Latest news with #US-dollar-pegged
Yahoo
2 days ago
- 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
Qatar Tribune
4 days ago
- Business
- Qatar Tribune
Crypto sector breaches $4 trn in market value
Agencies New York The crypto sector's market value hit $4 trillion on Friday, according to CoinGecko, marking a milestone that reflects its shift from a nascent asset class to a central part of the global investment landscape. A wave of renewed optimism, regulatory clarity in key markets and rising institutional flows have catapulted the crypto sector to a newvaluation peak. The US House of Representatives passed a bill on Thursday to create a regulatory framework for US-dollar-pegged cryptocurrency tokens, known as stablecoins, sending the bill to President Donald Trump, who is expected to sign it into law. 'The arrival of the Trump legislation signaled an about-turn in attitudes towards the crypto industry, but legislators are still exercising some caution,' said Derren Nathan, head of equity research, Hargreaves Lansdown. House lawmakers also passed two other crypto bills, sending them next to the Senate for consideration. One lays out a regulatory framework for crypto, while the other seeks to ban the US from issuing a central bank digital currency. The $4 trillion milestone underscores how far the crypto industry has come from its speculative, fringe origins. With growing interest from asset managers, new exchange-traded products and broader adoption among retail and corporate users, digital assets are increasingly shaping conversations in global finance. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. 'The Genius Act will go down in history as a law that served as a foundational step in mainstreaming of crypto as an asset class,' said Chris Perkins, president, CoinFund. Corporate treasury allocations to bitcoin are also gaining pace, with a growing number of public companies adding the token to their balance sheets as a long-term store of value. The sector was last trading at a combined market value of $3.92 trillion, as bitcoin — the world's largest cryptocurrency — fell 1.8 percent. Bitcoin crossed the $120,000 mark earlier this week, setting a record. Brokerage Bernstein forecast it could climb to $200,000 by end-2025. Ether, the second-biggest crypto token was last up 4.5 percent. It has more than doubled over the past three months. The crypto rally also powered gains in linked equities, with Coinbase and Robinhood climbing to all-time highs on Friday. Shares of the crypto exchange were last up 1 percent, while the retail trading platform, which also supports crypto trades, gained 3percent.
NDTV
5 days ago
- Business
- NDTV
Trump Signs New Stablecoin Law In Major Milestone For Crypto Industry
US President Donald Trump on Friday signed a law to create a regulatory regime for the US-dollar-pegged cryptocurrencies known as stablecoins, a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money. The bill, dubbed the GENIUS Act, passed by 308 to 122, receiving support from nearly half the Democratic members and most Republicans. The law is a huge win for crypto supporters, who have long lobbied for such a regulatory framework in a bid to gain greater legitimacy for an industry that began in 2009 as a digital Wild West famed for its innovation and speculative chaos. "This signing is a massive validation of your hard work and pioneering spirit," said Trump at a signing event that included several crypto executives. Stablecoins are designed to maintain a constant value, usually a 1:1 US dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. The industry hopes they will enter mainstream use for sending and receiving payments instantly. The new law requires stablecoins to be backed by liquid assets - such as US dollars and short-term Treasury bills - and for issuers to disclose publicly the composition of their reserves monthly. Crypto companies and executives have argued such legislation will enhance stablecoins' credibility and make banks, retailers and consumers more willing to use them to transfer funds instantly. The stablecoin market, which crypto data provider CoinGecko said is valued at more than $260 billion, could grow to $2 trillion by 2028 under the new law, Standard Chartered bank estimated earlier this year. The law's passage culminates a long lobbying effort by the industry, which donated more than $245 million in last year's elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data. The Republican president, who has since launched his own coin, in turn aligned himself with the industry and told a crypto conference during his presidential campaign that he would make the U.S. "the crypto capital of the planet." But Democrats and critics have said the law should have blocked big tech companies from issuing their own stablecoins, which could increase the clout of an already powerful sector, contained stronger anti-money laundering protections and prohibited foreign stablecoin issuers. Could boost demand for T-bills Big US banks are internally debating an expansion into cryptocurrencies as regulators give stronger backing to digital assets, but banks' initial steps will be cautious, centering on pilot programmes, partnerships or limited crypto trading, Reuters reported in May. Meanwhile, several crypto firms including Circle and Ripple are seeking banking licenses. This would enable the companies to settle payments faster and cut costs by bypassing intermediary banks, as well as enhancing their legitimacy. Backers of the bill have said it could potentially give rise to a new source of demand for short-term US government debt, or T-bills, because stablecoin issuers will have to purchase more T-bills to back their assets. But others worry this activity could increase volatility in the Treasury bills market. In an April research note, JPMorgan analysts estimated that stablecoin issuers could become the third-largest buyer of Treasury bills in the coming years. Trump creates Bitcoin reserve Trump has sought to broadly overhaul US cryptocurrency policies, signing an executive order in March establishing a strategic bitcoin reserve. The president has moved personally into digital assets, launching a meme coin called $TRUMP in January and partly owning crypto company World Liberty Financial. Democrats in Congress grew increasingly critical of Trump and his family members promoting their personal crypto projects, and their ire threatened to derail the legislation at one point. The White House has said there are no conflicts of interest for Trump and that his assets are in a trust managed by his children.
Deccan Herald
5 days ago
- Business
- Deccan Herald
Trump says big trade deals to be announced soon
"When I send out the paper that you're paying 35 per cent or 40 per cent tariffs, that's a deal," he said at the signing of a bill to create a regulatory framework for US-dollar-pegged cryptocurrency tokens, or so-called 'stablecoins'.
RTHK
5 days ago
- Business
- RTHK
Trump signs stablecoin law in 'validation' for crypto
Trump signs stablecoin law in 'validation' for crypto Donald Trump signs the "Genius Act", which will develop regulatory framework for stablecoin cryptocurrencies and expand oversight of the industry, at the White House. Photo: Reuters US President Donald Trump has signed a law to create a regulatory regime for US-dollar-pegged cryptocurrencies known as stablecoins, a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money. The bill, dubbed the Genius Act, passed by 308 to 122, receiving support from nearly half the Democratic members and most Republicans. The law is a huge win for crypto supporters, who have long lobbied for such a regulatory framework in a bid to gain greater legitimacy for an industry that began in 2009 as a digital Wild West famed for its innovation and speculative chaos. "This signing is a massive validation of your hard work and pioneering spirit," said Trump at a signing event that included several crypto executives. Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. The industry hopes they will enter mainstream use for sending and receiving payments instantly. The new law requires stablecoins to be backed by liquid assets - such as U.S. dollars and short-term Treasury bills - and for issuers to disclose publicly the composition of their reserves monthly. Crypto companies and executives have argued such legislation will enhance stablecoins' credibility and make banks, retailers and consumers more willing to using them to transfer funds instantly. The stablecoin market, which crypto data provider CoinGecko said is valued at more than US$260 billion, could grow to US$2 trillion by 2028 under the new law, Standard Chartered bank estimated earlier this year. The law's passage culminates a long lobbying effort by the industry, which donated more than US$245 million in last year's elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data. (Reuters)
