Crypto World
100% of Strategy’s convertible debt is now out-of-the-money
As if the week for Strategy investors wasn’t already bad enough, their capital stack has hit another, new low. Unfortunately, 100% of the company’s convertible debt is now “out-of-the-money.”
With the firm’s 2030A convertible bond notes, the final holdout from last week, joining the other five series in reaching out-of-the-money territory, all six series now have a conversion price above the price of MSTR, Strategy’s common stock.
In plain English, it’s now worse for bondholders to convert into common stock rather than just keeping their bonds as bonds.
As a result, Strategy will need to continue servicing their coupons, and principal cash repayments.
While all bondholders are out-of-the-money, in other words, these convertibles will not convert into MSTR and will, instead, continue to drag on the cash obligations of the company going forward.
These creditors will demand on-time interest payouts and principal repayment through June 2032, unless the price of MSTR starts to rally and sufficiently motivate them to exercise their convertible options.
Strategy’s bonds pay interest coupons of 2.25%, 0.625%, and 0%, depending on their upcoming maturities. The company has $8.2 billion worth of notional debt outstanding.
Read more: Michael Saylor missed out on a $33 billion profit at Strategy
Strategy must service its out-of-the-money debts
Bonds, in capital stack seniority, rank even higher than preferred shares in terms of the company’s cash obligations.
Unlike common stock at the bottom of the stack or preferred dividends which the company’s board of directors may suspend at any time, Strategy must service its debts unless it wants to default.
Defaulting is normally a catastrophic decision from a financial perspective, risking downgrades by credit analysts, uncertainty in pricing listed securities, and possible legal action by the bondholders.
Whereas an in-the-money cushion above the company’s convertibles is widely viewed as a sign of financial strength, all convertibles issued by Strategy have punctured through that safety net.
Sure, they helped the company raise money to buy bitcoin in the past, but now they have long-lasting consequences.
No longer able to convert them into MSTR — unless MSTR rallies substantially — founder Michael Saylor must continue to repay bonds with cash or drum up more demand for MSTR so that its price rallies above bondholders’ conversion price.
Conversion prices for Strategy bonds range from a low of $149.77 to a high of $672.40.
Options traders coined the term out-of-the-money when “the money” simply meant the actual, realizable, current cash value of a position.
Traders used out-of-the-money as a shorthand reference to having no immediate cash worth by exercising a right like an option or warrant.
An option whose strike, or conversion, price was already favorable relative to prevailing prices of the underlying was “in the money” because there was real money on the table.
Got a tip? Send us an email securely via Protos Leaks. For more informed news and investigations, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.
An ether bull was caught leaning hard into the upside this week as the cryptocurrency tanked, turning the whale bet into a multi-million dollar horror story.
That bull is Trend Research, a trading firm headed by Liquid Capital founder Jack Yi. The firm spent recent months building a bullish (long) bet worth $2 billion on ether by borrowing stablecoins from DeFi giant Aave, which were reportedly collateralized by ether.
The position blew up this week, leaving the firm with a $686 million loss, according to Arkham.
The blow up underscores the crypto market’s unchanged reality: Volatility can still make or break traders in a single week. It also shows how traders keep chasing risky leveraged loop plays – borrowing stablecoins against ETH collateral – despite these bets exploding spectacularly every downtrend.
How it went down
The team was convinced of ether’s long-term potential and expected a quick rebound from its October drop below $4,000.
But that never materialized – ether kept sliding, endangering their “looped ether” long position. As prices fell, the stablecoin collateral backing the leveraged bet shrank, while the fixed debt loomed large in classic leveraged fashion.
The final blow came this month as ether started falling rapidly with bitcoin and on Feb. 4 prices tanked to $1,750, the weakest level since April 2025. Trend Research responded by liquidating over 300,000 ether, according to data source Bubble Maps.
“Trend Research started sending large amounts of ETH to Binance to repay debt on AAVE In total, this cluster moved 332k ETH worth $700M to Binance over 5 days,” Bubble Maps said on X. The firm now holds just 1.463 ETH.
Jack Yi described these sales as a risk-control measure.
“As multi-heads in this round, we remain optimistic about the performance of the new bull market: ETH reaching over $10,000, BTC exceeding $200,000 USD. We’re just making some adjustments to control risk, with no change in our expectations for the future mega bull market,” Yi said in a post on X.
He added that now is the best time to buy tokens, calling volatility as the biggest feature of the crypto circle. “Historically, countless bulls have been shaken off by this volatility, but often what follows is a doubled rebound,” he noted.
Bitcoin drew renewed attention last week as price action met a renewed wave of retail-focused interest. Google Trends provisional data show worldwide searches for “Bitcoin” reached a score of 100 for the week starting Feb. 1, the highest level in roughly 12 months. The price picture reflected the mood: BTC started February around $81,500 and slid to about $60,000 within five days, before a partial rebound toward the mid-$70,000s as markets steadied (CoinMarketCap).
Key takeaways
- Global search interest for “Bitcoin” surged to a 12-month high, hitting a Trends score of 100 in the week beginning Feb. 1.
- Bitcoin’s price fell from ~ $81,500 to around $60,000 within five days and then recovered to about $70,700 at press time.
- Retail participation appears to be returning, with market observers noting renewed shopper enthusiasm on social media.
- The Coinbase premium turned positive for the first time since mid-January, signaling fresh US buying interest, per CryptoQuant.
- The Crypto Fear & Greed Index dipped into Extreme Fear, underscoring a cautious mood even as some traders see a potential buying opportunity.
Tickers mentioned: $BTC
Sentiment: Neutral
Price impact: Negative in the near term as BTC slipped toward $60,000, followed by a partial rebound to near $70,700.
Market context: The move highlights ongoing volatility in crypto markets and the sensitivity of retail-driven sentiment to price swings. Elevated search activity and mixed indicators—institutional signals and retail metrics—illustrate how traders are weighing risk in a broader macro backdrop. Watch for whether on-chain and sentiment signals converge as price stabilizes.
Why it matters
Retail interest can act as a catalyst for direction, and the early February price swing underscores how quickly sentiment can shift in a market known for sharp reversals. The spike in search activity, when paired with signals like the Coinbase premium and the Fear & Greed Index, provides a richer picture of market psychology beyond price alone. For investors and users, this episode reinforces the importance of triangulating signals—price levels, sentiment gauges, and on-chain activity—before drawing conclusions about trend beginnings or endings.
From a broader perspective, the data point to a market that remains comfortable with high volatility and sensitive to both macro cues and microflows. While some market participants view the Extreme Fear reading as a potential bottoming signal, others caution that sentiment can stay negative for extended periods if liquidity tightens or negative catalysts emerge. In this environment, the resilience of price above key support zones and the pace at which sentiment shifts back toward optimism will likely determine the next phase of the cycle.
Beyond price, observers continue to weigh how these signals translate into longer-term momentum. The conversation around a potential recovery hinges not only on how quickly Bitcoin stabilizes but also on the durability of renewed retail demand, the direction of institutional interest, and the evolving regulatory and macro backdrop. The current mix of indicators—some suggesting cautious optimism, others signaling caution—reflects a crypto market still navigating a high-velocity environment where news, liquidity shifts, and investor sentiment can diverge for extended periods.
Crypto World
Ethereum’s Trillion-Dollar Security Dashboard: A Six-Pillar Framework for Ecosystem Safety
TLDR:
- User experience is Ethereum’s weakest security link, with only 7 of 29 controls currently live.
- Smart contract attestations now verify deployed code, reducing reliance on one-time audits alone.
- Consensus protocol remains Ethereum’s strongest pillar, with robust anti-censorship mechanisms.
- Social governance risks like stake centralization now tracked alongside technical vulnerabilities
Ethereum Trillion Dollar Security Dashboard shows a new structured view of ecosystem safety. It is currently tracking six key areas, including UX, smart contract security, infrastructure, consensus, monitoring, and social governance.
The Ethereum Foundation launched this initiative to assess risks and progress, aiming to support large‑scale value safely.
The dashboard emphasizes transparency and measurable security for developers and institutional users.
User Experience and Smart Contract Security
The Ethereum Trillion Dollar Security Dashboard starts with user experience, the area where most losses occur. Users do not interact with the protocol directly but with wallets, dapps, browser extensions, and signing prompts.
Because Ethereum transactions are atomic and irreversible, a single mistake can lead to substantial loss. Key subdomains, including key management, blind signing, approvals, privacy, and interface fragmentation, closely align with observed exploit patterns.
Phishing attacks, malicious approvals, and fake frontends remain primary causes of user loss. Only seven out of twenty-nine controls are currently live, signaling UX as Ethereum’s most urgent frontier.
Clear signing standards and wallet safety protocols are prioritized to protect users effectively.Smart contract security has matured but continues evolving.
Audits, formal verification, bug bounties, and hardened libraries like OpenZeppelin help ensure that deployed contracts remain secure.
This highlights a shift toward verifiable on-chain attestations, solving the problem with the audited contract version.
These measures make security more transparent and reliable, improving overall ecosystem trust. Security tools now focus on making smart contract interactions legible for users.
Bytecode-to-audit linking ensures that contracts are identifiable and auditable, reducing dependency on one-off audit assurances.
The Ethereum ecosystem demonstrates consistent improvement in smart contract resilience while emphasizing usability. It helps bridge technical rigor and practical safety for participants.
Infrastructure, Consensus, and Social Governance
Infrastructure and cloud security remain essential components of Ethereum’s ecosystem defense. Reliance on centralized RPC providers, cloud-hosted nodes, and opaque Layer 2 solutions exposes the system to hidden failure points.
Outages, censorship, or data logging on these services can impact user experience even if Layer 1 remains stable. The dashboard prioritizes community-run RPCs and self-hosted nodes, emphasizing verifiability and decentralization.
Most controls are live, reflecting an understanding of evolving risks. Ethereum’s consensus protocol remains the ecosystem’s strongest pillar.
Through it, clients can diversify, stake decentralization, and actively enforce anti-censorship mechanisms.
Forced transaction inclusion ensures neutrality, and preparation for quantum-resistant cryptography, and long-term security planning. Monitoring, incident response, and mitigation strategies reduce systemic impact when failures occur.
Live monitoring, coordinated responses, and emerging insurance solutions help contain risk. Social governance, though slower to mature, is identified as a critical security surface.
Stake centralization, regulatory pressures, and organizational capture are measured, ensuring the ecosystem addresses risks beyond technical vulnerabilities.
This holistic approach reframes security from protecting the protocol to supporting a multi-trillion-dollar ecosystem.
Ethereum balances strong consensus and contract security with infrastructure vigilance and social awareness, demonstrating comprehensive security planning for both users and institutions.
The United States has approved a newly created national bank for the first time during President Donald Trump’s second term, granting a charter to crypto-friendly startup Erebor Bank.
The Office of the Comptroller of the Currency (OCC) confirmed the approval on Friday, allowing the lender to operate nationwide, the Wall Street Journal reported, citing people familiar with the matter.
The institution launches with about $635 million in capital and aims to serve startups, venture-backed companies and high-net-worth clients, a segment left underserved after the 2023 collapse of Silicon Valley Bank.
Erebor is backed by a roster of prominent technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil. The project was founded by Oculus co-creator Palmer Luckey, who will sit on the board but not manage daily operations.
Related: Nomura-backed Laser Digital seeks US bank charter amid crypto banking push: Report
Erebor targets defense tech, robotics, AI
The bank is reportedly positioning itself as a specialist lender to emerging industries such as defense technology, robotics and advanced manufacturing. Prospective clients include companies developing AI-driven factories, aerospace research and pharmaceutical production in low-gravity environments.
“You can think of us like a farmers’ bank for tech,” Luckey reportedly told the WSJ, arguing that traditional banks often lack the expertise needed to assess startups with unconventional assets.
Erebor also plans to integrate blockchain-based payment rails enabling continuous settlement, an unusual feature in the US banking system, where transactions typically follow business hours. The Federal Deposit Insurance Corp. previously approved deposit insurance for the institution.
The bank’s strategy includes extending credit backed by crypto holdings or private securities and financing purchases of high-performance artificial-intelligence chips.
Related: OCC Comptroller says WLFI charter review will remain apolitical
Erebor hits $4 billion valuation
In October, Erebor received preliminary conditional approval from the OCC. One month later, its deposit insurance application was approved by the Federal Deposit Insurance Corporation.
Erebor was valued at roughly $2 billion in a funding round last year and later reached a $4 billion valuation after raising $350 million in a funding round led by Lux Capital.
Magazine: Bitget’s Gracy Chen is looking for ‘entrepreneurs, not wantrepreneurs’
US Treasury Secretary Scott Bessent says banks and crypto may begin to offer similar products, and pledged to prevent deposit flight concerns that are stalling a key crypto bill.
US Treasury Secretary Scott Bessent has told Congress that traditional and crypto banking products and services may be more intertwined in the future.
Appearing before the Senate Banking Committee on Thursday, Bessent was asked by Republican Senator Cynthia Lummis whether there could come a time when conventional banks and crypto are offering the same types of products.
“I think that can happen over time,” Bessent said. “We’ve actually been working with small and community banks to discuss how they can be part of the digital asset revolution.”
Bessent tells those resisting regulations to move to El Salvador
Bessent said it was “impossible to proceed” without crypto having clear rules, and said the industry should back the crypto market structure legislation, dubbed the CLARITY Act, that’s before Congress.
“We have to get this CLARITY Act across the finish line, and any market participants who don’t want it should move to El Salvador.”
“We’ve got to bring safe, safe, sound, and smart practices and the oversight of the US government, but also allow for the freedom that is crypto,” Bessent said. “I think it’s a balance that is being worked out.”
Working to prevent bank deposit volatility
The crypto market structure bill has stalled in the Senate Banking Committee as bipartisan talks over inclusions in the bill are at a stalemate.
Related: Crypto firms offer ideas to break market structure gridlock: Report
Lawmakers pushed to add restrictions on stablecoin yields that some crypto companies, notably Coinbase, had resisted. Bessent said that deposit volatility is “very undesirable” because it is the stability of those deposits that allows banks to lend into their communities.
“We will continue to work to make sure that there is no deposit volatility associated with this,” he said.
Several crypto companies reportedly offered concessions this week, suggesting giving community banks a larger role in the stablecoin system to help push the bill through the Senate.
Magazine: DAT panic dumps 73,000 ETH, India’s crypto tax stays: Asia Express
Crypto World
Infinite Possibilities announces upcoming launch of Proof-of-Activity DEX and IP Membership program
- Infinite Possibilities has announced plans to launch iPDex, a multi-chain decentralized exchange aggregator.
- The project is also preparing to introduce its IP Membership NFT.
- iPDex is designed to route swaps across multiple blockchains, including Ethereum, Solana, BNB Chain, and Base.
February 6, 2026 – Infinite Possibilities has announced plans to launch iPDex, a multi-chain decentralized exchange aggregator designed around on-chain activity rather than inflationary incentives.
The project is also preparing to introduce its IP Membership NFT, which will provide early access to ecosystem features ahead of the platform’s broader rollout.
iPDex is designed to route swaps across multiple blockchains, including Ethereum, Solana, BNB Chain, and Base.
According to the team, the platform’s architecture focuses on aligning token issuance and reward distribution with verified trading activity, rather than relying on passive staking or liquidity provision models commonly used in decentralized finance.
As part of the launch, Infinite Possibilities plans to introduce IP, a utility token intended to support platform functionality and participation mechanisms across the ecosystem.
Token distribution is designed to be linked to on-chain activity recorded through iPDex, with supply growth tied to platform usage rather than predefined emissions schedules.
IP Membership program
Ahead of the public launch of iPDex, Infinite Possibilities will open access to its IP Membership NFT program.
The membership is designed to provide participants with early access to platform features, participation tracking, and ecosystem engagement mechanisms during the initial phase of development.
Membership participation involves a contribution denominated in USD equivalent, with participation levels tracked through an internal, non-transferable metric used to measure verified activity within the ecosystem.
Following the membership phase, eligible participants may receive IP tokens based on recorded participation, subject to the program’s published terms and conditions.
The company notes that the membership program is intended to support early ecosystem development and community engagement, rather than serve as a speculative investment product.
Platform development focus
Infinite Possibilities states that iPDex is being developed with an emphasis on protocol-managed liquidity, automated execution mechanisms, and cross-chain trading infrastructure.
The project aims to reduce reliance on user-supplied liquidity while enabling participation through on-chain activity and platform usage.
Additional ecosystem tools, including market data and analytics products, are planned as part of the broader Infinite Possibilities roadmap.
Looking ahead
The iPDex platform and IP Membership NFT program are expected to launch soon.
Further details regarding participation mechanics, eligibility requirements, and platform features will be released through Infinite Possibilities’ official channels.
More information is available at: IP Website | Twitter (X) | Telegram | NFT Membership Sale | BitMarketCap Website | Hacken Report
This article is authored by a third party, and CoinJournal does not endorse or take responsibility for its content, accuracy, quality, advertisements, products, or materials. Readers should independently research and exercise due diligence before making decisions related to the mentioned company.
TLDR:
- Stablecoin inflows now exceed the 90-day average despite Bitcoin struggling to regain upward momentum.
- Exchange liquidity is rising, but selling pressure continues to cap short-term price recovery attempts.
- Investor behavior reflects cautious accumulation rather than aggressive dip buying or breakout chasing.
- Market structure points to a transition phase marked by growing participation and defensive demand.
Stablecoin inflows to exchanges have surged to about $98 billion this week, nearly doubling from late December figures as Bitcoin’s price drops below key support.
Data shows capital moving back onto trading venues while sell-side pressure persists and price remains under strain.
The rising liquidity pattern comes as the market experiences heavy selling and subdued short-term demand.
Liquidity Expansion Without Price Confirmation
Stablecoin inflows have doubled in recent weeks and moved above their 90-day average. This change shows that capital is returning to exchanges after months of muted participation and low turnover.
Bitcoin price, however, continues to weaken as rallies fail to hold. Each recovery attempt meets renewed selling, indicating that supply remains greater than current demand at these levels.
Market observers described the flow as preparation rather than aggressive buying.
The structure suggests that the market is not constrained by lack of funds. Instead, it faces a persistent overhang of available Bitcoin from holders distributing into strength.
Stablecoins typically move to exchanges when investors intend to deploy capital. Their rise signals positioning activity rather than passive storage or risk avoidance.
Yet the absence of price response shows that buyers are executing cautiously. Orders appear layered and incremental, absorbing dips instead of pushing breakouts.
This pattern keeps volatility elevated while preventing sharp upside movement. Liquidity builds under the surface, but price remains trapped by steady sell-side pressure.
The result is a market where participation grows without trend confirmation. Exchange activity increases even as the broader structure remains corrective.
Defensive Demand and Early Accumulation Signals
The current environment reflects demand that is present but restrained. Investors appear focused on controlled entries rather than rapid exposure to price swings.
This behavior aligns with early accumulation phases observed during past deep corrections. Ownership changes gradually while price trades sideways or lower.
Another analyst tweet emphasized that stablecoins move before sentiment improves. The message framed the flows as strategic positioning instead of speculative chasing.
Such activity suggests that capital is preparing for longer-term opportunities rather than short-term rebounds. The market shows signs of patience rather than urgency.
Supply continues to dominate short-term price action. Long-term holders, miners, and treasury accounts remain active sellers during relief rallies.
As a result, price fails to convert higher inflows into sustained momentum. Demand absorbs pressure but does not overwhelm it.
This structure often leads to extended basing periods. Price can remain range-bound while liquidity and participation rebuild beneath the surface.
Historical patterns show that either consolidation or a volatility flush can follow this phase. Both outcomes depend on how supply responds to rising demand.
For now, stablecoin inflows signal that investors are no longer absent from the market. Capital is present, but conviction remains measured.
The market continues to adjust through balance rather than reversal. Liquidity growth and selling pressure coexist, shaping a cautious and transitional trading environment.
TLDR:
- Aave Umbrella automates bad debt coverage, reducing reliance on governance intervention.
- Users earn rewards by staking aTokens and GHO while actively securing the protocol.
- Deficit offset mechanisms limit slashing risk, safeguarding stakers during lending stress events.
- Transition from Safety Module ensures seamless integration for existing Aave stakers.
Aave Umbrella arrives as the Aave Protocol leads DeFi with over $50 billion in deposits, weathering recent market volatility. This includes $450 million in collateral liquidations across multiple networks in the past week.
Umbrella automates bad debt coverage and rewards staking participation, enhancing risk management precision and reducing governance delays in one of the largest decentralized lending ecosystems today.
Aave Umbrella Activation and Staking Mechanisms
Aave Umbrella is a modular system designed to manage bad debt in Aave v3 pools. It replaces the legacy Safety Module with automated coverage, relying on on-chain deficit data rather than governance intervention.
Activation begins with Ethereum, focusing on high-borrow-demand assets such as USDC, USDT, WETH, and GHO. Each deployment protects only the asset and network where it is staked, ensuring precise risk isolation.
Staking is central to Umbrella’s design. Users can stake aTokens, including aUSDC, aUSDT, and aWETH, or GHO, Aave’s native stablecoin. aToken stakers continue earning underlying yield while receiving additional Safety Incentives for participating in risk management.
GHO staking provides only Safety Incentives since it does not generate underlying yield. These rewards are claimable on-chain and vary depending on governance configuration.
The system uses a mathematically modeled Emission Curve to balance rewards. Maximum incentives are provided when total staking matches the target liquidity, with higher rewards below target to encourage participation and slightly reduced rewards above target to prevent over-staking.
This ensures predictable APY behavior, avoids extreme fluctuations, and incentivizes optimal engagement from the community.
Risk Management and Deficit Protection
Umbrella integrates slashing risk for stakers, limited to the specific asset and network they support. For example, staking aUSDC only covers USDC deficits.
The system includes first-loss offset mechanisms to protect participants. USDT staking, for instance, has a 100,000 USDT buffer, covering minor deficits before affecting staker assets.
These mechanisms drastically reduce the probability of slashing in typical scenarios. The protocol’s automated liquidation network complements Umbrella by actively managing distressed positions.
When liquidations cannot fully cover bad debt, staked assets in Umbrella are burned to offset deficits. This process eliminates manual intervention and governance delays, enhancing responsiveness and security.
During the first month of Aave v3.3, only $400 of deficits arose against nearly $9.5 billion in borrows, demonstrating Umbrella’s efficiency.
Umbrella allows broader participation in protocol security. Suppliers who are not borrowing can stake assets, actively contribute to risk management, and earn rewards.
Transition mechanisms from the legacy Safety Module ensure that stkAAVE, stkABPT, and stkGHO positions can migrate without immediate slashing risk. This creates an inclusive system where stakers align incentives with protocol health, ensuring long-term resiliency.
China has moved to lock down virtually all crypto and real‑world asset (RWA) tokenization activity, issuing a new notice that declares such operations illegal financial activity and extends liability across the entire service stack.
Summary
- A joint PBoC notice declares Bitcoin, Ether, Tether and similar tokens lack legal tender status and brands all virtual‑currency business activity as illegal finance to be “resolutely banned”.
- RWA tokenization is swept into the same risk bucket, with onshore issuance and trading prohibited absent explicit approval and offshore entities barred from serving mainland users.
Core of the new notice
The joint circular from the People’s Bank of China (PBoC) and seven other ministries states bluntly that “virtual currency does not have the same legal status as legal tender” and that tokens such as “Bitcoin, Ether, Tether…do not have legal compensation and shall not and cannot be used as currency in the market.” All “virtual currency‑related business activities” — including fiat–crypto exchange, crypto–crypto trading, market‑making, information intermediation, token issuance and crypto‑linked financial products — “are illegal financial activities” and are to be “strictly prohibited” and “resolutely banned.”
Real‑world asset tokenization is folded into the same risk bucket. Authorities define RWA tokenization as converting ownership or income rights into tokens for issuance and trading, and warn that such activities in China “shall be prohibited” unless explicitly approved on designated financial infrastructure. Offshore entities are also barred from “illegally providing…RWA tokenization‑related services” to onshore users.
Enforcement, mining and offshore routes
The notice hardens the multi‑agency framework first laid out in 2021’s Yinfa No. 237, which labeled key crypto activities as illegal and banned offshore exchanges from serving mainland clients. Financial institutions and payment firms are now forbidden from opening accounts, transferring funds, settling, custoding, or insuring any virtual‑asset‑linked product. Internet platforms may not provide “online business venues, commercial displays, marketing, traffic‑buying or paid promotion” for crypto or RWA services and must help shut down relevant websites, apps and public accounts.
Beijing also renews its campaign against mining, ordering provinces to “comprehensively identify and shut down existing virtual currency ‘mining’ projects” and “strictly prohibit” any new capacity. On offshore structuring, regulators apply a “same business, same risk, same rules” principle: domestic entities and the overseas vehicles they control may not issue virtual currencies or conduct RWA‑style securitizations based on onshore assets without prior approval, filing or registration.
Market context and price action
The clampdown lands in a market where global traders continue to treat digital assets as high‑beta macro risk. Bitcoin (BTC) trades near $66,005, down roughly 7.9% over the last 24 hours. Ethereum (ETH) changes hands around $1,890, lower by about 11.6% on the day. Solana (SOL) sits near $77.8, off approximately 15.4% in 24‑hour terms.
The notice takes immediate effect and simultaneously repeals the landmark 2021 circular on virtual‑currency speculation, signaling that China’s stance has shifted from episodic crackdowns to a durable, high‑pressure regime designed to “maintain economic and financial order and social stability” and leave no grey zone for crypto or RWA experimentation.
ARK Invest, the asset manager led by prominent Bitcoin bull Cathie Wood, has shifted from buying to selling Coinbase stock, as the shares dipped 13% and hit multi-month lows.
On Thursday, ARK offloaded 119,236 Coinbase (COIN) shares, valued at roughly $17.4 million, according to a trade filing seen by Cointelegraph.
The sale comes just a day after a modest 3,510-share ($630,000) purchase on Tuesday, following a series of buys at higher prices earlier in 2026.
This marks ARK’s first Coinbase sale of 2026 and its first since August 2025, signaling a shift in trading strategy. The cryptocurrency exchange’s stock is down around 37% year-to-date, according to Nasdaq data.
ARK sold Coinbase and bought Bullish
ARK spent almost the same amount it dumped in Coinbase shares to acquire 716,030 shares ($17.8 million) in Bullish (BLSH), an institution-focused digital asset platform that listed on the New York Stock Exchange in August 2025.
Since the trading launch, Bullish shares had slumped more than 60% to $24.9 on Thursday’s close, according to NYSE data.
Related: BlackRock’s IBIT hits daily volume record of $10B amid Bitcoin crash
ARK was one of the largest buyers of Bullish’s IPO, alongside investment giant BlackRock.
ARK holds $312 million in Coinbase stock
ARK’s latest Coinbase sale comes amid a sharp crypto market pullback, with Bitcoin (BTC) dipping below $70,000 on Thursday to briefly touch $60,000 on Friday.
For ARK, a major backer of Coinbase during tough market conditions, the move marks a notable reversal.
To date, ARK still holds $312 million in Coinbase shares across its three funds — the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF), with COIN representing 3.7%, 3.4%, and 4.95% of each fund, respectively.
Since its April 2021 trading debut, Coinbase stock has fallen about 60%, from an opening price of $381, according to Nasdaq data.
Magazine: Bitcoin’s ‘miner exodus,’ UK bans some Coinbase crypto ads: Hodler’s Digest, Jan. 25 – 31
120 smallcaps deliver double-digit returns in a week. Is this the recovery everyone’s looking for?
Ether’s crash leaves $686 million gaping hole in trading firm’s book
New Photo Shows More Apparent Hand Piercings
-
Video4 days agoWhen Money Enters #motivation #mindset #selfimprovement
-
Tech3 days agoWikipedia volunteers spent years cataloging AI tells. Now there’s a plugin to avoid them.
-
Politics5 days agoSky News Presenter Criticises Lord Mandelson As Greedy And Duplicitous
-
Crypto World7 days agoU.S. government enters partial shutdown, here’s how it impacts bitcoin and ether
-
Sports6 days agoSinner battles Australian Open heat to enter last 16, injured Osaka pulls out
-
Crypto World6 days agoBitcoin Drops Below $80K, But New Buyers are Entering the Market
-
Tech11 hours agoFirst multi-coronavirus vaccine enters human testing, built on UW Medicine technology
-
Sports3 hours agoJD Vance booed as Team USA enters Winter Olympics opening ceremony
-
Crypto World5 days agoMarket Analysis: GBP/USD Retreats From Highs As EUR/GBP Enters Holding Pattern
-
Sports21 hours ago
New and Huge Defender Enter Vikings’ Mock Draft Orbit
-
NewsBeat17 hours agoSavannah Guthrie’s mother’s blood was found on porch of home, police confirm as search enters sixth day: Live
-
Business2 days agoQuiz enters administration for third time
-
NewsBeat4 days agoUS-brokered Russia-Ukraine talks are resuming this week
-
Sports5 days agoShannon Birchard enters Canadian curling history with sixth Scotties title
-
NewsBeat5 days agoGAME to close all standalone stores in the UK after it enters administration
-
NewsBeat2 days agoStill time to enter Bolton News’ Best Hairdresser 2026 competition
-
NewsBeat4 hours agoDriving instructor urges all learners to do 1 check before entering roundabout
-
Crypto World3 days agoRussia’s Largest Bitcoin Miner BitRiver Enters Bankruptcy Proceedings: Report
-
NewsBeat4 days agoImages of Mamdani with Epstein are AI-generated. Here’s how we know
-
Crypto World2 days agoHere’s Why Bitcoin Analysts Say BTC Market Has Entered “Full Capitulation”