Bittrex Files for Bankruptcy, Jane Street and Jump Crypto Pull Back Operations 💸

GM and welcome to another edition of the Datawallet Newsletter, where we cover the latest news surrounding the ever-changing world of crypto. Whether you are just starting or already tracking various news outlets, we’ll make sure you are properly informed. 

Today’s drop will cover these key daily news items:

• Bittrex filed for Bankruptcy
• Jane Street and Jump Crypto pull back operations
• Cipher Mining buys new rigs, reaches 6 EH/s hashrate
• Binance adds ordinals inscriptions to NFT marketplace
• Celsius targeted for acquisition by Apollo and NovaWulf

Bittrex filed for Bankruptcy

Bittrex's American branch has sought the shelter of Chapter 11 bankruptcy protection in a federal court located in Delaware. The decision came after the US Securities and Exchange Commission charged the firm's ex-CEO, William Shihara, and the organization for supposedly running an unregistered national securities exchange, broker, and clearing agency. 

In response, Bittrex had previously announced its intention to terminate activities in the US due to the country's regulatory and economic environment. The bankruptcy request also involves two Malta-based Bittrex entities, Bittrex Inc, and Desolation Holdings LLC. However, the announcement will not impact Bittrex Global in Liechtenstein, which will carry on operations as usual for its international clientele. Bittrex Inc has reportedly over 100,000 creditors and liabilities that range between $500 million to $1 billion.

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Jane Street and Jump Crypto Pull Back on Crypto Trading

As regulatory pressures intensify in the US, leading market-makers Jane Street Group and Jump Crypto are retrenching their domestic crypto trading operations. Jane Street is also tempering its global crypto ventures due to regulatory uncertainty.

This pullback is part of a broader industry response to heightened scrutiny following the downfall of high-profile crypto firms and projects. This regulatory climate has seen firms like Coinbase and Galaxy Digital eyeing international hubs such as Dubai, Singapore, and Hong Kong for expansion.

The reduction in market-making activity could constrict liquidity in the crypto markets. Market-makers like Jane Street and Jump Crypto provide a critical role in facilitating trade, and their retrenchment could increase volatility and widen bid-ask spreads, creating a more challenging trading environment for investors. This market contraction emphasizes the importance of regulatory clarity for maintaining vibrant, liquid crypto markets.

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Cipher Mining buys new rigs, reaches 6 EH/s hashrate

In a bold move, Cipher Mining (CIFR) announced their acquisition of 11,000 state-of-the-art bitcoin mining rigs from Canaan Inc. (CAN) after surpassing their computing power goal of 6 exahash/second (EH/s). This move has the potential to propel Cipher's power to a whopping 8.2 EH/s by the end of the year, solidifying their position as a dominant force in the market. Energization of the Canaan model A1346 rigs is anticipated by the close of Q3, boosting Cipher's computing power to 7.2 EH/s. 

In the face of soaring energy costs that plagued other miners in 2022, Cipher is confident with their average price of $0.027 per kilowatt hour (kWh) and their secure fixed price agreements, which cover 96% of their capacity. Cipher's net loss per share fell by more than half in Q1 2023 compared to the same period last year, a testament to their resilience and savvy management. All eyes are on Cipher as their stock surged over 6% at $2.07 in pre-market trading, a sign of investor confidence and excitement. Canaan, on the other hand, faced declining sales in a depressed market and fierce competition from other manufacturers.

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Binance adds ordinals inscriptions to NFT marketplace

Binance, the foremost cryptocurrency exchange by trading volume, has made a groundbreaking announcement today. In a bold move into the world of Bitcoin-based markets, Binance has declared its support for Ordinals inscriptions on its NFT marketplace. This will be rolling out in the coming weeks, giving users the opportunity to purchase and trade Ordinals inscriptions via their Binance accounts.

This latest update comes after Binance expanded its NFT marketplace to include certain NFT collections from Polygon in March. Now, alongside NFTs on Ethereum and BNB Chain, Binance’s Head of Product, Mayur Kamat, calls this support for Bitcoin, the largest token in the crypto market, a remarkable addition.

“Bitcoin is the OG of crypto,” Kamat said. “We're only at the beginning of something big, and we can't wait to see what the future holds in this space." This is a massive leap forward for Binance and the NFT marketplace, signaling an exciting new chapter in the world of cryptocurrency.

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Celsius targeted for acquisition by Apollo and NovaWulf

In a bold move towards the crypto space, Apollo Global Management has forged a partnership with NovaWulf, a crypto investment firm, to explore the acquisition of the bankrupt cryptocurrency lending platform, Celsius Network. 

According to insiders, NovaWulf is one of several parties bidding for Celsius's assets, and is backed by the deep pockets of Apollo, whose assets under management exceed half a trillion dollars. The news has sent ripples through the industry, sparking speculation on who will win the auction and emerge victorious in the battle for control of Celsius. Stay tuned for the thrilling conclusion.

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Other breaking news

• SafePal partners with Klaytn Network
• Lido V2 update
• NFT project Pudgy Penguins raises $9 million
• Sam Bankman-Fried seeks dismissal of most of the charges
• Goldman Sachs' survey finds crypto interest has waned among the ultra-rich

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Wrapping up

There we go folks! Another day, another Datawallet newsletter. Celsius is again in the news, with potential new acquisition partners, while Bitterex files for Chapter 11. In an optimistic move in the crypto space, Cipher Mining increases its mining capacity, while Binance eyes support for BTC NFTs. 

Stay informed and ahead of the game with our daily crypto scoop. See you tomorrow.