It was revealed that the Federal Reserve System, or commonly known as the Fed, speeds up its withdrawal and will reduce its bond purchases by $30 billion every month. This value is the double withdrawal value of $15 billion every month. It is also a way to prop up the markets due to the COVID-19 outbreak.
With this, the U.S central bank is watched closely by digital-asset traders because several traders see the potential debasement of the dollar from the monetary stimulus which is facilitated by the Fed’s money printing.
The reason why the Fed is doubling its pace is that they are planning to go out of business next year. A quick process of winding down will allow them to quickly start raising the interest rates for the first time since 2019.
Bitcoin (BTC) is the largest and most valuable coin developed by a pseudonymous Satoshi Nakomoto in 2009. The main purpose of BTC is to serve as an alternative to traditional coins such as the Japanese yen and the British pound. When sending and receiving funds, you just simply need to scan the QR code or provide your crypto wallet address.
Since the Fed’s decision was released, crypto traders became worried about its aggressive withdrawal pace with a decision to increase the interest rate the following year. This is one of the reasons why there are several Bitcoin blog posts about the best move to make when the coin’s price dives deep or skyrockets.
‘The market went down before the fed announcement, so it’s probably correcting now. Inflation is coming for sure, and we see it’, Merav Ozair said, a professor in the finance and economics department at Rutgers Business School.
‘Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation, the Federal Open Market Committee added.
Moreover, the Fed confirmed that they would keep the interest rate between 0% and 0.25% until the end of 2021. The Fed officials have also predicted an interest rate increase of up to 0.9% in 2022 from the expected 0.3%. Once the rates are raised, the next challenge for the Fed is to reduce its huge balance sheet.
Increased revenue of CleanSpark
Bitcoin mining company CleanSpark nearly reached its goal of generating more than $50 million in revenue. However, there is also a $21.8 million net loss. As of 2021’s fiscal year report, its revenue rose up to 400% but a loss of $0.75 per share.
Based on several crypto news sites, CleanSpark’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are around $9 million or $0.31 gain per share. Even with the current losses, the company has been continuously expanding over the last eight months. As a matter of fact, CleanSpark bought 22,680 BTC machines with a hashrate of 1.3 exahash per second to accommodate more transactions.
Hashrate is the measure of the computational power needed when mining. Simply put, it is the speed of mining. The more mining transactions, the higher the hash rate is needed.
‘We are deploying advanced technologies like renewable energy assets and immersion cooling to make our operations more efficient. These efficiency enhancements are expected to increase production and decrease operating costs at all our facilities’, Zach Bradford said, the CEO of CleanSpark.
CleanSpark is a sustainable Bitcoin mining company with the goal to solve modern energy challenges. Aside from Bitcoin mining, CleanSpark is also focused on providing services such as mVoult, commercial energy systems, and GridFabric.
