diff --git a/bin/katana/src/args.rs b/bin/katana/src/args.rs
index f8dc48623c..bd42cb97e4 100644
--- a/bin/katana/src/args.rs
+++ b/bin/katana/src/args.rs
@@ -177,7 +177,7 @@ impl KatanaArgs {
     pub fn init_logging(&self) -> Result<(), Box<dyn std::error::Error>> {
         const DEFAULT_LOG_FILTER: &str = "info,executor=trace,forked_backend=trace,server=debug,\
                                           katana_core=trace,blockifier=off,jsonrpsee_server=off,\
-                                          hyper=off,messaging=debug";
+                                          hyper=off,messaging=debug,node=error";
 
         let builder = fmt::Subscriber::builder().with_env_filter(
             EnvFilter::try_from_default_env().or(EnvFilter::try_new(DEFAULT_LOG_FILTER))?,
diff --git a/crates/katana/core/src/sequencer.rs b/crates/katana/core/src/sequencer.rs
index 16c3ca9b7e..adcf173916 100644
--- a/crates/katana/core/src/sequencer.rs
+++ b/crates/katana/core/src/sequencer.rs
@@ -76,7 +76,9 @@ impl KatanaSequencer {
         let block_producer = if config.block_time.is_some() || config.no_mining {
             let block_num = backend.blockchain.provider().latest_number()?;
 
-            let block_env = backend.blockchain.provider().block_env_at(block_num.into())?.unwrap();
+            let mut block_env =
+                backend.blockchain.provider().block_env_at(block_num.into())?.unwrap();
+            backend.update_block_env(&mut block_env);
             let cfg_env = backend.chain_cfg_env();
 
             if let Some(interval) = config.block_time {
@@ -551,3 +553,32 @@ fn filter_events_by_params(
     }
     (filtered_events, index)
 }
+
+#[cfg(test)]
+mod tests {
+    use katana_provider::traits::block::BlockNumberProvider;
+
+    use super::{KatanaSequencer, SequencerConfig};
+    use crate::backend::config::StarknetConfig;
+
+    #[tokio::test]
+    async fn init_interval_block_producer_with_correct_block_env() {
+        let sequencer = KatanaSequencer::new(
+            SequencerConfig { no_mining: true, ..Default::default() },
+            StarknetConfig::default(),
+        )
+        .await
+        .unwrap();
+
+        let provider = sequencer.backend.blockchain.provider();
+
+        let latest_num = provider.latest_number().unwrap();
+        let producer_block_env = sequencer.pending_state().unwrap().block_execution_envs().0;
+
+        assert_eq!(
+            producer_block_env.number,
+            latest_num + 1,
+            "Pending block number should be latest block number + 1"
+        );
+    }
+}
diff --git a/crates/katana/core/src/service/mod.rs b/crates/katana/core/src/service/mod.rs
index 30635cc89d..3b803f83da 100644
--- a/crates/katana/core/src/service/mod.rs
+++ b/crates/katana/core/src/service/mod.rs
@@ -9,7 +9,7 @@ use futures::channel::mpsc::Receiver;
 use futures::stream::{Fuse, Stream, StreamExt};
 use katana_primitives::transaction::ExecutableTxWithHash;
 use starknet::core::types::FieldElement;
-use tracing::trace;
+use tracing::{error, trace};
 
 use self::block_producer::BlockProducer;
 use crate::pool::TransactionPool;
@@ -68,7 +68,7 @@ impl Future for NodeService {
                     }
 
                     Err(err) => {
-                        trace!(target: "node", "failed to mine block: {err}");
+                        error!(target: "node", "failed to mine block: {err}");
                     }
                 }
             }
diff --git a/crates/katana/storage/provider/tests/block.rs b/crates/katana/storage/provider/tests/block.rs
index 93701dc1bb..e98f871c89 100644
--- a/crates/katana/storage/provider/tests/block.rs
+++ b/crates/katana/storage/provider/tests/block.rs
@@ -8,7 +8,7 @@ use katana_provider::providers::db::DbProvider;
 use katana_provider::providers::fork::ForkedProvider;
 use katana_provider::providers::in_memory::InMemoryProvider;
 use katana_provider::traits::block::{
-    BlockHashProvider, BlockProvider, BlockStatusProvider, BlockWriter,
+    BlockHashProvider, BlockNumberProvider, BlockProvider, BlockStatusProvider, BlockWriter,
 };
 use katana_provider::traits::env::BlockEnvProvider;
 use katana_provider::traits::state::StateRootProvider;
@@ -69,6 +69,9 @@ where
             Default::default(),
             receipts.clone(),
         )?;
+
+        assert_eq!(provider.latest_number().unwrap(), block.block.header.header.number);
+        assert_eq!(provider.latest_hash().unwrap(), block.block.header.hash);
     }
 
     let actual_blocks_in_range = provider.blocks_in_range(0..=count)?;