Core Scientific plans to turn its Pecos, Texas site into a large artificial intelligence data center campus. 

The Bitcoin miner said the project could reach up to 1.5 gigawatts of gross power capacity. The company said about 1 gigawatt of that capacity is expected to be available for leasing. The site will support high-density colocation services as demand for AI computing power continues to rise.

Core Scientific said it will repurpose about 300 megawatts currently used for Bitcoin mining at the Pecos site. That power will now support data center operations for AI workloads.

The company said the first data hall has completed foundation work. Vertical construction is now starting, with early capacity expected in 2027.

CEO Adam Sullivan said the company is using its internal experience to support the buildout.

“We continue to leverage our deep in-house expertise to differentiate how we build and scale next generation artificial intelligence infrastructure,” Sullivan said.

Power contracts and land support expansion

Core Scientific has secured another 300 megawatts of power under contract with its utility provider. The company also plans to expand through a behind-the-meter power solution.

To support the project, Core Scientific said it acquired more than 200 acres of land near the Pecos site. The added land gives the company more room for the planned data center campus.

The company also announced plans last week to raise $3.3 billion through senior secured notes due in 2031. It plans to use the funds for data center expansion in Georgia, Texas, North Carolina, and Oklahoma.

Bitcoin miners seek AI revenue streams

Core Scientific has earned most of its revenue from digital asset mining in the past. However, it has increased its focus on infrastructure services as miners search for new income sources.

Mining companies have faced tighter margins after rising energy costs and changing market conditions. As a result, several firms have moved some mining sites toward AI and high-performance computing.

MARA Holdings bought a 64% stake in French infrastructure firm Exaion in February to expand into AI services. Hive, Hut 8, TeraWulf, and Iren have also worked on converting mining facilities into data centers.

Other energy-heavy sites are also being repurposed. Alcoa is close to selling its idle Massena East smelter in New York to Bitcoin mining firm NYDIG. TeraWulf also bought Century Aluminum’s Hawesville smelter in Kentucky for $200 million, with plans to turn it into a high-performance computing and AI facility.

Key Takeaways

• ChatGPT failed to reach OpenAI’s ambitious target of one billion weekly active users by year-end 2024
• The artificial intelligence firm fell short of numerous monthly revenue benchmarks during the current year
• Chief Financial Officer Sarah Friar has expressed concerns internally about financing future infrastructure agreements
• Oracle and CoreWeave shares declined 3.5% during premarket hours; AMD slipped 2.7%
• Competitors Anthropic and Google Gemini have captured market share from OpenAI in recent months

OpenAI’s inability to achieve critical expansion milestones is creating turbulence in the AI infrastructure sector.

A Tuesday report from the Wall Street Journal revealed that OpenAI failed to meet its ambitious internal benchmark of attracting one billion weekly ChatGPT users before 2024 concluded. Additionally, the artificial intelligence powerhouse missed its yearly revenue projection along with multiple monthly financial targets throughout the year.

The publication indicates that Google’s Gemini platform experienced significant traction in late 2024, capturing valuable market share from OpenAI. Meanwhile, Anthropic has established dominance in the coding tools segment and enterprise sector, further challenging OpenAI’s expansion trajectory.

During Tuesday’s premarket session, Oracle and CoreWeave experienced 3.5% declines in share value. Advanced Micro Devices saw a 2.7% drop. These corporations have anchored substantial portions of their expansion strategies around anticipated AI infrastructure requirements.

Oracle Corporation, ORCL

Earlier this year, Oracle unveiled intentions to secure $45 to $50 billion in funding to broaden its cloud infrastructure capabilities. The company referenced committed demand from major clients such as OpenAI, Meta, and Nvidia as rationale for this massive investment. CoreWeave has projected capital expenditures between $30 and $35 billion for 2026, representing more than double its 2025 spending levels.

Uncertainties Surrounding Public Offering Timeline

OpenAI CFO Sarah Friar has reportedly cautioned internal leadership that the organization may face challenges securing funding for upcoming computing agreements if revenue expansion doesn’t accelerate, according to the Journal’s reporting. Board members have also intensified their scrutiny of data center transactions and questioned CEO Sam Altman’s aggressive push for expanded computing capacity.

Friar has allegedly raised doubts about whether OpenAI currently possesses the infrastructure and processes necessary to satisfy the rigorous disclosure requirements mandated for publicly traded enterprises. Altman has publicly stated his intention to transition OpenAI to public markets before the end of 2026.

Altman and Friar jointly disputed the Journal’s characterization. In a unified response, they dismissed any notion of internal friction or scaling back on computing investments as “ridiculous.” The executives emphasized their complete agreement on “buying as much compute as we can.”

Financial Runway and Burn Rate Concerns

OpenAI recently completed its most substantial financing round to date, securing $122 billion in capital. Despite this massive influx, the organization anticipates depleting these funds within a three-year timeframe, even under optimistic revenue growth scenarios. Portions of this financing also carry contingencies tied to particular partnership arrangements.

The company has experienced elevated subscriber churn rates, introducing additional uncertainty for stakeholders and leadership as they contemplate a potential public market debut.

According to the report, Friar alongside other senior executives have advocated for enhanced fiscal responsibility and tighter cost management, occasionally creating tension with Altman’s aggressive growth ambitions.

OpenAI’s primary AI infrastructure collaborators, notably Oracle and CoreWeave, have both pledged substantial spending increases throughout 2026, with projections partially based on anticipated demand originating from OpenAI.

Key Takeaways

• White House develops comprehensive strategy for Bitcoin Reserve utilizing seized cryptocurrency holdings
• Officials anticipate significant Bitcoin Reserve announcement in upcoming weeks
• Congressional members introduce legislation to establish permanent legal framework
• Federal government holds approximately 200,000 BTC from enforcement seizures
• Legal and policy frameworks continue development before official implementation

The Trump administration has significantly advanced its initiative to establish a national Bitcoin Reserve, with official announcements anticipated in the near future. The proposed reserve framework would leverage roughly 200,000 BTC obtained through federal law enforcement seizures. Government officials are currently finalizing legal protocols and policy frameworks ahead of public disclosure.

Administration Develops Comprehensive Reserve Framework

The White House intends to unveil its official Bitcoin Reserve framework within approximately eight weeks. Based on reports from Bybit’s weekly analysis, government officials plan to designate seized Bitcoin as strategic national reserve holdings. Additionally, this initiative represents a significant pivot in digital asset policy under President Trump’s leadership.

The reserve structure would primarily utilize Bitcoin already in federal custody from criminal prosecutions and civil asset forfeitures. This methodology allows officials to establish the reserve without conducting immediate market acquisitions. Accordingly, the administration can position the Bitcoin Reserve as a balance sheet optimization strategy.

Patrick Witt, the White House digital asset adviser, addressed the initiative during the Bitcoin 2026 conference held in Las Vegas. He indicated that legal assessments and executive preparation efforts remain ongoing before the subsequent public phase. Subsequently, the administration anticipates delivering a substantial update in the near term.

Congressional Action Seeks Permanent Legal Authority

The White House recognizes that Congress must provide the Bitcoin Reserve with robust statutory foundation. While executive directives can establish agency guidelines, legislative action creates enduring policy authority. Accordingly, members of Congress have begun drafting bills designed to codify the reserve into federal law.

Senator Cynthia Lummis alongside Representative Nick Begich previously reintroduced the BITCOIN Act. This legislation proposed acquiring one million Bitcoin across a five-year timeline using budget-neutral mechanisms. Begich subsequently announced plans to rebrand this legislation as the American Reserves Modernization Act.

The proposed legislation builds upon Trump’s executive directive while expanding the reserve’s operational scope. It additionally establishes clear separation between the Bitcoin Reserve and a broader digital asset inventory. Furthermore, this organizational structure positions Bitcoin as the cornerstone of the administration’s cryptocurrency policy platform.

Implementation Specifics Await Official Documentation

The Trump administration has yet to disclose the complete legal architecture of the Bitcoin Reserve. Specific implementation details will emerge through official documentation, regulatory guidance, and potential congressional authorization. Nevertheless, current indications demonstrate the reserve initiative has progressed beyond preliminary policy consideration.

The federal government currently maintains substantial Bitcoin holdings from previous law enforcement operations. These digital assets originated from seizures connected to criminal investigations and civil forfeiture proceedings. Consequently, officials can construct the Bitcoin Reserve without immediate expenditure of public funds for asset acquisition.

The initiative emerges amid ongoing Washington deliberations regarding comprehensive crypto regulation. Legislators continue developing frameworks for market structure, asset custody, stablecoin oversight, and digital asset supervision. Therefore, the Bitcoin Reserve may become a cornerstone element of Trump’s comprehensive digital asset policy framework.

Historical Context and Policy Evolution

Trump issued an executive order previously to establish a strategic Bitcoin Reserve. The directive instructed officials to preserve Bitcoin currently maintained on government financial statements. It simultaneously established a distinct repository for additional digital assets obtained through enforcement activities.

The policy represents a fundamental transformation in federal treatment of seized cryptocurrency holdings. Historically, federal agencies frequently liquidated forfeited Bitcoin through public auctions or alternative disposition methods. Currently, the administration seeks to retain Bitcoin as a permanent national asset.

The forthcoming announcement may provide clarity regarding custody arrangements, agency oversight, transparency requirements, and legislative priorities. It could also reveal how officials intend to protect the reserve against future policy modifications. Therefore, the next official documents will determine how the US Bitcoin Reserve transitions from conceptual plan to operational reality.

Block, the payments company behind Cash App and Square, has introduced on-chain proof-of-reserves for its corporate Bitcoin treasury, alongside new features for its products. The move places Block in the vanguard of crypto firms increasing transparency by allowing independent verification of holdings, rather than relying on trust alone.

At a Las Vegas event, Block announced that anyone can independently verify Block’s Bitcoin holdings through on-chain signatures, and that reserves are actively controlled rather than merely historically observed. The company noted a balance of 8,883 BTC, valued at about $681.4 million, which it describes as the 14th-largest corporate Bitcoin holding.

Key takeaways

• Block adds on-chain proof-of-reserves for its corporate Bitcoin treasury and for Cash App and Square, enabling public verification of holdings.
• 8,883 BTC are disclosed as Block’s reserves, valued around $681.4 million, marking Block as the 14th-largest corporate Bitcoin holder.
• PoR is presented as actively controlled and verifiable, not just a historical record, according to Block’s announcement on X.
• Adoption of proof-of-reserves has grown since the FTX collapse, with major platforms like Binance, Kraken, OKX, Bitfinex and Bitget among those embracing disclosures.
• Despite the broader push, some industry figures — notably Strategy’s Michael Saylor — have questioned PoR, citing security and information-exposure concerns.
• Block expanded its crypto toolkit with a touchscreen Bitkey hardware wallet, Cash App enhancements to auto-convert payments to Bitcoin, 5% Bitcoin back at Square merchants, and higher withdrawal limits.

Block’s PoR expansion and what it covers

Block’s new proof-of-reserves offering targets not only its corporate treasury but also the company’s consumer-facing payments rails. The disclosure covers 8,883 BTC on its books, which Block says helps validate the firm’s Bitcoin holdings in a verifiable, on-chain manner. By presenting these reserves alongside its public statements, Block aims to give users and investors a clearer picture of where its Bitcoin assets sit and how they’re controlled.

The company framed the PoR rollout as part of a broader push toward greater accountability in the crypto industry, particularly in the wake of past industry-wide upheavals. By tying the verification to on-chain signatures, Block argues that the reserves are actively managed and auditable, rather than simply reported after the fact.

Verification as a standard, with notable industry context

The PoR trend gained significant momentum after the 2022 FTX collapse, when customers and counterparties increasingly pressed for transparent, independently verifiable asset backing. Since then, several large crypto exchanges and institutions have published proof-of-reserves disclosures as part of a broader transparency push. Block’s adoption adds to a growing list that includes major venues such as Binance, Kraken, OKX, Bitfinex and Bitget.

That broader market debate remains nuanced. In May 2025, Michael Saylor, executive chairman of Strategy, the universe’s largest corporate Bitcoin holder, publicly warned that proof-of-reserves can pose security risks. He argued that exposing certain information about reserves and custodial relationships could undermine security for issuers, custodians, exchanges and investors. His stance illustrates the tensions between transparency and operational security that continue to shape PoR discussions.

New tools, incentives, and what Block is launching next

Alongside PoR, Block announced a slate of product updates aimed at integrating Bitcoin more deeply into its ecosystem. The company introduced a touchscreen Bitkey hardware wallet, designed to verify transactions at the point of interaction. It also rolled out a feature on Cash App that allows a subset of users to automatically convert payments into Bitcoin, broadening the pathway for everyday spending to become Bitcoin exposure.

Block is also expanding incentives for merchants using Square, offering 5% Bitcoin cashback on purchases at Square-enabled merchants. In addition, customer withdrawal limits have been increased fivefold, rising to $10,000 per day and $25,000 per week, easing access for users who hold Bitcoin through Block’s platforms.

Why this matters for investors, users, and builders

For investors and users, Block’s PoR push is a signal that the firm aims to align its disclosures with a growing demand for verifiable, auditable crypto holdings. In a market where opacity and custody risk have historically been points of contention, on-chain verification can reduce information asymmetry and potentially lower counterparty risk perceptions for Block’s Bitcoin assets tied to its treasury and product ecosystem.

For builders and other corporates, Block’s approach offers a playbook for integrating PoR into consumer products without sacrificing security. The combination of active on-chain verification and expanded Bitcoin-enabled features—such as automatic conversion in Cash App and merchant incentives—illustrates a practical path to broad Bitcoin adoption in payments and corporate treasury management.

As the industry weighs the benefits and trade-offs of PoR, readers should watch how more corporates adopt verifiable disclosures, how custodial arrangements evolve to balance transparency with security, and whether regulatory scrutiny shapes future PoR standards.

Looking ahead, the question is whether Block’s expanded PoR rollout will spur further adoption among other corporates and what changes may emerge in the governance of on-chain verifications. Keep an eye on whether more products integrate native Bitcoin mechanics and whether policy developments around disclosure standards influence how PoR is implemented across the sector.

Commodity-linked currencies are trading near key levels, showing restrained price action as market participants adopt a wait-and-see approach. The fundamental backdrop is shaped by expectations surrounding the release of Australia’s inflation data and the Bank of Canada’s interest rate decision, followed by a press conference. These events are viewed as key drivers for the respective currencies and could significantly shift the balance of power in the market.

Additional attention is focused on global factors, including US statistics (data on economic activity and oil inventories), as well as ongoing uncertainty surrounding negotiations between the US and Iran, which continues to influence overall risk sentiment.

AUD/USD

The AUD/USD pair is trading near its yearly high around 0.7220. This level is attracting heightened attention, as the pair has not traded above it for three years, increasing its significance as a supply zone. In the event of strong inflation data, a breakout with further upside is possible, whereas weaker figures could trigger a pullback and a return to the 0.7100–0.7180 range.

Key events for AUD/USD:

• today at 16:00 (GMT+3): S&P/CS Composite-20 Home Price Index (US), not seasonally adjusted
• today at 17:00 (GMT+3): US CB Consumer Confidence Index
• tomorrow at 04:30 (GMT+3): Australia Consumer Price Index

USD/CAD

The recovery in USD/CAD observed last week has lost momentum following a failed attempt to consolidate above 1.3700. Yesterday, the April low was updated, but the price found support at 1.3600 and rebounded. Technical analysis of USD/CAD points to the possibility of a decline towards 1.3540–1.3520 if the pair consolidates below 1.3600. The bearish scenario would be invalidated after a confident move and hold above 1.3700.

Key events for USD/CAD:

• tomorrow at 15:30 (GMT+3): US New Home Construction (housing starts)
• tomorrow at 16:45 (GMT+3): Bank of Canada interest rate decision
• tomorrow at 17:30 (GMT+3): Bank of Canada press conference

Overall, the market is in a waiting phase, where key levels in AUD/USD and USD/CAD serve as decision points. Upcoming macroeconomic events — including Australia’s CPI, the Bank of Canada’s decision, and US data — will determine the next direction: either continuation of current trends with breakouts, or a return to more subdued, range-bound dynamics.

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Key Takeaways

• Attackers exploited Gmail’s dot alias functionality to generate authentic-looking Robinhood security alert emails
• Scammers registered Robinhood accounts using modified versions of victims’ email addresses with dots repositioned
• Malicious HTML code was inserted into the “device name” registration field to embed fraudulent links
• The deceptive emails successfully passed SPF, DKIM, and DMARC authentication protocols
• Robinhood verified that no system compromise occurred and user funds and data remained secure

Investors using Robinhood found themselves on the receiving end of convincing phishing emails that appeared to originate from the platform’s official mail servers. These deceptive messages alerted recipients about suspicious login activity from an unknown device and featured a clickable button directing them to a fraudulent login portal.

Reports of this attack surfaced on social platforms over the weekend, with numerous users posting evidence of the fraudulent communications.

Cybersecurity expert Alex Eckelberry verified that this campaign wasn’t caused by a data breach. Rather, it took advantage of two distinct vulnerabilities: the way Gmail processes dot characters in email addresses and security gaps in Robinhood’s user registration system.

Gmail’s email system disregards periods in the username portion of addresses. This means “jane.smith@gmail.com” and “janesmith@gmail.com” both deliver to the identical mailbox. Robinhood, on the other hand, recognizes these as distinct accounts.

Fraudsters capitalized on this discrepancy by establishing Robinhood profiles using dot-altered variations of targeted users’ Gmail addresses. This triggered Robinhood’s automated notification system to dispatch emails directly to the legitimate owner’s inbox.

The Mechanism Behind the Embedded Phishing Link

To inject malicious URLs into these system-generated emails, attackers inserted HTML markup into the optional “device name” input field during the account registration process. Gmail’s email client interpreted this HTML as legitimate formatting code.

This technique produced a genuine message originating from “noreply@robinhood.com” that displayed a fraudulent security warning complete with a functional phishing button. The email successfully validated against all conventional email authentication mechanisms.

According to Eckelberry, simply accessing the counterfeit website wouldn’t compromise user accounts. The actual threat materializes only when victims input their credentials or sensitive information on the fraudulent page.

Robinhood’s customer support team on X acknowledged the situation on Monday. The malicious emails carried the subject line “Your recent login to Robinhood.”

Official Statement from Robinhood

The financial services company clarified that this incident stemmed from exploitation of its registration workflow rather than a security breach of its infrastructure. The company emphasized that no customer information or financial assets were compromised.

Robinhood recommended that users immediately delete the suspicious emails and refrain from interacting with any questionable links. Those who had already clicked were instructed to reach out to Robinhood’s support team exclusively through the authenticated app or official website.

This incident follows a report from blockchain security firm Hacken identifying phishing and social engineering as the predominant threat vector in the cryptocurrency sector throughout Q1 2026.

Hacken’s analysis revealed these attack methods resulted in approximately $306 million in losses during just the first quarter of the year.

As of now, Robinhood has not publicly disclosed any planned modifications to its account registration protocols following this security incident.

US President Donald Trump has softened his stance on prediction markets just days after he bemoaned the surging interest and popularity of the betting platforms.

“I don’t know. I know some people who are very smart. They like it,” Trump told reporters in Florida on Saturday after he was asked about his earlier comments, in which he said he didn’t support prediction markets. “They disagree, but they like it.”

“A lot of other countries are doing it, and when the other countries do it, we get left out in the cold if we don’t do it,” he said.

Donald Trump speaking to reporters in Florida before departing for Washington, DC. Source: YouTube

Trump’s latest comments came after he told reporters at the White House on Thursday that he was “not happy” with prediction markets in response to a question about well-timed bets on events linked to the Iran war.

“Well, you know, the whole world, unfortunately, has become somewhat of a casino,” Trump said on Thursday. “And you look at what’s going on all over the world and Europe, and every place they’re doing these betting things. I was never much in favor of it. I don’t like it conceptually, but it is what it is.”

“I think that I’m not happy with any of that stuff, but they have all these different sites of predictive markets. It’s a crazy world. It’s a much different world than it was,” he added.

Prediction markets such as the popular Polymarket and Kalshi have surged in use over the past year, with the two platforms together seeing a record $23.6 billion in trading volumes in March, according to Token Terminal.

Related: CFTC sues New York over bid to apply gambling laws to prediction markets

Trump’s son Donald Trump Jr. invested in Polymarket in August and joined the company’s advisory board. He is also an adviser to rival Kalshi, taking on the role in January 2025.

President Trump could also soon have an interest in prediction markets. His company, Trump Media, said in October that it would roll out prediction markets in partnership with Crypto.com on its flagship social media site, Truth Social.

Trump divested his stake in Trump Media upon entering office, transferring his shares to a trust for which Trump Jr. is the sole trustee.

Magazine: Should users be allowed to bet on war and death in prediction markets?