Cryptos Soar After Musk, Saylor Speak To Bitcoin Miners, Will Standardize Energy Reporting

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by Tyler Durden
Monday, May 24, 2021 - 04:33 PM

Behind door number 1 we have China (i.e. Skeletor), and a relentless barrage of crypto FUD meant to distract from the disastrous reception of the digital yuan in hopes that Beijing can, after almost a decade of trying, finally talk bitcoin down to zero (narrator: it can't).

Behind door number 2 we have Elon Musk who realized, with a one week late, that by sending bitcoin plunging (perhaps to appease China, or some unknown ESG overlord) he also hammered TSLA stock not to mention his own net worth, and so moments before the close, the billionaire Tesla CEO - a little over a weak after announcing he will no longer accept bitcoin because gasp BTC miners use electricity - tweeted that he "spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising."

Providing some more color, Microstrategy CEO Michael Saylor tweeted that he "hosted a meeting between @elonmusk  & the leading Bitcoin miners in North America.  The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide."

Saylor added that "execs from ArgoBlockchain, Blockcap, Core Scientific, Galaxy DigitalHQ, Hive Blockchain, Hut8mining, MarathonDH, and RiotBlockchain were present & decided to establish an organization to standardize energy reporting, pursue industry ESG goals, & educate+grow the marketplace."

It wasn't immediately clear if any Chinese bitcoin miners are part of this organization - they should be, after all the dirtiest bitcoin mining takes place in China's infamous Xinjiang region - but it's a start, and if indeed we are about to see mining standardization, one which pushes more output to the US and other "clean" regions, this could be just the catalyst that eliminates the biggest ESG complaint against cryptos.

The damage control tweets hit shortly after a $1 billion trade was observed via Tether, with some wondering if Musk may have been behind it as he sought to stabilize a furious selloff that would have dire consequences for Tesla's income statement and balance sheet.

Parallel to this, and perhaps realizing that there are no developers for his favorite joke currency, Musk also tweeted that he is now soliciting Dogecoin developers. Good luck.

In any case, the market which plunged in the past week after Elon triggered a selling avalanche which saw China pile on and lead to a 50% crash in bitcoin from its highs, was delighted by this development and sent bitcoin soaring almost $2K in minutes, surging just shy of $40,000 after hitting $30,000 a little over 24 hours ago.