Highlights:
- Deutsche Telekom, the parent company of T-Mobile, is planning to mine Bitcoin.
- The company has recently expanded its blockchain involvement through partnerships with Fetch.ai and Polygon.
- Bitcoin miners are under pressure to sell their holdings as their revenues decline after Bitcoin’s recent halving.
Deutsche Telekom, the German-based telecommunication provider that ranks the largest in Europe, intends to start mining Bitcoin (BTC). The announcement was made on June 15 at the BTC Prague conference by Dirk Röder, head of Web3 Infrastructure and Solutions at T-Systems MMS, a subsidiary of Deutsche Telekom. The telecom company has been operating a Bitcoin node since 2023 and is currently managing Bitcoin Lightning Network nodes.
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Röder stated:
“Since 2023 we [have been] running a Bitcoin node and we are running Bitcoin Lightning nodes as well […] wearing a shirt featuring a pink Bitcoin graphic styled after Deutsche Telekom’s logo. And with a heart full of […] pride, I would like to let you in on a little secret: we will engage in ‘digital monetary photosynthesis’ soon.”
When Bitcoin influencer Joe Nakamoto asked Röder for clarification, “So is T-Mobile mining Bitcoin?” Röder responded, “We will.”
YOU WERE NOT READY…
“Is T-Mobile mining #bitcoin?”
— @JoeNakamoto“We will!
With a chest full of fckng pride, I like to let you in on a little secret: We will engage in digital monetary photosynthesis soon.”
— @21hemoonYou heard it at #BTCPrague first! 🚀 https://t.co/gXbZMZqQRk pic.twitter.com/Asy5x5iA7M
— BTC Prague (@BTCPrague) June 14, 2024
Deutsche Telekom in the Blockchain Ecosystem
The firm’s engagement with blockchain technology extends beyond Bitcoin to include other networks as well. Deutsche Telekom’s involves in crypto-related partnerships and investments across various blockchain networks.
Since June 2023, Deutsche Telekom has been actively engaged in Web3 as a validator on the Polygon network. Being one of 100 validators, the telecom giant provides staking and validation services that bolster the platform’s proof-of-stake consensus mechanism. This function enhances the security of the network while enabling Deutsche Telekom to take advantage of new revenue streams in the blockchain industry.
As a validator, Deutsche Telekom MMS will help secure the Polygon PoS sidechain & Supernets app-chains, contributing to their:
🔐 Security
🟣 Governance
🌐 Decentralization— Polygon | Aggregated (@0xPolygon) May 31, 2023
Moreover, in February, Fetch.ai, a decentralized artificial intelligence (AI) platform, collaborated with Deutsche Telekom to establish enterprise AI solutions. As a validator on the Fetch.ai blockchain, the telecommunications firm plays a crucial role in supporting Fetch.ai’s AI-driven autonomous agents. These autonomous agents offer services in healthcare, automotive, supply chain management, and digital identities by managing resources, executing transactions, and analyzing traffic flows.
It's a monumental day!
Deutsche Telekom (@Telekom_MMS) has joined the Fetch Foundation as a corporate partner, alongside serving as a #validator to the network through their subsidiary, @mms_Blockchain.
Read more below 👇https://t.co/v58DtHPj4J— Fetch.ai (@Fetch_ai) February 13, 2024
The company has also partnered with various blockchain networks such as Flow, Polkadot, and Celo. Deutsche Telekom is running nodes on these blockchains and has also made direct investments in their tokens.
Bitcoin Mining Industry Sees Low Revenue
Meanwhile, the Bitcoin mining industry is currently encountering challenges. Following the Bitcoin halving event in April 2024, miners’ revenue decreased significantly while the mining costs for the leading cryptocurrency surged.
The average cost of mining 1 BTC stands at approximately $77,000. In contrast, mining revenue dropped from $78,000 to $35,000. Renowned crypto analyst Ali Martinez said, “This spike in expenses has led to a wave of capitulation among #BTC miners in the past month.”
Since the #halving, #Bitcoin mining costs have soared. On average, it now costs about $77,000 to mine a single $BTC today. This spike in expenses has led to a wave of capitulation among #BTC miners in the past month. pic.twitter.com/kZPShNodP1
— Ali (@ali_charts) June 13, 2024
Bitcoin Miners Sold 1,200 BTC Worth $80.8M
In a post on X, Julio Moreno, Head of Research at CryptoQuant highlighted that the crypto market sees signs of BTC miner capitulation. Bitcoin miners sold 1,200 BTC, valued at approximately $80.8 million at current prices, marking the highest daily miner selling volume since late March. Moreno further indicated that several major mining companies have begun liquidating a portion of their reserves. He also highlighted that these BTC coins are being sold over-the-counter (OTC) rather than on exchanges.
Sings of #Bitcoin miner capitulation:
yesterday we saw the largest daily miner selling volume since late March: 1,200 Bitcoin.Some big mining companies have been selling a portion of their reserves.
These are Bitcoin being sold OTC, not in exchanges. pic.twitter.com/KhkHmmTDBo
— Julio Moreno (@jjcmoreno) June 11, 2024
These factors have collectively led to a decrease in Bitcoin’s price. The cryptocurrency is now at $66,182, having fallen from its recent peak of $71,000 just a few days ago.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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