Crypto Updates: IMF Flags Concerns Over Pakistan's Mining Power Allocation

Pakistan's recent move to attract autonomous miners, blockchain firms, and AI companies has drawn scrutiny from the International Monetary Fund (IMF). The project, which was authorized by the Finance Ministry on May 21, includes the establishment of the Pakistan Digital Asset Authority and specific electricity allocations.

According to a Cointelegraph article citing local outlet Samaa, the IMF was not consulted prior to the announcement and has since raised concerns over the legality of crypto mining in the country. The Fund also wants to know how electricity will be used for cryptocurrency activities, particularly given Pakistan's ongoing power outages and financial difficulties.

As part of ongoing virtual discussions with Pakistani officials, the IMF is likely to schedule a dedicated session to review the government's electricity plan for Bitcoin mining and AI projects.

A Pakistan government official expressed concerns that the IMF may intensify talks over the initiative, adding pressure to the economic team amid ongoing negotiations. Meanwhile, Pakistan has come in a deal with WLF, reportedly 60 per cent owned by the Trump family, to revamp its cryptocurrency strategy and expand its digital finance sector.

BlackRock Bitcoin ETF's 31-Day Inflow Streak Ends With Big Outflow

BlackRock's iShares Bitcoin Trust (IBIT) ended its impressive 31-day inflow streak on May 30, recording its largest single-day outflow of $430.8 million since launching in January 2024, according to data cited by Cointelegraph from Farside Investors. This outflow surpassed its previous record of $418.1 million registered in February.

Despite this reversal, ETF analyst Nate Geraci noted that the month-long run had been one of the most notable streaks in the ETF space. He pointed out that BlackRock now has close to $70 billion in Bitcoin holdings, which shows how quickly the Fund has accumulated assets and how confident investors have become in it in a short amount of time.

The broader US spot Bitcoin ETF market also showed signs of weakness, posting a second consecutive day of net outflows. On May 30, all 11 spot Bitcoin ETFs collectively saw withdrawals totalling $616.1 million. It's significant to note that on May 29, BlackRock was the only one to report inflows, while other issuers reported redemptions. Some have interpreted this as a calculated display of conviction in the face of shifting market sentiment.

Michael Saylor Indicates Another Bitcoin Acquisition by Strategy

Strategy co-founder Michael Saylor hinted at another Bitcoin purchase, marking the eighth consecutive week of acquisitions by the company. Sharing a Bitcoin chart with the caption "Orange is my preferred color," Saylor engaged his 4.4 million followers on X, where his influence has grown due to Strategy's aggressive corporate treasury Bitcoin strategy.

According to Bitcoin Treasuries data, Strategy is the largest known Bitcoin holder, with holdings surpassing those of the US and Chinese governments combined. The company has become a popular proxy for Bitcoin exposure among traders.

While some market participants have expressed skepticism about Strategy's actual Bitcoin holdings, citing the lack of regular proof-of-reserve audits. When asked about this, Saylor clarifieda that these audits reveal wallet information to possible threat actors, which puts big institutions at risk for security breaches.