Malikie Innovations, which acquired over 32,000 patents from BlackBerry in 2023, has filed lawsuits against major Bitcoin mining firms Marathon Digital and Core Scientific. At the heart of the dispute lies elliptic curve cryptography (ECC), a core component of Bitcoin’s blockchain protocol.

Cryptography Under Scrutiny

According to Malikie, the ECC techniques used by Bitcoin are protected under patents they now hold. Their lawsuit claims that these mining companies have been infringing on their intellectual property by supporting Bitcoin operations with ECC-based methods.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

What’s more, Malikie seeks damages for up to six years of retroactive royalties. If awarded, the damages could be significant—possibly severe enough to force companies like Core Scientific into financial distress.

Could The Entire Network Be at Risk?

Experts suggest that a victory for Malikie might set a dangerous precedent. Other miners in the US could become targets, and the case could raise concerns over the legal stability of Bitcoin’s cryptographic foundation.

However, industry analysts like Niko Demchuk from AMLBot believe Malikie’s claims may not hold up. He suggests the patents in question may be expired or cover techniques predating Bitcoin’s implementation of ECC.

This is not the first intellectual property challenge in the crypto world. In the past, figures like Craig Wright have made failed attempts to claim ownership of Bitcoin’s underlying technologies. But this case serves as a reminder: even decentralized networks aren’t immune to centralized legal disputes.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Miners Face Lawsuit Over Cryptography Patents in the US appeared first on Coin Engineer.

Bitcoin miners sold more BTC than they produced in April, reaching the highest sell-off rate since the 2022 bear market. According to TheMinerMag, publicly traded miners sold 115% of their production, marking a significant record. 

This aggressive selling came just before Bitcoin hit an all-time high of $109,000 in May. However, this price surge did not deliver the expected revenue increase for bitcoin miners. Rising hashrate and declining transaction fees significantly reduced bitcoin miners income. As a result, many companies rapidly sold off their reserves to stay afloat. Notably, the 15,000 BTC sale on April 7 was the third-largest outflow of the year. 

Hashrate Rises, Profitability Declines 

Analysts Jonathan Petersen and Jan Aygul stated, “BTC mining profitability fell 6.6% in April due to a 6.7% increase in network hashrate.” This statement clearly highlights the challenges faced by the industry. 

According to a Jefferies report, U.S.-based publicly traded mining companies produced 3,277 BTC in April, a notable decline from 3,534 BTC in March. Their share of the network also dropped from 24.8% to 24.1%. Hashprice (earnings per unit of computing power) fell from $63/PH/s in December to $55/PH/s in April. This decline directly impacted mining revenues, forcing companies to sell BTC. 

Bitcoin Nears $110K as Institutional Interest Surges

Despite these challenges, some companies continue to expand capacity. CleanSpark increased its hash power to 42 EH/s, maintaining its growth strategy. MARA Holdings, with 57.3 EH/s, remains the industry leader. However, these investments often create more operational pressure in the short term rather than boosting revenue. Still, they stand out as a key strategy for firms aiming for long-term positioning. Rising energy costs, tax pressures, and intensifying competition continue to challenge mining companies. Nevertheless, Bitcoin’s price increase still offers promising signals for the sector. 

The high rate of BTC sales by miners in April is a clear indicator of market pressure. Declining profitability, rising hashrate, and low transaction fees pushed companies to sell more than they produced. 

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Miners Sold Record Amount of BTC! appeared first on Coin Engineer.