Crypto World
AVAX One CEO says $35.1M quarterly loss masks growth in its staking and treasury business
AVAX One interim CEO Pete Wylie has said $33 million in non-cash charges accounted for most of the company’s $35.1 million second-quarter loss as staking helped revenue rise to $2.8 million.
Summary
- AVAX One’s adjusted net loss was $2.2 million after excluding $33 million in non-cash charges.
- Staking generated $2.1 million as quarterly revenue rose from approximately $500,000 to $2.8 million.
- The company held 14.09 million AVAX and equivalents, with roughly 95% actively staked.
- Wylie said AVAX One favors established yield partners and maintains a conservative approach to debt.
AVAX One interim CEO Pete Wylie told crypto.news that the reported loss did not capture the operating performance of the company’s staking, mining and digital infrastructure businesses.
“The $35.1 million number can be attention-grabbing, but it does not tell the full story,” Wylie said.
“It includes about $33 million of what are called non-cash charges, most of that being an unrealized markdown based on current prices for the AVAX we continue to hold and accumulate.”
After removing the non-cash items, AVAX One reported an adjusted net loss of $2.2 million for the quarter. Wylie said the adjusted figure provided a clearer view of the operating business, although the company’s reported results remain closely tied to AVAX’s market value.
AVAX One’s loss was driven by digital-asset markdowns
According to AVAX One’s Aug. 13 earnings release, the company recorded a $29.8 million unrealized loss from changes in the market value of its digital assets. A further $2.6 million impairment came from its liquid-staking tokens, while share-based compensation and depreciation contributed approximately $600,000.
Operating expenses reached $36.2 million, up from $1.8 million during the same quarter of 2025. Excluding the $33 million in non-cash charges, AVAX One calculated adjusted operating expenses of $3.2 million.
Net loss reached $4.41 per diluted share, compared with an $8.1 million loss, or $335.88 per diluted share, one year earlier. On the company’s adjusted basis, the latest loss was $0.27 per diluted share.
Although an unrealized loss does not require an immediate cash payment, AVAX One’s results show how a declining token price can reduce the recorded value of its treasury. Wylie acknowledged that volatility is built into the strategy but said staking rewards continue to accrue in AVAX regardless of the token’s dollar price.
“We earn revenue in ‘nominal’ form, AVAX tokens, and though the current value is lower than we expected for this period, if the token price rebounds, we get the benefit as our earned rewards tokens increase in value, even though we recognized initial revenue at a lower price,” he said.
Quarterly revenue rose to $2.8 million from approximately $500,000 a year earlier. Staking supplied about $2.1 million, or 75% of the total, while Bitcoin mining produced approximately $700,000.
As of Aug. 13, the company held 14,091,424 AVAX tokens and equivalents. Approximately 95% of the holdings were staked at an annualized yield of about 5.4%, according to the earnings release.
Around 800,000 AVAX had been deployed into Treehouse. An AVAX One SEC filing describes Treehouse’s tAVAX as a liquid-staking receipt backed by BENQI’s sAVAX, with an AVAX redemption process that can take approximately 14 days.
The filing also lists smart-contract vulnerabilities, extreme market volatility, governance attacks and bridge failures among the risks associated with decentralized finance positions. AVAX One said it would typically absorb losses arising from an adverse event.
Liquidity and debt shape the treasury strategy
Wylie said AVAX One allocates capital according to where management believes each dollar can create the most shareholder value. Depending on market prices and available opportunities, the company can buy AVAX, repurchase its shares, or fund selected infrastructure projects.
“Staking is the foundation of our Avalanche treasury strategy. Our Bitcoin mining operations contribute operating cash flow and provide a gateway for opportunities in the AI and high-performance computing space, an area we are actively exploring.”
During the second quarter, AVAX One repurchased approximately 144,755 common shares under its authorized $40 million buyback program. The company said it had repurchased approximately 417,537 shares since November 2025 on a split-adjusted basis.
Reported liquidity stood at approximately $21.2 million on June 30, down from $27.6 million at the end of 2025. The latest amount included $11.4 million in cash and cash equivalents, $5.4 million in restricted cash, and a $4.3 million escrow receivable.
Given AVAX’s volatility, Wylie said the company remains cautious about its capital structure, particularly debt. After the quarter closed, AVAX One retired and restructured approximately $6.8 million of convertible debt.
The August restructuring fully repaid debentures held by two institutional investors and reduced the principal owed to another investor. AVAX One also agreed to increase a covenant covering the minimum cash and Bitcoin it must maintain from $100,000 to $3.5 million.
For U.S. investors, AVAX One offers public-market exposure to an Avalanche treasury through its Nasdaq-listed AVX shares. The structure also means shareholders face risks from both the company’s operations and changes in the value of AVAX recorded in its U.S. financial reports.
Wylie took over as interim CEO while retaining his chief operating officer role after Jolie Kahn left the company in July. As previously reported by crypto.news, the board retained ZRG Partners to search for a permanent chief executive while weak AVAX prices pressured the company’s treasury strategy.
AVAX One favors explainable yield over higher returns
With most of its AVAX working through staking, the company monitors yield and operating costs as it tries to increase the number of tokens held per share, according to Wylie.
“Our yield partnerships are with established, proven companies. We’d rather earn a yield we can explain than a higher one that seems too good to be true, because it probably is.”
AVAX One’s staking rewards accrue in tokens, leaving their dollar value exposed to changes in AVAX prices. Wylie said management focuses on keeping the assets productive while controlling operating expenses so the treasury can continue accumulating AVAX.
Avalanche’s Helicon upgrade could provide more flexibility if its staking changes progress from testnet to mainnet. Helicon is live on the Fuji testnet and includes proposals to reduce the minimum primary-network validator commitment from 336 hours, or 14 days, to 48 hours.
Another proposal introduces automatic staking renewal, allowing validators to set a cycle period and an auto-compounding ratio. Avalanche’s documentation says the feature applies to primary-network validators, not Avalanche L1 validators or legacy subnet validators.
Wylie said shorter commitments could improve liquidity and reduce the barrier for institutions. Since the changes remain under testing, AVAX One has not yet gained its proposed benefits in its mainnet staking operations.
Avalanche adoption supports Wylie’s treasury conviction
Wylie tied the company’s long-term confidence to institutional activity across Avalanche, pointing to recent deployments involving tokenized securities, lending and stablecoin settlement.
In July, Japan’s Progmat completed the migration of ¥452 billion in issued securities and underlying assets from Corda 5 to a dedicated Avalanche L1. Progmat said the transfer covered all active projects on its platform without disrupting participating financial institutions.
According to Progmat, its platform handles 45 of Japan’s 89 publicly disclosed security-token projects and accounts for 64.6% of the country’s market by issuance value. Internal tests cited by the company found that rights-transfer processing became three to five times faster after the migration.
Aave also deployed V4 on Avalanche on July 15, its first launch of the architecture outside Ethereum. Aave’s documentation says the deployment uses a core liquidity hub with main, foreign-exchange, and AVAX-linked lending sections.
Stablecoin payments supplied another institutional test. Hyundai Card completed a $20,000 remittance pilot between Hyundai Motor entities in the United States and Mexico using USDT on Avalanche. The company said the settlement took about seven minutes.
BlackRock’s BUIDL fund, issued through Securitize, had also accumulated more than $900 million on Avalanche by July after adding approximately $436 million in one week. BUIDL invests mainly in U.S. Treasury bills, cash, and repurchase agreements, while access remains subject to investor eligibility and transfer controls.
Visa added Avalanche to its supported stablecoin settlement networks in 2025. An April 2026 company announcement said Visa’s nine-network stablecoin settlement pilot had reached a $7 billion annualized run rate, although Visa did not provide an Avalanche-specific share of that volume.
Outside its treasury operations, AVAX One is preparing an AI inference pilot at its Redwater facility in Alberta. The project is testing whether approximately 100 kilowatts of excess Bitcoin-mining capacity can support AI workloads, with the company working alongside infrastructure developer BlueFlare on additional AI and high-performance computing opportunities.
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BitMEX co-founder Arthur Hayes delivered a blunt message to investors following a sudden market surge, telling Crypto Banter host Ran Neuner that avoiding risk assets right now would be foolish.
His comments came just after the US Treasury moved to double the size of its debt buybacks.
Note: Arthur Hayes recent crypto trading actions have been anything but examplarary. BeInCrypto published an extensive analysis of his publicly known wallets. KOL comments and discussions shouldn’t be considered as investment advice.
What Triggered Hayes’s Bullish Call
Soft yield curve control refers to central bank or Treasury actions that cap bond yields without formally announcing a fixed target, injecting liquidity through indirect market intervention. Hayes described the buyback expansion in exactly those terms.
“You’re an idiot if you’re not long stocks, long gold, long Bitcoin, long the market,” Arthur Hayes said, linking the Treasury’s actions directly to renewed liquidity-driven gains.
Treasury Secretary Scott Bessent announced the expansion targeting longer-dated Treasuries. Markets had been testing the 5% level in 10-year yields, a threshold many view as unsustainable for US debt servicing.
By increasing buybacks, the Treasury effectively capped yields, injecting liquidity much like previous interventions under Janet Yellen.
Hayes argued that when governments suppress bond yields artificially, private capital flees fixed income in search of scarce alternatives.
“That’s why markets ripped gold, Bitcoin stocks, right? This is the the Yellen put if you want to call it that. Uh she started this. Um, funny at the time, you know, he wasn’t this treasur treasury secretary then. You know, Scott Bessent had a lot of choice words for how moronic it was that uh Janet Yellen was issuing so much debt at the short end,” Hayes explained.
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He drew a parallel to the Bank of Japan’s decade-long experiment with yield-curve control, arguing that capped yields inevitably push capital toward equities, gold, and Bitcoin.
Why Hayes Sees This as the Start of a Pattern
The immediate market reaction validated his view. The 30-year Treasury yield fell, Bitcoin broke above key moving averages near $70,000, equities rose, and altcoins turned sharply green.
Hayes called the move a recognition that authorities will keep intervening to defend debt sustainability, creating a series of liquidity injections over time rather than a single event.
With the Federal Reserve holding rates steady to support Treasury operations and additional tools, such as expanded repo facilities, still on the table, Hayes sees the policy bias as firmly pro-asset prices. He added that Trump’s focus on a strong stock market further aligns those incentives.
While acknowledging that part of Bitcoin’s sharp move reflected a short squeeze, Hayes stressed a deeper structural shift: governments now prioritize debt defense over free-market pricing of yields.
“The balance sheet expands infinitely because the market say, ‘Oh, you want to you want a capul 5%? Yours. Here are all these bonds. I want equities. I want gold. I want Bitcoin. I want anything that has a scarce supply if you’re going to create more dollars to artificially manipulate these yields.” BitMEX co-founder noted.
In that environment, he argued, holding cash or staying under-allocated to equities, gold, and Bitcoin becomes the riskier choice. Hayes said he remains heavily positioned, having stayed risk-on for weeks with significant exposure to both Bitcoin and Ethereum.
His words, which also touched on his new project Flop Labs, underscored a simple thesis for the current regime: stay long scarce assets while authorities keep printing and intervening.
“I mean, I’ve been riskon for a, you know, a few weeks now. I mean, we pumped a lot into Ethereum, bought some Athena, bought some Ethery. So, we’re pretty much at probably maximum risk, I would say, right now, uh, given our holdings and so, you know, just sitting back and watching the number go up on the screen. So, it’s nice,” Hayes said.
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The post Arthur Hayes Shares Surprising Tip on Stocks, Gold, and Bitcoin appeared first on BeInCrypto.
NoOnes has shut down, telling users to withdraw funds immediately. The team warned that balances tied to the platform may be flagged after August 23.
The peer-to-peer marketplace served more than 2.5 million users in three years. Sanctions cost it essential partners, leaving withdrawals as the only function still running.
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NoOnes Shuts Down After Sanctions Hit
NoOnes said it worked to resolve and remove the sanctions, but failed. Blockchain monitoring providers then classified its wallets and transactions as high risk.
This has made it difficult for the platform to process transactions and operate normally.
“We explored every possible option, but continuing NoOnes was no longer sustainable,” the blog read.
The wind-down began on August 17. The P2P marketplace closed on August 21, taking Swap, the Visa card, crypto off-ramps, the gift card store, and Lightning payments with it.
Withdrawals now run only through the Bitcoin (BTC) network and Tether (USDT) on TRON. The team strongly advised users to withdraw their entire balance immediately and no later than Sunday, August 23, 2026.
“Because of the EU sanctions listing, external compliance providers may review or change the risk ratings of certain NoOnes company wallets,” the team said.
The Council of the EU adopted its 21st sanctions package against Russia in late July. Binance will also stop processing transactions involving several platforms on August 23.
Crypto Closures Pile Up While BitMart Changes Course
NoOnes joins a long 2026 list. OrdinalsBot announced its wind-down this week after three years. More than 120 crypto projects have shut down in 2026, according to RootData.
Alea Research reviewed 110 of those cases through mid-August. Decentralized Finance (DeFi) accounted for 40 closures (36%), while centralized exchanges accounted for only 7.
One name has since moved the other way. BitMart said this week that it is weighing a restructuring plan rather than a full liquidation, with a roadmap expected by September 9.
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The post Crypto App NoOnes Shuts Down After Sanctions, Affecting 2.5M Users appeared first on BeInCrypto.
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Franklin Templeton is preparing to put tokenized assets inside its conventional mutual funds and ETFs, Bloomberg reported on Thursday, eight days after SEC staff cleared the firm to hold its $721 million blockchain-based money market fund in those portfolios.
Franklin characterizes relief as the first US regulatory clearance for digitally native products inside conventional funds.
“It is not a rule, regulation, or statement of the Commission, and the Commission has neither approved nor disapproved its content,” the Division of Investment Management wrote on August 12, adding that it “has no legal force or effect.”
Staff set aside paragraphs (b), (e), and (f) of Rule 17f-2 under the Investment Company Act of 1940, the provisions built around vault custody of share certificates.
The Franklin OnChain U.S. Government Money Fund (FOBXX) reported net assets of $720,928,224 on July 31 and a 3.50% seven-day net yield. Franklin Templeton Investor Services will open a separate wallet on Stellar for each investment fund.
Twelve Conditions Attached
Staff attached twelve conditions. Each fund’s board of trustees must approve the arrangement and review it at least annually.
FTIS has to retain the power to correct errors, freeze or migrate wallet records and restore the official ownership record, and if it ever stops acting as transfer agent it must hand the successor administrative control over the smart contracts.
Independent public accountants must verify each fund’s holdings at least three times a fiscal year, two without prior notice. Moreover, funds may use the shares for cash balances and securities lending collateral. CryptoPotato reported in December that BENJI served as collateral in a SemiLiquid credit pilot, staying encumbered across the loan lifecycle.
Relief Rests on a 1992 Letter
Staff granted the position by analogy to a September 24, 1992 letter to Franklin Investors Securities Trust, which covered a master-feeder arrangement where an affiliated transfer agent held fund shares in book-entry form. Franklin argued a Stellar wallet raises the same question, since FTIS still maintains the official ownership record and keeps unilateral control over it.
The letter names 23 investment managers, among them Putnam, Western Asset, ClearBridge, BrandywineGLOBAL, Royce and Clarion Partners. CryptoPotato has covered Franklin’s agreement to buy 250 Digital, the firm spun out of CoinFund, as its digital asset arm passed 50 staff.
On August 18, the SEC proposed the Regulation Crypto Assets with $5 million and $75 million offering paths, a proposed rule carrying a 60-day comment period. Franklin’s request was signed by Navid J. Tofigh, Senior Associate General Counsel, and answered by Taylor Evenson, Senior Counsel.
The post Franklin Templeton Wins SEC Staff Relief for Its $721M Onchain Fund appeared first on CryptoPotato.
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This week, Binance founder Changpeng Zhao (CZ) finally revealed why he chose to face US prosecutors during his AML violation case despite holding UAE citizenship that could have kept him from the grasp of US law enforcement.
His account offered a rare explanation of his thinking before a four-month prison sentence and the end of his leadership at Binance.
CZ Says Running From the Case Was Never an Option
Zhao talked about the matter in a fireside chat with Anthony Scaramucci on August 19 at the Wyoming Blockchain Symposium in Jackson Hole, stating that he had become a citizen of the United Arab Emirates approximately six months before the Binance case became public and that the country has no extradition treaty with the USA.
He could have stayed in the Middle East and avoided US courts altogether, but he said that option didn’t feel honorable to him.
“Actually, I was granted citizenship of the UAE, but I didn’t want to leverage that,” Zhao explained. “That’s just the wrong thing to do.”
According to him, resolving the case one way or the other was better for himself, Binance, BNB holders, and the wider crypto industry.
“When the US government is going after you, you don’t dodge it,” declared the former Binance CEO. “You shouldn’t be hiding or running away from it.”
But on the other hand, Zhao had quite different expectations about the punishment he would face. He told Scaramucci that he never expected to get imprisoned since his case had no fraud, just one Bank Secrecy Act violation.
CZ also compared his sentence with that of former BitMEX executive Arthur Hayes, who received six months of home confinement after pleading guilty to one count of violating the Bank Secrecy Act by failing to establish adequate AML and KYC at his exchange.
Zhao, meanwhile, got four months in federal prison for fundamentally the same personal offense. And while that was still a much shorter jail term than the three years the Justice Department had recommended, it was certainly more than the no-prison-time his legal team had asked for.
“I think I’m still the single only person that went to jail for a single violation of a Banking Secrecy Act,” he remarked.
A Case That Ended With Prison, Then a Pardon
In the interview, CZ also reflected on Binance’s position at the time of the case. He pointed to its status as the world’s largest crypto platform while stressing that it was neither US-based nor China-based.
“We’re not US-based, we’re not China-based, but look Chinese, so kind of an easy target,” he said. “I don’t blame them. It is what it is.”
The 48-year-old stepped down from his position at the helm of Binance after the exchange agreed to a $4.3 billion settlement with US authorities.
He himself also paid a $50 million personal penalty before heading to the Federal Correctional Institution (FCI) Lompoc II in Santa Barbara, California, to serve out his sentence, leaving the facility near the end of September, 2024.
A year after that, President Donald Trump gave him a full and unconditional pardon.
The post CZ Reveals Why He Didn’t Use UAE Citizenship to Avoid US Charges appeared first on CryptoPotato.
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