BlockFi to Sell $160M in Bitcoin-Miner Backed Loans Amid Sector Struggles

• BlockFi is selling approximately $160 million worth of Bitcoin miner-backed loans.
• The loans are collateralized by 68,000 BTC mining machines, which have seen a sharp decline in price over the past year.
• This is following the bankruptcy of FTX, and other major players in the mining sector struggling with liquidity.

Crypto lender BlockFi has recently announced plans to sell $160 million worth of Bitcoin (BTC) miner-backed loans. These loans are collateralized by approximately 68,000 BTC mining machines, as per a report by Bloomberg, which cited anonymous sources. This news follows the bankruptcy of FTX and other major players in the mining sector struggling with liquidity.

The price of BTC miners has seen a sharp decline over the past year, according to Hashrate Index Data. This combined with the fall in BTC prices in 2022 and the rising cost of power has squeezed the margins of miners, leading to a decrease in demand for the BTC mining rigs. As a result, some of the loans have already defaulted and some have become under-collateralized.

BlockFi, a major lender in the embattled mining sector, has been forced to sell these loans due to the circumstances. This follows the bankruptcy of FTX and other major players in the mining sector struggling with liquidity. For example, Core Scientific filed for Chapter 11 bankruptcy in December 2022, and Argo Blockchain sold its Texas mining facility to Galaxy Digital for $65 million and secured a $35 million loan from the firm in late December 2022.

The sale of these loans is therefore an attempt to regain some of the liquidity lost in the mining sector. BlockFi’s announcement of the sale is also a warning to the industry that the current market conditions are vulnerable and that miners need to be more cautious when taking out loans. This news could also lead to other lenders in the sector to also try and offload their loans to regain liquidity.

Experience the Power of the Nexo Wallet: Smart Contracts and Non-Custodial Solutions

• Elitsa Taskova, Nexo wallet head of product, discussed the development of the company’s new non-custodial wallet with Akiba on the SlateCast podcast.
• The wallet’s development took several months and involved a lot of decision-making, with the team focusing on creating a smart wallet that utilizes smart contracts and is non-custodial.
• The key differentiators of the Nexo wallet are the combination of being a smart wallet and a non-custodial wallet, allowing users to have full control over their own keys and coins.

Recently, Elitsa Taskova, the head of product for the Nexo wallet, sat down with Akiba, the host of the SlateCast podcast, to discuss the company’s new non-custodial wallet. The timing of the release is particularly interesting, as it comes on the heels of several issues with exchanges and an increased focus on non-custodial solutions.

The process of developing the wallet took several months and involved a lot of uncertainty and decision-making. The team decided to focus on creating a smart wallet that utilizes smart contracts, as well as making the wallet non-custodial, allowing users to have full control over their own keys and coins. This combination is what sets the Nexo wallet apart from other wallets on the market, as it offers a user experience that is both flexible and secure.

Taskova also emphasized the importance of user experience when it comes to wallets. She noted that a great user experience is key to a successful wallet, as it helps users feel comfortable with their funds and allows them to take control of their own financial decisions. To this end, Taskova and the team have worked hard to ensure that the Nexo wallet is easy to use and understand.

The team is also constantly looking for ways to improve the wallet, so that users can benefit from the latest features and advancements in blockchain technology. This includes the addition of features such as secure storage, multi-signature accounts, and support for multiple coins and tokens.

Overall, the development of the Nexo wallet has been a long and arduous process, but the team is confident that users will appreciate the end result. With its combination of smart contracts and non-custodial solutions, the Nexo wallet provides a secure and user-friendly experience that is sure to be a hit with users.

FTX Debtors and Liquidators Agree on Plan to Maximize Stakeholder Recoveries

• FTX debtors and Bahamas liquidators have agreed on a plan to maximize stakeholder recoveries.
• This plan includes sharing information, returning property, and filing litigation against other parties.
• The parties have also settled on inventorying crypto assets that the Bahamas Securities Commission currently holds in a Fireblocks wallet.

The two halves of FTX, its debtors in the U.S. and its liquidators in the Bahamas, have recently agreed on a plan to maximize stakeholder recoveries. This agreement was reported in a press release on Jan. 6.

John J. Ray III, FTX’s CEO and Chief Restructuring Officer, expressed his gratitude for the agreement and stated that, although discussions will continue, many issues have been settled. The press release indicates that the two parties will cooperate on various efforts. Specifically, the parties have agreed to share information, arrange the return of property, and file litigation against other parties. Additionally, they will attempt to maximize stakeholder recoveries, meaning that former FTX customers will be made whole.

Furthermore, the two parties have settled on inventorying crypto assets that the Bahamas Securities Commission currently holds in a Fireblocks wallet. The matter has been publicly disputed since Dec. 29, when the Bahamas Securities Commission admitted to holding $3.5 billion of crypto. FTX also claimed that regulators seized $300 million without any right to do so. However, both parties are reportedly satisfied by the Bahamas Securities Commission’s safeguarding of those assets.

The agreement is a major step forward for FTX customers in recovering their assets. It remains to be seen how successful the asset recovery plan will be, but the parties are optimistic. With the cooperation of the two parties, it is likely that the assets will be recovered in due time.

Huobi, Robinhood, and Bitcoin: Latest Crypto News Cycles Dominated

• Huobi announced mass layoffs, with roughly 20% of its staff being let go.
• Former FTX CEO Sam Bankman-Fried has insisted on controlling his shares of Robinhood.
• Mt. Gox, Gopax, and Poolin have made the news, as well as research on Bitcoin’s implied volatility.

Huobi, one of the world’s largest cryptocurrency exchanges, recently announced mass layoffs, with roughly 20% of its staff being let go. This announcement was made by Tron (TRX) founder Justin Sun, who described the move as a “short-term pain” that could bring more advantages to the exchange in the long run. Huobi’s planned layoffs have been at the center of the latest news cycle.

In other news, former FTX CEO Sam Bankman-Fried has insisted on controlling his shares of Robinhood. This follows the recent controversy that has surrounded the trading platform after it restricted trading of certain stocks. Bankman-Fried has stated that he would not sell his shares of the company and is in favor of reforming the financial system.

In addition, various other developments have been making the news. Mt. Gox, Gopax, and Poolin have all been in the headlines recently. There has also been research into Bitcoin’s implied volatility, which is seen as a measure of risk in the market.

Overall, the news cycle has been dominated by the developments surrounding Huobi, Robinhood, and other cryptocurrency-related news. While there is still much uncertainty, it is clear that the industry is continuing to evolve and bring new changes. It remains to be seen how these developments will affect the market in the long run.