Key Points

• Since reaching its peak in October, Tencent has experienced a market capitalization decline of approximately $309 billion, with Hong Kong-listed shares falling over 35%.
• Daily stock repurchases have become routine since mid-May, with June’s buyback expenditure exceeding HK$9 billion ($1.1 billion), marking the highest monthly figure in 2025.
• Following a May 13 shareholder vote, Tencent secured authorization to repurchase approximately 912 million shares, representing roughly 10% of outstanding stock.
• Market participants continue expressing skepticism regarding the company’s ability to generate returns from AI investments, which are projected to exceed 36 billion yuan by 2026—more than double current levels.
• Current forward price-to-earnings ratio stands at 11.2x, representing the lowest valuation in company history and trading below even utility provider CLP Holdings.

The tech powerhouse based in Shenzhen has embarked on an aggressive share repurchase campaign rather than pursuing external acquisitions. Since mid-May, Tencent has been systematically acquiring its own equity on nearly every trading session in an effort to stabilize a stock price that has suffered dramatically in recent months.

Tencent Holdings Limited, TCTZF

The data paints a stark picture. Since October’s peak, Tencent‘s Hong Kong-traded shares have plummeted more than one-third in value. This dramatic downturn has vaporized approximately $309 billion in total market capitalization.

June has emerged as a particularly active period for share repurchases. The company allocated more than HK$9 billion, equivalent to roughly $1.1 billion, toward buying back its own stock this month. This figure is on track to establish a new record for monthly repurchase activity in 2025.

On a single day—June 15—Tencent repurchased approximately 1.081 million shares totaling HK$5.01 billion, with transaction prices spanning HK$458 to HK$475.6 per share. Earlier, on May 22, the company acquired an additional 1.132 million shares for HK$500.56 million.

Market Sentiment Shifts Negative

The stock’s decline can be traced directly to investor apprehension surrounding Tencent’s substantial AI investment commitments. March witnessed a catastrophic single-session market value erosion of $66 billion following the company’s disclosure of its artificial intelligence spending roadmap.

Management announced in March plans to more than double AI-related capital allocation to surpass 36 billion yuan—approximately $5.3 billion—by 2026. Market participants remained unconvinced that future returns would justify such substantial expenditure.

“Market participants are adopting a wait-and-see approach—they’re demanding tangible evidence that these investments will generate returns, but concrete proof has been lacking,” explained Agnes Ng, portfolio specialist at T. Rowe Price. She noted that investors are specifically awaiting clear monetization pathways for Tencent’s AI initiatives.

Notably, mainland Chinese investors—who traditionally provided support during previous downturns—have become net sellers for three consecutive months ending in June.

Authorization for Share Repurchases

The company’s buyback initiative operates under substantial authority. During the annual general meeting held May 13, shareholders granted approval for Tencent to repurchase up to approximately 912 million shares, equivalent to nearly 10% of total issued equity.

This authorization provides considerable flexibility for continued share acquisitions should the downward price trajectory persist. As of late June, the company’s market capitalization has fluctuated between approximately $470 billion and $485 billion.

Despite the extensive buyback activity, Tencent’s shares remained down 1.8% for June. This compares favorably to the Hang Seng Tech Index, which experienced a more severe 10% decline during the same timeframe.

Should June conclude in negative territory, it would represent the company’s fifth consecutive monthly loss, establishing the longest losing streak since 2018.

Tencent’s situation reflects broader industry trends. Citigroup analysts, including Alicia Yap, anticipate increased buyback activity across Chinese internet firms as companies attempt to retain investor confidence. Meituan’s chief executive recently characterized the food delivery platform as “severely undervalued” and announced plans for its own repurchase program.

Both Meituan and Alibaba shares have declined approximately 35% year-to-date. Regarding valuation metrics, Tencent currently trades at 11.2 times one-year forward earnings, representing an all-time low for the company and falling below utility operator CLP Holdings, which trades above 15 times earnings.

This month, Tencent initiated testing of a new AI-powered assistant integrated into WeChat, branded as Weixin domestically, as part of its strategy to remain competitive with local AI developers.

Last week was one of the worst for US technology stocks since the beginning of 2026, with the index losing around 4.6% under the influence of two opposing factors. Firstly, the market continued to reassess the pace of returns on AI infrastructure investment — concerns that spending is outpacing actual returns triggered a sell-off in semiconductor stocks, with the Philadelphia Semiconductor Index falling nearly 8% over the week. Secondly, the US-Iran conflict surrounding the Strait of Hormuz escalated over the weekend: Tehran claimed responsibility for attacks on commercial vessels, while the US responded with air strikes. By Monday morning, tensions had eased somewhat as both sides announced a temporary halt to hostilities and agreed to hold talks in Doha on Tuesday. Against this backdrop, Nasdaq-100 futures gained around 1.1%.

Technical Picture

On the four-hour chart, the Nasdaq-100 (NDXm on FXOpen) has been trading within a sideways range since May, bounded by support near 28,600 and resistance around 30,700 — a range that formed following the June peak. After reaching that peak, the index experienced a sharp decline on 9 June, accompanied by exceptionally high trading volume. As a result of buyers defending the local lows, the price has since concentrated near the centre of the current range.

At present, the price is holding above the POC zone at 29,440–29,460, which may be viewed by market participants as the key point of attraction within the range. The price is approaching intermediate resistance at the upper boundary of the profile at 29,950, above which lies the red resistance level. RSI + MAs shows readings of 55, 43 and 45 — the oscillator remains above both moving averages, although the moving averages have yet to confirm a potential reversal and remain near the lower boundary of the neutral zone.

Key Takeaways

News of a pause in the US-Iran conflict supported the Nasdaq-100 at the market open, although concerns surrounding AI-related spending remain unresolved and were the primary driver of price action throughout June. The POC zone continues to serve as the key reference point for the balance between supply and demand: this is where the largest concentration of horizontal volume is located, and holding above this area could indicate that the market is preparing to continue its move towards the upper part of the range.

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Ionic Digital, the company formed out of the Celsius Mining restructuring, has filed with the U.S. Securities and Exchange Commission to list on the Nasdaq via a direct listing. The move is designed to create a public trading venue for existing shareholders rather than to generate fresh funding for the business.

In a registration statement submitted on Monday, Ionic said registered stockholders may sell up to 10.8 million shares of Class A stock under the proposed ticker “IOND,” according to the SEC filing: https://www.sec.gov/Archives/edgar/data/2007691/000118518526002704/ionicdigis1061026.htm.

Key takeaways

• Ionic Digital has filed for a Nasdaq direct listing that would allow existing shareholders to sell Class A shares, not to raise new capital.
• The company plans to trade under the proposed ticker “IOND,” with up to 10.8 million Class A shares available for sale by registered stockholders.
• Ionic’s strategy is shifting from Bitcoin mining toward AI and high-performance computing infrastructure.
• A major part of that plan centers on a 234-megawatt Texas power site that the company leased for AI workloads under a long-term contract.
• Recent financial results show leasing revenue rising while Bitcoin mining revenue has declined year over year.

Why the direct listing matters for Celsius creditors

For many participants in the Celsius bankruptcy process, the practical challenge has been converting received restructuring shares into liquid, market-priced assets. Ionic’s filing indicates that the proposed Nasdaq direct listing is meant to address that: the listing “will not raise new capital” and instead establishes a public market for existing shares.

That includes former Celsius creditors who received Ionic shares through the lender’s restructuring plan, the company said in its SEC submission. In other words, the immediate purpose is liquidity and price discovery—important for holders who may otherwise be waiting for private market exits or secondary trading limitations.

From mining operator to AI infrastructure provider

Ionic was formed in 2024 to acquire Celsius Mining’s assets as part of the bankruptcy restructuring. In its filing, the company described a strategic pivot that began in 2025: it is repositioning itself from a Bitcoin-mining-focused business into a digital infrastructure company that serves AI and high-performance computing workloads.

A key element of that pivot is the company’s Ward County property in Texas. The site—originally developed to support Bitcoin mining—has been repurposed for AI infrastructure demand. According to the company, Ionic’s AI strategy is anchored by a long-term lease that turns a mining power base into contracted computing capacity.

The Ward County lease underpins the new revenue model

The SEC filing ties the AI transition to a contract Ionic executed in October 2025. Ionic said it leased the Ward County facility to AI infrastructure provider Nscale under a 126-month agreement. Ionic characterized the deal as nearly $2 billion in contracted revenue.

Importantly, the company noted the contract may be expandable. The agreement could include an additional 89 MW if Ionic secures the necessary capacity and approvals. If that additional capacity is brought into the arrangement, Ionic said the contracted revenue could rise to approximately $2.6 billion, as stated in the filing.

The company also pointed to evidence that its pivot is beginning to reflect in financial reporting. In the first quarter of 2026, Ionic reported $44 million in digital infrastructure leasing revenue. At the same time, it said Bitcoin mining revenue declined 82% year over year to $7.4 million, alongside a reduced number of active miners and the ongoing repurposing of the Ward County site.

Share sale logistics and what comes next

Under the SEC registration statement, registered stockholders may sell up to 10.8 million shares of Ionic’s Class A stock in connection with the proposed direct listing. Because a direct listing does not necessarily involve a traditional underwriting process designed around raising capital, the structure typically emphasizes secondary liquidity—consistent with Ionic’s stated goal that the Nasdaq move is not intended to fund new operations.

The filing also lands after Ionic completed a $400 million equity private placement on Friday, according to company communications referenced in the original coverage. Ionic said the proceeds are intended for general corporate purposes, and its CEO, Andy Stewart, indicated the funding supports continued development of its digital infrastructure assets.

For investors and Celsius creditors watching this transition, several details will likely determine how quickly the market starts pricing Ionic’s AI thesis. These include how much additional capacity (if any) is secured beyond the initial contract footprint, and whether leasing revenue keeps growing fast enough to offset the decline in mining-related income.

Near-term, the key question is whether Ionic’s contractual roadmap for AI and high-performance computing continues to translate into steadily increasing reported revenue as Bitcoin operations are further wound down and capacity is redeployed.

A Michigan judge temporarily blocked prediction market Kalshi from allowing residents to place bets on sporting events, after the state’s attorney general accused the platform of violating gambling laws.

Kalshi was hit with a temporary restraining order from Ingham County Circuit Court Judge Rosemarie Aquilina, who said the platform would be fined $120,000 for each day it fails to comply with the order’s geolocation requirements, according to a Monday court filing. The order lasts for 14 days and expires on July 13.

Aquilina wrote that Michigan residents would suffer irreparable harm from being “exploited by Kalshi’s sports betting operation masquerading as an investment opportunity.” 

The move adds to the growing regulatory scrutiny on prediction market sports betting. It makes Michigan the second US state to enact a court-ordered ban on Kalshi’s sports event contracts, after Nevada issued a temporary ban on Kalshi earlier in March.

On June 17, Kentucky sued five prediction market platforms, including Kalshi and Polymarket, accusing them of operating unlicensed sports betting platforms. More than a dozen other states have taken prediction market operators to court.

The US Commodity Futures Trading Commission (CFTC) has sued several states, arguing that federally regulated event contracts fall under its exclusive authority.

Cointelegraph has approached Kalshi for comment on how the platform will respond to the verdict.

State of Michigan vs. Kalshi, court filing. Source: Law360

Prediction market sports betting rises after the FIFA World Cup

Sports betting activity has been rising on prediction markets since the beginning of the FIFA World Cup. 

Daily taker volume, which measures contracts bought or sold by traders filling existing orders, reached a record $713 million on June 20, according to Dune data. The milestone came more than a week after the World Cup started on June 11.

Daily prediction market taker volume. Source: Dune

Looking at monthly prediction market volume, sports betting was the leading category on the two largest prediction markets, rising 40% to $9.5 billion on Kalshi and 175% to $5.3 billion on Polymarket, Defirate data shows.

A June 11 Bernstein report predicted that the 2026 FIFA World Cup would generate more than $3 billion in incremental sports betting handle and between $5 billion and $10 billion in additional consumer prediction market volume. 

Related: Kalshi in early IPO talks with investment banks: Report

The World Cup winner contract alone has generated over $3.5 billion in trading volume on Polymarket, according to platform data.

World Cup Winner event contract. Source: Polymarket

The growing betting activity helped Polymarket emerge as an onboarding layer for new cryptocurrency users, as about 60% of World Cup bettors interacted with the blockchain for the first time during their prediction market entry, according to a Bitget Wallet study of 857,000 users, shared with Cointelegraph.

Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026

Key Points

• Britain’s Financial Conduct Authority released its comprehensive digital asset regulatory structure this Tuesday.
• Digital currency companies have a specific application window from September 30, 2026 through February 28, 2027.
• Complete regulatory enforcement begins October 25, 2027.
• Updated regulations encompass authorization requirements, capital reserves, market manipulation prevention, and digital dollar standards.
• Current anti-money laundering registrations won’t automatically transfer to the updated framework.

Britain’s Financial Conduct Authority has unveiled its complete regulatory structure for digital assets. Tuesday’s release represents the culmination of several years of work to establish formal government oversight of cryptocurrency activities.

The regulatory blueprint establishes a definitive schedule. Firms may submit authorization applications beginning September 30, 2026. Applications will no longer be accepted after February 28, 2027.

Full regulatory enforcement commences October 25, 2027. Before this implementation date, the FCA’s jurisdiction remains confined to promotional materials and money laundering prevention protocols.

Scope of the Updated Framework

The regulatory structure encompasses numerous crypto business categories. Trading venues, digital wallet providers, and stablecoin creators fall under these requirements.

Staking operations, crypto lending platforms, and specific decentralized finance operations are also covered. According to the FCA, DeFi protocols will face regulation when an identifiable party maintains operational control.

Businesses currently registered for anti-money laundering compliance won’t receive automatic authorization. These entities must submit fresh applications under the revised framework alongside newcomers to the industry.

Exchange platforms now confront enhanced asset listing standards. The regulator eliminated a previous exemption that permitted certain digital tokens to be listed without disclosure documentation.

Digital Dollar Standards and Capital Reserves

The FCA modified stablecoin requirements following sector consultation. Token issuers no longer must provide redemption projections for their reserve holdings.

Current regulations mandate a legal trust structure over reserve funds. Issuers may maintain up to five percent in additional backing reserves and utilize restricted affiliated custody solutions, provided appropriate protections exist.

Capital reserve requirements received adjustments as well. The FCA reduced the capital coefficient for stablecoin creation to one percent, down from the initial two percent proposal.

Regarding exchange platforms, qualifying digital assets will face a unified forty percent net risk position standard. This supersedes the previous framework that would have divided assets into separate risk classifications.

The authority intends to consult with the Bank of England during the latter half of this year. These discussions will address regulatory application for stablecoin issuers designated as systemically important by HM Treasury.

Manipulation Prevention and Trading Violations

Updated market manipulation standards address illicit trading and price manipulation. The FCA maintained an industry-driven approach for major exchange platform operators.

The regulator reduced blockchain monitoring obligations for these larger entities. It also refined standards regarding disclosure of privileged information.

David Geale, the FCA’s executive director overseeing payments and digital finance, stated the framework provides businesses with regulatory clarity. He emphasized it doesn’t require firms to sacrifice either certainty or innovation capability.

Geale emphasized that consumers will receive protection standards comparable to those established throughout traditional financial sectors. He stressed that investment dangers associated with digital currencies remain present.

Matthew Long, the FCA’s director managing payments and digital assets, indicated the regulator will continue developing DeFi guidance independently. He explained that “genuine DeFi,” where no individual entity exercises control over operations, will remain beyond this regulation’s jurisdiction.

Upcoming Developments

The FCA will conduct an informational webinar on July 17 to explain its policy declarations. Pre-application consultation sessions for businesses also commence in July.

An additional policy statement is anticipated in September. This documentation will provide clarity regarding how regulatory boundaries apply to cryptocurrency operations generally.

During the second half of this year, the FCA will additionally initiate a distinct consultation addressing DeFi guidance and operational resilience standards for businesses employing blockchain technology.

Tech-focused asset manager ARK Invest has moved to buy additional shares of several major crypto-adjacent companies during the market’s recent pullback, totaling about $43.5 million across the past three trading days. The purchases arrive as sentiment has cooled around cryptocurrency-related equities, with multiple names down sharply over the last month.

According to ARK Invest’s own trading data, the firm added 122,544 shares of Coinbase worth approximately $18.6 million and bought 169,777 shares of Circle for about $12.9 million in the same period. ARK also bought positions in Bullish (BLSH) and Robinhood (HOOD), both of which have also been drawing attention as firms explore or expand tokenization and other crypto-related initiatives.

Key takeaways

• ARK Invest deployed roughly $43.5 million in new buys over three trading days, led by Coinbase and Circle.
• Coinbase shares are down about 16.9% and Circle is down roughly 27.6% over the past month, reflecting broader caution toward crypto-linked stocks.
• Most of ARK’s additions were allocated to its ARK Innovation ETF (ARKK), with additional buys also appearing in ARK Next Generation Internet ETF (ARKW).
• ARK also increased exposure to crypto-related equities inside its ARK Blockchain & Fintech Innovation ETF (ARKF), while trimming positions in several non-crypto holdings.

ARK Invest buys into crypto-linked stocks as equities slide

ARK Invest’s latest tranche of buying focuses on companies tied closely to the digital-asset ecosystem, particularly exchanges and payments and tokenization enablers. Over the past three trading days, the firm purchased shares across multiple tickers, including Coinbase and Circle—two high-profile names often used by investors as proxies for demand and regulation-driven momentum in crypto.

ARK Invest’s disclosures show that the firm bought another 122,544 shares of Coinbase since Thursday, totaling about $18.6 million. It also added 169,777 shares of Circle, worth roughly $12.9 million during the same timeframe.

While the buys may look concentrated by dollar value, the intent appears broader: ARK also acquired exposure to other parts of the industry. The firm purchased nearly $5.2 million worth of Bullish shares and added about $5.12 million in Robinhood. In addition, ARK bought $1.69 million of SoFi Technologies shares on Monday.

Where the shares went: ARKK leads, ARKW and ARKF follow

ARK’s allocations were not evenly spread across its funds. Most of the newly purchased shares were added to its ARK Innovation ETF (ARKK), the firm’s flagship offering, underscoring that the trades were likely intended to flow through a mainstream vehicle rather than remain confined to narrower crypto themes.

After ARKK, ARK placed additional purchases into the ARK Next Generation Internet ETF (ARKW). The ARK Blockchain & Fintech Innovation ETF (ARKF) also received tops-ups with crypto-related stocks, indicating ARK maintained its separate thematic exposure for investors seeking more direct positioning.

On top of these equity moves, ARK Invest also bought and adjusted positions in other sectors over the same period. The firm increased exposure to Elon Musk’s SpaceX indirectly through a position labeled as SpaceX (SPCX) and added to Palantir (PLTR), while trimming holdings including Alibaba (BABA), Roku (ROKU), and Strata Critical Medical (SRTA).

The broader backdrop: bearish sentiment and softer crypto-linked confidence

ARK’s buying comes as investors have turned cautious on cryptocurrency-related stocks. The article’s data indicates steep declines over the past month for several of ARK’s target names: Circle is down about 27.6%, Coinbase is down roughly 16.9%, and Bullish has fallen around 26.3% in that period.

At the same time, the underlying crypto market appears to have pressured risk appetite for equities tied to the sector. Bitcoin (BTC) reportedly slipped to a near two-year low of $58,190 earlier in the downturn referenced by the source, illustrating how equity weakness is often intertwined with broader crypto price and sentiment cycles.

In addition, confidence in US legislative progress—specifically expectations that the CLARITY Act could pass before the midterm elections in November—has reportedly faded. Even when investors are not trading directly on politics, shifts in perceived regulatory timelines can materially affect how the market prices “crypto infrastructure” stocks.

What traders should watch after ARK’s repositioning

ARK’s latest purchases highlight a pattern common in risk-off markets: when crypto-linked equities fall faster than the broader market narratives around them, large asset managers may seek to build positions in companies they view as strategically positioned for the next leg of adoption or regulatory clarity.

That said, ARK’s moves do not remove the key uncertainties driving the sector. Investors looking at similar names may want to monitor whether crypto stock weakness continues alongside BTC’s recovery or whether equity-specific factors—such as business momentum, regulatory developments, or capital-market conditions—separate these companies from broader crypto price trends.

Given that ARK deployed the bulk of the purchases into ARK Innovation ETF (ARKK), future filings and fund updates will likely reveal whether the firm maintains this exposure during volatility or shifts again if market conditions worsen. The next signals to watch are likely ARK’s follow-on trading activity across ARK’s crypto-focused funds (including ARKF) and the direction of sentiment around US crypto regulation.

Ripple CEO Brad Garlinghouse has criticized Michael Saylor’s Bitcoin strategy, arguing that Strategy’s funding approach added pressure to the wider crypto market. 

In a CNBC clip shared by Squawk on the Street, Garlinghouse said, “I think team Michael Saylor wasn’t focused on the right stuff, and that has hurt the overall market.”

Garlinghouse later posted on X that “Financial engineering doesn’t drive long-term value. Utility does.” As previously reported by crypto.news, he also said during a CNBC interview that lasting value in digital assets should come from real-world use, not from financial structuring used to keep buying Bitcoin.