Monat: Juli 2024

Veröffentlicht am

Swan Bitcoin halts IPO plans and shuts down mining operations

  • Swan Bitcoin delays IPO plans due to shutdown of its mining operations.
  • CEO cites reduced revenue from mining as reason for halting IPO efforts.
  • Mining sector faces challenges, with firms like Bitfarms and Northern Data adapting.

Swan Bitcoin, a financial services firm specializing in Bitcoin investments, has announced a significant strategic shift. Cory Klippsten, the company’s CEO, revealed that Swan Bitcoin will be scrapping its initial public offering (IPO) plans and shutting down its mining operations.

The announcement, made on July 22 via X (formerly known as Twitter), comes as the company grapples with the financial fallout from recent developments in the cryptocurrency mining sector.

Halting IPO plans pegged on cessation of Bitcoin mining activities

According to Klippsten, the cessation of Swan Bitcoin’s mining activities is a pivotal factor behind the decision to delay the IPO indefinitely. He stated, “Without revenue from our mining arm, we expect to halt our plans for a public offering.”

This move reflects broader challenges within the cryptocurrency mining industry, which has been adversely affected by recent Bitcoin halving events.

In January 2024, Swan Bitcoin launched its mining venture with ambitious plans to become a publicly traded entity in the U.S. within a year. At that time, the company reported generating $125 million in revenue and had expanded its workforce significantly.

However, the halving of Bitcoin’s block reward from 6.25 BTC to 3.125 BTC in April has diminished mining earnings for many firms, including Swan Bitcoin.

The halving event, which occurs approximately every four years, effectively reduces the rewards miners receive for validating transactions on the Bitcoin network. This reduction has led to a decline in profitability for several major mining companies.

Bitfarms, a Canadian mining firm, is among those affected, facing increased pressure following a hostile takeover bid from Riot Platforms.

Swan Bitcoin scaling back on spending with staff reductions

In response to the financial strain, Swan Bitcoin is scaling back its accelerated spending plans and implementing staff reductions.

Klippsten noted that this shift would impact various functions within the company, indicating a significant restructuring effort.

Despite these challenges, the broader cryptocurrency mining sector is witnessing varied responses. German mining firm Northern Data has announced plans to pursue an IPO in the US within the first half of 2025, while Genesis Digital Assets is also considering a public offering.

Swan Bitcoin’s strategic retreat underscores the volatile nature of the cryptocurrency market and the challenges companies face in navigating financial pressures and regulatory landscapes.

As the company recalibrates its business model, the future of its IPO plans remains uncertain.

The post Swan Bitcoin halts IPO plans and shuts down mining operations appeared first on CoinJournal.

Veröffentlicht am

Cboe Announces July Date to List Five Spot Ether ETFs

  • Cboe is planning on listing five ether exchange-traded funds (ETFs) on July 23
  • It will begin trading spot ETFs from the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Franklin Ethereum ETF, Invesco Galaxy Ethereum ETF, and VanEck Ethereum ETF
  • Bitwise’s CIO Matt Hougan believes Ethereum ETFs could see around $15bn in net flows in their first 18 months on the market

The Chicago Board Options Exchange (Cboe) intends to list five ether exchange-traded funds (ETFs) on July 23, “pending regulatory effectiveness,” Cboe announced.

The five spot ether ETFs expected to begin trading are the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Franklin Ethereum ETF, Invesco Galaxy Ethereum ETF, and VanEck Ethereum ETF.

Cboe Ether ETF filing with Invesco Galaxy Ethereum ETF

In May, the US Securities and Exchange Commission (SEC) approved rule changes to spot ether 19b-4 filings; however, before they can launch, their S-1 registrations need to be approved by the regulator.

Earlier this month, the SEC required asset managers to submit their finalised S-1s by July 16. Asset manager Bitwise filed an amended S-1 form on July 3. One of its amendments included a six-month fee waiver of up to $500m.

As the July 23 launch date creeps closer, all eyes will be on the SEC and those keen to launch a new investment product in the market. In June, Bitwise’s CIO, Matt Hougan, stated that Ethereum ETFs could see around $15bn in net flows in their first 18 months on the market.

Solana ETF

Keen to add more investment products for its investors, Cboe submitted two applications to list spot Solana ETFs on its platform earlier this month.

The exchange has asked the SEC to approve the listings of its 21Shares and VanEck Solana ETFs. Filing the 19b-4 forms, the SEC has until March 2025 to make a decision.

At the end of June, VanEck filed an S-1 form with the SEC, making it the first US company to do so. Similarly, 21Shares also filed its own S-1 application with the SEC in June, stating on X that they “believe this is a necessary step for the crypto industry.”

With increased interest in Bitcoin ETFs and now Ethereum ETFs set to start trading on Cboe, asset managers are looking to other types they can potentially provide to investors, pending regulatory approval from the SEC.

The post Cboe Announces July Date to List Five Spot Ether ETFs appeared first on CoinJournal.