3Commas Weekly Crypto Industry Updates August 16th, 2024

Let's discuss what has happened in the crypto industry in the second week of August 2024.

Marathon Digital buys $249M Bitcoin, total reserve at 25K BTC

Marathon Digital made another Bitcoin buy of 4,144 Bitcoins after the company CEO said its company was adopting a “hodl strategy” for the cryptocurrency in July.

Marathon Digital is a Bitcoin miner who has been buying and holding Bitcoin. The latest Bitcoin buy was worth $249M after raising $300M from a senior note offering.

The Bitcoin miner announced on August 4 that it had sold the senior note offering and used part of the $300M proceeds to buy around 4,144 Bitcoin at an average price of roughly $59,500. This new buy brings its strategic Bitcoin reserve to over 25,000 Bitcoins. 

Why does it matter? It highlights fundamental strength in Bitcoin as the base cryptocurrency, as large holders and institutional buyers seized the opportunity to buy the dip and accelerate their accumulation strategies. 

Dubai court recognizes crypto as a valid salary payment

In a recent court ruling at the United Arab Emirates’ Dubai Court of First Instance, the judiciary recognized salary payments in crypto as a valid payment type under employment contracts. 

According to a recent publication from CoinTelegraph, Irina Heaver, a partner at UAE law firm NeosLegal, explained that “the ruling in case number 1739 of 2024 shows a shift from the court’s earlier stance in 2023 where a similar claim was denied because the crypto involved lacked precise valuation.”

Heaver reportedly thinks that the recent ruling is a “progressive approach” to integrating digital currencies into the country’s legal and economic framework.  

Why does it matter? The increasing regulatory friendly approach to cryptocurrency as a payment method encourages adoption and economic freedom for the individuals adopters.

Bitcoin ETF adoption by institutions grows 27% in Q2

Bitcoin ETF (Exchange-Traded Funds) adoption has increased among institutions. The recent ETF adoption could bolster Bitcoin price to new all-time highs.

The institutional adoption of the United States-based spot Bitcoin ETFs grew by over 27% during the second quarter of 2024.

Vetle Lunde, a senior analyst at K33 Research reports that over 262 new firms have invested in spot Bitcoin ETFs.

Why does it matter? There is increasing interest from institutions looking to hold Bitcoin and this is a good development for growth and adoption. 

Binance is back in India as a registered crypto exchange. 

Binance makes an official return to India after registering with India’s Financial Intelligence Unit—FIU-IND.

The Binance mobile app has reappeared on India’s Google Play Store and Apple App Store after the seven-month ban due to noncompliance with local regulations. 

On Aug. 15, Binance’s website and Android and iOS apps became available for crypto investors in India.

According to reports, Binance has reportedly confirmed that it had registered as a reporting entity with India’s Financial Intelligence Unit (FIU-IND) — a legal requirement of compliance for all crypto exchanges operating in India against money laundering.

What does it matter? There is a positive regulatory environment for growth and adoption for investors engaging in trading digital assets in India. 

Iran is giving upwards of $20 to anyone who reports illegal crypto miners.

Iran is reportedly giving out upward of $20 to anyone who alerts authorities to illegal crypto mining operations as the country’s power grid is reportedly strained and some are exploiting subsidized electricity. 

According to Iran International, an Iran-focused news outlet, the CEO of the country’s state-run electricity company Tavanir claims that the temperatures have increased to 113 degrees fahrenheit which has been made worse by crypto miners.

Why does it matter? It's an unwelcoming development for the crypto mining community in Iran. This new outcry will make the crypto mining regulatory operations in Iran an unfavorably deep water to swim through.

Conclusion: 

What we’re seeing is that across the world, governments are now making favorable regulations for the crypto industry. Institutions now that were previously not high on crypto have either bought some Bitcoin or have become neutral with their stances on crypto as a disruptor of the financial market.