Bitfarms Expands Operations in the US Despite Rival Riot Platforms’ Increased Stake

• Bitfarms continues to expand its presence in the U.S. as rival Riot Platforms increases its stake in the company.
• Issues with Holograph’s token arise following a significant hacking incident.
• Gary Gensler hints at potential approval of spot Ethereum ETFs in the near future.

Discover the latest developments in the crypto world from Bitfarms’ expansion to a major hack affecting Holograph, and possible spot Ethereum ETF approvals.

Bitfarms Expands Operations Significantly

On June 14, Bitfarms announced the establishment of a new 120-megawatt (MW) facility in Sharon, Pennsylvania, marking a notable expansion into the U.S. market. This move aims to boost Bitfarms’ operational footprint, supporting an 8 EH/s capacity by 2025 and increasing the company’s total power capacity to 648 MW, a significant 170% rise from its current capacity.

Alongside this expansion, Riot Platforms announced an increase in its ownership stake in Bitfarms to 14%. Riot’s acquisition of an additional 1,432,063 common shares represents approximately 0.35% of Bitfarms’ issued and outstanding shares.

Holograph Suffers Major Security Breach

Tokenization platform Holograph experienced a dramatic drop in its token’s value following a significant hack. On June 14, a hacker exploited a vulnerability in Holograph’s protocol operator contract, minting 1 billion HLG tokens valued at $14.4 million. This incident led to the token plummeting by roughly 80%.

The hacker minted the tokens across nine transactions, triggering a rapid decline in HLG’s price within ten minutes. Over the next nine hours, the token’s value fell from $0.014 t $0.0029, decreasing its market capitalization from about $22 million to $4.8 million.

CMT Digital’s Matt Casto suggested that a malicious developer funded the contract address 26 days prior to the attack. In response, Holograph has launched its own investigation and is cooperating with law enforcement authorities.

Spot Ethereum ETFs on the Horizon

SEC Chairman Gary Gensler provided a tentative timeline for the approval of spot Ether (ETH) ETFs in the U.S. During a June 13 Senate Banking Committee hearing, Gensler indicated that the regulator expects to approve S-1 registration statements for ETH asset managers “over the summer.”

While the SEC approved 19b applications for several asset managers on May 23, the trading of new ETH ETFs requires the approval of S-1 filings as well. Gensler mentioned that the registrations are progressing smoothly and anticipates approvals sometime this summer.

Conclusion

The crypto market witnessed pivotal developments, from Bitfarms’ significant U.S. expansion and Riot Platforms’ increased stake, to Holograph’s crippling hack and the potential approval of spot Ethereum ETFs. These events underscore the dynamic nature of the crypto industry, suggesting an evolving landscape filled with both opportunities and challenges.