Author: Michelle Lazo

With President Joe Biden stepping aside from the 2024 presidential race, Democrats have a unique opportunity to reset their crypto policy and potentially win over a significant portion of the crypto electorate. Analysts believe that Vice President Kamala Harris and other Democratic leaders can embrace this shift, challenging former President Donald Trump’s stronghold on crypto voters.

Biden Administration’s Stance on Crypto

For years, the Biden administration has maintained a strict stance on cryptocurrency, focusing on regulation by enforcement rather than crafting tailored regulations. Jake Chervinsky, a crypto lawyer and chief legal officer at Variant Fund, highlighted this issue on social media, stating, “The Biden administration has been extremely hostile toward crypto, refusing to craft reasonable regulations tailored to the technology and instead trying to destroy the industry.”

Chervinsky sees Biden’s exit as a critical moment for the Democratic Party to pivot. “With President Biden stepping aside, the Democratic Party has a huge opportunity to win back a big share of the crypto vote. This should be a top priority for the new nominee in an election that will be won on the margins in states where crypto is a live issue.”

The Republican Crypto Platform

Donald Trump’s anti-crypto platform has focused on ending what he calls “Joe Biden’s war on crypto.” This stance has energized crypto industry donors, who have contributed millions to Trump’s campaign. Trump’s promise to keep American innovation at home and reduce regulatory hurdles has resonated with many in the crypto community.

A Democratic Strategy for Crypto

Chervinsky laid out a five-point plan for a Democratic nominee to counter Trump’s pro-crypto platform and attract crypto voters:

1. Outreach to the Crypto Industry: Engaging with industry leaders to understand their needs and concerns.
2. Potential Appointments: Floating a list of potential appointments to the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) who are favorable to crypto.
3. Promoting U.S. Innovation: Emphasizing the importance of keeping crypto innovation within the U.S. rather than driving it overseas.
4. Reversing SEC’s Approach: Shifting from the SEC’s enforcement-first approach to a more balanced regulatory framework.
5. Releasing Crypto Policy Proposals: Proposing policies that protect consumers while promoting innovation in the crypto space.

Chervinsky noted that a significant portion of the crypto electorate leans Democrat or independent, and many are not single-issue voters. This demographic could be pivotal in the upcoming election if the Democratic Party can effectively reset its crypto policy.

Winning Back the Crypto Vote

Chervinsky argued that a new Democratic nominee could “flip the script” and attract a meaningful number of crypto voters. While some crypto enthusiasts have become staunch Republicans, many remain open to supporting a pro-crypto Democratic candidate. “If the Democratic Party is serious about winning this election, the new nominee must seize this opportunity,” Chervinsky emphasized.

Potential Implications

The reset in crypto policy could significantly impact both the Democratic Party’s prospects in the 2024 election and the broader crypto industry. By adopting a more favorable stance on crypto, Democrats could tap into a growing voter base and potentially secure crucial votes in swing states. Additionally, a more balanced regulatory approach could foster innovation and growth within the U.S. crypto market, preventing talent and investment from moving abroad.

Conclusion

President Biden’s decision to withdraw from the 2024 race presents a strategic opportunity for Democrats to reset their crypto policy and attract a significant portion of the crypto electorate. By adopting a pro-crypto stance, the Democratic Party can challenge Trump’s dominance in this area and appeal to voters seeking innovation and reasonable regulation. As the 2024 election approaches, how Democrats address the crypto issue could play a pivotal role in determining the outcome.

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With President Joe Biden stepping aside from the 2024 presidential race, Democrats have a unique opportunity to reset their crypto policy and potentially win over a significant portion of the crypto electorate. Analysts believe that Vice President Kamala Harris and other Democratic leaders can embrace this shift, challenging former President Donald Trump’s stronghold on crypto voters.

Biden Administration’s Stance on Crypto

For years, the Biden administration has maintained a strict stance on cryptocurrency, focusing on regulation by enforcement rather than crafting tailored regulations. Jake Chervinsky, a crypto lawyer and chief legal officer at Variant Fund, highlighted this issue on social media, stating, “The Biden administration has been extremely hostile toward crypto, refusing to craft reasonable regulations tailored to the technology and instead trying to destroy the industry.”

Chervinsky sees Biden’s exit as a critical moment for the Democratic Party to pivot. “With President Biden stepping aside, the Democratic Party has a huge opportunity to win back a big share of the crypto vote. This should be a top priority for the new nominee in an election that will be won on the margins in states where crypto is a live issue.”

The Republican Crypto Platform

Donald Trump’s anti-crypto platform has focused on ending what he calls “Joe Biden’s war on crypto.” This stance has energized crypto industry donors, who have contributed millions to Trump’s campaign. Trump’s promise to keep American innovation at home and reduce regulatory hurdles has resonated with many in the crypto community.

A Democratic Strategy for Crypto

Chervinsky laid out a five-point plan for a Democratic nominee to counter Trump’s pro-crypto platform and attract crypto voters:

1. Outreach to the Crypto Industry: Engaging with industry leaders to understand their needs and concerns.
2. Potential Appointments: Floating a list of potential appointments to the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) who are favorable to crypto.
3. Promoting U.S. Innovation: Emphasizing the importance of keeping crypto innovation within the U.S. rather than driving it overseas.
4. Reversing SEC’s Approach: Shifting from the SEC’s enforcement-first approach to a more balanced regulatory framework.
5. Releasing Crypto Policy Proposals: Proposing policies that protect consumers while promoting innovation in the crypto space.

Chervinsky noted that a significant portion of the crypto electorate leans Democrat or independent, and many are not single-issue voters. This demographic could be pivotal in the upcoming election if the Democratic Party can effectively reset its crypto policy.

Winning Back the Crypto Vote

Chervinsky argued that a new Democratic nominee could “flip the script” and attract a meaningful number of crypto voters. While some crypto enthusiasts have become staunch Republicans, many remain open to supporting a pro-crypto Democratic candidate. “If the Democratic Party is serious about winning this election, the new nominee must seize this opportunity,” Chervinsky emphasized.

Potential Implications

The reset in crypto policy could significantly impact both the Democratic Party’s prospects in the 2024 election and the broader crypto industry. By adopting a more favorable stance on crypto, Democrats could tap into a growing voter base and potentially secure crucial votes in swing states. Additionally, a more balanced regulatory approach could foster innovation and growth within the U.S. crypto market, preventing talent and investment from moving abroad.

Conclusion

President Biden’s decision to withdraw from the 2024 race presents a strategic opportunity for Democrats to reset their crypto policy and attract a significant portion of the crypto electorate. By adopting a pro-crypto stance, the Democratic Party can challenge Trump’s dominance in this area and appeal to voters seeking innovation and reasonable regulation. As the 2024 election approaches, how Democrats address the crypto issue could play a pivotal role in determining the outcome.

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Bitdeer Technologies (NASDAQ:BTDR), a prominent bitcoin miner, has recently been identified as a potential takeover target, according to a research report by broker Benchmark. The increasing interest from artificial intelligence and high-performance computing firms in the energy assets of crypto miners has significantly bolstered Bitdeer’s value.

Rising Valuation and Market Interest

Benchmark raised its price target for Bitdeer to $16 from $13, reiterating its buy rating on the shares. As of premarket trading, Bitdeer shares were valued at $11.10. The stock has seen a remarkable increase, more than doubling in the last two months. This surge is attributed to Bitdeer’s recognition as one of the bitcoin miners with substantial existing and planned power capacity, which can be leveraged for both crypto mining and powering AI and HPC projects.

Increased Takeover Activity in the Sector

The bitcoin mining sector has witnessed a surge in takeover activity. Core Scientific (NASDAQ:CORZ), another key player, recently rejected a $5.75 per share offer from cloud computing firm CoreWeave, stating that the offer significantly undervalued the company. This indicates a growing interest and competition among firms in acquiring valuable crypto mining assets.

Bitdeer is currently engaged in preliminary discussions with several customers in the AI/HPC space. These talks are expected to gain momentum once management completes site analysis to determine the optimal use of their resources. This strategic move positions Bitdeer as an attractive acquisition target for companies looking to expand their AI and HPC capabilities.

Broker’s Positive Outlook and Financial Projections

Benchmark has adjusted its estimates for Bitdeer, reflecting the anticipated contributions from its ASIC chip and mining rig initiatives. The broker increased its full-year 2025 revenue estimate to $617.5 million from $497 million, highlighting the company’s potential for significant growth. This optimistic outlook is based on the increasing demand for energy assets from AI and HPC firms, which can provide alternative and more lucrative uses for bitcoin mining sites.

Sector Re-Rating and Market Trends

The valuation multiples of bitcoin mining equities have seen a notable increase in recent months. Core Scientific’s deal with AI hyperscaler CoreWeave has played a significant role in driving the re-rating of the sector. This trend underscores the growing recognition of the potential synergies between bitcoin mining and AI/HPC applications.

Wall Street giant JPMorgan (NYSE:JPM) recently commented on this market trend, noting that the rally in the bitcoin mining sector suggests that the market perceives AI and HPC opportunities as viable and more accretive use cases for bitcoin mining sites. This perspective aligns with the broader industry sentiment that energy-intensive crypto mining operations can be repurposed to support the growing demands of AI and HPC applications.

Conclusion

Bitdeer Technologies is emerging as a potential takeover target amid increasing interest from AI and HPC firms in the energy assets of crypto miners. With Benchmark raising its price target and positive market trends supporting the sector’s re-rating, Bitdeer is well-positioned for significant growth and strategic acquisition opportunities. The company’s proactive discussions with AI/HPC customers and ongoing site analysis further enhance its appeal as an acquisition target.

As the bitcoin mining sector continues to evolve, the integration of AI and HPC applications offers promising alternative uses for mining resources. This dynamic market environment presents new opportunities for companies like Bitdeer to leverage their capabilities and drive future growth. Investors and industry stakeholders will be closely watching how these developments unfold and shape the future of the bitcoin mining and AI/HPC sectors.

Featured Image: Freepik 

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Bitdeer Technologies (NASDAQ:BTDR), a prominent bitcoin miner, has recently been identified as a potential takeover target, according to a research report by broker Benchmark. The increasing interest from artificial intelligence and high-performance computing firms in the energy assets of crypto miners has significantly bolstered Bitdeer’s value.

Rising Valuation and Market Interest

Benchmark raised its price target for Bitdeer to $16 from $13, reiterating its buy rating on the shares. As of premarket trading, Bitdeer shares were valued at $11.10. The stock has seen a remarkable increase, more than doubling in the last two months. This surge is attributed to Bitdeer’s recognition as one of the bitcoin miners with substantial existing and planned power capacity, which can be leveraged for both crypto mining and powering AI and HPC projects.

Increased Takeover Activity in the Sector

The bitcoin mining sector has witnessed a surge in takeover activity. Core Scientific (NASDAQ:CORZ), another key player, recently rejected a $5.75 per share offer from cloud computing firm CoreWeave, stating that the offer significantly undervalued the company. This indicates a growing interest and competition among firms in acquiring valuable crypto mining assets.

Bitdeer is currently engaged in preliminary discussions with several customers in the AI/HPC space. These talks are expected to gain momentum once management completes site analysis to determine the optimal use of their resources. This strategic move positions Bitdeer as an attractive acquisition target for companies looking to expand their AI and HPC capabilities.

Broker’s Positive Outlook and Financial Projections

Benchmark has adjusted its estimates for Bitdeer, reflecting the anticipated contributions from its ASIC chip and mining rig initiatives. The broker increased its full-year 2025 revenue estimate to $617.5 million from $497 million, highlighting the company’s potential for significant growth. This optimistic outlook is based on the increasing demand for energy assets from AI and HPC firms, which can provide alternative and more lucrative uses for bitcoin mining sites.

Sector Re-Rating and Market Trends

The valuation multiples of bitcoin mining equities have seen a notable increase in recent months. Core Scientific’s deal with AI hyperscaler CoreWeave has played a significant role in driving the re-rating of the sector. This trend underscores the growing recognition of the potential synergies between bitcoin mining and AI/HPC applications.

Wall Street giant JPMorgan (NYSE:JPM) recently commented on this market trend, noting that the rally in the bitcoin mining sector suggests that the market perceives AI and HPC opportunities as viable and more accretive use cases for bitcoin mining sites. This perspective aligns with the broader industry sentiment that energy-intensive crypto mining operations can be repurposed to support the growing demands of AI and HPC applications.

Conclusion

Bitdeer Technologies is emerging as a potential takeover target amid increasing interest from AI and HPC firms in the energy assets of crypto miners. With Benchmark raising its price target and positive market trends supporting the sector’s re-rating, Bitdeer is well-positioned for significant growth and strategic acquisition opportunities. The company’s proactive discussions with AI/HPC customers and ongoing site analysis further enhance its appeal as an acquisition target.

As the bitcoin mining sector continues to evolve, the integration of AI and HPC applications offers promising alternative uses for mining resources. This dynamic market environment presents new opportunities for companies like Bitdeer to leverage their capabilities and drive future growth. Investors and industry stakeholders will be closely watching how these developments unfold and shape the future of the bitcoin mining and AI/HPC sectors.

Featured Image: Freepik 

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Galaxy Digital Acquires CryptoManufaktur’s Assets

Galaxy Digital, a publicly traded crypto firm led by Michael Novogratz, has announced the acquisition of nearly all assets of blockchain node operator CryptoManufaktur LLC. This strategic acquisition will increase Galaxy’s Ethereum assets under stake by approximately 43%, bolstering its presence in the blockchain infrastructure sector.

Details of the Acquisition

The acquisition agreement with CryptoManufaktur, known as CMF, was revealed in a press release provided exclusively to CoinDesk. Although the financial terms were not disclosed, the acquisition includes CMF’s operations, engineering teams, and the operations associated with them. Thorsten Behrens, CMF’s founder, along with his three-person engineering team, will join Galaxy’s blockchain infrastructure team. This team specializes in providing staking and blockchain validator services to qualified investors, protocols, and digital-asset platforms.

CMF’s Background and Contribution

Founded in 2020, CMF initially focused on building infrastructure for the blockchain oracle project Chainlink. The company later expanded to operate automated proof-of-stake node deployment infrastructure on Ethereum. This acquisition brings approximately $1 billion of Ethereum assets under stake to Galaxy, increasing its total to $3.3 billion.

Strategic Expansion for Galaxy

Galaxy Digital has been actively expanding its blockchain infrastructure, supplementing its primary business lines of crypto trading and investment management. Michael Novogratz, Galaxy’s CEO, is a prominent figure in the crypto world and on business television networks like CNBC, partly due to his extensive background on Wall Street as an executive at Goldman Sachs and a former hedge fund manager at Fortress Investment Group.

Enhancing Blockchain Infrastructure Capabilities

“Galaxy is rapidly expanding its blockchain infrastructure and staking capabilities to provide enterprise-grade technical expertise and support to strategic corners of the digital-asset ecosystem,” stated Zane Glauber, head of Galaxy’s blockchain infrastructure team. “Our acquisition of CMF is an important milestone that significantly enhances our position as a leading technical partner to protocols and builders.”

Implications for the Crypto Market

The acquisition signifies Galaxy’s commitment to strengthening its infrastructure and staking capabilities, positioning itself as a key player in the digital-asset ecosystem. This move is expected to attract more qualified investors and digital-asset platforms seeking reliable and enterprise-grade blockchain infrastructure services.

Future Prospects for Galaxy Digital

With this acquisition, Galaxy Digital is set to enhance its technical expertise and capacity in the blockchain sector. The firm’s focus on expanding its staking and validator services underscores its strategic vision of becoming a dominant force in the digital-asset ecosystem. As the market for digital assets continues to grow, Galaxy’s robust infrastructure and expanded capabilities will likely drive its competitive edge and market share.

Conclusion

The acquisition of CryptoManufaktur’s assets marks a significant step in Galaxy Digital’s growth strategy. By integrating CMF’s Ethereum staking operations and expert engineering team, Galaxy is poised to further solidify its position in the blockchain infrastructure space. As the company continues to expand its technical capabilities and service offerings, it will play a crucial role in the evolving landscape of digital assets and blockchain technology.

Galaxy’s strategic acquisition of CMF not only enhances its staking portfolio but also reaffirms its commitment to providing cutting-edge infrastructure solutions to the digital-asset community.

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