceffu, to illegally shift U.S. customer funds out of the country. This, according to the SEC, would be a violation of previous agreements.

Abandon Ship: Last Thursday, we reported that Binance US CEO Brian Shroder would be leaving the company as part of a general 30% lay off at the company. Just hours after publishing that story, news broke that Binance US’s chief risk officer and head of legal would also be resigning. The turnover and job cuts suggest that Binance US is facing significant internal and external pressures.

Failure to Communicate: The SEC has expressed a sense of urgency in its filing, insisting that an inspection of Binance US is needed immediately. It also claims that Binance's responses so far have been insufficient, citing "half-hearted claims of irrelevance, prejudice, and burden." The regulator was waiting for court approval to proceed with its planned inspection until yesterday when a Judge denied the SEC’s requests.

POLL

Last Thursday’s Poll Results

Do you believe the US government will launch a CBDC?

Yes - 77%

No - 23%

👍 Yes: “It’s free money they can print but may not need to add to the M2. If you are the Fed, why not try it?” - Jesse

👎 No: “They may, but no one will use it. It’s like money today, an IOU….” - Aaron

IN THE LOOP

💰 Deutsche Bank has teamed up with Swiss crypto firm Taurus to offer Bitcoin and crypto custody services to institutional clients. The bank is proceeding cautiously to ensure compliance with regulations while tapping into a market that continues to attract institutional investors.

🇰🇵 North Korean hacking groups are increasingly using Russia-based exchanges known for laundering illicit crypto assets, including a recent transfer of $21.9 million in stolen cryptocurrency. Last year saw the DPRK steal $1.65B using cryptocurrency. So far, the DPRK has only managed to get away with $340M.

🦢 BitGo and Swan Bitcoin have announced a partnership to create the first Bitcoin-only trust company, subject to regulatory approval. The joint venture aims to combine BitGo's expertise in Bitcoin cold storage and regulatory compliance with Swan's capabilities in onboarding and fraud prevention. The two companies plan to offer services to for company treasuries, asset managers, and governments.

Today’s newsletter was written by Colin and edited by Jordan.