Crypto Biz: When dollars disappear, stablecoins step in
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Bolivia is moving toward a regulatory framework that would formally recognize Tether’s USDT stablecoin as a payment currency, allowing it to circulate alongside the boliviano and the US dollar. This proposal, currently under review, includes anti-money laundering safeguards to address Bolivia’s status on the Financial Action Task Force’s gray list. The move follows the country’s recent lifting of its crypto ban and the new administration’s goal to expand digital asset access. The proposal is largely driven by Bolivia’s ongoing shortage of US dollars, which has widened the gap between official and parallel exchange rates, increasing demand for dollar-denominated assets like USDT as a practical alternative.
In a separate development, Bitcoin miners who have pivoted to building AI infrastructure are facing heightened investor scrutiny amid cooling enthusiasm and concerns over corporate governance. Executives at firms such as TeraWulf, Cipher Digital, Riot Platforms, and Core Scientific have disclosed recent insider stock sales, often under prearranged trading plans. Strategic investors, including Tether, have also reduced holdings, as reflected by a 16% decline in the TEM AI Infrastructure Growth Index over one month. This signals investor skepticism about how well miners’ AI-related pivots will benefit public shareholders.
Why it matters
An exception to this trend is CleanSpark, whose shares surged by up to 22% after signing a 20-year lease for a 175-megawatt data center in Georgia with a global technology company. The lease could generate up to $6.6 billion in contracted revenue, with potential extensions increasing that figure to $11.6 billion. This deal highlights CleanSpark’s continued efforts to diversify revenue streams amid post-halving pressures in Bitcoin mining, as the company remains a net accumulator of Bitcoin despite some recent sales to fund operations.
Additionally, Bitmine Immersion Technologies reported $45.7 million in revenue from Ethereum staking in the last quarter, making staking 98% of its income. Following the launch of its institutional staking platform MAVAN, built on acquiring Pier Two Holdings, Bitmine has staked about 85% of its roughly 4.9 million ETH holdings. Chairman Tom Lee stated that Bitmine now stakes more Ether than any other entity and forecasts $284 million in annualized staking rewards once fully deployed. This reveals the growing importance of Ethereum staking within crypto business models despite price pressures on ETH.