Shalini Nagarajan

“Shark Tank” investor <a href="https://blockworks.co/tag/mark-cuban">Mark Cuban</a> filed a motion arguing the Voyager class-action lawsuit in which he was accused of promoting a “Ponzi scheme” should be moved from Florida to Texas.



The transfer of venue declarations were made by Sigmund Wissner-Gross, a partner at Brown Rudnick and counsel to Cuban and his team, along with Mavericks employee Ryan Mackey.



A <a href="https://storage.courtlistener.com/recap/gov.uscourts.flsd.618110/gov.uscourts.flsd.618110.89.0.pdf" target="_blank" rel="noreferrer noopener">court filing</a> released Tuesday doesn’t include the full details regarding their intent to move the case, as Cuban and the Mavericks have asked the court to file their motion under seal, a procedure allowing the defendants to keep contents hidden so that the information in them doesn’t become public record.



Confidential information, such as the plaintiffs’ Voyager account information, their addresses and the last four digits of their social security numbers, were redacted in the filings.



Wissner-Gross’ declaration also included excerpts from Voyager’s agreement with Dallas Basketball, which they want to be kept private because of a confidentiality clause that prohibits its public distribution.



Voyager investors put forward <a href="https://blockworks.co/news/lawsuit-likens-voyager-to-ponzi-sues-mark-cuban-for-promotion">allegations against Cuban</a> and CEO Steve Ehrlich last year, saying they personally reached out to potential customers to convince them into putting money into the “deceptive platform.” His NBA team, the Dallas Mavericks, was also named as a defendant in the suit. 



They “went to great lengths to use their experience as investors to dupe millions of Americans into investing,” the complaint said.



Cuban has now said that the investor plaintiffs engaged in “transparent forum shopping and gamesmanship,” according to <a href="https://www.law360.com/cybersecurity-privacy/articles/1571285" target="_blank" rel="noreferrer noopener">Law360</a>.



Blockworks has reached out to Cuban and attorney Wissner-Gross for comment.



Cuban is scheduled to be deposed as part of the lawsuit on Feb. 2 in Dallas, Texas. Mackey and Kyle Tapply, team executives for corporate partnerships at the Mavericks, are also set to be deposed before Feb. 23.



Voyager <a href="https://blockworks.co/news/voyager-files-for-bankruptcy-days-after-freezing-withdrawals">filed for bankruptcy</a> in July after suffering massive losses from its exposure to crypto hedge fund Three Arrows Capital, with Sam Bankman-Fried’s Alameda Research listed as its biggest creditor.



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Mark Cuban Accuses Plaintiffs Suing Him of ‘Forum Shopping and Gamesmanship’

Ben Strack

<div id="highlights-block_634d9f6881df4" class="highlights">
 <ul>
 <li>Riot Blockchain seeks to more than double its current capacity to 12.5 exahashes per second by the first quarter of 2023</li>
 <li>Closer relationships between bitcoin miners and energy grids will be critical for the space going forward, CEO says</li>
 </ul>
 
</div>



Riot Blockchain is one of the “best-positioned acquirers” in the mining space, the company’s CEO said — a segment many say is primed for consolidation during the crypto winter.



But Riot’s CEO Jason Les said that the company is not necessarily seeking out scale in potential deals, as it is busy fulfilling its own expansion.&nbsp;&nbsp;


<div class="wp-block-image">
<figure class="alignright size-medium"><img decoding="async" loading="lazy" width="300" height="300" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png" alt="" class="wp-image-34691" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=150 150w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=256 256w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=260 260w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=218 218w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=50 50w, https://blockworks-co.imgix.net/wp-content/uploads/2022/10/Riot-Blockchain-CEO-Jason-Les--300x300.png?w=1012 1012w" sizes="(max-width: 300px) 100vw, 300px" /><figcaption>Riot Blockchain CEO Jason Les | Source: @JasonLes_ Twitter</figcaption></figure></div>


The Colorado-based company had 55,728 active miners with a hash rate capacity of 5.6 exahashes per second (EH/s) as of Sept. 30. Riot Blockchain is set to receive 5,000 S19-series miners from Bitmain Technologies this month and seeks to reach 12.5 EH/s during the first quarter of 2023.



“It is a sprint,” Les said. “It is an all-hands-on-deck effort to build this infrastructure and get these miners deployed…to get this hash rate up as fast as possible.”



<h3>Mining M&amp;A to come?&nbsp;</h3>



Riot Blockchain is one of the largest publicly traded miners in a space that grew quickly but now must handle a downturn that for many has cut off access to capital.&nbsp;



It had $270 million in cash on its balance sheet at the end of the second quarter. Though Les declined to comment on the company’s current cash on hand — the company will reveal its third quarter results next month — Riot Blockchain held 6,775 bitcoins at the end of September.&nbsp;



<blockquote class="wp-block-quote">“If we have the opportunity to acquire hash rate at a very accretive price, then it becomes interesting,” he told Blockworks.</blockquote>



“Strategically, it’s hard to see anything really adding on. It’s just making a big thing bigger, so what is the price we can get that at, and what is that going to add to our financial results,” he added.



Other executives at larger mining companies have expressed hesitation to acquire in the current market environment. Marathon Digital CEO Fred Thiel <a href="https://cms.blockworks.co/marathon-ceo-building-more-attractive-than-buying-right-now/" target="_blank" rel="noreferrer noopener">told Blockworks last week</a> that it’s more prudent, in many cases, for large bitcoin miners to build than it is to buy.



Riot Blockchain is no stranger to acquisitions. It completed its acquisition of Whinstone’s 100-acre bitcoin mining site in Rockdale, Texas in May 2021. It then revealed, in December, its buy of ESS Metron, a designer and producer of electrical equipment that the company said would help it obtain critical infrastructure to install miners more quickly.



Les pointed to the latter deal as “a huge leap” in the company’s effort to vertically integrate.



“There’s always the potential for those types of acquisitions as well — a company that supports the vertical integration strategy that maybe is not specifically in bitcoin mining themselves,” he added.&nbsp;&nbsp;



As for the space more broadly, Les said he expects mergers and acquisitions among smaller miners that grew too quickly during the bull market last year. Other mining companies, he added, will go bankrupt or seek to go private in an effort to reduce the complexity of their business.



“Consolidation for the sake of consolidation doesn’t make sense,” the Riot Blockchain CEO said. “There has to be a synergistic benefit that’s coming to the table for the two companies, so how those pieces on the chess board come together I’m not sure.”



<h3>A focus on building in Texas</h3>



Though Thiel said Marathon Digital was exploring potential options to expand globally as mining in Texas was getting crowded, Les said Riot Blockchain would continue focusing on expansion in the state.



The company’s relationships in Texas helped it secure a site that intends to host 1 gigawatt of capacity in Navarro County about an hour outside of Dallas, Les said — a deal revealed in April.&nbsp;



“Not deep West Texas…but in an area that has a community that we could partner with and that’s only two hours away from our existing facility in Rockdale,” Les said. “There’s a lot of advantages we have from keeping things relatively local, being able to move people and resources between sites and being able to leverage relationships.”



The deregulated power market is also very attractive in Texas, the executive added. <a href="https://www.ercot.com/" target="_blank" rel="noreferrer noopener">The Electric Reliability Council of Texas</a> (ERCOT) operates more than 1,000 power generation units that represent roughly 90% of the state’s power load.



Les said the closer relationships between bitcoin miners and energy grids will be critical for the space, as mining can monetize energy that would otherwise be wasted.



Riot participated in ERCOT’s Four Coincident Peak (4CP) program from June through September — which allows businesses to reduce energy consumption in exchange for electric bill savings.



“Bitcoin mining has a real opportunity to become a part of our energy grid all over the place,” Les said. “That’s going to make the energy grid better, and that’s going to demonstrate the strength and resiliency, and the value-add, of bitcoin mining.”





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Riot Blockchain CEO: Firm Is One of Mining Space’s ‘Best-positioned Acquirers’

Casey Wagner

<div id="highlights-block_634d8a3e9091f" class="highlights">
 <ul>
 <li>FTX Trading, FTX US and SBF are all targets of a state regulator investigation</li>
 <li>Regulators note confusion between FTX Trading and FTX US offerings in the filing</li>
 </ul>
 
</div>



The Texas State Securities Board is investigating FTX affiliate FTX US over alleged unregistered securities offerings, the regulator revealed Monday.



The state regulator claimed in the filing that FTX US’s yield-bearing account offerings are classified as unregistered securities. Texas authorities compared FTX US’ offering, which gives users up to <a href="https://twitter.com/BrettHarrison88/status/1417578618243387392?s=20&amp;t=4KbCU_zVvzFcFSu_kBOBqw" target="_blank" rel="noreferrer noopener">8% annual percentage yield</a> on their first $10,000 investment, to <a href="https://cms.blockworks.co/voyager-to-liquidate-assets-at-auction/" target="_blank" rel="noreferrer noopener">now-bankrupt crypto lender Voyager Digital</a>’s product.&nbsp;



“FTX US…may be offering unregistered securities in the form of yield-bearing accounts to residents of the United States,” a state <a href="https://cases.stretto.com/public/x193/11753/PLEADINGS/1175310142280000000134.pdf" target="_blank" rel="noreferrer noopener">filing</a> stated. “These products appear similar to the yield-bearing depository accounts offered by Voyager Digital LTD et al., and the Enforcement Division is now investigating FTX Trading, FTX US, and their principals, including Sam Bankman-Fried.”&nbsp;



In the filing, a state regulator claims that yield-earning accounts were offered to a US resident. The regulator claims that US residents are directed to use the FTX Trading app, even though these services are not available in the US.&nbsp;



<a href="https://cms.blockworks.co/brett-harrison-leaving-ftx-us-moving-into-advisory-role/" target="_blank" rel="noreferrer noopener">Former FTX US President Brett Harrison</a> confirmed in July 2021 that the exchange’s yield offerings were available to any user that has access to FTX or FTX US.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">How this works: -earn 8% APY on first $10k, 5% APY on everything above that -you can earn on any fiat or crypto -yield is rewarded hourly and you can withdraw at any time -available in every FTX US and FTX jurisdiction -available on @blockfolio app for now, more to come later <a href="https://t.co/IGlEmyt7Od">https://t.co/IGlEmyt7Od</a>&mdash; Brett Harrison (@BrettHarrison88) <a href="https://twitter.com/BrettHarrison88/status/1417578618243387392?ref_src=twsrc%5Etfw">July 20, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“We have been in talks with the Texas state regulator for a while,&#8221; a spokesperson from FTX said. &#8220;We have an active application for a license which has been pending, and believe we are operating fully within the bounds of what we can do in the interim. We look forward to continue working with Texas.&#8221; 



Given that FTX Trading is headquartered in the Bahamas and incorporated in Antigua and Barbuda and is not available in the US, it is unclear how much authority the state regulator may have.&nbsp;



State regulators also pointed to the exchange’s current registrations in the filing, noting that FTX.US is not currently registered as a money transmitter with the Texas Department of Banking nor is it registered as a securities dealer with the Texas State Securities Board.&nbsp;



“FTX Trading and FTX US may not be fully disclosing all known material facts to clients prior to opening accounts and earning yield, thereby possibly engaging in fraud and/or making offers containing statements that are materially misleading or otherwise likely to deceive the public,” the filing added.



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Texas State Securities Board Investigating FTX US, Sam Bankman-Fried

<div id="highlights-block_62f143dce940f" class="highlights">
 <ul>
 <li>Celsius has failed to outline how it plans to benefit its creditors with the sale proceeds, board members added</li>
 <li>The company filed for bankruptcy on July 13 and listed a $1.2 billion shortfall on its balance sheet</li>
 </ul>
 
</div>



Texas regulators have asked a US bankruptcy court to deny Celsius’ request to monetize its mined bitcoin, saying it’s concerned about how the proceeds would be used.



In a <a href="https://assets.law360news.com/1518000/1518827/objection.pdf">formal objection</a> filed on Friday, shared by Law360, the Texas State Securities Board (SSB) said Celsius’ past admittedly involves “problematic asset deployment decisions, using the mined bitcoin to repay intercompany loans, potential mismanagement, and a continued failure to comply with state regulatory requirements.”



Celsius has failed to outline how it plans to benefit its creditors with the sale proceeds, board members added.



&#8220;The SSB does not object, generally, to [Celsius&#8217;] sale of its mined bitcoin for the benefit of the estate; however, the SSB is extremely concerned by [Celsius’] request for a comfort order that allows ambiguously broad authority to use these assets,&#8221; regulators said.



Celsius is among the highest-profile crypto lenders burned by the recent market downturn, driven by TerraUSD’s (UST) crash and the collapse of crypto hedge fund firm <a href="https://cms.blockworks.co/tag/three-arrows-capital/">Three Arrows Capital</a>.&nbsp;



The company filed for bankruptcy on July 13 and listed a <a href="https://cms.blockworks.co/celsius-faces-heat-for-1-2b-balance-sheet-hole-customers-owed-4-7b/" target="_blank" rel="noreferrer noopener">$1.2 billion shortfall</a> on its balance sheet. The firm, which owes over $4.8 billion to its users alone, is trying to find liquidity to repay creditors.&nbsp;



Its native token, CEL, now trades for more than double its two-year lows recorded after it locked accounts in early June, but still 65% below its price at the start of the year.



Celsius considers its bitcoin mining business key to its restructuring efforts, it said in a recent <a href="https://pacer-documents.s3.amazonaws.com/115/312902/126122257414.pdf" target="_blank" rel="noreferrer noopener">filing</a>, believing it could generate revenue for the future and for loan repayments. 



The lender projected to generate 10,118 BTC ($243 million) in 2022 and 15,000 BTC ($361 million) in 2023 and claimed to own 80,850 bitcoin rigs with about 43,600 in operation.&nbsp;



“The debtors [Celsius] should not be granted permission carte blanche to transfer and dispose of assets of the bankruptcy estate without oversight, and because of the substantial risk to creditors of the estate, should not be allowed to further hypothecate or invest mined bitcoin in an unstable and highly fluctuating market,” the board wrote.



Texas is one of at least <a href="https://cms.blockworks.co/5th-regulator-investigates-beleaguered-crypto-lender-celsius/" target="_blank" rel="noreferrer noopener">five states</a> that opened investigations into Celsius shortly after it froze customer funds.



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Celsius Wants to Sell its Mined Bitcoin. Texas Regulators Don’t Trust It.

Bessie Liu

<div id="highlights-block_62ab749cc4df7" class="highlights">
 <ul>
 <li>Celsius froze withdrawals of user assets earlier this week, citing market conditions</li>
 <li>Regulators want to ensure incidents like this do not occur again</li>
 </ul>
 
</div>



Five state regulators have opened investigations into the dealings of Celsius, the cryptocurrency lender now in limbo after suddenly freezing withdrawals due to “extreme” market conditions.&nbsp;



The Texas State Securities Board unveiled its probe into the company’s activities on Thursday.&nbsp;



Four states — Alabama, Kentucky, New Jersey and Washington — are set to join Texas, <a href="https://www.reuters.com/markets/us/exclusive-texas-securities-regulator-is-probing-celsius-account-freeze-official-2022-06-16/" target="_blank" rel="noreferrer noopener">Reuters reported</a>.&nbsp;



Officials had been investigating the matter since Monday morning and the situation has been considered a “priority.”



The crypto industry has been under scrutiny since the collapse of the stablecoin UST, which sent shockwaves across the market after it wiped out <a href="https://cms.blockworks.co/how-cryptoasset-markets-have-changed-since-terra-crash/" target="_blank" rel="noreferrer noopener">billions of dollars</a>. This is the second major blow in as many months, leaving digital assets traders, service providers and investors under mounting duress.&nbsp;



Unlike traditional financial institutions, cryptocurrency lenders are not subject to many risk management and capital disclosures. Their deposits are not government-backed or otherwise insured.&nbsp;



It’s not the first time that Celsius has made its way into the forefront of regulators&#8217; radars. In September last year, Celsius was given a <a href="https://www.nj.gov/oag/newsreleases21/Celsius-Order-9.17.21.pdf" target="_blank" rel="noreferrer noopener">cease and desist letter</a> by state regulators in Alabama, New Jersey and Texas ordering that its products needed to be registered as securities.



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5th Regulator Investigates Beleaguered Crypto Lender Celsius

David Canellis

<div id="highlights-block_6274044c0931c" class="highlights">
 <ul>
 <li>Argo Blockchain stock surged up to 10% after saying its new flagship mine in Texas is ready to generate crypto next week</li>
 <li>The London-based company has borrowed nearly $100 million from NYDIG in the past few months to acquire mining rigs for the site</li>
 </ul>
 
</div>



Argo Blockchain says its new crypto facility in Texas is fully energized and ready to start mining next week.



Argo celebrates the milestone with an inauguration ceremony at the facility on Thursday afternoon. The company’s London-listed stock surged up to 10% on the announcement and currently sits about 7% above its previous close.&nbsp;



The 320-acre Dickens County plot, Helios, will serve as Argo’s flagship bitcoin mining operation moving forward. Argo has two smaller facilities in Quebec.



Argo <a href="https://www.theblockcrypto.com/post/123386/argo-filing-reveals-texas-mining-facility-could-cost-up-to-2-billion-to-build" target="_blank" rel="noreferrer noopener">projected</a> costs of up to $2 billion to get Helios online last November, <a href="https://www.londonstockexchange.com/news-article/ARB/2021-full-year-results/15428672" target="_blank" rel="noreferrer noopener">financed</a> by debt offerings and offloading some of the bitcoin it mines every month.



In fact, word <a href="https://www.coindesk.com/business/2022/05/04/argo-blockchain-borrows-70m-from-nydig-to-buy-mining-rigs/" target="_blank" rel="noreferrer noopener">broke</a> of a $70-million loan from crypto service provider NYDIG Wednesday, cash Argo will use to acquire more mining rigs — bringing the total loan above $97 million. Argo’s market capitalization is around $370 million.



&#8220;I&#8217;m extremely grateful to everyone who has been involved in the planning and execution of Helios,” CEO Peter Wall said in a statement. “We started construction on the facility in July 2021 and it is a tremendous achievement that the site will commence mining operations in less than 12 months.



The UK firm said the 20,000 Bitmain S1PJ Pro mining rigs bought last September are still being delivered and installed. Argo will continue receiving and installing the Bitmain machines in batches between May and October of this year but didn’t specify how many rigs were already housed at the site.



Argo also signed a different <a href="https://www.theblockcrypto.com/linked/137672/argo-blockchain-and-core-scientific-swap-bitcoin-mining-fleets" target="_blank" rel="noreferrer noopener">deal</a> with fellow mining org Core Scientific in March that sees the two companies swap thousands of ASICs. Argo intends to exchange its less powerful Antminer S9s – which were housed at Core Scientific – for more Bitmain S1PJ Pro machines.



Some of Core Scientific’s rigs have already been installed, with the rest to be delivered and set up throughout July. Argo will also be one of the first to receive Intel’s new mining chips, which are <a href="https://cms.blockworks.co/intel-unveils-latest-energy-efficient-asic-mining-chip/" target="_blank" rel="noreferrer noopener">pegged</a> as more efficient than some off-the-shelf ASICs currently available.



Right now, Argo <a href="https://argoblockchain.com/" target="_blank" rel="noreferrer noopener">wields</a> 1.605 exahashes per second (EH/s), equivalent to about 0.7% of Bitcoin’s hash rate. Marathon Digital Holdings, the largest crypto mining company by market value, <a href="https://ir.marathondh.com/news-events/press-releases/detail/1281/marathon-digital-holdings-announces-bitcoin-production-and" target="_blank" rel="noreferrer noopener">maintained</a> 3.9 EH/s as of March – more than double Argo’s current capacity. 



Over the next few years, Argo says its new site will eventually harness 800 megawatts (MW) of electricity. This would surpass the 750 MW planned to flow through rival Riot Blockchain’s Texas <a href="https://www.cnbc.com/2021/10/31/bitcoin-mining-giants-bitdeer-riot-blockchain-in-rockdale-texas.html" target="_blank" rel="noreferrer noopener">site</a> in Rockdale, some 350 miles away.



Argo’s Helios will make do with just 200 MW for now, one-fifth of its targeted energy expenditure. The company reckons this will still boost its overall maximum hash rate by 243% to 5.5 EH/s by the end of the year.&nbsp;



If that happens, Argo could handle a hash rate of more than 20 EH/s overall, equal to around 9% of the Bitcoin network’s current capacity.



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Argo Stock Jumps as it Celebrates Opening of Texas Bitcoin Mine

<div id="highlights-block_626818e67aa35" class="highlights">
 <ul>
 <li>The Texas Blockchain Council has donated three bitcoin mining machines to the Fort Worth City Council</li>
 <li>The program will run for six months before officials evaluate its impact and value</li>
 </ul>
 
</div>



The city of Fort Worth, Texas, says it will start mining bitcoin on Tuesday, potentially becoming the first US city to do so, city authorities said.&nbsp;



The Texas Blockchain Council, a nonprofit association made up of companies and individuals that work in the blockchain industry, donated three Bitmain s9 bitcoin mining machines to Fort Worth, enabling the city to launch what it calls “a mining pilot program.” The Fort Worth City Council voted to <a href="https://fortworthgov.legistar.com/LegislationDetail.aspx?ID=5563861&amp;GUID=6BD66773-EBE3-4BD3-99DE-B6A0FEADD72B" target="_blank" rel="noreferrer noopener">formally accept</a> the donations Tuesday. 



Beginning Tuesday afternoon, machines will run 24/7 in the information technology solutions department data center located at Fort Worth City Hall. The machines will be housed on a private network to minimize security risk, city authorities said.&nbsp;



“With blockchain technology and cryptocurrency revolutionizing the financial landscape, we want to transform Fort Worth into a tech-friendly city,” Fort Worth Mayor Mattie Parker said. “Today, with the support and partnership of [the] Texas Blockchain Council, we’re stepping into that world on a small scale while sending a big message — Fort Worth is where the future begins.”



Starting small with three machines will allow authorities to experiment with mining on a manageable scale, Parker added. After six months, city officials will evaluate the program.&nbsp;



The city expects that each machine will use the same amount of energy as a household vacuum cleaner, or about 3,900 to 4,000 watts, officials said. The cost of energy is expected to be offset by the value of the bitcoin mined, officials said, but despite the energy rate in Texas being lower than the national average, this may not be the case. The s9 miners, which were released in 2017, would only break even if the city can power them for about 2.5 cents per kilowatt-hour, <a href="https://www.cryptocompare.com/mining/calculator/btc?HashingPower=13.5&amp;HashingUnit=TH%2Fs&amp;PowerConsumption=3900&amp;CostPerkWh=0.025&amp;MiningPoolFee=1" target="_blank" rel="noreferrer noopener">according to CryptoCompare</a>.



The news comes as other local governments start to look into the crypto mining industry and energy usage as more miners move their operations to the US. New York state legislators are expected to vote on <a href="https://cms.blockworks.co/new-york-bill-banning-proof-of-work-crypto-mining-poised-to-advance/" target="_blank" rel="noreferrer noopener">a bill that would ban</a> proof-of-work cryptocurrency mining for at least two years as soon as this week. 



Texas, with its cheap energy and favorable regulations, has become a hotspot for miners in recent months. Seven large mining companies and 20 smaller ones are currently based in the state, according to data from the Texas Blockchain Council.&nbsp;



“Texas is an energy state and it has too much to gain,” said Colin Harper, head of content and research at Luxor Technologies, a mining services company working with the city of Fort Worth on the project. “Many politicians in Texas are starting to see the benefits bitcoin mining can bring, be those from tax revenue, job creation, or grid stabilizing.”



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Fort Worth Becomes First City to Mine Bitcoin

<div id="highlights-block_617a6a2ad200b" class="highlights">
 <ul>
 <li>Mavericks owner Mark Cuban has recently touted bitcoin and Ethereum, and his team began accepting dogecoin as a payment for merchandise earlier this year</li>
 <li>Voyager, which now has more than 2 million verified users, looking to expand to Europe in 2022</li>
 </ul>
 
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Voyager Digital has partnered with the Dallas Mavericks as crypto firms continue to infiltrate the sports realm to bolster brand awareness and drive cryptocurrency adoption.



As part of the five-year agreement, the two organizations will seek to make cryptocurrency more accessible through educational and community programs, as well as fan engagement promotions.&nbsp;



“There’s a lot of hype, there’s a lot of discussion, but most people don’t really understand the fundamentals behind it, and we’re really going to try to bring that level of education to our fans and to our joint customers,” Mavericks owner <a href="https://cms.blockworks.co/?s=mark+cuban" target="_blank" rel="noreferrer noopener">Mark Cuban</a> said during a press conference Wednesday.



He added during the event that he transferred a portion of his own Polygon (MATIC) tokens to the platform because Voyager paid a higher return rate than Aave, the application he was using before.



The partnership also includes naming rights to the Mavs Gaming Hub, the official gaming and event venue for the Mavs NBA 2K League team, which will be announced at a later date. There will also be on-rotation, digital, and in-arena signage during games.



“Blockchain, cryptocurrency, bitcoin have all been around for 10-plus years, but in the end people are just starting to learn about it,” said Steve Ehrlich, Voyager’s CEO and co-founder.



<blockquote class="wp-block-quote">“In the last nine months, we’ve seen an explosion of people having interest in cryptocurrency.”</blockquote>



Voyager Digital is a publicly traded cryptocurrency platform with more than 2 million verified users that allows investors to trade more than 60 currencies.&nbsp;



The company has partnered with the Mavericks because of the team’s leadership role in the NBA, established equity and recognition in crypto, as well as their fans&#8217; understanding and adoption of crypto, Ehrlich explained.&nbsp;



He noted that he wants to engage more with the Dallas community, and Texas overall, which he said has become a crypto hub. Ehrlich added that though Voyager is currently US-centric, the company is looking to expand its presence to Europe by the end of March 2022, starting with France.



The Mavericks began accepting dogecoin (DOGE) as a payment for merchandise in March, and also offered special pricing for those paying with the crypto asset during the organization’s summer sale. Despite dogecoin being created as a joke, Cuban previously told CNBC that “the community for DOGE is the strongest when it comes to using it as a medium of exchange.”&nbsp;



Cuban is bullish on bitcoin and ether. He posted on Twitter earlier this week that bitcoin’s huge advantage is that it has “zero competition” as a store of value. He also recently told CNBC that ether likely “has the most upside” as an investment.



Cuban argues that though coins like SHIB and DOGE are not investments, their low cost make them a potential good way to enter the crypto space and learn more about it.



The partnership is the latest example of Voyager, as well as other firms, gravitating toward partnerships with sports leagues and athletes to expand their presence.



Voyager announced an agreement in June with NASCAR driver Landon Cassill to pay him in a portfolio of cryptocurrency, including Litecoin and the Voyager Token. Last month, the company named NFL tight end Rob Gronkowski as a Voyager brand ambassador and shareholder.



FTX has also made sports partnerships a priority, becoming the first cryptocurrency exchange to sponsor a professional sports league with its five-year partnership with Major League Baseball.&nbsp;



It has tapped high-profile athletes such as Tom Brady, <a href="https://cms.blockworks.co/ftx-names-stephen-curry-a-global-ambassador/">Steph Curry</a> and, most recently, <a href="https://twitter.com/davidortiz/status/1453158138018947072">David Ortiz</a> to be brand ambassadors.



FTX also sponsored the Miami Heat’s sports arena as part of <a href="https://cms.blockworks.co/ftx-inks-135m-sponsorship-deal-for-miami-heat-arena/">a $135 million deal</a> in March.&nbsp;



“What FTX did with the Heat was great, and they’re also trying to push their retail software application,” Cuban said. “But at the same time, I think we’re trying to make this driven more towards education and exposing more people in an educated manner to crypto through Voyager.”