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Stacks Revive from Block Production as Chinese Telco Invests in Crypto Miners

Bitcoin L2 Stacks overcomes a block production issue; Coolpad Group expands crypto mining operations with significant investment.

Photo by Dmytro Demidko / Unsplash

Stacks Overcomes Technical Issue

The Bitcoin layer-2 network Stacks faced a technical challenge last Friday, resulting in a nine-hour outage. The disruption was attributed to “unexpected mining behavior” combined with a Bitcoin reorganization event. Despite the setback, Stacks resumed block production later that day. The network’s token, STX, experienced an 8% drop in value following the incident but has since shown signs of recovery.

Coolpad's Mining Investment

In a strategic move to bolster its presence in the cryptocurrency mining sector, China’s Coolpad Group is investing approximately $13.5 million in 2,700 crypto mining rigs. These rigs will be deployed in North America, significantly enhancing Coolpad’s computing power from 873,000 terahashes per second (TH/s) to over 1.5 million TH/s. This investment follows Coolpad’s recent announcement of purchasing up to $28 million worth of U.S.-listed Bitcoin ETFs and shares of crypto miners.

Central Banks and CBDCs

A Global Trend The Bank for International Settlements (BIS) reported a “sharp uptick” in central bank digital currency (CBDC) experiments and pilots. According to their survey, 94% of central banks are exploring the concept of CBDCs, with a focus on wholesale CBDCs designed for institutional use. The BIS also noted that stablecoins have limited use outside the crypto ecosystem, leading to an increased regulatory interest.

“The likelihood that central banks will issue a wholesale CBDC within the next six years now exceeds the likelihood that they will issue a retail CBDC,” the BIS said.

Bitcoin ETF Adoption

A Cautious Approach Samara Cohen, BlackRock’s chief investment officer of ETF and index investments, shed light on the cautious adoption of U.S. spot Bitcoin ETFs by financial advisers. Despite this wariness, individual investors continue to engage with Bitcoin ETFs through personal purchases via online brokerages. BlackRock’s iShares Bitcoin Trust (IBIT) is among the ten ETFs launched this January that have attracted significant inflows.

The recent events in the cryptocurrency world underscore the sector’s resilience and its evolving relationship with traditional financial systems.