Bitcoin Hashrate Declines Amid Strain

The Bitcoin network’s hashrate dropped sharply by 15% in June, the most significant monthly decline in three years. According to industry data, the hashrate plummeted from 942.6 million terahashes/second (TH/s) at the month’s start to 799 million TH/s.

This decline occurred alongside rising electricity prices in the United States due to a summer heat wave stressing the electricity grid. Increased demand for cooling for mining operations is expected to drive up electricity costs, forcing miners operating on thin margins to shut down operations.

While geopolitical tensions, including potential impacts from Israel’s attacks on Iran’s critical infrastructure, were speculated as a factor, analysts note the connection remains tenuous given the ongoing downward trend in hashrate.

Escalating Crypto Hacking Losses

June recorded a record-breaking month for cryptocurrency hacks and exploits, with $150 million lost to attacks. This brings the year-to-date total for crypto thefts to $2.15 billion, surpassing the same period in 2024 by $500 million.

According to TRM Labs, 80% of these losses stemmed from “infrastructure attacks” including theft of private keys and seed phrases, as well as front-end compromises. Protocol attacks targeting blockchain vulnerabilities accounted for just 12% of losses.

“Escalating strategic intent from state actors and other geopolitically motivated groups” requires enhanced security measures, recommends TRM Labs, emphasizing the need for multifactor authentication (MFA), cold storage, and regular security audits.

Corporate Adoption of Bitcoin Resurges

Corporate investment in Bitcoin continues to grow following Michael Saylor’s strategy at MicroStrategy. The number of companies holding Bitcoin in their treasuries has increased to 250, with an additional 26 firms adding the cryptocurrency to their balance sheets.

This approach, pioneered by Saylor’s company, has evolved into a proxy instrument for investors seeking exposure to Bitcoin, with MicroStrategy’s stock price registering gains despite its Bitcoin purchase program.

However, not all are convinced of Bitcoin treasuries’ viability. A report from venture capital firm Breed posits a scenario in which Bitcoin price crashes could trigger liquidations by companies holding the cryptocurrency, potentially causing market panic.

Asia’s Evolving Crypto Regulatory Landscape

Several Asian jurisdictions enacted crypto-friendly regulatory changes in June, including:

Thailand approved a proposal to exempt cryptocurrencies from capital gains tax until December 31, 2029.

South Korea proposed a Digital Asset Basic Act enabling companies with sufficient capital to issue stablecoins and providing refund guarantees.

The governor of the Bank of Korea expressed openness toward issuing a won-based stablecoin.

Malaysia launched a regulatory sandbox called the Digital Asset Innovation Hub.

Hong Kong securities regulators are developing a framework for crypto derivatives trading among professional investors.

Crypto Companies Secure Global Licenses

Crypto businesses secured key regulatory approvals across multiple jurisdictions in June amid growing government adoption:

Coinbase and Gemini and Kraken gained MiCA licenses to operate in Europe from Luxembourg and Cyprus respectively.

Bitget secured a license in Georgia.

MoonPay received New York’s BitLicense for regulated crypto payments processing.

Meanwhile, financial firms Ant Group and retail giant JD.com announced stablecoin certification initiatives targeted primarily at Asia while expanding globally.

North American Crypto Regulatory Progress

Beyond Asia, several US states passed notable crypto legislation, while the federalGENIUSAct gained Senate approval.

Oregon amended laws covering abandoned property to include cryptocurrencies.

Colorado included crypto in abandoned property laws and implemented crypto ATM regulations with fraud protection requirements.

Texas established Bitcoin reserves and mandated crypto forfeiture related to criminal investigations.

Louisiana created a crypto kiosk licensing framework and established a blockchain research subcommittee.

Connecticut and Rhode Island updated money transmission regulations to address cryptocurrency operations, including kiosks.

Florida legislation requiring crypto kiosk registration stalled in committee.

The GENIUS Act, designed to prevent “bogus utility schemes in crypto,” advanced through the Senate on June 17.