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Arbitrum (ARB) wanted to join Nvidia’s Ignition AI Accelerator program but was reportedly turned down as part of the chipmaker’s risk control strategy.
The Layer-2 (L2) network has been strategically attempting to rebuild its reputation amid an ongoing struggle to recover from an 85% price dip.
Nvidia Turns Down Arbitrum’s Bid
Reports indicate that Arbitrum had originally planned to be the Ethereum partner in Nvidia’s Ignition AI Accelerator program. However, the L2 network was reportedly turned down at the last moment.
As it happened, the American multinational technology company prefers to avoid crypto firms for risk control purposes.
“Nvidia recently explicitly excluded cryptocurrency-related projects from its Inception program,” Wu Blockchain reported.
Indeed, when Nvidia launched its accelerator program, the firm articulated on the application page that crypto-related firms would not be eligible.
“The following types of organizations do not qualify for membership: Consulting and outsourced development firms, companies associated with cryptocurrency, cloud service providers, resellers and distributors, and public companies,” read an excerpt on the application page.
This stance presents a calculated risk to preserve the GPU giant’s AI-first brand identity. Nevertheless, some say the move could stifle innovation as artificial intelligence and decentralized systems tend to intersect.
“The recent announcement by Nvidia to exclude cryptocurrency-related projects from its Inception program raises questions about the future of collaboration between traditional tech giants and the blockchain sector,” one user shared on X (Twitter).
Arbitrum is Ethereum’s largest layer-two scaling solution, trailed by other players in the same space, including Optimism (OP). Data on L2Beats shows Arbitrum One, the optimistic rollup that inherits Ethereum’s security by posting transactions on-chain, leads L2s in TVL metrics.
While Arbitrum leads L2 scaling solutions, it remains well below its December 6, 2024, high of $1.2384. Against this backdrop, the network has been taking steps to recover.
Among them is a token buyback initiative in March to strengthen its ecosystem and absorb supply shocks due to a massive token unlock event. For a time, the initiative worked, buoying ARB price 36% before the downtrend continued, bottoming out at $0.2420 on April 7.
Nevertheless, analysts suggested more interventions with the token still over 70% below its December highs. Yogi, a well-known wallet maxi, said strategies like token buybacks lack long-term vision as they signal a slowdown in innovation.
Similarly, a Messari Crypto researcher, Patryk, suggested that Arbitrum remains flexible and deploys funds into strategic areas over time rather than committing to a rigid framework such as token buybacks.
“I think projects will do this eventually. It’s just difficult to announce a concrete plan for the funds at the beginning of buybacks, like those that Arbitrum just announced. Remain flexible,” the researcher suggested.
Accordingly, Arbitrum may have considered pivoting to Nvidia’s accelerator program for a competitive edge. Now that this plan has fallen, Aributrum faces an ARB airdrops proposal to incentivize early supporters.
Bitcoin’s mining difficulty surged to an all-time high of 127.6 trillion in August 2025. The move reflects a continued expansion of global computational power, securing the network.
However, despite the increased technical challenge, miner profitability is quietly climbing, a rare dynamic analysts say could signal a new phase in the Bitcoin (BTC) market cycle.
Bitcoin Mining Difficulty Hits Record High
The next mining difficulty adjustment, expected on August 9, is projected to lower the metric slightly to around 124.71 trillion.
This adjustment aims to bring the average block time back to the 10-minute target, down from the current 10 minutes and 23 seconds.
These periodic recalibrations are fundamental to Bitcoin’s design. They maintain consistent issuance and network stability despite fluctuations in hash rate.
The anomaly, however, is that higher Bitcoin mining difficulty has not translated into squeezed margins for miners.
Quite the opposite, network data showing miner revenues have reached a post-halving peak of $52.63 million per exahash daily.
“Bitcoin Miners Revenue Per Day is at a current level of 52.63M, down from 56.35M yesterday and up from 25.64M one year ago. This is a change of -6.61% from yesterday and 105.3% from one year ago,” analysts at ychart.com indicated.
This is a strong signal, considering rising energy costs and an increasingly competitive mining playing field.
In a recent post, Blockware Intelligence, a Bitcoin mining analytics firm, highlighted this divergence.
“The bull case for Bitcoin mining? BTC/USD increasing faster than mining difficulty. Over the past 12 months: > BTC/USD +75% > Mining Difficulty: +53%. Profit margins for Bitcoin miners are increasing,” the firm stated in a recent post.
Rising Profit Margins Signal Bullish Shift
Historically, such a dynamic, where the Bitcoin price rises faster than mining difficulty, has occurred during the early stages of bullish market cycles. Similar patterns were observed in 2016 and again in mid-2020, which preceded major price rallies.
The growing profitability also reflects deeper demand dynamics, with data showing the current Kimchi premium in South Korea stands at +0.6%. Notably, this indicates a strong regional appetite for BTC.
That, paired with the deployment of more efficient ASIC machines and rising institutional mining investments, suggests the mining sector is both healthy and optimistic about Bitcoin’s medium-term trajectory.
Beyond miner margins, Bitcoin’s scarcity narrative remains intact. With over 94% of the total 21 million BTC already mined, the pioneer crypto’s stock-to-flow ratio now stands at approximately 120, double that of gold.
Still, the broader market has yet to price in the network’s improving fundamentals. After the July highs, Bitcoin retraced to levels below $115,000, signaling a temporary decoupling between on-chain technical health and investor sentiment.
Analysts attribute this disconnect to macroeconomic headwinds, trade policies, and shifting capital flows. Meanwhile, miners appear to be front-running the rest of the market.
The combination of rising difficulty, increasing margins, and strong regional demand could mark a turning point in mining economics and Bitcoin’s broader cycle. If history rhymes, the network’s growing strength may soon echo in price.