Latest news with #Ethereum-focused
Mint
3 days ago
- Business
- Mint
CoreWeave joins data centre race: Nvidia-backed cloud computing firm set to buy Core Scientific for $9 billion
CoreWeave announced on Monday that it has decided to buy Core Scientific, a crypto mining firm in an all-stock deal valued at $9 billion. The cloud computing platform is following the trend of AI infrastructure firms racing to secure energy and data centre capacity needed to power surging demand. The core of the deal lies in the urgent need of AI companies to expand their computing infrastructure, Reuters reported. Amidst this growing demand, bitcoin miners' energy-intensive sites and power contracts, built during the crypto boom gained traction. The deal will immediately eliminate more than $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years, CoreWeave said. The offer values Core Scientific at $20.40 per share, representing a premium of around 66 per cent compared to the stock's closing price before reports of the deal emerged in late June. Core Scientific stockholders will receive 0.1235 newly issued CoreWeave stock for each share they hold. Following the announcement, Core Scientific's shares saw a steep drop of 22 per cent in morning trading, while Nvidia-backed CoreWeave was last down 4.5 per cent. The deal is expected to close in the fourth quarter of this year, with the final price to be determined at that time. Bitcoin miners have moved beyond their traditional area of cryptocurrency, tapping into the AI boom by leasing power and data center space to meet rising demand from AI workloads. This acquisition is expected to set the bar for bitcoin miners looking for an opportunity of shifting to AI, Bernstein analyst Gautam Chhugani told Reuters, adding that power remains the biggest hurdle in AI data center expansion. CoreWeave was originally founded as an Ethereum-focused crypto miner in 2017. However, the firm pivoted to AI a few years later. It closed its mining business after "The Merge", Ethereum's 2022 upgrade, reduced rewards for miners. CoreWeave's revenue has grown quickly, climbing more than eight-fold last year, according to the news agency. The deal also marks a turnaround opportunity for Core Scientific, which filed for bankruptcy in late 2022 following a steep drop in bitcoin prices and rising energy costs. The company emerged from bankruptcy in early 2024 and, like several other bitcoin miners, has been seeking a way to capitalise on the AI boom. Core Scientific initially declined the takeover offer from CoreWeave in June 2024, citing that it was significantly undervalued. The two companies later signed a series of 12-year contracts, including one under which Core Scientific agreed to provide CoreWeave with about 200 MW of infrastructure to charge its high-performance computing services. CoreWeave, advised by Goldman Sachs, provides access to data centres and Nvidia-powered AI chips, with a current market value of about $79 billion, according to data compiled by Reuters.
Business Insider
3 days ago
- Business
- Business Insider
The stock of a small crypto miner soared 3,000% in a week on a plan to amass a trove of ethereum
No profits, no problem. Just add Ethereum. That's the strategy BitMine Immersion Technologies is following. The blockchain infrastructure company, which specializes in crypto mining and digital asset management and reported a net loss in the three months through May 31, surged 3,000% in the five trading days ending July 3 after raising $250 million to add Ethereum to its balance sheet. BitMine sold more than 55 million shares to a group of crypto and venture investors at $4.50 apiece on June 30. The company plans to use the proceeds to buy ethereum as the company's primary treasury reserve asset. The company also appointed Tom Lee, managing partner and head of research at Fundstrat Global Advisors, as the Chairman of the Board of Directors. The stock is up almost 1,600% year-to-date despite not being profitable. However, the Ethereum-inspired rally is proving to be volatile: the stock began falling after market open on Monday, dropping 25% from its Thursday close of $136. An Ethereum treasury reserve The company is taking a page from Michael Saylor's Strategy playbook by creating a crypto treasury reserve. While many companies have mimicked Strategy by loading up on bitcoin, an Ethereum-focused treasury purchase plan is still rare. While BitMine will continue to focus on its primarily bitcoin-dominated business operations, the company is betting that Ethereum will become more mainstream. With stablecoins playing a growing role in the crypto ecosystem, BitMine is positioning itself as an early investor in the infrastructure behind them. Unlike bitcoin, Ethereum allows programmable tokens, which are a key feature for the smart contracts that power stablecoins. Ethereum runs on "proof of stake," which allows users to earn rewards by locking up their holdings to help validate transactions and secure the network. Bitcoin, on the other hand, still relies on "proof of work," where miners use energy-intensive computers to solve cryptographic problems to mint new bitcoins. Ethereum hosts over half of existing stablecoins, making the crypto critical to the stablecoin ecosystem. According to the investment platform AInvest, 30% of Ethereum's transaction fees are generated by stablecoins. US Treasury Secretary Scott Bessent predicts that the $250 billion stablecoin market could expand to over $2 trillion in the next three years, meaning that Ethereum is positioned to receive an outsized benefit from the industry's growth, Tom Lee said. "That is really the backbone and architecture of stablecoins," Lee said of Ethereum on CNBC on June 30. "It's important to create a project that essentially accumulated Ethereum to essentially protect and have some influence on the network," Lee added. "The more Ethereum that's accumulated, the more secure the network is." Ethereum has lagged bitcoin's big bull run in recent years. The second-largest cryptocurrency has fallen from its 2021 high, dropping 23% in 2025. But with increasing stablecoin tailwinds through a crypto-friendly administration, the GENIUS Act, and more mainstream adoption, BitMine is betting that Ethereum can achieve bitcoin-level success.
Yahoo
02-06-2025
- Business
- Yahoo
The company that owns MetaMask just acquired wallet infrastructure Web3Auth
Consensys, an Ethereum-focused crypto infrastructure company, announced on Monday that it has closed a deal to acquire Web3Auth, a security management company. The acquisition is particularly important for Consensys' most popular product, a crypto wallet called Metamask. Web3Auth is part of a larger effort to make the wallet more accessible to non-crypto native users, and allow them access without the onerous and often perilous process of remembering their passwords. 'This integration enhances MetaMask's capabilities significantly, embodying our belief that the best web3 wallets will seamlessly integrate an infrastructure that supports a wide range of empowering features,' Joseph Lubin, Founder & CEO of Consensys, said in a statement. Dan Finlay, co-founder of MetaMask, added that the acquisition is 'really about smoothing that adoption ramp and providing a more familiar backup experience to people.' This latest acquisition comes 10 months after Consensys acquired Wallet Guard, a browser extension that alerts users to malicious transactions on MetaMask. With more than 100 million users, MetaMask has become one of the leading self-custody wallets since it launched in 2016. Self-custody refers to a type of crypto wallet where investors maintain total control over their holdings, rather than handing over their crypto to an exchange like Coinbase. The benefits of this include avoiding third party risks and restrictions, like limits on the size of transactions. But in order to provide these upsides, self-custody wallet users are required to maintain their own private key—an alphanumeric code that unlocks their wallet. And unlike traditional bank accounts, there is no 'forgot your password' option. That has led to incidents of people who theoretically have access to vast wealth, but have forgotten their codes. That may be contributing to why there are 1.8 million Bitcoins—about 9% of the token's total supply in circulation—held in wallets that have been totally inactive for a decade or more, according to a 2024 survey conducted by Fortune in collaboration with crypto data analytics firm Chainalysis. Finlay says these passwords create a barrier to entry for new crypto users who don't trust themselves to hold onto their private key, but also don't want to engage with large crypto exchanges—especially after the FTX collapse. 'Don't share this with anyone, but also don't lose it is a very difficult needle to thread,' he said. Consensys and Metamask are trying to solve for this with the Web3Auth acquisition; that company, founded in 2019 and formerly known as Torus, has developed software that allows users to create and log into their self-custody wallet through their social media accounts like Google, X, or Discord, rather than remembering their passwords. Web3Auth also offers services that increase security, like multi-factor authentication. Most of the Web3Auth team will be joining Consensys, according to a spokesperson for Consensys. Consensys declined to disclose the size of the deal or whether it was made in all cash, stock or both. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
‘Crypto king of Kentucky' arrested for allegedly torturing man with saw and electricity in bid to steal his Bitcoin
John Woeltz made headlines on Friday following his arrest in New York City for allegedly kidnapping and torturing a man in a bid to get access to his Bitcoin password. Prior to that, the 37-year-old Woeltz once held a very different reputation as a rising star in the crypto world. Woeltz, also known as the 'crypto king of Kentucky,' was apprehended on Friday after a man escaped from his luxury NoLIta apartment and flagged down a traffic agent who called police, according to the New York Times. The victim, a 28-year-old Italian citizen named Michael Valentino Teofrasto Carturan, was allegedly held in the 17-room townhouse for three weeks. Prosecutors allege that while in the house Woeltz and his alleged accomplice, William Duplessie, who was arrested on Tuesday, tortured Carturan by pistol-whipping him, shocking him with a taser gun, forcing him to smoke crack cocaine and cutting his leg with a saw, according to CBS News. Carturan told police that he was even suspended over a ledge at the top of the five-story home, according to the New York Times. The ordeal ensued after Carturan, a business partner of Woeltz, arrived at the townhouse on May 6. Woeltz and his accomplice confiscated Carturan's passport and electronic devices, threatening to harm him if he did not provide the password to his Bitcoin wallet that held millions of dollars worth of crypto. Lawyers for Woeltz did not immediately respond to a request for comment. Lawyers for Duplessie declined to comment when contacted by Fortune. Woeltz grew up in Paducah, Kentucky, about 140 miles outside of Nashville, according to an interview he gave to a local newspaper in 2020. After graduating from the University of Kentucky, Woeltz moved west to invest in tech startups. He entered the crypto space around 2018, when he served as part of the winning team at ETHGlobal San Francisco hackathon, an annual event put on by an Ethereum-focused organization. He then went on to become the managing director of Silicon River Capital and blockchain-based investment fund, according to his interview in the local paper. More recently, Woeltz became involved with the Bitcoin mining industry in Kentucky. He was chosen by the state office of technology to join a working group focused on using blockchain technology for 'critical infrastructure, public utilities, telecommunications, emergency services,' according to the group's annual report. Woeltz has been charged with kidnapping, assault, unlawful imprisonment and criminal possession of a firearm, according to court documents. The New York City saga comes as just the latest in an epidemic of violent kidnappings of wealth crypto owners, a phenomenon that has led some to purchase 'wrench attack' insurance—a policy whose names come from a meme that shows bandits scheming to defeat high tech safeguards by hitting the victim with a wrench. This story was originally featured on
Associated Press
15-05-2025
- Business
- Associated Press
BTCS Reports Q1 2025 Results
Silver Spring, Maryland--(Newsfile Corp. - May 15, 2025) - BTCS Inc. (NASDAQ: BTCS) ('BTCS' or the 'Company'), a leader in blockchain infrastructure and technology, announced its financial results for the three months ended March 31, 2025 ('Q1 2025"). Q1 2025 Financial Highlights Q1 2025 was affected by a broad crypto market pullback tied to tariff-related macroeconomic uncertainty. Despite a 43% decline in asset values, revenue fell only 27% quarter-over-quarter and grew 274% year-over-year, highlighting increased production and infrastructure scale. We remain focused on improving Builder+ margins as we drive order flow growth and expand our presence in the block-building market. Post-Quarter Financial Updates (as of May 13, 2025) Management Commentary In the first quarter of 2025, BTCS made continued progress in scaling its Ethereum-focused infrastructure, expanding its presence across critical layers of the ecosystem. Our strategy remains centered on driving long-term shareholder value by growing revenue, improving margins, and deepening our control of block space through technology upgrades and increased order flow. To support this strategy, we executed several key initiatives during the quarter: Industry & Market Commentary The digital asset market experienced elevated volatility in early 2025, largely driven by macroeconomic uncertainty, including global tariff concerns. Despite these pressures, the structural fundamentals of the blockchain industry remain intact, with continued momentum across infrastructure, regulatory clarity, and Ethereum protocol development. On May 7, Ethereum successfully completed its highly anticipated Pectra upgrade, introducing critical scalability enhancements and user-focused improvements such as increased maximum effective stake for validators and support for multi-token gas payments. These changes are expected to reduce infrastructure costs for validators, improve user experience, and unlock new use cases—solidifying Ethereum's role as the leading smart contract platform and reinforcing our strategic focus on this network. While near-term market conditions remain uncertain, we believe BTCS is well-positioned to benefit from long-term industry tailwinds. Our continued infrastructure investments, expanding builder market share, and validator scaling initiatives place us in a strong position to capitalize on future opportunities as the market normalizes and blockchain adoption advances. About BTCS: BTCS Inc. (NASDAQ: BTCS) is a U.S.-based blockchain infrastructure technology company currently focused on driving scalable revenue growth through its blockchain infrastructure operations. BTCS has honed its expertise in blockchain network operations, particularly in block building and validator node management. Its branded block-building operation, Builder+, leverages advanced algorithms to optimize block construction for on-chain validation, thus maximizing gas fee revenues. BTCS also supports other blockchain networks by operating validator nodes and staking its crypto assets across multiple proof-of-stake networks, allowing crypto holders to delegate assets to BTCS-managed nodes. In addition, the Company has developed ChainQ, an AI-powered blockchain data analytics platform, which enhances user access and engagement within the blockchain ecosystem. Committed to innovation and adaptability, BTCS is strategically positioned to expand its blockchain operations and infrastructure beyond Ethereum as the ecosystem evolves. Explore how BTCS is revolutionizing blockchain infrastructure in the public markets by visiting Forward-Looking Statements: Certain statements in this press release constitute 'forward-looking statements' within the meaning of the federal securities laws, including statements regarding growing revenue, improving margins, increasing order flow, and expectations from the Pectra upgrade, including anticipated performance improvements and system compatibility. Words such as 'may,' 'might,' 'will,' 'should,' 'believe,' 'expect,' 'anticipate,' 'estimate,' 'continue,' 'predict,' 'forecast,' 'project,' 'plan,' 'intend' or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon assumptions and are subject to various risks and uncertainties, including without limitation regulatory issues, unexpected issues with Builder+, ChainQ, and the Pectra upgrade implementation, as well as risks set forth in the Company's filings with the Securities and Exchange Commission including its Form 10-K for the year ended December 31, 2024 which was filed on March 20, 2025. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements, whether as a result of new information, future events, or otherwise, except as required by law. Financials The tables below are derived from the Company's financial statements included in its Form 10-Q filed on May 14, 2025, with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company's results of operations and financial condition relating to the fiscal quarter ended March 31, 2025 and 2024. Please also refer to the Company's Form 10-K for a discussion of risk factors applicable to the Company and its business. BTCS Inc. Condensed Consolidated Balance Sheets [This table cannot be displayed. Please visit the source.] BTCS Inc. Condensed Consolidated Statements of Operations [This table cannot be displayed. Please visit the source.] BTCS Inc. Condensed Consolidated Statements of Cash Flows [This table cannot be displayed. Please visit the source.] To view the source version of this press release, please visit
