Latest news with #BTC-USD
Yahoo
5 days ago
- Business
- Yahoo
Bitcoin Just Flashed a $5 Million Warning--Here's What Traders Are Betting on Next
Bitcoin (BTC-USD) lost momentum on Friday, dropping to $114,762its lowest since July 11as investor appetite for risk assets softened. The pullback followed stronger-than-expected U.S. jobs data, which dented hopes for near-term Fed rate cuts. After hitting a record high of $123,205 earlier this month, fueled by optimism around U.S. regulation and institutional inflows, Bitcoin's rally has taken a breather. Ether traded flat, and XRP slipped roughly 3% in early New York hours. Rachael Lucas, crypto analyst at BTC Markets, noted that while the broader uptrend could still be intact, momentum has cooled and traders are cautious. Warning! GuruFocus has detected 7 Warning Signs with TSN. Some market watchers see the retreat as part of a broader consolidation phase rather than a breakdown. According to FxPro's Alex Kuptsikevich, the correction is healthy and necessary after recent highs. Even if the total crypto market cap falls back to $3.4 trilliondown from the $4 trillion peakit would still likely be viewed as profit-taking, not panic selling. That level remains a key threshold to watch for longer-term trend direction. The jobs data also ended a seven-day Asian equities rally, underscoring just how sensitive risk assets have become to shifting macro signals. Meanwhile, the derivatives market is flashing signs of rising caution. Prime broker FalconX reported a $5 million put option trade on Deribit, betting on Bitcoin falling to $110,000 by August 8. It's a notable hedge that reflects growing two-way risk. We expect to see further consolidation while Bitcoin remains below monthly trendline resistance, currently at around $125,000, said Tony Sycamore of IG Australia. That same level capped Bitcoin's last breakout attemptadding to the technical ceiling traders are watching as the next test of market conviction. This article first appeared on GuruFocus.
Yahoo
6 days ago
- Business
- Yahoo
Tesla Misses Out on Billions by Selling Bitcoin Early
Tesla (TSLA, Financials) is facing renewed scrutiny over its 2022 bitcoin exit, with CNBC reporting Thursday that the electric vehicle maker left billions on the table by offloading most of its crypto holdings before the recent surge in prices. The company revealed in its second-quarter earnings report that digital assets rose to $1.24 billion from $722 million a year earlier, reflecting bitcoin's sharp rebound. But had Tesla held onto the $1.5 billion worth it bought in 2021, CNBC said the stash would now be worth closer to $5 billion. Tesla sold roughly $936 million of bitcoin in mid-2022, when prices were about one-sixth of today's levels. CNBC estimated that this amount would now be worth more than $3.5 billion. Instead, the sale added short-term liquidity while missing long-term upside as bitcoin (BTC-USD) surged on lighter regulation and broader adoption under the Trump administration. The company's bitcoin gains still contributed $284 million to Tesla's net income of $1.17 billion in Q2, CNBC said. But that figure pales in comparison to what it could have been. While CEO Elon Musk has shifted Tesla's focus toward robotaxis and AI-powered humanoid robots, the company continues to rely on crypto-related windfalls to support profits. Tesla did not comment on CNBC's report. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
22-07-2025
- Business
- Yahoo
Trump Media stock tests the limits of bitcoin accumulation: Morning Brief
Strategy (MSTR) makes it look easy. Put larger amounts of bitcoin (BTC-USD) on your balance sheet and watch the numbers get bigger. The corporate finance maneuver has drawn a loyal following. But while executives are imitating the process, not everyone is replicating the results. On Monday, Trump Media (DJT) announced it had purchased $2 billion in bitcoin and related securities as part of its bitcoin treasury strategy. The move is the latest example of public companies purchasing bitcoin and, now, ethereum (ETH-USD) to capitalize on rising token prices. Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Counting those purchases, President Trump's namesake media group said bitcoin, the largest cryptocurrency, now comprises two-thirds of its total of $3 billion in liquid assets. But just because companies are trying to emulate Strategy's (né Microstrategy) astronomical success doesn't mean that they will. As my colleagues David Hollerith and Laura Bratton have reported, dozens of companies have increased their exposure to the digital asset since 2023. Eighty firms have adopted the 'bitcoin standard' by adding bitcoin to their treasury reserves, according to Bernstein analyst Gautam Chhugani and data tracked by Coinkite. But it isn't an infallible strategy. While Trump Media shares surged following the purchase announcement, the stock has been struggling. Shares are down more than 40% for the year. GameStop (GME), another imitator of Michael Saylor's bitcoin-holding company, has shed 25% so far this year. The meme stock turned "hodler" is down by roughly the same percentage since disclosing its bitcoin-accumulation program in May. Trump Media said it acquired the cryptocurrencies as part of a previously disclosed plan to become a bitcoin treasury company. And the purchase comes on the heels of a promising week in Washington for the crypto industry, which has lobbied for more favorable oversight. The biggest legislative victory yet arrived on Friday when President Trump signed into law a bill that establishes the first federal framework for dollar-backed stablecoins. (Trump and his family have several crypto ventures, including a startup that has launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo.) Read more: How would Trump's strategic bitcoin reserve work? None of the corporate adherents to the Strategy blueprint has managed to generate the same kind of performance, however. Shares of Strategy have more than doubled over the past year and have climbed roughly 50% year to date. After accounting for the company's latest purchases, Strategy now owns more than 3% of all the bitcoin ever minted. Wall Street's most popular bitcoin trade does have its critics. They often point to the dumbfounding arithmetic that Strategy is worth more than the value of the bitcoin it holds. Why not simply buy bitcoin, they implore investors. The answer to the question of why people are willing to pay a premium for Michael Saylor helps explain why Trump Media's stock chart doesn't look like Strategy's. Pivoting to crypto is one way to win. But it may not work for everyone. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
Its not just bitcoin. Companies are now adding ethereum to their balance sheets.
It's not just bitcoin (BTC-USD) that corporate treasuries are buying. A handful of firms are scooping up ethereum — or its native token, ether (ETH-USD) — as a way to gain exposure to the tech infrastructure behind decentralized finance and digital assets. So far, the companies taking this approach are mainly smaller names in the crypto world, such as BitMine Immersion Technologies (BMNR), chaired by Fundstrat's Tom Lee. One larger player — Coinbase Global (COIN), the parent company of trading network Coinbase — has more than $440 million in holdings, according to crypto and investment tracker CoinGecko. When Coinbase announced in a 2021 blog post that it would become the first publicly traded company to hold ethereum and other assets, in addition to bitcoin, it stated, "We believe that in the future, more and more companies will hold crypto assets on their balance sheet." Ethereum has surged 60% over the past month to hover near $3,800, its highest level since January. The second-largest cryptocurrency by market cap has yet to reclaim its 2021 high north of $4,600. Ethereum allows developers to write programs or contracts that run entirely on its blockchain, or network. It currently leads as the dominant infrastructure that allows businesses and consumers to transact with each other directly without banks, with a market share of more than 51%. "Ethereum lets anyone — whether it's a crypto project, a factory, an artist, an influencer — create their own token and thus their own community and incentivize communities with an economy basically," Ray Youssef, CEO of crypto marketplace NoOnes, told Yahoo Finance. He called tokenization ethereum's "killer app." "You could argue it has more utility than bitcoin," he said. That utility is why firms like BitMine and SharpLink Gaming have increasingly been raising capital to buy ETH, similar to how Strategy (MSTR) and a slew of other companies have added bitcoin to their balance sheets in recent months. Read more: Can you buy crypto with a credit card? See the pros and cons. As with bitcoin, the approach can be risky due to volatile prices. Ethereum prices tumbled in April when President Trump's "Liberation Day" tariffs announcement roiled markets. The rewards have not been as high as those that bitcoin has offered either: The return on ethereum year to date is 14%, versus bitcoin's 26%. Crypto miner BitMine Immersion Technologies recently announced it holds more than $1 billion in ethereum, or roughly 300,000 tokens. The company, which went public on June 5, has positioned itself as a pure-play on ethereum, betting that owning it is akin to owning the underlying infrastructure behind the convergence of crypto and financial services. "Acquiring $1 billion of ETH1 is a clear signal of our conviction in ethereum's long-term value," Jonathan Bates, CEO of BitMine, said in the press release announcing the news. He noted that the company was "committed to Ethereum's continued growth." BitMine shares surged 25% in one session last week after an SEC filing revealed that billionaire Peter Thiel purchased 9.1% of the firm's common stock through his investment funds. Gaming and sports betting company SharpLink Gaming (SBET) and blockchain tech firm BTCS (BTCS) have also pursued similar treasury strategies. Shares of each are up nearly 200% over the past month. Earlier this month, computing firm Bit Digital (BTBT) announced that it had shifted its entire treasury from bitcoin to ethereum. "We believe Ethereum has the ability to rewrite the entire financial system," Sam Tabar, CEO of Bit Digital, said in a press release. Year to date, the stock is up 17%. Ethereum's surge coincides with the GENIUS Act, landmark legislation signed by President Trump last Friday, moving through Congress. The new law regulates stablecoins, digital tokens backed by assets like the US dollar and short-term treasuries. Optimism over stablecoin's adoption has sent shares of issuer Circle (CRCL) up more than 600% since its IPO on June 5. The company's USD Coins (USDC-USD) run on ethereum. "If real companies and institutional investors are innovating on the blockchain, doesn't that make blockchain networks, and by implication, blockchain network assets (e.g ETH) valuable?" Bernstein's Gautam Chhugani asked in a note last month. "Any company that uses stablecoin tech pays transaction fees to the Ethereum network." To be sure, not all companies see the same value in ethereum as they do in bitcoin. When asked directly whether Strategy would add ETH to its holdings, executive chairman Michael Saylor said in an interview with The Street, "MicroStrategy wouldn't because MicroStrategy is 150% Bitcoin. We do Bitcoin, we're 150% Bitcoin. We're going to be Bitcoin. And the only thing I like more than Bitcoin is more Bitcoin." Indeed, ethereum is by no means replacing bitcoin as the investment of choice for companies, Sean Farrell, head of digital asset strategy at Fundstrat, told Yahoo Finance. Consider it an adjacent strategy. "I don't want people to misconstrue this movement from treasury companies to be viewed [as] ETH is replacing bitcoin. It's just blockchain technology applied in a different way for a different use case," Farrell said. "These companies are just capitalizing on the real world asset [tokenization] trends." Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices
Business Insider
19-07-2025
- Business
- Business Insider
Crypto Stock Pioneers COIN, CRCL, and MSTR Set to Capitalize on Latest Bitcoin Surge
Bitcoin (BTC-USD) has soared to a new all-time high of $122,757, pulling a wave of crypto-related stocks up with it. More broadly, the U.S. stock market offers several strongly performing crypto options for investors to consider, including Coinbase Global (COIN), Circle Internet Group (CRCL), and MicroStrategy (MSTR). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Whether you're a believer or a skeptic, it's becoming increasingly clear: Bitcoin—and the broader crypto ecosystem, including Ethereum (ETH-USD) and a host of altcoins—are cementing their place in the mainstream investment landscape. Crypto is gaining traction among both retail and institutional investors alike. Furthermore, a pro-crypto administration currently occupies the White House, and Ric Edelman, one of the nation's most influential financial advisors, has recently suggested allocating 10–40% of investment portfolios to crypto. The influential advisor has been bullish on crypto for several years, with TipRanks maintaining coverage throughout. Against this backdrop, here are three standout crypto stocks that equity investors may want to consider for gaining exposure to this rapidly expanding sector. Coinbase Global (NASDAQ:COIN) Any conversation about crypto-related stocks naturally starts with Coinbase (COIN)—the original publicly traded crypto giant and arguably still the most recognized name in the space. Its direct listing on the NASDAQ in 2021 marked a milestone moment, lending newfound legitimacy to the broader crypto industry. Coinbase is best known as a go-to exchange and brokerage platform for both retail and institutional investors. But its offerings extend well beyond trading: the company provides secure crypto custody, staking services, crypto-reward credit cards, and even direct deposit options that allow users to receive paychecks in cryptocurrency. With a platform holding $328 billion in assets, quarterly trading volume of $393 billion, and a market cap nearing $100 billion (as of the latest earnings report), Coinbase sits at the intersection of crypto's mainstream adoption and its market upside. It's not only facilitating the growth of the ecosystem, it's one of the biggest beneficiaries of it. For investors bullish on the long-term future of crypto, Coinbase is a cornerstone stock. That said, valuation is the one caveat. After surging 65% over the past year, the stock is trading at about 67x projected 2025 earnings, rich by most standards. However, on a price-to-sales basis, it looks more grounded at roughly 13x 2025 revenue estimates. Even so, for those with a long-term view on crypto, Coinbase remains a compelling bet. Is COIN a Good Stock to Buy? Turning to Wall Street, COIN earns a Moderate Buy consensus rating based on 13 Buys, 11 Holds, and one Sell rating assigned in the past three months. The average COIN stock price target of $326.40 implies ~21% downside potential. Circle Internet Group (NYSE:CRCL) If Coinbase is the 'tried and true' heavyweight in crypto, then newly public Circle Internet Group (CRCL) is the shiny new breakout, drawing massive attention right out of the gate. Since its IPO at $31 in June, Circle's stock has skyrocketed nearly 1,000%, peaking just under $300 before settling at a recent price of $233.20. That meteoric rise in less than two months has pushed the company's market cap to nearly $45 billion—not a bad debut by any standard. For those less familiar, Circle is the issuer of USDC, a dollar-pegged stablecoin designed to maintain a 1:1 value with the U.S. dollar and fully backed by dollar reserves held by the company. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, USDC offers price stability, making it an attractive option for crypto traders seeking a safe, dollar-backed asset, as well as international users looking for a reliable store of value or a fast, low-cost method for cross-border transactions. The stablecoin has become a powerhouse, reaching a $63.5 billion market cap and facilitating over $25 trillion in on-chain transactions. Circle's revenue model is deceptively simple and highly effective: it earns interest on the reserves backing USDC. In Q1 alone, that model generated $578.6 million in revenue and $122.4 million in adjusted EBITDA. Looking ahead, the company has also hinted at monetizing its network through new fee-based transaction services, potentially opening up another lucrative revenue stream. While Circle's fundamentals are strong, the near-term concern is valuation. After its explosive rally, the stock is now trading at a lofty 147x projected 2025 earnings—more than double Coinbase's forward P/E. On a price-to-sales basis, it also looks stretched at 17x 2025 revenue estimates. I like the company and the model, but after such a dramatic run, the valuation gives me pause in the short term. What is the CRCL Target Price? CRCL carries a Hold consensus rating based on five Buys, five Holds, and two Sell ratings assigned in the past three months. The average CRCL stock price target of $185.73 implies almost 21% downside potential over the next 12 months. Strategy (NASDAQ:MSTR) Finally, let's turn to Strategy (MSTR), the company formerly known as MicroStrategy before a recent rebrand. Originally a business intelligence software firm that went public in 1998—well before Bitcoin even existed—Strategy has completely reinvented itself. Under the leadership of founder and now Bitcoin evangelist Michael Saylor, the company pivoted to a bold new direction: using Bitcoin as a corporate treasury asset. It all began with a $250 million purchase of 21,545 BTC. Since then, the company has aggressively expanded its holdings to an astonishing 601,550 BTC —by far the most significant corporate stash in existence. The strategy has paid off handsomely. As Bitcoin's value surged, so did Strategy's market cap and share price. In fact, the stock has skyrocketed 3,748% over the past five years, essentially tracking the company's accumulation of Bitcoin. Saylor deserves credit for his vision and conviction—buying Bitcoin early and in size has delivered major gains for shareholders. But despite that success, I'm hesitant to buy the stock at current levels. The vast majority of Strategy's value is tied directly to its Bitcoin holdings, making traditional metrics like price-to-earnings largely irrelevant. Instead, the more meaningful comparison is the market cap versus the value of its Bitcoin. Currently, there's a disconnect: Strategy's market cap stands at $123.5 billion, while its Bitcoin holdings are valued at approximately $71.2 billion. That's a hefty premium. Moreover, Strategy no longer holds a monopoly on this approach. As noted by short seller Jim Chanos, over 100 public companies now hold Bitcoin on their balance sheets, meaning Strategy's once-unique position is becoming increasingly common—and that could erode its valuation premium over time. If the company's market cap were to dip below the value of its Bitcoin holdings, I'd reconsider. But for now, I see little justification for buying Strategy at this elevated valuation. What is the Target Price for MSTR? MSTR stock carries a Strong Buy consensus rating based on 11 Buys, zero Holds, and one Sell rating assigned in the past three months. The average MSTR stock price target of $541 implies almost 20% upside potential over the next 12 months. Coinbase Leads the Crypto Pack Bitcoin and the broader crypto ecosystem have firmly established themselves as part of the mainstream financial landscape. For equity investors seeking to capitalize on this growth, crypto-related stocks provide a compelling means of gaining exposure. Among the major players, I'm most bullish on Coinbase. Its comprehensive suite of products—spanning everything from trading and custody to staking and crypto-reward cards—gives investors broad exposure across the entire digital asset spectrum, including Bitcoin, Ethereum, altcoins, and stablecoins. Coinbase also enjoys strong brand recognition and a long-standing reputation in the industry. While the stock has had a strong run and is trading at a premium, its valuation still appears reasonable, especially when compared to the much more richly priced Circle. Speaking of Circle, I appreciate the company's long-term outlook and its core business model, centered around USDC, one of the most widely used stablecoins globally. However, after its post-IPO surge, the stock now looks significantly overvalued. I'd prefer to wait for a meaningful pullback before considering a position. As for Strategy (formerly MicroStrategy), there's no denying that CEO Michael Saylor made a bold and savvy move by pivoting early into Bitcoin. But at this point, the stock's value is almost entirely tied to its Bitcoin holdings, and it trades at a significant premium to the actual value of those assets. With other public companies now following a similar playbook, Strategy's unique edge has diminished. Of the three, it's the least compelling buy at current levels. In short, for investors bullish on the long-term future of crypto, Coinbase remains the most balanced and attractive equity play in the space today.
