First time reading? I’m Jordan, and this is The Bitcoin Minimalist. Every Tuesday & Thursday, we scour 100s of sources to bring you need-to-know Bitcoin insights.

Today we’re covering:

• Alliance holds 425 BTC (~$30M),

• “Bitcoin Jesus” Roger Ver faces extradition for tax fraud charges,

• MicroStrategy buys 122 more BTC,

• And everything else you need to know.

—Jordan

STRATEGIC DIVERSIFICATION

Coal Mining Company Capitalizes on Bitcoin Mining

Alliance Resource Partners' Bitcoin Mining Strategy: Alliance Resource Partners now holds 425 BTC valued at approximately $30 million. The $2.8 billion coal mining company ventured into Bitcoin mining in late 2020. This initiative leverages surplus electricity at their River View mine, marking a strategic diversification for the firm’s earnings.

Profit from Mining: Through its mining operations, Alliance has realized a net profit of $7.3 million from Bitcoin in Q1 2024 alone.

Broader Industry Impact: Alliance's entry into Bitcoin mining illustrates a growing trend among traditional companies exploring Bitcoin as a viable profit generator. This move not only enhances their revenue streams but also aligns with the broader acceptance of Bitcoin, particularly with the recent SEC approval of Bitcoin ETFs.

WHAT WE’RE WATCHING

📉 MicroStrategy buys 122 more BTC. MSTR recently acquired an additional 122 BTC, reaching a total of over $15.2 billion in holdings. Despite a 5.5% drop in revenue, the company's aggressive Bitcoin strategy continues, with its stock outperforming the S&P 500 significantly.

🏦 The Federal Reserve has decided to maintain interest rates at a 23-year high in an effort to control persistent inflation. Despite some easing over the past year, inflation remains above the Fed's 2% target, with little recent progress, leading to dimmer prospects for rate cuts this year.

🔻 Standard Chartered predicts Bitcoin could drop to $50,000. They based their prediction on the influx of outflows and liquidity issues. Overall they remain optimistic with a long-term target of $150,000 for 2024.

🌐 Hong Kong's new spot Bitcoin ETFs debuted with a modest $8.5 million in trading volume, signaling a cautious start. Despite lower volumes compared to U.S. launches, experts like Samson Mow are optimistic about their long-term potential in attracting Chinese investors and mainstream adoption.

🚨 Roger Ver, known as "Bitcoin Jesus," faces extradition to the United States. He was recently charged with tax fraud for evading nearly $50 million. Accused of selling 70,000 BTC without reporting capital gains, his arrest has sparked mixed reactions in the Bitcoin community.

🔍 Federal investigators are probing Block's Square and Cash App for serious compliance failures. These giants are suspected of numerous sanction violations and even terrorist funding. Allegations include fraudulent activities, handling of transactions with sanctioned countries, and potential gaps in regulatory adherence, stirring significant concern over the company's operations.

ETF FLOWS

BlackRock’s iShares Bitcoin ETF Faces First Outflows in 77 Days

BlackRock’s iShares Bitcoin ETF Ends Growth Streak: For the first time in over two months, BlackRock's iShares Bitcoin Trust (IBIT) recorded a significant outflow, with $36.9 million departing the fund on May 1. This event marked the end of a 77-day streak of either positive or neutral inflows.

Widespread Outflows Across US Bitcoin ETFs: May 1 witnessed unprecedented net outflows from U.S. spot Bitcoin ETFs, totaling $563.7 million—the largest single-day loss since their inception.

FBTC and GBTC Drained: The Fidelity Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust (GBTC) led the outflows, with respective losses of $191.1 million and $167.4 million.

POLL

TUESDAY’S POLL RESULTS

Is the US government about to crack down on Bitcoin?

A crackdown is starting - 53.9%

No, they're just going after bad actors - 46.1%

A crackdown is starting - “The government views BTC as a threat - Chris.” - Pat

A crackdown is starting - “If you're not adept at handling something, it's wiser not to resist the prevailing trends—just like it wouldn't make sense for a fish that can't swim well to fight against the current.” - Erny

IN THE LOOP

🔄 BlackRock revamps its board for its flagship spot Bitcoin ETF. This shift in BlackRock’s directors follows a notable break in the ETF's 71-day inflow streak, raising concerns over the transparency of inflow and outflow data.

⚡ Coinbase integrates the Bitcoin Lightning Network, significantly enhancing transaction speed and reducing costs for Bitcoin transfers. The most prominent part of this move is Coinbase’s partnership between with Lightspark, aims to provide quicker and more affordable financial access, especially benefiting the underbanked.

🔍 Texas A&M Professor Korok Ray announced the creation of The Bitcoin Research Institute which aims to merge Bitcoin with artificial intelligence. This initiative seeks to harness Bitcoin's capabilities for secure multi-party computations.

💰 Riot Platforms records a historic $211M net income for Q1 2024, despite challenges like lower Bitcoin production and rising mining costs. Driven by a 131% surge in Bitcoin's price, the company's revenue, however, fell short of estimates. Plans include expanding hash rate capacity with a new Texas facility.

VIDEO

MicroStrategy hosts its "Bitcoin For Corporations" conference in Las Vegas, exploring corporate Bitcoin adoption as a treasury asset. With speakers from leading firms, the event will discuss strategies exemplified by MicroStrategy's acquisition of 214,400 BTC and promoting corporate interest in BTC.

CHARTS & DATA

1424 - The number of estimated days left until the 2024 Bitcoin halving. The Bitcoin block reward will drop from 6.25 to 3.125 BTC per block.

830,123 - The number of bitcoins now held by the US Bitcoin ETFs. Overall, nearly 4% of all bitcoins are owned by the US Bitcoin ETFs.

1.18 - The current Mayer Multiple. The Mayer Multiple aims to determine when Bitcoin is over-valued or under-valued. It has come crashing down, from a high of 1.85 on March 13, 2024 to just 1.18 right now.

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