Core Insights - China was once the global center for cryptocurrency, controlling 80% of Bitcoin production and 85% of trading volume, but has now been overtaken by the U.S. following the "9.24 ban" which classified cryptocurrency mining as an "eliminated industry" [1][35][36] - The U.S. is promoting "green mining" by utilizing wasted energy as a strategic asset, positioning itself as the new leader in the cryptocurrency space [1][10] Group 1: Bitcoin as an Energy Resource - Bitcoin mining is often criticized for wasting energy, with the energy required to mine one Bitcoin equivalent to the annual electricity consumption of about 80 American households [4][5] - Both the U.S. and China experience significant amounts of wasted electricity annually, with China alone discarding 5.59 billion kilowatt-hours of wind and solar energy in 2024 [8] - In the U.S., 19% of wasted electricity is projected to be consumed by mining operations by 2025, resulting in a reduction of 1.3 million tons of CO₂ emissions [11] Group 2: U.S. Strategic Initiatives - The U.S. has introduced the "FLARE Act" to utilize associated gas from oil extraction for powering mining operations, effectively reducing pollution while mining [16][17] - The merger of Hut8 and the Trump family's "American Data Center Company" to form "American Bitcoin Company" highlights the political and financial interests in the mining sector [21][22] - The Trump administration has positioned Bitcoin alongside gold and oil, promoting it as a tool for economic stability and risk hedging [27][28] Group 3: China's Potential Strategies - Experts suggest that China could convert its wasted electricity into Bitcoin as a form of energy reserve, adopting a model similar to Texas's "solar + storage + mining" approach [40] - Establishing a digital RMB stablecoin and enhancing cross-border settlements could help China regain its footing in the cryptocurrency market [41][42] - Accelerating the production of advanced chips domestically to reduce reliance on foreign suppliers like TSMC is crucial for China's competitiveness in the mining hardware sector [45][46] Group 4: The Broader Implications - The CEO of Core Scientific emphasizes that the U.S. aims to "weaponize" Bitcoin by controlling energy through mining operations [48] - China's ability to convert wasted electricity into computational power, combined with a stablecoin strategy, could reshape the balance of power in the global economy [49][51] - The next decade will see Bitcoin mining evolve beyond a technical competition to a significant shift in civilizational dynamics [52]

Financial Performance - For the quarter ending September 30, 2025, the company reported total revenue of $240.3 million, a significant increase of 355% compared to $52.8 million in the first quarter of fiscal 2025, exceeding analyst expectations of $235.5 million by approximately 2.04% [1] - The company achieved a net profit of $384.6 million, recovering from a net loss of $51.7 million in the same period last year [1] - Adjusted EBITDA surged to $91.7 million, a staggering increase of 3568% year-over-year from $2.5 million, while EBITDA reached a record $662.7 million, compared to a loss of $18.8 million in the previous year [1] Business Segmentation - The primary revenue source showed significant differentiation, with Bitcoin mining contributing $232.9 million and AI cloud services generating $7.3 million in revenue [1] - The company mined 2,039 Bitcoins during the quarter, a 150% increase from 813 Bitcoins mined in the same period last year, driven by an increase in average operational hash rate to 45.3 EH/s [1] Operating Expenses and Financial Instruments - Operating expenses rose to $236 million, primarily due to increases in depreciation, stock-based compensation, and impairment costs [1] - The company recorded an unrealized gain of $665 million related to financial instruments associated with convertible note transactions during the quarter [1] Financing and Capital Structure - As of October 31, 2025, the company had $1.8 billion in cash and cash equivalents, maintaining strong liquidity [2] - On October 14, 2025, the company successfully issued $1 billion in zero-coupon convertible bonds, and with an additional $200 million GPU financing, the total financing amount reached $400 million [2] Strategic Outlook - The company continues to expand its AI cloud services business, recently signing a $9.7 billion GPU service contract with Microsoft for its facility in Childress, Texas, marking a strategic shift towards AI cloud services [2] - The company has signed multiple contracts totaling approximately 5,000 GPUs for AI cloud services and maintains $1.03 billion in cash and cash equivalents [2] - For 2026, the company aims to achieve an annual recurring revenue (ARR) of $3.4 billion from AI cloud services by year-end, expanding GPU capacity to 140,000, and targeting an ARR of over $500 million by the end of Q1 2026 through new multi-year contracts with partners [2]

Financial Performance - Company MARA reported third-quarter 2025 revenue of $252.4 million, a 92% increase from $131.6 million in the same period last year [1] - Net income was $123.1 million, or $0.27 per diluted share, compared to a net loss of $124.8 million, or $0.42 per share, in the third quarter of 2024 [2] - Adjusted EBITDA rose to $395.6 million from $22.3 million a year earlier, attributed to higher bitcoin prices, production growth, and lower operating costs [2] Operational Highlights - MARA's energized hashrate grew 64% year over year to 60.4 exahashes per second (EH/s), up from 36.9 EH/s a year earlier [4] - The company deployed approximately 5,000 new miners during the quarter and achieved an average energy efficiency of 18.6 joules per terahash [4] - Bitcoin production totaled 2,144 during the quarter, compared to 2,070 in the third quarter of 2024 [5] Bitcoin Holdings - As of September 30, MARA held 52,850 bitcoin, up 98% from 26,747 at the same point last year, valued at approximately $6.0 billion based on a bitcoin price of $114,068 [5] Cost Structure - Cost per petahash per day improved to $31.3 from $37.0 in the same quarter a year ago [6] - Purchased energy costs totaled $43.1 million, up from $27.0 million in 2024, with a cost per bitcoin of $39,235 compared to $32,433 last year [6] - Operating and maintenance expenses were $26.3 million, compared to $9.4 million in the prior-year period [7] Cash Position and Financing - The company ended the quarter with combined unrestricted cash, cash equivalents, and bitcoin valued at $6.8 billion [8] - MARA issued $1.025 billion in zero-coupon convertible senior notes due 2032 and repurchased $19.4 million of its 1% convertible senior notes due 2026 for $18.3 million in cash [8] Strategic Developments - MARA announced a signed letter of intent with MPLX to supply an initial capacity of 400 megawatts (MW) of power for data campuses in West Texas, with the potential to scale to 1.5 GW [3]

Core Viewpoint - Derin Holdings (01709) has completed a placement of 255 million shares at a price of HKD 3.05 per share, raising approximately HKD 9.56 billion for various business expansions and investments [1] Group 1: Placement and Subscription Details - The company completed the placement and subscription agreement on October 23, 2025, with all subscription matters successfully concluded [1] - DA Wolf subscribed to 237 million shares, while Chen Ningdi subscribed to 18.15 million shares [1] Group 2: Use of Proceeds - Approximately 56% of the net proceeds will be used to expand Bitcoin mining and digital reserve businesses [1] - About 24% will be allocated for the development and tokenization of RWA products [1] - Approximately 10% will be used for strategic and diversified investments, and another 10% for general working capital [1] Group 3: Shareholding Structure Post-Placement - Following the completion of the placement and subscription, DA Wolf holds 28.22% of the shares, while Chen Ningdi holds 0.93% [2] - Other public shareholders account for 47.45% of the total shares post-placement [2]

Core Viewpoint - Derin Holdings (01709.HK) has successfully completed a placement of 255 million shares at a price of HKD 3.05 per share, raising approximately HKD 761 million after expenses [1][2] Group 1: Placement and Subscription Details - The placement involved 255 million shares, with 237,066,000 shares owned by DA Wolf and 18,147,000 shares owned by Mr. Chen Ningdi [1] - All conditions for the completion of the subscription have been met, leading to the issuance of 255,213,000 new shares under the subscription agreement [1] - The placement was conducted with independent third-party subscribers, ensuring no major shareholders emerged post-placement [1] Group 2: Allocation of Net Proceeds - Approximately 56.0% (around HKD 535.11 million) of the net proceeds will be used to expand Bitcoin mining and digital reserve operations [2] - About 24.0% (approximately HKD 229.33 million) will be allocated for the development and tokenization of Real World Assets (RWA) products [2] - 10.0% (around HKD 95.56 million) is designated for strategic and diversified investments, with another 10.0% (also around HKD 95.56 million) for general working capital [2]

Core Insights - China's hidden hash rate has become a focal point following Luxor's Q4 2025 global hash rate map update, estimating that China currently accounts for 14.05% of Bitcoin's total hash rate, approximately 145 EH/s, a slight increase from 13.8% in Q3 [1] - Despite the crackdown in 2021, Bitcoin mining has not completely left China; it has merely gone underground, with recent increases reinforcing this reality [1] - The specific locations of this hash rate remain unclear due to a lack of regional breakdown in public data and the secretive nature of mining operations post-ban, although multiple sources indicate a recurring destination: Xinjiang [1][3] Industry Dynamics - In 2025, brokers and distributors have reportedly been sending large quantities of mining machines to Bitcoin mining sites in Xinjiang, but the vast area and the covert nature of operations make verification difficult [3] - Xinjiang, being China's largest provincial-level region, covers over 1.6 million square kilometers, accounting for about one-sixth of the country's land area, and has historically attracted off-grid industrial activities due to its isolation and abundant energy resources [3] - Recent rumors on social media suggest that authorities may have conducted raids on several mining sites in Xinjiang, allegedly seizing hundreds of thousands of mining machines, highlighting ongoing tensions between mining operators and authorities in remote provinces [3]

Core Insights - Riot Platforms reported Q3 2025 revenue of $180 million, more than doubling year-over-year, driven by increased Bitcoin prices and hash rate growth [1] - The company achieved a net profit of $105 million, a significant turnaround from a loss of $154 million in the same period last year [1] - Adjusted EBITDA for the quarter was $197 million, which includes a $133 million gain from Bitcoin holdings [1] Financial Performance - Bitcoin mining revenue reached $161 million, contributing significantly to overall revenue growth [1] - The company mined a total of 1,406 Bitcoins during the quarter, with an average mining cost of $46,324 per Bitcoin [1] Strategic Developments - Riot announced the commencement of core construction for two buildings at its Corsicana data center campus in Texas, with a capacity of 112 megawatts [1] - The company holds approximately 19,287 Bitcoins, valued at around $2.2 billion [1]

Core Viewpoint - Core Scientific's proposed merger with AI neocloud CoreWeave was rejected by shareholders after a social media campaign against the deal [1][2] Group 1: Merger Details - The merger was valued at approximately $9 billion and was initially agreed upon in June 2025, but required shareholder approval in Q4 2025 [1] - The merger deal was only provisional and faced significant opposition from major stakeholders [2] Group 2: Shareholder Actions - Two Capital and Institutional Shareholders Services (ISS) actively campaigned for a "No" vote, citing unfavorable economics of the merger [2] - AI-focused hedge fund Situational Awareness acquired Core Scientific shares, likely to benefit from the merger's failure [2] Group 3: Voting Outcome - The special meeting held on October 30, 2025, resulted in shareholders not approving the merger, as the necessary votes were not obtained [3] - Following the announcement, Core Scientific's share price declined by 3% [3]

Core Insights - Major Bitcoin mining companies are pivoting to provide computing power for AI applications, driven by the surging demand for AI capabilities from tech giants like Google, Microsoft, and Meta [1][3][6] - The transition from cryptocurrency mining to AI data centers is seen as a more profitable avenue, as traditional mining has become less viable due to market saturation and Bitcoin price volatility [2][3][6] - Analysts predict that the shift to AI data centers will significantly enhance revenue and profit margins for mining companies, as they already possess the necessary infrastructure [2][3][4] Industry Trends - Bitcoin mining firms are upgrading their infrastructure to support high-performance computing (HPC) and AI workloads, allowing for rapid adaptation to the growing AI market [2][4] - The competitive landscape of Bitcoin mining has led to decreased profitability, prompting companies to seek alternative revenue streams through AI [3][6] - The demand for AI computing resources is skyrocketing, with major players like OpenAI and Anthropic forming multi-billion dollar partnerships with AI chip leaders [3][4] Company Developments - Companies like CleanSpark, Riot, and TeraWulf are actively pursuing AI data center strategies, resulting in significant stock price increases [6][9] - IREN Limited has shifted focus from Bitcoin mining to AI data center services, purchasing AI chips to support this transition [8][9] - Analysts have raised target prices for companies like IREN, indicating strong market confidence in their pivot to AI [9] Market Opportunities - Bitcoin mining companies are well-positioned to meet the AI computing demand due to their existing infrastructure, which can be quickly adapted for AI workloads [4][5] - The ability to provide renewable energy and established data center capabilities makes these mining firms ideal partners for cloud computing giants facing construction delays [4][5] - The transition to AI data centers is viewed as a structural change in the industry, with long-term contracts and partnerships being established [9]

Core Insights - Bitcoin halving is a significant mechanism in the cryptocurrency space that garners considerable attention due to its impact on Bitcoin's scarcity and long-term value [1] Group 1 - Bitcoin mining involves a process where new bitcoins are created and introduced into circulation, which is gradually slowed down over time [1] - The halving event reduces the reward for mining new blocks, which affects both miners and investors in different ways [1] - Once all bitcoins are mined, the system will need to maintain security and operation through alternative means [1]