Track market-moving stories before they get noisy

US Treasury repurchase operations unexpectedly pushed Bitcoin’s price up 25%, triggering $4 billion in short-position liquidations.

After the U.S. Treasury expanded its long-term U.S. Treasury bond repurchase operations, the 30-year U.S. Treasury yield fell from a 19-year high of 5.34% to around 5.19%, while Bitcoin rose roughly 25% in several days, briefly topping $79,000. Around $4 billion in cryptocurrency short positions were liquidated during this period, further amplifying the rally. The U.S. Treasury had earlier announced it would raise the size of its longest-dated Treasury repurchase operations from $2 billion per operation to $4 billion. Analysts noted that this operation is not equivalent to the Federal Reserve’s quantitative easing (QE); its main function is to improve the liquidity of older bonds and optimize the debt structure, but the market views it as a policy support signal for long-term U.S. Treasury yields. Analysts believe the key driver of Bitcoin’s recent rally is not the repurchase operation itself, but the market’s prior over-concentration of short positions. As long-term U.S. Treasury yields fell, short sellers were forced to cover their positions, triggering a powerful short squeeze. Meanwhile, U.S. spot Bitcoin ETFs saw a net inflow of around $650 million this week, and Trump once again urged Congress to advance the CLARITY Act, further boosting market risk appetite. Jeff Ko, chief analyst at CoinEx, said the key now is whether Bitcoin can hold its 200-day moving average around $69,000 and turn it from resistance into support. Market participants also warned that if the 10-year U.S. Treasury yield re-breaks above 4.7% and the 30-year yield approaches 5.3%, Bitcoin’s current breakout could face renewed tests. Bitcoin has now broken above its 200-day moving average and continues to rise; the next phase of the market will focus on whether it can sustain its rally in a high-yield environment.

6 minutes ago

Strategy's Bitcoin holdings have generated an unrealized profit of $1.7187 billion.

Strategy currently holds 840,447 Bitcoin, with a total cost of $63.36 billion and an average entry price of $75,385. At Bitcoin’s current price of $77,430, the company’s Bitcoin holdings now have an unrealized profit of $1.7187 billion.

6 minutes ago

The Sandbox confirms SAND cross-chain bridge vulnerability; Base and BSC networks affected, cross-chain functionality suspended.

The Sandbox officials announced that the team has confirmed and fully contained the recent SAND cross-chain bridge vulnerability incident, which involved the Base and BNB Smart Chain (BSC) networks. The incident’s impact is limited, with the number of tokens involved accounting for less than 0.01% of SAND’s total supply. SAND on Ethereum and Polygon remains unaffected; user wallets were not compromised, and no action is required for affected token holders or liquidity providers. Attackers minted unbacked SAND tokens on Base and BSC networks via the vulnerability, per disclosures. Currently, The Sandbox has shut down SAND cross-chain functionality on both networks. SAND on Base and BSC has been isolated and is temporarily non-transferable or non-exchangeable. The Sandbox reminds users not to buy, sell, or trade SAND on Base and BSC, as liquidity on these networks has been impacted. The team has completed a pre-incident snapshot, is developing a compensation plan for affected liquidity pool (LP) users, and continues to investigate the full scope of the vulnerability. A full incident report and technical post-mortem will be released later.

6 minutes ago

A crypto whale opened a 4x long position worth $10.7 million on HYPE, with a liquidation price of $64.47.

According to monitoring by TradingBeats (formerly Hyperinsight), a crypto whale recently deposited approximately $4 million in USDC into Hyperliquid and opened a long position on HYPE. The wallet address established a 134,930 HYPE long position with 4x leverage, valued at around $10.7 million. Its entry price was $81.64, liquidation price stands at $64.47, and the current unrealized loss amounts to $315,000. The whale’s address is 0xa9d1c0fe2aa58038bac208ad390f69e7ce0c29a2.

6 minutes ago

Tesla has set the date for the press conference of its self-driving electric Cybercab.

Tesla has announced on social platforms that it will hold the Cybercab launch event on September 3, 2026, in Austin, Texas, United States. The automaker’s self-driving electric Cybercab officially entered production in North America this April, and the vehicle is AI-powered, with no steering wheel, pedals, or rearview mirrors.

6 minutes ago

Tencent's chip division head Gao Jianlin has resigned to found a startup, targeting the high-performance AI CPU track in the RISC-V space.

According to MaxForAI's disclosure, Gao Jianlin, a core lead in Tencent's chip research and development, recently left the tech giant to launch a startup focused on high-performance AI servers and Agentic AI, with plans to develop high-performance CPUs based on the RISC-V architecture. Gao is widely regarded as one of the early core drivers of Tencent's in-house chip ecosystem. Public records show he formed Tencent's FPGA hardware team in 2013, began laying the groundwork for AI chip R&D in 2018, established Penglai Lab in 2020, and spearheaded the development and data center deployment of multiple AI chips for Tencent. Unlike the currently fiercely competitive AI GPU market, Gao's new venture will center on CPUs. Gao believes that as Agentic AI advances rapidly, AI inference processes will involve model calls, tool execution, searches, database interactions, and extensive task scheduling, making CPUs take on a more critical scheduling and control role in AI systems. Reportedly, Gao was already involved in RISC-V-related R&D during his tenure at Tencent, contributing to multiple technical areas including chip architecture, verification, and backend development. His new company plans to build high-performance server CPUs based on the open RISC-V instruction set to enter the AI infrastructure market. To date, the startup's name, financing details, and specific product launch timeline have not been made public. The market is closely watching whether it will emerge as another key player in China's AI chip space targeting server CPUs and agent infrastructure.

6 minutes ago

Vitesse Energy NYSE: VTS President and CEO Jamie Benard outlined the company’s non-operated energy investment model, capital-allocation priorities and approach to maintaining its shareholder dividend during a presentation at an EnerCom event.

Benard, who became president and CEO in May, said Denver-based Vitesse owns operated and predominantly non-operated interests in more than 7,800 wells managed by 30 operators across three basins. The company’s portfolio is concentrated in the Williston Basin, with additional exposure to the DJ and Powder River basins.

“At its core, though, the business is pretty simple,” Benard said. “We invest capital where we believe we can earn accretive returns, convert those investments into free cash flow, and return a meaningful portion of that cash to our shareholders through a durable dividend.”

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Dividend and balance-sheet priorities Benard described Vitesse’s strategy through four steps: own, acquire, convert and return. The company owns interests in existing wells, acquires additional interests that meet its return criteria, converts those investments into production and free cash flow, and returns capital to shareholders, with the dividend taking priority.

At the midpoint of its 2026 production guidance, Vitesse expects to produce 16,750 barrels of oil equivalent per day, with oil accounting for 61% of production, Benard said. The company’s annualized dividend is $1.75 per share.

The company uses hedges to provide visibility into the cash flows supporting its dividend rather than to make directional commodity-price bets, according to Benard. Its hedge book extends through 2029. Vitesse also targets leverage of one times or less, though it could exceed that level for a compelling acquisition if it has what Benard called a “clear and credible path” back below the target.

Vitesse’s capital-allocation framework prioritizes the dividend, followed by accretive acquisitions, a conservative balance sheet and other high-return opportunities. Potential uses of capital include participating in wells on existing acreage, purchasing near-term development interests, acquiring larger producing properties and reducing debt.

Benard said share repurchases are not currently a designated use within the company’s capital-allocation waterfall because Vitesse sees substantial reinvestment opportunities across its organic inventory, near-term development acquisitions and larger producing-property deals.

Acquisition flexibility and non-operated portfolio Vitesse’s average working interest across its 7,800-well portfolio is 3.5%, providing broad diversification across its assets and operators. In the Williston Basin, where the company has its largest presence, 17 of 31 active rigs, or 54%, were operating on Vitesse acreage at the time of the presentation, Benard said.

The company evaluates participation in each proposed well based on economics at prevailing strip prices. Since spinning out in 2023, Vitesse has consented to 93% of proposed wells, according to Benard.

Vitesse can deploy capital through several avenues, including participating in proposed wells, acquiring individual wellbore interests, buying producing properties with undeveloped inventory, and partnering with operators or purchasing carved-out interests from their development programs.

Since its founding in 2013, Vitesse has completed more than 175 acquisitions representing about $800 million in value. Five acquisitions ranged from $35 million to $194 million and accounted for approximately $642 million of the total. The other 170 transactions totaled roughly $158 million, or just under $1 million per acquisition, Benard said.

The company also has an operated position following its 2025 acquisition of Lucero. Vitesse now operates approximately 60 wells in the McKenzie-Dunn area of the Williston Basin.

Longer laterals and operating scale Benard said longer horizontal laterals have become an important contributor to capital efficiency. Since 2022, the average lateral length for wells in which Vitesse participates has increased 38%. Nearly 70% of the company’s 2026 participating wells are expected to have lateral lengths of three miles or more.

Vitesse’s data indicate that median drilling and completion costs per foot decline by about 25% when comparing two-mile and four-mile laterals. Benard said longer laterals also may help reduce the company’s overall proved developed producing decline rate as they make up a larger share of its production base, potentially reducing reinvestment needs and preserving more free cash flow.

The company underwrites investments using hedgeable strip prices, well-level production and cost data, internal-rate-of-return and return-on-investment measures, payout periods, and risk-adjusted return thresholds. For larger property deals, it also evaluates net asset value per share and discounted cash flow, Benard said.

Its proprietary Luminis platform consolidates accounting, land, finance, engineering and operations data, including production, authorization-for-expenditure costs, actual costs and lifting expenses. Benard said the system enables Vitesse to evaluate wells individually and integrate assets without expanding its workforce at the same pace as its portfolio.

Vitesse has 35 employees managing roughly 7,800 wells, or about 225 wells per employee. Since 2022, production has increased while general and administrative expense per BOE has declined, Benard said.

“We absolutely intend to grow,” Benard said, while emphasizing that growth must create value, meet return thresholds and support the company’s dividend and balance-sheet objectives.

About Vitesse Energy (NYSE:VTS)Vitesse Energy NYSE: VTS is an independent exploration and production company primarily focused on onshore oil and gas assets in the United States. Headquartered in Calgary, Alberta, the company identifies, acquires and develops low-decline, shallow to intermediate depth vertical wells, targeting predictable production profiles and stable cash flows. Vitesse leverages a lean operational model to optimize well performance and reduce unit operating costs across its asset base.

The company’s core operations are concentrated in the Arkoma Basin of eastern Oklahoma and the Ark-La-Tex region, where it holds acreage positions in multiple formations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Google, the search and cloud computing business owned by Alphabet (GOOG +1.05%)(GOOGL +1.22%), expanded its custom chip work this summer. On July 29, it signed an agreement with Marvell Technology (MRVL -5.57%) covering artificial intelligence (AI) inference accelerators, storage controllers, and other silicon built around Google's in-house TPU chips.

The unusual part surfaced in a securities filing this week. Alongside the agreement, Marvell handed Google a warrant covering 58,970,907 of its shares (roughly 7% of the company) at a fixed price of $206.58. Marvell shares jumped about 10% Wednesday after the disclosure, closing near $237.

Put another way, Google isn't just buying chips from a supplier. It negotiated the right to profit from its supplier's stock while doing so. And the package would cost about $12.2 billion to exercise in full, while obligating Google to buy nothing at all.

Image source: Alphabet.

The warrant pays Google to be a customerMost of the warrant's shares (57,610,040 of them) vest as Google's purchases accumulate -- another block of stock with each $500 million spent on the covered products. A smaller slice of 1,360,867 shares vests on a schedule over the first year, purchases or not.

Those purchases are discretionary, according to the filing. Google controls the pace entirely, and nothing obligates it to spend a dollar.

The structure is unusually favorable. A big buyer can always negotiate volume discounts, but a discount ends at the price of the chips. The warrant converts Google's spending into an asset. Every $500 million of purchases hands Google another block of Marvell stock at $206.58 per share, and with the stock near $243, the full package is already worth about $2.1 billion more than it would cost to exercise.

The cost of that sweetener doesn't fall on Google. It falls on Marvell's existing shareholders: the share count grows by about 7% if the warrant fully vests and converts into shares.

AMD's OpenAI deal set the templateIt is not the first time in the past year that a huge AI buyer has collected equity from a chip supplier for agreeing to buy.

In October 2025, AMD (AMD +0.81%) announced a partnership to supply OpenAI with 6 gigawatts of graphics processing units (GPUs), and it issued the AI company a warrant for up to 160 million AMD shares (about 10% of the company), with tranches vesting as deployments scale and as AMD's stock hits price targets. That warrant carried an exercise price of one cent per share.

The Google-Marvell version is more conventional: a real exercise price and no gigawatt commitments. But the direction, I'd argue, is the same. The biggest buyers of AI silicon have started charging their suppliers, in equity, for the privilege of supplying them.

Google didn't hand Marvell exclusivity in return. Google has relied on Broadcom to design its TPUs, a chip line dating to 2015. And Broadcom announced in April a new long-term agreement covering future TPU generations, with component supply running through as late as 2031 -- even as Google lined up Marvell as an additional partner. Google is adding suppliers and getting paid for it.

Small numbers at Alphabet's scaleCollecting every performance-based share requires $120 billion of qualifying purchases by Jan. 29, 2033. For Alphabet, that is less than three quarters worth of capital spending at the company's current pace. The company spent $44.9 billion on capital expenditures in the second quarter alone, roughly double the year-ago figure, and $132 billion over the trailing 12 months.

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And Alphabet already knows what partner equity can do for its results. The second quarter was strong on its own, with revenue up 24% year over year to $119.8 billion. But the quarter's other income also included a net gain of $98.0 billion, primarily unrealized gains on its equity securities. That single line is most of the reason earnings per share nearly quadrupled to $9.11 in a quarter when operating income rose 30% year over year.

Marvell shares bought through the warrant would land in exactly that bucket -- small next to a $98 billion quarter, but the same kind of asset.

Of course, a single warrant is a small item for a company with a market value above $4 trillion. Even the full package, with Marvell's stock at double the exercise price, would carry a paper gain of about $12 billion -- a fraction of a percent of Alphabet's value.

What the warrant shows, I think, is where the leverage sits in the AI build-out. Alphabet's chip budget has become valuable enough that suppliers will hand over ownership stakes to win it. For Alphabet shareholders, it is a small sweetener on chip spending that was likely coming anyway.

@SeiNetwork has begun rolling out Eidos, the storage track of its broader Giga upgrade, with the first phase already live on mainnet. The overarching goal is ambitious: At the top of that target sits a throughput figure of 200,000 transactions per second.

Phase One: Separating EVM History Before this change, The separation removes that bottleneck.

The pruning improvements are already measurable. Node stability has also improved:

All three tracks are being rolled out in stages, with the chain continuing to produce blocks throughout.

What FlatKV and Lattice Hashing Change Most blockchains verify state using a Merkle tree, a structure where a single change forces the recomputation of every hash above it in the tree.

In practical terms, This design keeps verification costs flat even as the chain grows.

Sources:
Sei Labs: The Eidos Upgrade (Official Blog)
crypto.news: Sei starts phased Eidos upgrade to prepare network for 200,000 TPS
Sei Labs: Ares and Eidos, the first components of the Giga Upgrade, will go live in Sei 6.6

World Liberty Financial investors including Eric Trump have agreed to limit their influence over the management of the company’s proposed national trust bank as it moves through the federal approval process.

Trump, World Liberty cofounder Zak Folkman and Emirati businessman Hamad Khalfan Ali Matar Alshamsi signed agreements known as passivity commitments on behalf of their respective companies, according to documents disclosed alongside the bank’s preliminary approval last week.

The agreements commit the investors to avoiding influence over the bank’s management. World Liberty said the arrangements are intended to ensure certain stakeholders do not exercise control over the operations of World Liberty Trust Company.

The commitments have attracted attention because of World Liberty’s connections to President Donald Trump’s family and foreign investors.

Similar arrangements have previously been used by major institutional investors. Vanguard Group has pledged not to influence banks held in its investment portfolios, while China’s sovereign wealth fund entered a passivity agreement when acquiring a stake in Morgan Stanley.

World Liberty said it intends to operate under continued federal oversight.

The Office of the Comptroller of the Currency granted World Liberty Trust Company preliminary approval last week. The charter still requires final approval.

If approved, the trust bank would be able to issue and redeem World Liberty’s USD1 stablecoin, manage its reserves and provide digital asset custody services. It would not operate as a traditional commercial bank.

The proposed charter has faced political scrutiny because of the Trump family’s financial interests in World Liberty. 

Senate Democrats including Elizabeth Warren have introduced legislation that would prevent regulators from approving bank charters for companies owned or controlled by a president or members of their immediate family.

World Liberty has said Trump and his family do not serve as officers, directors or employees of the company. The White House has rejected claims that the president’s financial interests create a conflict of interest.

The bank application also includes organizers and directors connected to the Witkoff family, including Zach Witkoff, Scott Alper and Robert Witkoff.

World Liberty’s ownership structure has also drawn scrutiny. Before Trump’s inauguration, the company agreed to sell a 49% stake to a firm backed by Sheikh Tahnoon bin Zayed, the brother of the United Arab Emirates president, for $500 million, according to the Wall Street Journal.

Securing a charter would allow World Liberty to bring issuance and reserve management for USD1 in-house. The stablecoin has a market capitalization of nearly $4 billion, making it one of the world’s largest dollar-backed stablecoins.

The OCC has taken a more receptive stance toward crypto banking applications under Comptroller Jonathan Gould. Ripple, Paxos, and Fidelity Digital Assets received conditional trust bank approvals in 2025, while Coinbase received similar approval earlier this year.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

https://www.blocmates.com/articles/a-complete-guide-to-hyperliquid

Hyperliquid, a decentralized perpetual futures exchange, reported significant growth in fee revenue for August, marking a 31% increase compared to the previous year. This surge is attributed to higher volume, an increase in active users, and an expanded market share. The exchange’s native asset, HYPE, has seen a notable upward movement, reflecting positive market sentiment and increased on-chain activity. The latest data suggests that HYPE’s price hovers around $73.53.

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In the prediction market, the odds for Hyperliquid reaching $100 by the end of 2026 have increased, suggesting a more optimistic outlook from market participants. The current pricing shows a 42.5% chance of Hyperliquid reaching the $100 mark by December 31, up from 16% a week ago. This change is supported by the recent financial results, which appear consistent with the scenario where Hyperliquid continues its upward trajectory.

Key Takeaways Market activity suggests that participants view Hyperliquid’s recent performance as supportive of a YES outcome for reaching $100 by year-end. The 31% year-over-year increase in fee revenue appears consistent with positive sentiment towards Hyperliquid’s growth prospects. HYPE’s price increase and market dynamics may indicate strengthened confidence among participants in the decentralized perpetuals sector. What to Watch Watch for upcoming developments, such as potential announcements of partnerships or new integrations that could further influence Hyperliquid’s competitive position. Additionally, any shifts in market share or changes in user engagement metrics could impact the prediction market’s current outlook. The evolving sentiment around Hyperliquid’s performance will be crucial in determining future price movements and market expectations.

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Term Structure

Contract Odds Δ since publish Volume 24h December 31 42.5% — — View market → January 1 2027 3.6% — — View market → January 1 2027 2.9% — — View market → January 1 2027 82% — — View market → January 1 2027 5.7% — — View market → January 1 2027 3.1% — — View market → January 1 2027 54.5% — — View market →

Bitcoin is surging again. The cryptocurrency climbed above $78,200 on Friday for the first time since May. But it wasn’t the only crypto asset posting big gains. Hyperliquid, the decentralized perpetual futures exchange, reached a record $75, leaving its HYPE token up over 195% so far this year, according to CoinGecko.

Hyperliquid’s gains have drawn market share that might otherwise have flowed into Bitcoin, according to Ish Asad, a research analyst at crypto index fund manager Bitwise Investments.

“If Hyperliquid and perpetual futures weren’t so popular, people would just be buying spot Bitcoin,” Asad told Fortune.

Hyperliquid, which lets users trade through self-custody wallets rather than a traditional centralized exchange, has emerged as a major force in crypto derivatives trading over the past year. During the first quarter of 2026, the platform processed more than $633 billion in combined spot and perpetual futures volume, over six times its total during the second quarter of 2024, according to investment manager VanEck.

Its growing success has “sucked away volume” from direct purchases of smaller crypto tokens. Perpetual futures let traders speculate on a cryptocurrency’s price, often with leverage, without buying or holding the token itself, making the platform attractive to active traders.

“All the crypto trading happens on Hyperliquid now, so most of the other crypto assets are getting less buying pressure,” Asad added. 

Hyperliquid’s most recent price jump came two days after President Donald Trump said his administration was working to bring the platform to the U.S.

“I understand that [Commodity Futures Trading Commission Chair] Mike [Selig] is also working to bring Hyperliquid into the United States in a fully compliant and legal fashion, working very hard on that,” Trump said at a White House event. 

Behind the rally Despite Hyperliquid drawing some capital away from direct Bitcoin purchases, the cryptocurrency still gained nearly 25% over the past week. Macro factors, including the Treasury Department’s recent bond-buyback announcement, helped set the rally in motion, but Asad said liquidations drove Bitcoin’s most recent surge.

On Tuesday, as Bitcoin traded around $64,000, traders liquidated $1.3 billion in short positions in a single day. Another $1 billion in Bitcoin shorts were liquidated over the following 48 hours, bringing the week’s total to $4.5 billion, according to Bitwise.

Political developments also helped support the rally. At a meeting with crypto industry leaders this week, Trump urged Congress to pass the Clarity Act, a bill that would establish a long-awaited market structure framework for digital assets. On Thursday, Selig said he had directed the CFTC to begin developing clearer crypto rules if Congress does not pass the legislation before the end of the year.

In the meantime, worries over U.S. debt surpassing $40 trillion and a weakening U.S. dollar have renewed investor interest in alternative assets such as gold and Bitcoin.

Billionaire investor Ray Dalio has renewed his support for holding gold and some Bitcoin as U.S. federal debt has crossed $40 trillion, and BTC has rallied toward $80,000.

Summary

U.S. federal debt reached $40.05 trillion on Aug. 18, according to Treasury data. Dalio advised investors to favor gold and some Bitcoin over debt assets such as bonds. Bitcoin has climbed from nearly $63,000 to the upper $70,000 range this week. Treasury will double some long-dated debt buybacks to at least $4 billion per operation. Ray Dalio, writing in an X post, said the U.S. government’s financial position had reached an inflection point as its debt burden approached a level that may become difficult to manage without severe economic pain.

The Bridgewater Associates founder advised investors to spread their exposure across asset classes and countries with strong finances. He also recommended limiting exposure to debt assets such as bonds while holding more gold and a smaller allocation to Bitcoin.

“As general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical conflicts, underweighting debt assets like bonds, and overweighting gold and a bit of Bitcoin,” Dalio said.

His comments followed another major milestone for U.S. public finances. The federal government’s total outstanding debt reached $40.047 trillion on Aug. 18, up from $39.987 trillion one day earlier, according to the Treasury Department’s Debt to the Penny database.

Of the Aug. 18 total, approximately $32.27 trillion was debt held by the public, while about $7.78 trillion consisted of intragovernmental holdings. The government ended 2025 with $37.64 trillion in federal debt, meaning the total had increased by about $2.4 trillion in less than eight months.

Bitcoin and gold can reduce portfolio risk Dalio said an allocation of roughly 10% to 15% to gold could lower a portfolio’s overall risk because the metal often behaves differently from stocks and debt securities during periods of financial stress.

Bitcoin received a more limited endorsement. Dalio described it as part of the group of assets investors could hold outside conventional debt markets, though his suggested positioning still placed more weight on gold.

His latest statement follows years of gradually changing views on the cryptocurrency. Dalio disclosed in 2021 that he owned some Bitcoin and later described it as an alternative, gold-like asset, while continuing to question whether governments and central banks would adopt it as reserve money.

In October 2025, crypto.news examined Dalio’s position that Bitcoin was unlikely to become a reserve currency. The report noted that he favored gold because of its long history, liquidity, and acceptance among central banks, even as he recognized Bitcoin as a possible hedge against monetary expansion and heavy government borrowing.

Dalio’s portfolio guidance is not a prediction that Bitcoin will rise whenever federal debt increases. His recommendation rests on diversification and reducing dependence on assets tied to highly indebted governments, rather than replacing an entire investment portfolio with BTC or gold.

For U.S. investors, both assets are available through regulated products as well as direct ownership. Spot Bitcoin exchange-traded funds provide exposure through U.S. brokerage and retirement accounts, while gold can be held through exchange-traded products, mining shares, or physical bullion. Each route carries different fees, custody risks, and tax treatment.

U.S. debt concerns meet Bitcoin’s rally toward $80K Bitcoin’s advance has placed Dalio’s comments alongside a sharp change in crypto market conditions. BTC fell to the $62,000–$63,000 area earlier this week before recovering through $70,000 and entering the upper $70,000 range.

The move ended several weeks of sideways trading and pushed Bitcoin to its highest level since May. BTC was trading near $77,600 when checked, according to market data, leaving the $80,000 level as the next closely watched psychological barrier.

Forced buying from short sellers helped accelerate the initial breakout. When Bitcoin crossed $69,000, exchanges liquidated more than $1 billion in bearish positions within one hour, requiring some traders to purchase BTC to close leveraged bets.

Spot demand then added support. U.S. spot Bitcoin ETFs attracted about $517 million on Aug. 19 and another $606 million on Aug. 20, according to SoSoValue data cited in recent market coverage. The two sessions generated more than $1.1 billion in combined net inflows.

As previously reported, Bitcoin gained about 18% in two days before clearing $76,000. The report identified $70,000 to $72,000 as an important support area, while resistance remained near $80,000 to $82,000.

ETF inflows offer a direct U.S. connection to the rally because the funds must obtain Bitcoin exposure as investors add capital. Short liquidations, by comparison, represent forced derivatives activity that may fade once leveraged bearish positions have been closed.

Treasury doubles long-dated debt buybacks Alongside the $40 trillion debt milestone, the U.S. Treasury announced on Aug. 19 that it would increase the size of liquidity-support buybacks for longer-dated nominal government securities.

The maximum purchase size will rise from $2 billion to at least $4 billion per operation for securities in the 10-to-20-year and 20-to-30-year maturity sectors, according to the Treasury’s official announcement. The change takes effect on Sept. 9 and will remain in place through Nov. 4, when the department plans to provide further information during its next quarterly refunding.

Treasury said the increase would provide more liquidity in long-dated sectors where market participants had submitted a high volume of eligible offers. Buybacks allow the government to repurchase older, less-liquid bonds and may improve trading conditions in parts of the Treasury market.

The operations are not Federal Reserve asset purchases, money creation or direct support for cryptocurrency. Market participants nevertheless responded to the announcement as long-dated Treasury yields declined and demand for risk assets improved.

A recent market report linked Bitcoin’s initial 11.4% rise above $71,000 to the buyback announcement, renewed ETF inflows and short liquidations. The report said Treasury’s decision helped the liquidity backdrop but did not establish that bond buybacks alone caused the rally.

Dalio’s warning addressed the underlying debt burden rather than the mechanics of the buyback program. He said government finances should be repaired while economic conditions remain relatively strong because borrowing requirements tend to increase during a contraction.

Policies, political changes, and wars could either speed up or delay the point at which debt becomes unmanageable, according to Dalio. Waiting for an economic downturn would leave policymakers with fewer options because weaker tax revenue and additional government support programs typically increase funding needs.

Fed policy remains a risk for Bitcoin investors While lower long-term yields have supported Bitcoin, Federal Reserve policy remains a separate source of risk for U.S. investors. The Fed kept its target rate at 3.5% to 3.75% in July but faced three dissenting votes from officials who preferred a quarter-point increase.

In its July policy statement, the Federal Open Market Committee said inflation remained above its 2% goal, partly because supply shocks had raised prices in sectors including energy. The committee also said it would “deliver price stability.”

Fed Chair Kevin Warsh and the committee face another policy decision on Sept. 15–16. Higher interest rates can raise the returns available on cash and government bonds, which may reduce demand for non-yielding assets such as gold and volatile assets such as Bitcoin.

The July vote showed that pressure for tighter policy already existed inside the Fed. Beth Hammack, Neel Kashkari, and Lorie Logan opposed the decision to hold rates steady and supported a 25-basis-point increase instead.

Goldman Sachs has regained its position as the largest institutional holder of XRP exchange-traded funds, after fully exiting its XRP ETF positions in the previous quarter. The Wall Street bank rebuilt its XRP ETF portfolio in the second quarter of 2026, with newly disclosed filings revealing major additions to its holdings.

Goldman Sachs increases XRP ETF exposureThe bank’s updated XRP ETF portfolio features investments across funds managed by Bitwise, Franklin Templeton, Canary Capital, 21Shares, and Grayscale. Goldman Sachs reported notable increases in share counts for several of these funds, signaling renewed commitment to the XRP market.

Its largest position was 2,238,407 shares in Franklin Templeton’s XRPZ. Additionally, Goldman held 2,208,949 shares in the Bitwise XRP ETF, 1,759,090 shares of Canary’s XRPC, and 806,126 shares in 21Shares’ TOXR fund. The bank also reported 377,619 shares in Grayscale’s GXRP.

Goldman Sachs’ latest quarter filings valued the overall XRP ETF position at $86.5 million. In comparison, its previous exposure, before a full exit, was reported at approximately $152 million. The recent re-entry marks a substantial, but comparatively smaller, allocation.

FundShares HeldFranklin Templeton XRPZ2,238,407Bitwise XRP ETF2,208,949Canary XRPC1,759,09021Shares TOXR806,126Grayscale GXRP377,619Alongside its ETF holdings, Goldman Sachs disclosed 365,976 shares in XRPN, a security offered by Armada Acquisition Corporation II. The filing noted Ripple-backed Evernorth Holdings is pursuing a merger with the special purpose acquisition company (SPAC) to list on Nasdaq.

Mini dictionary: SPAC (Special Purpose Acquisition Company): A publicly traded company created specifically to acquire or merge with another business, allowing the target firm to go public more quickly and with fewer regulatory hurdles than a traditional initial public offering.

Evernorth Holdings confirmed progress on the proposed merger, which aims to facilitate the company’s public listing. Goldman Sachs included its XRPN stake with the XRP ETF disclosures in its quarterly report.

Broader institutional interest and market inflowsAdditional major banks, including JPMorgan, Morgan Stanley, and Bank of America, also disclosed XRP ETF holdings for the second quarter of 2026. These filings indicate growing institutional engagement with digital assets among leading US financial players.

The renewed investment activity aligns with increased efforts by major institutions to further tokenization initiatives and digital treasury management solutions. Market participants are also expanding real-time cross-border transaction systems to support evolving digital payment frameworks.

Recent data from SoSoValue showed that the US spot market for XRP ETFs posted $13.24 million in net inflows on Thursday. Bitwise accounted for $9.9 million, while Franklin Templeton reported $3.34 million in new investments. Total assets under management in XRP ETFs reached $1.17 billion, and total net investment in these products topped $1.53 billion.

IssuerNet InflowBitwise$9.9 millionFranklin Templeton$3.34 millionTotal US XRP ETF Market$13.24 millionPositive market sentiment was reflected in ongoing policy discussions in Washington. Ripple’s CEO, Brad Garlinghouse, and other crypto industry leaders attended Clarity Act discussions at the White House as regulatory debate intensified.

Ripple-backed Evernorth Holdings moved closer to completing its merger with Armada Acquisition Corporation II, aiming for a Nasdaq listing as institutional XRP ETF activity accelerates.

XRP price surges on rising activityXRP rose sharply in the past 24 hours, reaching about $1.37 with a 16% increase. Over the past week, CoinMarketCap reported a gain of 38% in XRP, mirroring the broader cryptocurrency market’s recovery.

Daily trading volume surged by 113.47% within 24 hours, reflecting intensified market interest and heightened trading activity as XRP’s price advanced.

XRP daily trading volume spiked more than 113%, signaling a significant uptick in buying and selling as the cryptocurrency rebounded strongly.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Brad Garlinghouse, CEO of Ripple, addressed the CFTC Innovation Advisory Committee, outlining the company’s four-year legal battle with the SEC and the impact of regulatory uncertainty on both Ripple and the digital asset industry in the United States.

$150 million in legal costs over four yearsGarlinghouse began by thanking the Commodity Futures Trading Commission (CFTC) for its hospitality and quickly moved to the difficulties Ripple faced under the previous administration. He described Ripple as being “at the center of the bullseye of the SEC’s lawfare,” noting that leadership at the regulatory level had a direct effect on the industry’s trajectory.

He provided figures to demonstrate the toll: Ripple paid $150 million in legal fees to external counsel during its extended fight. Garlinghouse explained that most companies would not have survived such pressures, as many firms in the sector were “bullied into submission” even before lawsuits were filed. He emphasized that the challenges Ripple faced shaped the entire industry’s perception of the regulatory landscape at that time.

Ripple devoted $150 million to external legal defense against the SEC over a four-year period, a level of expenditure that Garlinghouse argued would have crippled smaller firms and discouraged broader industry participation.

Ripple’s global hiring shiftsBeyond legal costs, Garlinghouse highlighted the operational impact. He revealed that 80% of Ripple’s hiring during the court case occurred outside the United States. He cited the establishment of Ripple’s second-largest office in London as a direct response to the regulatory environment in the U.S. at that time.

Garlinghouse connected this trend to business fundamentals, arguing that companies will not invest or create jobs where long-term strategic planning is not possible. This, in his view, has affected where capital and talent flow within the crypto sector, reflecting a wider trend among digital asset firms.

Mini dictionary: CFTC (Commodity Futures Trading Commission) – The CFTC is a US government agency that regulates derivatives markets, including futures, options, and swaps. Its role is to promote integrity, resilience, and vibrancy in US derivatives markets through sound regulation.

Shifting regulatory tone in the United StatesGarlinghouse observed that the current administration and regulators, including both the CFTC and the SEC, have shifted their stance and introduced a new approach for the sector. He described the change as substantial, stating that there is a consensus among stakeholders that the previous situation failed consumers and stifled innovation.

According to Garlinghouse, clearer regulations are needed to defend both users and industry growth. Well-defined guidelines can protect users and ensure corporate accountability, enabling responsible development of new financial technologies.

Garlinghouse pointed to the technologies discussed at the CFTC event as proof that with regulatory certainty, cross-border payments can become faster, more efficient, and more widely accessible, but achieving this potential hinges on clear rules of the road.

Future outlook for XRP and the broader crypto industryGarlinghouse’s remarks came soon after his attendance at a White House summit focused on digital assets. For XRP holders and digital asset advocates, his statements signaled renewed confidence in the regulatory environment. Ripple is now adopting a more proactive stance, reflecting optimism that evolving US policy will support both industry innovation and compliance.

Garlinghouse’s comments suggest that Ripple, a technology company specializing in blockchain-based payment solutions, expects to leverage regulatory progress for further growth, both in the US and internationally. Stakeholders are watching for further clarity that would enable domestic investment and hiring while supporting user protection across markets.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

The SEC has opened a public comment period on Cboe BZX Exchange’s proposal to list six daily 3x leveraged Bitcoin and Ethereum futures ETFs.

The proposal, filed under SR-CboeBZX-2026-065, would cover commodity-pool products sponsored by Volatility Shares. The funds would seek three times the daily performance of front-month and next-month CME Bitcoin and Ethereum futures contracts, using daily reset mechanics.

That is a very different product from a spot ETF.

A 3x leveraged futures ETF is built for short-term tactical exposure. It is not a simple buy-and-hold wrapper for Bitcoin or Ethereum, and its daily reset structure can create performance drift over time.

The SEC’s move opens the proposal for public comments. It does not mean the products have been approved.

TL;DR The SEC opened comments on Cboe’s proposal for 3x leveraged BTC and ETH futures ETFs. The proposed products would be sponsored by Volatility Shares. The filing is under review and has not been approved. Why Leveraged Crypto ETFs Matter Leveraged ETFs are popular because they give traders amplified exposure without directly using margin or futures accounts.

In crypto, that can be especially attractive because Bitcoin and Ethereum already move sharply. A 3x daily product would magnify those moves, creating potential for larger gains and larger losses in a traditional brokerage format.

That is exactly why regulators pay attention.

Leveraged products can be misunderstood by retail investors. They are designed to track daily performance, not long-term cumulative returns. Over multiple sessions, compounding and volatility can cause results to diverge from what investors might expect.

That risk becomes more important when the underlying asset is already volatile.

Futures, Not Spot The proposal concerns futures-based products, not spot Bitcoin or spot Ethereum ETFs.

That distinction matters because the funds would use CME futures exposure rather than directly holding BTC or ETH. Futures-based exposure can behave differently from spot assets because of roll costs, margin, contract structure, and futures-market dynamics.

Investors may see “Bitcoin ETF” or “Ethereum ETF” and assume direct asset exposure.

That would be inaccurate.

These would be leveraged futures products tied to daily movements in futures contracts.

The Comment Period Is Only One Step A public comment period gives market participants, investors, issuers, competitors, and other stakeholders a chance to respond to the SEC.

Comments may address investor protection, market manipulation, disclosure, suitability, volatility, liquidity, and exchange-listing standards.

The SEC can approve, reject, delay, or request changes.

So the current development is procedural but important. It shows the proposal is formally in the review pipeline, but it does not indicate the regulator has accepted the structure.

Crypto ETF Market Keeps Expanding The proposal also shows how quickly the crypto ETF market is moving beyond plain spot products.

Bitcoin spot ETFs opened the door. Ethereum followed. Now issuers are testing leveraged, inverse, staked, altcoin, and multi-asset structures.

That expansion is natural in traditional ETF markets.

Once a base asset category becomes accepted, issuers compete by offering more specialized exposures. Crypto is now entering that phase, and regulators are being asked to decide how much complexity is appropriate.

What Traders Need To Understand If products like these eventually launch, they will not be suitable for every investor.

Daily 3x leveraged funds are typically tools for active traders. Holding them over longer periods can produce unexpected results because the fund resets exposure each day.

For Bitcoin and Ethereum, that risk may be magnified by extreme volatility.

The SEC’s review will likely center on whether disclosures, exchange rules, and product design are sufficient to protect investors.

For now, Cboe’s proposal is another sign that crypto ETF experimentation is accelerating. Approval, however, is still an open question.

This article is based on the SEC’s self-regulatory organization filing notice for Cboe BZX Exchange.

This article was written by the News Desk and edited by Samuel Rae.

BitMine Chairman Tom Lee has identified BMNR as the US-listed stock most closely tied to Ethereum, citing an 80% correlation while predicting that ETH will outperform Bitcoin during the current cycle.

Summary

BitMine showed an 80% correlation with ETH in Fundstrat’s comparison of 17 large-cap stocks. Lee expects tokenization and AI applications to support Ethereum’s performance against Bitcoin. BitMine held 5.82 million ETH, or 4.8% of the token’s supply, as of Aug. 16. US spot Ethereum ETFs attracted $365 million in July, compared with $205 million for Bitcoin funds. Fundstrat said in a Friday post on X that its study covered 17 companies with market values above $2 billion, giving stock investors a list of publicly traded businesses that have moved closely with Bitcoin or Ethereum.

For equity investors seeking exposure to crypto, particularly the sizable moves made by @ethereum and Bitcoin

The 17 large cap (>$2b) stocks with correlation to crypto shown below:

– $BMNR highest correlation to $ETH (80%)
– next closest is $COIN (74%)

– $MSTR highest… pic.twitter.com/p7CM92Uk6m

— Thomas (Tom) Lee (not drummer) FundstratDirect.com (@fundstrat) August 21, 2026 BitMine Immersion Technologies led the Ethereum group with a correlation of 80%, while Coinbase ranked second at 74%. Among stocks linked to Bitcoin, Strategy recorded the highest reading at 78%, followed by Coinbase at 74%.

Lee said he expects Ethereum to beat Bitcoin during the present cycle because tokenization and AI applications could create demand for Ethereum’s network. In his view, the two uses matter more than the themes that supported ETH during earlier market cycles.

The post did not disclose the period used to calculate the correlations or explain whether Fundstrat measured daily, weekly, or monthly returns. Correlations also change as prices and market conditions change, meaning the figures describe the relationship found in Fundstrat’s dataset rather than a fixed link between each stock and the corresponding cryptocurrency.

BitMine stock gives investors an indirect route to Ethereum BitMine’s position at the top of the list follows its decision to build the world’s largest corporate Ethereum treasury. As of Aug. 16, the company held 5,815,164 ETH, 210 Bitcoin, $78 million in cash and marketable securities, and investments in Beast Industries and Eightco Holdings.

Using an ETH price of $1,893, BitMine valued its combined crypto, cash, securities and other investments at $11.4 billion. The company said its Ethereum position represented 4.8% of the token’s stated 120.7 million supply, placing it 96% of the way toward its target of owning 5%.

During the week ending Aug. 16, BitMine purchased another 9,926 ETH. The company has bought Ether every week since adopting its Ethereum treasury strategy on June 30, 2025, according to its latest update.

An Aug. 10 treasury update previously covered by crypto.news showed BitMine holding approximately 5.81 million ETH after another 7,391-token purchase. At that time, the company had also repurchased three million BMNR shares under a $4 billion authorization.

BitMine added another 1.7 million shares to its repurchases during the following week, taking the total since July to more than 20.8 million. Lee said management considered the common shares undervalued, although that assessment represents the company’s view rather than an independent valuation.

BMNR closed at about $22.72 on Aug. 21, gaining roughly 5.3% during the session. Coinbase rose around 7.5%, while Strategy added about 5.9%, as Bitcoin and several large altcoins advanced during the same trading period.

Ethereum staking has become central to BitMine’s model Of BitMine’s 5.82 million ETH, 5,067,309 tokens were staked as of Aug. 16. The amount represented about 87% of the company’s Ethereum holdings and was valued at $9.6 billion using the price cited in its announcement.

Based on a seven-day annualized yield of 2.61%, BitMine projected around $250 million in annual staking revenue from the position. The company said potential annual rewards could reach $287 million after its remaining ETH is staked through its MAVAN platform and external partners.

Staking gives BitMine a source of revenue that Strategy cannot generate from its Bitcoin holdings because Bitcoin does not use a proof-of-stake system. BitMine’s estimates, however, depend on Ethereum’s staking yield, ETH’s market price, validator performance and the amount of company-owned Ether placed into staking.

The company also joined the Russell 1000 large-cap index on June 26, giving US fund managers and benchmark-tracking products another route to obtain indirect Ethereum exposure. BMNR trades on the New York Stock Exchange, while its 9.5% Series A perpetual preferred stock trades under the ticker BMNP.

Compared with a spot Ethereum ETF, BMNR carries risks tied to its operating costs, capital decisions, share issuance, staking activity, and other investments. Its market value can also trade above or below the value of the ETH and other assets held on its balance sheet.

Tokenization supports Lee’s Ethereum thesis Lee has described tokenization as one of the main reasons Ethereum could gain against Bitcoin. In BitMine’s Aug. 17 update, he said the ETH/BTC ratio had risen to 0.02994 and moved above a long-running downward trend.

Earlier ETH/BTC analysis showed the ratio testing resistance near 0.0286 in July after recovering from an early June low around 0.026. The ratio measures how much Bitcoin one Ether can buy, so a rising reading indicates that ETH is gaining value against BTC.

According to Lee, Ethereum’s relative gains during earlier cycles were supported by initial coin offerings in 2017 and 2018, NFTs in 2020 and 2021, and stablecoin adoption in 2025. He expects Wall Street tokenization and blockchain-based AI agents to support the next period of ETH outperformance.

RWA.xyz data offered additional context for the tokenization argument. As of Aug. 21, the analytics platform tracked 2,267 real-world assets on Ethereum and $13.99 billion in RWA transfer volume over 30 days, an increase of 20.45%.

The same database placed the stablecoin market value on Ethereum at $157.11 billion, with 26.6 million holders and $1.55 trillion in 30-day transfer volume. Tokenized-asset platforms listed on the network included Ondo, Securitize, Circle, Tether, and Sky.

Wall Street involvement has also extended beyond companies holding ETH. BlackRock, JPMorgan, and several asset managers have developed or tested tokenized funds, collateral products, and settlement services that use Ethereum or networks compatible with its software.

US Ethereum ETFs show signs of institutional demand US-listed exchange-traded funds have provided another measure of demand from investors who prefer regulated brokerage products. Spot Ethereum ETFs attracted $365 million in net inflows during July, while spot Bitcoin ETFs received $205 million.

The July result was Ethereum funds’ strongest month on record and the first time their monthly inflows exceeded Bitcoin ETF inflows by more than two to one, according to a recent ETF flow review. On July 23, Ethereum products received $72.64 million, compared with $68.99 million for Bitcoin funds.

Ethereum ETFs added another $53.75 million on Aug. 4, followed by $202 million over the next three trading days. During July, the ETH/BTC ratio rose by about 11%, moving from roughly 0.027 to 0.030.

AI applications form the second part of Lee’s forecast. Ethereum.org says blockchain-based agents can control wallets, execute transactions, interact with smart contracts and use stablecoins to pay for computing resources, data and application access.

Ethereum.org also describes the technology as experimental and warns users to exercise caution. Agent activity does not guarantee demand for ETH because applications can use other blockchains, layer-2 networks, or off-chain payment systems.

Lee has pointed to Robinhood Chain as one example of financial and blockchain services coming together. The Ethereum layer-2 network uses ETH for transaction fees and sends its final transaction records to Ethereum, while Robinhood reported 27.4 million funded customers at the end of the first quarter.

Within weeks of its July launch, the network had recorded almost $9 billion in cumulative decentralized-exchange volume, $431 million in locked assets and more than 250,000 daily active users, according to Robinhood Chain data. More than 80% of its early exchange volume came from memecoins, while temporary fee waivers reduced trading costs during the network’s first 90 days.

Ecosystem

Author

Raja Chakravorti

Publishing date

The Stellar network now holds more tokenized non-US government debt than any other blockchain, a lead it has held since February. Here's what's behind the number, and why the fastest-growing corner of the RWA market keeps landing on the same network.

A quick map of what follows:

Exactly which race Stellar leads, and where Ethereum is still ahead.The growth curve behind the number, from roughly $500 million in early 2025 to more than $3 billion in June 2026.The issuers doing the work, from Mexican CETES and Brazilian Tesouro bonds to euro-denominated T-bills.Why sovereign issuers keep choosing the same network, and where the category goes next.The lane, and the leadA data point made the rounds this week: Stellar has overtaken Ethereum in tokenized non-US government debt, with roughly $490 million in sovereign instruments onchain, according to RWA.xyz data as of August 20, 2026. Stellar first passed Ethereum in this category in early February and has held the top spot on the leaderboard every day since.

Let's be precise about the claim, because precision is the point. Ethereum still leads in tokenized US Treasuries and in total RWA value, and the whole market is growing across every chain. What Stellar leads is a specific race: sovereign debt issued outside the US, in currencies other than the dollar. We think that race matters more than its current size suggests. Most of the world's governments and businesses don't operate in dollars. The networks that serve them will define where tokenization goes next.

The trajectoryThe category lead is one milestone on a steeper curve. Real-world assets on Stellar, excluding stablecoins, grew from roughly $500 million in early 2025 to $854.6 million by the end of Q4 2025, crossed $1 billion in January 2026, closed Q1 at $1.52 billion (up 91% in a single quarter), passed $2 billion in April, and topped $3 billion in June. That's roughly a threefold increase year over year, one of the fastest RWA growth trajectories of any chain this cycle.

Zoom out and Stellar now represents about 9% of all distributed RWA value across every blockchain, per RWA.xyz, placing it among the top four networks alongside Ethereum, BNB Chain, and Solana. Notably, it's the only network in that group outside the EVM ecosystem.

What's inside the numberThe non-US sovereign debt lead is built from real products serving real markets. Etherfuse Stablebonds bring Mexican CETES and Brazilian Tesouro bonds onchain. Spiko's euro-denominated T-bill fund grew from roughly $520 million to $970 million over the past year, with most of that growth landing on Stellar. South Korean Treasury Bonds and the Marshall Islands' digital sovereign bond round out a roster that spans five continents.

The surrounding ecosystem reinforces it. Franklin Templeton's BENJI, the first US-registered mutual fund to use a public blockchain as its system of record, runs on Stellar. Ondo's USDY and WisdomTree's WTGXX are live on the network. USDC market cap on Stellar grew about 15% quarter over quarter to more than $256 million in Q1 2026, and euro-denominated stablecoins arrived in force: Société Générale-FORGE's EURCV and AllUnity's EURAU both launched on mainnet, with EUR stablecoin volume up 12x year over year.

And the assets are moving, which is the part that matters. Stablecoin payment volume on Stellar hit $5.5 billion in Q1 2026, up 72% year over year, with transaction velocity up 75%. Tokenized value that sits still is a spreadsheet exercise. On Stellar, it circulates.

Why issuers keep choosing StellarAsk the issuers and a consistent picture emerges. First, Stellar was purpose-built for cross-border, multi-currency settlement: fees are fractions of a cent, finality arrives in about five seconds, and the architecture assumes value will cross borders and currencies rather than treating that as an edge case. For a sovereign issuer optimizing for its own currency corridors rather than dollar-denominated Treasuries, that design is the product.

Second, compliance is native. Asset-level controls, the anchor network, and KYC-friendly primitives are built into the protocol, which means a regulated issuer spends its budget on its product rather than on custom compliance tooling. Third, dollar liquidity is frictionless: USDC is live natively on Stellar with Circle's Cross-Chain Transfer Protocol, so tokenized sovereign debt settles against regulated digital dollars without wrapped-token workarounds.

Institutions have noticed, and around the world the roster keeps deepening: U.S. Bank, Amundi, Société Générale, AllUnity, Kenanga in Malaysia, and SDF's work with Marketnode in Singapore, backed by SGX and Temasek. That geographic spread is hard to replicate and increasingly the moat.

Where this goes nextThree things that make us excited that the curve will continue. RWAs on Stellar are becoming productive collateral: Templar's April launch enabled lending and borrowing against tokenized assets, including Centrifuge's deJAAA and deJTRSY and Etherfuse's CETES and USTRY. Agentic commerce is emerging as a new demand vector, with the x402 protocol positioning Stellar as a settlement rail for machine-to-machine payments. And regulatory clarity outside the US keeps opening new markets, from further EU issuance following EURAU and EURCV to institutional expansion across APAC.

To the teams making this real, Etherfuse, Spiko, Circle, Franklin Templeton, WisdomTree, and every issuer bringing sovereign instruments to Stellar: this milestone is yours. The scoreboard just caught up to the work.

Explore real-world assets on Stellar at stellar.org, or dig into the data yourself at RWA.xyz.

Stellar has emerged as the leading public blockchain network for tokenizing non-US government debt, currently hosting approximately $490 million in such assets, according to the latest on-chain data. Since February, the Stellar network has outpaced competitors in this sector, signaling a significant shift for real-world asset (RWA) tokenization beyond the traditional US government debt and US dollar stablecoins.

Surge in tokenized global debtInstitutional custodians and fund management platforms have increasingly used Stellar to issue and store debt securities denominated in euros, pounds, and a range of other local currencies. This trend underscores a growing global move toward blockchain-based finance, as most governments and businesses outside the US do not operate primarily in dollars but are nonetheless issuing debt onchain.

Since February, Stellar has led the market, holding roughly $490 million in tokenized non-US government debt and surpassing any other public blockchain in this specific area.

The growth rate for tokenized non-US government debt on Stellar has remained robust, with new issuances significantly exceeding those of competing Layer-1 blockchains specializing in similar financial instruments.

Benefits for issuers, asset managers, and developersBringing sovereign debt onto the blockchain removes US-foreign correspondence hurdles, provides 24/7 settlement opportunities, and leverages programmable, compliant infrastructure. Asset managers can access instant atomic settlement in stablecoins, while issuers benefit from reduced costs to bring new instruments to market.

Exchanges and custodians are expanding services to accommodate funds originating from Europe, Latin America, and Asia. For developers, Stellar’s combination of low transaction fees and built-in compliance features has made it a preferred option for companies seeking to offer regulated financial products.

Mini dictionary: Real-world asset (RWA) tokenization refers to the process of issuing digital tokens that represent ownership of tangible or financial assets, such as government debt, directly on a blockchain. This enables transparent, efficient, and programmable asset management across borders.

Global regulatory shift and future challengesEfforts to diversify reserve and settlement systems away from dollar dominance are driving further adoption of blockchain-based solutions. Recent regulatory progress in the EU and UK regarding distributed ledger technology (DLT) securities is expected to encourage greater issuance of tokenized financial instruments.

While Ethereum and Polygon are courting RWA issuers, Stellar’s early momentum has helped it retain a leadership position in this emerging sector. The network’s ongoing development focuses on key priorities, including the verification of reserves, expanding liquidity on secondary markets, and establishing cross-chain interoperability standards to support broader enterprise adoption.

Important steps for the sector include reserve verification, improving secondary market liquidity, and developing robust cross-chain standards, which are considered vital for the future growth of tokenized government debt.

Blockchain NetworkTokenized Non-US Government Debt (USD)Key FeaturesStellar$490 millionLow fees, strong compliance, leading in growthEthereumLower than StellarBroad smart contract adoption, competing in RWAPolygonLower than StellarScalability focus, pursuing RWA marketDisclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Ripple’s U.S. dollar-pegged stablecoin, RLUSD, has reached a market capitalization of $2.035 billion, according to recent CoinGecko data. The milestone comes just months after the stablecoin’s launch in December 2024, making RLUSD one of the fastest-rising regulated assets in its category.

Rapid supply growth and XRP Ledger momentumThe current RLUSD supply is approaching $1 billion on the XRP Ledger, indicating rising adoption on Ripple’s native blockchain network. Over the last day, several major minting events were recorded from the RLUSD Treasury, including issuances of 40 million, 25 million, 20 million, 19 million, 14 million, and 12 million RLUSD. This surge in minting activity has injected new liquidity into the ecosystem.

RLUSD’s presence on the XRP Ledger is growing rapidly, with recent issuances adding substantial liquidity to support users and applications within Ripple’s ecosystem.

Much of RLUSD’s recent expansion has taken place on the XRP Ledger, though Ethereum initially served as the primary network following its debut. The shift highlights an increased deployment of RLUSD on Ripple’s proprietary infrastructure.

Mini dictionary: XRP Ledger, Ripple’s open-source blockchain protocol designed for fast and efficient payments globally. It enables the issuance, transfer, and exchange of digital assets directly on-chain.

Top contenders in the stablecoin raceRLUSD’s rapid growth has launched it into the ranks of leading dollar-backed stablecoins, now placing it just behind prominent tokens such as Tether’s USDT, Circle’s USDC, Maker’s USDS, Dai, Ethena’s USDe, and PayPal USD (PYUSD).

Presently, PayPal’s PYUSD stands at a capitalization of around $2.87 billion, holding less than a $1 billion advantage over RLUSD. The narrowing gap suggests RLUSD could soon challenge PYUSD’s position among regulated stablecoins if its current pace continues.

StablecoinMarket Cap (USD)Tether (USDT)$183 billionCircle (USDC)$73 billionMaker (USDS)$9.7 billionDai$4.5 billionEthena (USDe)$4 billionPayPal USD (PYUSD)$2.87 billionRipple RLUSD$2.035 billionTether’s USDT continues to lead the stablecoin sector with a market capitalization of $183 billion, followed by Circle’s USDC at $73 billion. Other notable competitors include USDS, Dai, and Ethena’s USDe, each maintaining multi-billion dollar market caps.

The gap between RLUSD and PYUSD is now less than $1 billion, positioning RLUSD as a serious contender among regulated stablecoins.

Ripple, known for its enterprise blockchain solutions and cross-border payment systems, has stated that RLUSD’s regulated status and growing circulation underpin its ongoing momentum.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

BTCS Inc. reduced its DeFi leverage in the second quarter, repaying $8.2 million in debt to the Aave protocol as the company shifted its balance sheet away from more aggressive borrowing.

In its Q2 2026 Form 10-Q filing, BTCS reported ending the quarter with $317,113 in cash and stablecoins. The company also reported $36.0 million in outstanding loans payable to DeFi protocols, showing that its digital-asset balance sheet remained heavily tied to crypto, staking, and DeFi activity.

The numbers are striking, but they need careful framing.

This is not proof that BTCS is insolvent. It is not evidence of an Aave failure. It is a corporate treasury and risk-management story involving Ethereum, DeFi borrowing, and balance-sheet leverage.

TL;DR BTCS repaid $8.2 million in debt to Aave during Q2 2026. The company ended the quarter with $317,113 in cash and stablecoins. BTCS still reported $36.0 million in outstanding loans payable to DeFi protocols. Corporate Treasuries Are Getting More Complex Public companies involved in crypto no longer just hold Bitcoin or Ethereum on the balance sheet.

Some stake assets. Some borrow against assets. Some use DeFi protocols. Some run validator infrastructure. Some hold a mix of tokens, cash, stablecoins, loans, and operating assets.

BTCS fits into that more complex category.

Its filing shows a company using crypto-native financial infrastructure while still reporting through traditional public-company disclosures. That combination gives investors a rare view into how DeFi leverage can appear inside a listed company’s financial statements.

The result is more transparent, but also more complicated.

Why The Aave Repayment Matters Aave is one of the largest DeFi lending protocols.

Repaying $8.2 million in Aave debt suggests BTCS was actively reducing leverage rather than simply carrying the same borrowing profile forward. That can be read as a risk-management move, especially during a period when Ethereum and DeFi markets remain volatile.

Reducing debt can lower liquidation risk and simplify the balance sheet.

But it also shows how closely some crypto companies are tied to on-chain lending conditions. When a company borrows through DeFi, its financial position can depend on collateral values, interest rates, liquidity, and liquidation thresholds.

That is very different from a plain cash-and-equity treasury.

The Cash Figure Needs Context The $317,113 cash and stablecoin figure may look low at first glance.

But it should be read alongside the rest of the balance sheet, including digital assets, staking exposure, and outstanding DeFi loans. Crypto-native companies may hold value in assets that do not resemble traditional cash reserves.

That does not remove risk.

Low cash balances can limit flexibility, especially if operating expenses rise or market liquidity weakens. But it also does not automatically mean a company is insolvent.

The cleaner read is that BTCS was managing a balance sheet where most value remained tied to digital assets and DeFi positions.

DeFi Leverage Is Now A Public-Market Issue This is the broader point.

DeFi borrowing used to be mostly a wallet-level or protocol-level story. Now it can appear inside public-company filings. That means traditional investors need to understand terms like collateral, liquidation, protocol debt, staking, and on-chain credit exposure.

As more companies use Ethereum and DeFi infrastructure, these disclosures will matter more.

Investors will not only ask how many coins a company holds. They will ask whether those assets are borrowed against, staked, locked, lent, or exposed to smart-contract risk.

BTCS offers an early example of that shift.

What Comes Next The next filings will show whether BTCS continues reducing leverage or rebuilds DeFi exposure as market conditions improve.

If the company keeps lowering debt, investors may view the strategy as more conservative. If it increases borrowing again, the balance sheet may become more sensitive to Ethereum price swings and protocol conditions.

Either way, BTCS highlights an important trend.

Corporate crypto strategies are no longer simple reserve stories. Some companies are operating inside DeFi as active balance-sheet participants.

That creates opportunity, but it also creates risk that investors need to understand.

This article is based on BTCS Inc.’s Q2 2026 Form 10-Q filing and related company financial disclosures.

This article was written by the News Desk and edited by Samuel Rae.

Circle’s euro-pegged stablecoin EURC has quietly amassed $76.6 million in deposits spread across 20 DeFi protocols. That’s not a massive number by USDC standards, but for a euro stablecoin operating in a market historically dominated by dollar-denominated assets, it represents a meaningful foothold.

The lion’s share of those deposits, roughly 70.9%, sits in Aave V3. That concentration tells you something about where the euro-denominated DeFi action is actually happening, and which protocol has managed to build the infrastructure that euro stablecoin users trust.

Aave V3’s outsized role Aave V3 holds approximately $42.5 million to $42.7 million in EURC supply based on visible protocol snapshots. That means a single lending protocol accounts for more than two-thirds of all EURC deployed in DeFi.

The remaining 29% of EURC deposits are distributed across 19 other venues, including liquidity provision and foreign exchange trading pairs across multiple protocols.

The bigger EURC picture The total circulating supply of EURC stands at approximately €410.6 million as of August 17, 2026. That means the $76.6 million sitting in DeFi protocols represents roughly 18-19% of the overall EURC supply depending on exchange rates.

Circle has positioned EURC as a fully reserved, 1:1 euro-pegged stablecoin with cash-equivalent redemptions. EURC currently lives across multiple blockchain networks: Ethereum, Base, Avalanche, Solana, and Stellar.

MiCA and the regulatory tailwind Europe’s Markets in Crypto-Assets regulation, commonly known as MiCA, has created a framework that specifically addresses stablecoin issuance in the EU. MiCA’s requirements around reserves, transparency, and licensing have raised the barrier to entry for anyone wanting to issue a euro stablecoin.

For the broader DeFi market, dollar stablecoins like USDC and USDT still dominate global DeFi activity by an enormous margin. But within the European market specifically, compliant euro stablecoins are carving out territory for users and businesses that need to denominate transactions in euros for tax, accounting, or operational reasons.

What this means for DeFi’s euro market When 71% of a stablecoin’s DeFi deposits sit in one protocol, any disruption to that protocol, whether technical, regulatory, or governance-related, would ripple through the entire EURC DeFi ecosystem. With EURC and USDC both issued by Circle and available across the same blockchain networks, the infrastructure also exists for on-chain forex trading between euros and dollars without touching centralized exchanges.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

CRV climbs on heavy volume as weeks-long recovery buildsCurve DAO Token ($CRV) is trading near $0.32, up 20.5% over the past 24 hours and 33.7% on the week, with trading volume tripling to $261.5 million. The move adds further momentum to a weeks-long recovery that has tracked a broader market-wide rally.

The current rally marks a meaningful rebound from those lows, though the token remains well below its prior peaks.

Llamalend V2 on Ethereum and a fee-share proposal fuel optimismThe price move comes on the heels of @CurveFinance's H1 report, which confirmed that Llamalend V2 is now live on Ethereum with fees accruing directly to the DAO. The report also flagged a coming governance proposal to lift the DAO's protocol fee share from 10% to 30%, a change that could materially improve token economics for CRV holders.

, placing it in more direct competition with protocols such as Aave.

Sources:
Curve Finance Completes Llamalend V2 Audit, Expands Cross-Chain Lending – CryptoNews
Introducing Llamalend v2 – Curve Finance
Curve DAO Token (CRV) Price – Coinbase

Three widely used Rust packages were briefly hijacked on August 20, 2026, injecting malware into developer builds and putting critical blockchain infrastructure, including Solana’s, in the blast radius. The attack lasted less than two hours.

The compromised crates, [email protected], [email protected], and [email protected], were published to the crates.io registry in a tight 23-minute window between 07:15 and 07:38 UTC. Each contained a dependency on a poisoned version of proc-macro1, which quietly activated a build script during Cargo builds. That script downloaded and executed malware on the developer’s machine without touching the original crate source code.

What happened, and how fast it moved The Rust Security Response Team moved quickly once the threat was identified. The malicious version of arrayref was live for 86 minutes, internment for 90 minutes, and append-only-vec for 107 minutes before all three were yanked from the registry. The maintainer account believed to be compromised was locked.

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To put the exposure in context: the previous clean version of arrayref alone, version 0.3.9, had accumulated somewhere between 152 and 245 million lifetime downloads. That’s the kind of package that sits deep in dependency trees across thousands of projects, often pulled in transitively without developers ever consciously choosing it.

The risks from successful infection included remote code execution and credential theft, meaning any developer whose build process pulled the poisoned versions could have had their machine fully compromised.

Why Solana sits at the center of the concern The arrayref crate is a foundational component in Solana’s ecosystem, used in token interfaces and core blockchain infrastructure. The other affected crates similarly appear in dependency chains for projects building on Solana and, to a lesser extent, Ethereum tooling.

No widespread exploits or project-specific compromises have been publicly reported as a result of this incident.

North Korean fingerprints Researchers at Wiz, a cloud security firm, have linked the attack to North Korean cyber actors, specifically a group tracked as Sapphire Sleet. This attribution fits a well-documented pattern. North Korean state-sponsored groups have been systematically targeting cryptocurrency infrastructure for years, using supply chain compromises, social engineering of developers, and trojanized tools to steal funds and credentials.

Developers who built projects during the exposure window are being advised to inspect their Cargo registry cache for the specific malicious versions and to pin dependencies below the compromised releases.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

https://ecos.am/en/blog/what-is-cryptocurrency-solana-sol-and-how-does-it-work

The supply of tokenized equity on Solana has surged since early 2026, now approaching $470 million, according to recent data. This growth is largely driven by xStocks, a significant player in the tokenized U.S. stocks and ETFs market on Solana, which accounts for the majority of this supply. This increase suggests a rising interest in on-chain equity solutions within the Solana ecosystem, potentially indicating broader adoption and investment in its infrastructure.

The notable expansion in tokenized equity reflects a broader trend of increasing utilization of blockchain technology for traditional financial instruments. xStocks, offering tokenized versions of U.S. stocks and ETFs as SPL tokens, represents Solana’s significant role in this evolving market. The tokens are backed 1:1 by shares held with regulated custodians, providing a secure and transparent method for accessing equity markets on-chain.

Market data reveals that this rise in tokenized equity supply corresponds with positive sentiment in prediction markets regarding Solana’s price trajectory. Currently, there is a marked increase in confidence, as evidenced by the 8.7% YES pricing for Solana reaching $120 by September 1, a notable jump from previous figures. This development may indicate optimism among market participants regarding Solana’s continued growth and adoption.

Key Takeaways Solana’s tokenized equity supply appears to have significantly increased, reaching about $470 million. xStocks accounts for the vast majority of the tokenized equity on Solana, suggesting concentrated interest in this offering. Prediction markets suggest that this growth is consistent with supportive pricing for Solana’s potential price increases. What to Watch Watch for further developments in Solana’s tokenized equity market, particularly any additional increases in supply or new product offerings. The performance of xStocks and any regulatory changes affecting tokenized securities could further influence market perceptions. Additionally, any announcements related to Solana’s infrastructure or partnerships may impact the likelihood of Solana reaching key price targets in prediction markets.

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Term Structure

Contract Odds Δ since publish Volume 24h September 1 2026 0.6% — — View market → September 1 2026 1.5% — — View market → September 1 2026 2.7% — — View market → September 1 2026 9% — — View market → September 1 2026 60.3% — — View market → September 1 2026 4.8% — — View market → September 1 2026 1.1% — — View market → September 1 2026 0.4% — — View market → September 1 2026 0.1% — — View market → September 1 2026 1.8% — — View market →

Meta Platforms
META +0.75% 94

, the social-media and artificial-intelligence juggernaut, climbed approximately 0.6% to $549.33 Friday morning as mega-cap growth stocks fought back. But Meta's rebound comes with a legal grenade still rolling across the floor. Investors must weigh a roaring advertising business against a youth-safety trial that could force painful changes to its biggest platforms.

Twenty-nine states are challenging Meta over children's data and allegedly addictive product features. The possible penalty has been estimated at approximately $200 billion, according to Reuters. Meanwhile, the money machine keeps humming. Second-quarter revenue exploded 28% to $60.8 billion. The ugly number was free cash flow, which crashed 91% to only $784 million as Meta opened the spending floodgates for AI.

A massive fine would sting. A forced redesign of recommendations, infinite scroll or youth engagement could hurt far more because it would strike directly at Meta's advertising engine. Yet the stock sits 34.64% below its GF Value estimate of $840.41. That is a monster valuation gap—but investors are being paid to absorb monster-sized legal risk and an AI spending spree that is devouring cash.

Check the Warning Signs for

META

now!

The construction of Terafab, a semiconductor manufacturing plant that's part of a joint venture among Tesla (TSLA +5.14%), Space Exploration Technologies (SPCX +2.22%), and Intel, is integral to the investment case for the two Elon Musk-run companies. Not only is the initiative critical to supporting growth, but its successful implementation will significantly improve something that's too little discussed in the investment world -- it will derisk companies' supply chains and, therefore, their risk profile. Here's why.

Tesla and SpaceX's Terafab plans The Terafab initiative is massive. The first phase involves a $16.8 billion investment in a 100-million-square-foot semiconductor manufacturing plant in Grimes County, Texas. A multiphase build-out could ultimately amount to a $119 billion investment. It aims to produce 1 terawatt (TW) of compute, which is significantly larger than the current global supply, according to SpaceX.

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The fundamental rationale behind it is simple: Both companies need to develop and manufacture chips to support growth in their cost technologies, electric vehicles (EVs) and Optimus robots for Tesla, and AI compute and data centers for SpaceX.

Four key benefits of Terafab for Tesla and SpaceX First, Musk believes that its suppliers, such as Samsung, Taiwan Semiconductor (TSMC), and Micron, will not be able to produce enough chips to meet Tesla's demand alone, let alone SpaceX's.

Second, shifting chip production will help reduce the geopolitical risk inherent in reliance on chips manufactured in Taiwan. China views Taiwan as an integral part of Chinese territory and seeks to unify it with the mainland.

Third, vertically integrating chip production into its supply chain means Tesla/SpaceX will, in theory, save on the near-60% operating margins that suppliers like TSMC currently maintain.

Fourth, it's not just a question of securing a physical supply; the timing and flexibility of that supply are also critical for a manufacturer, as is the ability to custom-make chips.

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Why Tesla and SpaceX need Terafab Chips are an integral part of both companies' business. Tesla currently uses its AI4 chip in its EVs and will use AI5 for Optimus and data centers, with Musk arguing that, at some point, it will also be used in EVs as AI4 ages. The next chip, AI6, will also be used for Optimus and data centers. Samsung makes the AI4 chip, will make the AI5 chip, and will make the next chip, AI6. TSMC will also make the AI5 chip.

However, beyond those chips, Terafab will begin producing chips for Tesla and SpaceX, including those critical to the operation of SpaceX's data centers, whether orbital or on the ground.

Elon Musk: Image source: The White House.

What it means to Tesla and SpaceX investors Terafab won't be easy, as semiconductor manufacturing is complex and capital-intensive, and Tesla/SpaceX have no background in the industry. Moreover, there's a need for commercial agreements between Tesla and SpaceX regarding ownership and payment responsibilities at Terafab. Indeed, many investors believe these issues are key support for a Tesla/SpaceX merger.

Terafab comes with risk, but it could remove a huge amount of risk for both companies. Supply chains matter, and mitigating risk in a critical component like semiconductors is a major plus for stocks. That's the key point of the initiative.

Microsoft
MSFT +0.43% 96

, the enterprise-software, cloud and artificial-intelligence heavyweight, rose approximately 0.5% to $483.56 Friday afternoon as mega-cap technology stocks clawed back ground. The rebound was hardly explosive. The 30-year Treasury yield remained near a 19-year high, forcing investors to demand more from companies priced for years of future growth.

Microsoft is delivering. Fiscal fourth-quarter revenue surged 18% to $90 billion, Azure revenue rocketed 43% and commercial remaining performance obligations exploded 84% to $678 billion. Free cash flow hit $19.6 billion and beat expectations, but it still dropped 23% year over year. The AI machine is growing fast. It is also devouring cash.

That $678 billion backlog is Microsoft's weapon. The company already has the demand; now it must build enough computing capacity to collect the money. Higher yields punish distant profits, but Microsoft can bankroll the expansion internally while weaker rivals reach for expensive debt. The valuation picture adds another twist: the shares trade 16.32% below their $577.84 GF Value™, suggesting Wall Street sees the spending surge but may be underpricing the cash still waiting in the pipeline.

Check the Warning Signs for

MSFT

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Nike (NKE +1.37%), the world's largest athletic footwear and apparel maker, was once considered a stable blue chip stock. But over the past five years, its stock has plunged more than 75%. It's now trading at its lowest price in 12 years.

Could Nike be a contrarian play at these levels? Let's see why its stock plummeted, if it's historically undervalued, and if it has a shot at a comeback over the next few years.

Image source: Getty Images.

What happened to Nike? More than a decade ago, Nike declared it could grow its revenue from $30.6 billion in fiscal 2015 (which ended in May 2015) to $50 billion in fiscal 2020. But in reality, Nike's revenue only reached $37.4 billion in fiscal 2020. Its sluggish sales in North America and Europe, soft demand for its Converse brand, and the COVID-19 pandemic all caused it to miss that target.

After the pandemic passed, Nike stabilized its business by expanding Nike Direct (its first-party e-commerce marketplace and brick-and-mortar stores) to reduce its dependence on wholesale retailers. From fiscal 2020 to fiscal 2023, its revenue grew at a steady 11% CAGR.

But after that recovery, Nike's top-line growth flatlined in fiscal 2024, and its revenue fell 10% in fiscal 2025. That slowdown was caused by its declining sales in North America and a strong dollar, which offset its steadier growth in China and other overseas markets. Nike Direct's expansion backfired as shoppers returned to wholesale retailers, and aggressive competitors -- including Deckers' Hoka, New Balance, and On Holding -- carved up the performance-running and lifestyle sneaker markets.

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That pressure forced Nike to rely on markdowns to grow its revenue. From fiscal 2023 to fiscal 2025, its gross margin declined from 43.5% to 42.7%, and its EPS fell from $3.23 to $2.16.

In fiscal 2026, Nike's revenue came in flat again. Its North American business finally grew, but its overseas sales -- especially in China -- fizzled out. Its EPS dipped 3% to $2.10. Its gross margin expanded 20 basis points to 42.9% for the year, but that was mainly due to a one-time tariff recovery rather than a significant reduction in markdowns.

Can Nike stabilize its business? Nike's turnaround strategy has been messy. It's trying to rebuild relationships with the wholesale retailers it alienated during Nike Direct's expansion, reduce its excess inventory without cheapening its brand, and develop new performance-oriented brands to widen its moat and reduce its dependence on its aging retro flagship shoes (Air Force 1, Dunk, and Air Jordan Retros). It also needs to find fresh ways to pull consumers back from rapidly growing local challengers like Anta and Li-Ning in China.

CEO Elliot Hill, who took the helm in Oct. 2024, doesn't expect the "Win Now" transformation plan to boost its revenue anytime soon. Instead, Hill is calling fiscal 2027 a "reset year" in which it will sacrifice its top-line growth to clear out its inventory and stabilize its margins.

Will Nike's stock sink even lower? For the first half of fiscal 2027, Nike expects its revenue to decline by the low- to mid-single digits, with a steeper decline in the second quarter. It expects heavy overseas digital promotions, the adjusted timing of its North American wholesale shipments, and tough macro headwinds on discretionary consumer spending to cause that slowdown.

It's also bracing for slower sales in China through fiscal 2027 as it clears out its inventories, reduces sell-in levels, and transitions toward digital storefronts on third-party marketplaces. That decline should be partly offset by its growth in North America. Analysts expect its revenue to decline nearly 2% for the full year.

On the bright side, Nike expects its gross margins to start expanding in the first quarter of fiscal 2027 as its logistics and supply chain costs decline. But analysts still expect its EPS to drop 18% for the full year.

At $40, Nike still isn't undervalued at 23 times this year's earnings. Its forward dividend yield of 4.1% might seem attractive, but it's lower than the 10-Year Treasury's 4.7% yield. So while Nike's stock price might seem historically cheap, it could get even cheaper if it doesn't address its existential challenges. That's why I'd avoid it until a few more green shoots appear.

The U.S. Securities and Exchange Commission on Friday charged a former senior Bank of America (BAC.N) investment banker with insider trading, alleging he tipped a longtime ​friend and former colleague about a pending merger, allowing the friend to make $18.5 ‌million of illegal profit.

Jason Satsky, who was Bank of America’s co-head of Americas power and renewable energy banking, allegedly tipped Gavin Wolfe in late 2021 about the potential acquisition of South Jersey Industries, an energy ​holding company that the bank was advising.

The SEC said Wolfe, who runs the firm ​Evergreen Capital and has been Satsky's friend for more than 20 years, ⁠bought more than 2.2 million shares of the South Jersey Gas parent worth about $53 million, ​and realized a 36% gain after the company announced an $8.1 billion buyout on February 24, 2022.

Satsky ​and Wolfe allegedly communicated multiple times about a possible acquisition, including when they and their wives attended a nationally televised college basketball game between Duke and Kentucky at Madison Square Garden, where Satsky had luxury box ​seats obtained through Bank of America.

The lawsuit seeks to recoup ill-gotten gains from Wolfe, and ​impose civil fines and officer-and-director bans against Satsky and Wolfe, among other remedies.

Satsky, 59, lives in New York, ‌while ⁠Wolfe, 55, lives in New York and Sunny Isles Beach, Florida.

"Jason strongly denies the SEC’s allegations and is confident that the evidence will demonstrate that he acted properly and that he will be fully vindicated," Satsky's lawyer Robert Anello said in a statement. "Jason did not provide Gavin ​Wolfe, or anyone else, ​with material nonpublic ⁠information regarding South Jersey Industries."

Reed Brodsky, a lawyer for Wolfe, in a statement said his client "categorically denies the allegations and will vigorously defend himself." ​He also said the SEC ignored sworn testimony and documents that ​showed Wolfe ⁠bought South Jersey shares based on an "independent investment thesis."

Wolfe was a senior power and renewable energy banker at Credit Suisse before he and Satsky joined Bank of America in 2012. Evergreen manages Wolfe family ⁠assets. ​Bank of America terminated Satsky in March 2025, the ​SEC said.

Bank of America was not accused of wrongdoing and confirmed Satsky no longer works there. Evergreen did not immediately ​respond to a request for comment.