Crypto World
How a ‘Wrong Number’ Message Turned Into a $3.4M Crypto Scam
Key takeaways
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This $3.4 million scam shows how modern crypto fraud increasingly relies on social engineering rather than technical exploits.
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Scammers used a gradual grooming process, engaging victims in friendly conversations over time to build emotional trust before introducing any financial discussion. It closely resembled the pig-butchering model.
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The investment pitch combined Ether’s growth potential with the perceived stability of gold. This created a compelling but fraudulent narrative that convinced victims they were gaining access to an exclusive, low-risk opportunity.
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Victims were told to buy Ether themselves on legitimate platforms and transfer it to provided wallets. This gave them a false sense of control and legitimacy.
This scam did not begin with a phishing link or hacked wallet. It started with a simple message: “Sorry, wrong number.”
According to US prosecutors, the interaction evolved into a social engineering scheme that defrauded victims of millions and led to the seizure of $3.4 million in USDt (USDT).
From innocent messages to multimillion-dollar fraud
Federal prosecutors in Boston have initiated a civil forfeiture proceeding to recover approximately $3.44 million in USDt linked to a suspected online investment fraud.
According to authorities, the funds were seized in early 2025 as part of an investigation launched in late 2024 after complaints from victims in multiple US states who reported significant financial losses.
The operation did not involve sophisticated technical exploits. Instead, it relied on a well-known yet remarkably effective tactic: social engineering. Fraudsters used ordinary, everyday interactions to deceive unsuspecting victims.
Victims received texts or chat messages that appeared to have been sent by mistake. Fraudsters used apps like WhatsApp and Telegram to send these messages.
On the surface, the communication appeared completely ordinary. There was no pressure, no immediate request and no clear warning signs.
This lack of an obvious threat is one reason the method can be so effective.
Unlike crypto scams that trigger immediate suspicion, the “wrong number” approach:
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Appears natural and socially appropriate
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Encourages polite replies
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Creates an opportunity for ongoing dialogue
In this case, as in similar ones, what begins as an apparent mistake soon evolves into an opening for further contact.
The grooming stage: Gradually establishing trust
Following the initial exchange, scammers avoid rushing the process. They cultivate trust gradually through friendly conversations, the sharing of seemingly personal information and the maintenance of a consistent, reliable persona.
Rather than introducing financial topics too early, the scammers:
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Create a sense of emotional ease
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Make regular communication feel normal
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Foster the appearance of a genuine personal connection
This strategy aligns with a broader category of fraud commonly known as pig-butchering, in which victims are methodically “groomed” before being targeted for financial gain.
By the time money becomes part of the discussion, victims often believe they are interacting with someone familiar rather than an unknown fraudster.
Did you know? The “wrong number” scam technique evolved from earlier email scams in which fraudsters pretended to contact the wrong person. Messaging apps have made this tactic more effective by enabling real-time, casual conversations that feel more authentic.
The pitch: A fake Ether investment tied to gold
After building initial trust, scammers subtly shifted the discussion toward lucrative investment opportunities. Victims were presented with what appeared to be a privileged Ether (ETH) investment opportunity, supposedly tied to tangible gold holdings.
This pairing appears to have been deliberate.
It merged:
Together, these elements created an attractive narrative: the promise of substantial returns while minimizing perceived risk.
Victims were told they were being given access to a rare, exclusive opportunity that was not available to the general public.
The transaction method: Why victims purchased Ether
Instead of requesting direct transfers, the fraudsters instructed victims to:
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Buy Ether through established, legitimate exchanges
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Send the purchased Ether to designated wallet addresses
This approach had a significant psychological impact.
Victims felt reassured because they:
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Conducted transactions on genuine, well-known platforms
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Personally handled and authorized the purchase
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Could observe and verify the funds in their own wallets before the transfer
As a result, the process never felt like directly giving money to fraudsters. Instead, it appeared to be genuine participation in a legitimate investment opportunity.
Did you know? In many fraud cases, scammers appear to operate in organized groups using scripted playbooks. Some teams specialize only in the “conversation phase,” while others handle crypto transactions, showing how modern fraud has become structured like a business operation.
What occurred after the Ether transfer
After victims sent their Ether to fraudsters:
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The funds were routed through various intermediary wallet addresses
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They were then converted into USDt, a stablecoin pegged to the US dollar
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Finally, the stablecoins were transferred to unhosted wallets controlled by the perpetrators
This sequence was designed to:
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Conceal the transaction path
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Disconnect the funds from their original source
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Significantly complicate efforts to recover them
Nevertheless, blockchain records, combined with investigative tools, helped authorities trace the money trail. The process ultimately resulted in the seizure of assets.
Part of a larger fraud pattern
This prosecution fits into a broader wave of cryptocurrency-related fraud cases. Authorities across the US have taken action against pig-butchering frauds and romance scams. They have also launched crackdowns on laundering operations involving stablecoins.
Across these incidents, common traits appear:
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Initial outreach through social media, dating apps or informal platforms
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A slow, deliberate process of cultivating trust
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A pivot toward cryptocurrency “investment” opportunities
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Fund transfers through layered transactions
While the specific methods and technologies may vary, the intent and strategy remain consistent.
Did you know? Crypto scams often use multiple blockchains to move funds, not just one. After converting assets into stablecoins, scammers may bridge them across networks to make tracking and recovery efforts even more difficult.
Why this scam proved effective
The core reason these schemes succeed is that they are rooted in psychology rather than in any technological flaw.
The perpetrators did not exploit vulnerabilities in the system itself. Instead, they targeted and manipulated predictable patterns of human behavior.
Several critical psychological elements contributed:
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Politeness bias: Individuals tend to reply politely even to messages that appear accidental.
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Trust formation: Consistent, repeated contact creates a growing sense of familiarity and comfort.
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Perceived control: Victims personally handled the purchase and transfer of funds.
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Credibility: Linking the high-growth promise of cryptocurrency with the time-tested stability of gold gave the proposal greater believability.
By the time the fraud unraveled, the victim had already become deeply committed both emotionally and financially.
The legal response: Moving from seizure to permanent forfeiture
The US government initiated a civil forfeiture proceeding to recover the seized assets.
Through this legal mechanism, authorities are able to:
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Assert ownership over property suspected of being linked to criminal conduct
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Obtain judicial authorization for the permanent forfeiture of those assets
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Allow victims or other third parties an opportunity to file legitimate claims to the property
Unlike criminal prosecutions, civil forfeiture proceedings focus on the assets themselves and do not necessarily require a criminal conviction to move forward.
Warning signs to recognize
Scams of this nature tend to follow well-established patterns. Important red flags to watch for include:
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Unsolicited messages claiming to have been sent in error
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The rapid development of rapport and trust by previously unknown individuals
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Discussions that gradually shift toward investment suggestions
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Promises of exclusive access or guaranteed high returns in cryptocurrency
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Instructions to send funds or cryptocurrency to external wallet addresses
Any investment proposal that arises from a random conversation should be approached with the highest level of skepticism.
What to do if you receive similar messages
If you receive an unsolicited message about a lucrative crypto investment, you should:
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Refrain from responding to or engaging with unfamiliar contacts
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Resist the urge to continue the conversation simply to be polite
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Never transfer money or cryptocurrency to wallet addresses provided by strangers
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Immediately block and report suspicious phone numbers, accounts or profiles
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Promptly notify law enforcement and the relevant platforms or exchanges if any funds have already been sent
Prompt action can sometimes improve the chances of authorities tracing the funds or freezing them.
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Two NYSE-linked exchanges have put new crypto ETF options rules into effect after filings cleared the SEC process.
Summary
- NYSE Arca and NYSE American removed position limits on options tied to 11 crypto ETFs.
- The SEC waived the usual waiting period, allowing the new crypto options rules to take effect immediately.
- The rule change gives institutions more flexibility and allows crypto ETF options to trade as FLEX contracts.
NYSE Arca and NYSE American removed the 25,000-contract position and exercise limit for options tied to 11 spot Bitcoin and Ether exchange-traded funds, giving those products broader trading terms.
NYSE Arca filed its proposed rule change on March 10, 2026, to revise rules for options on certain crypto-linked ETFs. The filing covered products that had been trading under a 25,000-contract cap since their launch phases.
NYSE American filed a similar proposal on the same date. Its filing also removed the fixed 25,000-contract limit and updated the exchange’s rules so those options can follow the broader position-limit structure already used for other eligible products.
SEC waiver made the changes effective at once
Both filings became effective under Rule 19b-4(f)(6). In each case, the SEC said the standard 30-day operative delay could be waived because the changes aligned crypto ETF options rules with those used by other exchanges and did not create new regulatory issues.
The Federal Register notices state that the Commission designated both proposals to be operative upon filing. In the notices, the SEC wrote that waiving the delay was consistent with investor protection and the public interest, making the new rules active without waiting another month.
Furthermore, the rule changes affect 11 crypto ETF options. The list includes BlackRock’s iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, Grayscale Bitcoin Trust, Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, Grayscale Ethereum Trust ETF, Grayscale Ethereum Mini Trust ETF, Bitwise Ethereum ETF, iShares Ethereum Trust ETF, and Fidelity Ethereum Fund.
Earlier filings had already removed some limits for a smaller group of Bitcoin ETF options, including GBTC, the Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, and IBIT. The new March 2026 changes extend similar treatment across the full set of listed crypto ETF options covered by these exchange rules.
FLEX options and larger positions now get more room
The updates also allow these crypto ETF options to trade as FLEX options under the revised rules. FLEX contracts let market participants customize terms such as strike prices, expiration dates, and exercise styles instead of using only standard listed terms.
NYSE American’s filing says the exchange wants these crypto asset options treated like other options for position, exercise, and FLEX trading purposes. A separate Nasdaq ISE proposal still seeks to raise the position limit for IBIT options to 1 million contracts, and that proposal remains under SEC review.
Crypto prices opened lower in Asia on Monday as fresh pressure from oil markets and geopolitical tension weighed on risk assets.
Summary
- Crypto prices dropped in Asia as war fears and oil market stress pressured investor sentiment again.
- Traders are watching PMI, jobless claims, and sentiment data for clues on rates inflation.
- Bitcoin and Ether weakened as rising energy costs and macro risks weighed on markets.
Meanwhile, investors are also watching a packed U.S. data calendar this week, with new reports on business activity, jobless claims, consumer sentiment, and inflation expectations due between March 23 and March 27.
Crypto markets faced renewed selling after conflict in the Middle East kept traders focused on energy supply risks. Reuters reported that U.S. stock futures fell as investors reacted to President Donald Trump’s 48-hour demand for Iran to reopen the Strait of Hormuz, while Iran warned of retaliation if attacks hit its infrastructure.
Oil prices stayed elevated as the new week began. Brent crude at about $113.20 a barrel, while U.S. West Texas Intermediate traded near $101.32. Higher oil prices have lifted concern about inflation and have pushed markets to reassess the path for interest rates.
Investors shift focus to economic data
The week’s economic calendar may shape trading across crypto and traditional markets. A Wall Street Journal report cited Deutsche Bank economists as saying,
“This is significant because it’s one of the first economic indicators we’ll get that cover the period since the conflict began,” referring to the March PMI data.
Thursday’s initial jobless claims report will offer another reading on labor market conditions. At the same time, markets are tracking whether inflation pressure from fuel costs could change expectations for Federal Reserve policy. Investors have sharply reduced hopes for rate cuts this year and are now pricing in a higher chance of a rate increase later in 2026.
Bitcoin and Ether trade lower in Asia
Bitcoin remained under pressure in Monday trading. Live market data showed Bitcoin (BTC) at around $68,400, while Ethereum (ETH) traded at $2,000. Both assets were down from recent highs as traders pulled back from risk during a weak start to the week.
Broader crypto market sentiment also softened as investors moved more carefully across global markets. Rising yields, weaker equities, and higher energy costs have added pressure across risk assets, including digital tokens.
Higher oil prices may feed through to household spending if the rally continues. CBS News quoted Oxford Economics chief global economist Ryan Sweet, who said,
“To kind of put it into context, every penny increase in gasoline prices reduces consumer spending by one and a half billion dollars over the course of a year.”
H100 Group has signed a letter of intent to buy Norwegian Bitcoin companies Moonshot AS and Never Say Die AS through an all-share deal.
Summary
- H100 plans an all-stock deal to acquire Moonshot and Never Say Die in Norway.
- The proposed acquisition could raise H100’s Bitcoin holdings to about 3,501 BTC total.
- If completed, H100 would become Europe’s second-largest listed Bitcoin treasury company by holdings.
If completed, the transaction would expand H100’s Bitcoin treasury and move the Sweden-listed company closer to the top tier of Europe’s public Bitcoin holders.
According to a press release, H100 said the proposed transaction would be carried out as a share-for-share acquisition. Under the plan, H100 would issue new shares to acquire all shares in Moonshot AS and Never Say Die AS, with no cash payment included in the structure.
The company said this setup is designed to keep the sellers exposed to Bitcoin through shares in a listed company. H100 added that the final terms will be set in definitive agreements, while the deal remains subject to due diligence, corporate approvals, and stock exchange requirements.
Bitcoin holdings could rise to about 3,501 BTC
Bitcointreasuries data shows H100 currently holds 1,051 BTC. The company said the two target firms hold about 2,450 BTC combined, which would bring the total to about 3,501 BTC if the acquisition closes.
That total would place H100 just behind Germany’s Bitcoin Group among Europe’s listed Bitcoin treasury companies. Bitcointreasuries ranks H100 44th among public Bitcoin treasury companies worldwide at present, and the added holdings would move it well above its current standing.
H100 chairman Sander Andersen said,
“Scale, credibility and access to capital markets are increasingly important in the Bitcoin space, and this transaction would strengthen H100 in these areas.”
That statement appeared in public reporting on the planned acquisition and outlined the company’s stated reason for the move.
The company has also completed the acquisition of Switzerland-based Future Holdings AG, showing that it is still building its Bitcoin treasury platform through deals. H100 said the new transaction would not change its listing structure or its role as the listed parent company.
AGM timing and share performance remain in focus
H100 expects to sign a definitive agreement by April 22. The company has said closing would come after its annual general meeting, but its current financial calendar lists the AGM on May 21, 2026.
The proposed deal comes while H100 shares remain under pressure and Bitcoin treasury companies continue to face a weaker market environment.
Bitcoin rose sharply on March 23 after U.S. President Donald Trump said Washington had held constructive talks with Iran and would pause planned military strikes for five days.
Summary
- Bitcoin rebounded from below $68,500 and briefly touched $71,500 after Trump announced a strike delay.
- Trump said US-Iran talks were productive and paused planned military action for five days.
- The rally liquidated nearly $270 million in short positions and pushed daily crypto liquidations higher.
The move lifted market sentiment after several sessions of pressure linked to Middle East tensions. The rebound also triggered a wave of short liquidations across the crypto market.
Bitcoin had fallen below $68,500 earlier in the session as traders reacted to geopolitical uncertainty and broader risk-off sentiment. The asset then reversed course within hours and climbed by about $3,000, reaching $71,500 before giving up part of the gain.
At the time of reporting, Bitcoin traded near $71,000. The move marked its first return to the $71,500 area since last Thursday and showed how quickly sentiment shifted after Trump’s latest comments on the Iran situation.
Trump said the United States and Iran had held “very good and productive conversations” over the previous two days. He also said he had instructed the “Department of War” to delay military action against Iranian power plants and energy infrastructure for five days while talks continue.
The statement pointed to a possible easing in tensions after weeks of conflict. It also came about 36 hours after Trump warned he would “obliterate” Iran if the Strait of Hormuz was not reopened safely, making the change in tone a key factor in the market reaction.
Short traders face heavy losses
Bitcoin’s fast recovery caught bearish traders off guard. Data from CoinGlass showed that nearly $270 million in short positions were liquidated within the past hour as prices moved higher.
Total liquidations across the crypto market reached about $780 million by press time. More than 200,000 traders were liquidated over the same period, showing the scale of the sudden reversal and the pressure on leveraged positions.
Strategy added more bitcoin during the latest market pullback, extending a buying pattern that has continued through recent volatility and rising geopolitical tension.
Summary
- Strategy bought 1,031 BTC at $74,326, raising its total bitcoin holdings to 762,099 BTC.
- The latest purchase was smaller than last week’s 22,337 BTC acquisition worth $1.57 billion.
- Bitcoin fell below $70,000, leaving Strategy under pressure on its latest purchase during market volatility.
Meanwhile, the company disclosed that it bought 1,031 BTC for $76.6 million, bringing its total holdings to 762,099 BTC. The latest purchase came as bitcoin traded above $74,000 early last week before falling below $70,000 after the second Federal Open Market Committee meeting of the year.
Michael Saylor’s latest update showed that Strategy completed the purchase at an average price of $74,326 per bitcoin. Based on that entry level, the transaction likely took place during the first few business days of the previous week.
The new purchase lifted Strategy’s total bitcoin holdings to 762,099 BTC. The company has now spent about $57.69 billion building its bitcoin position, keeping its status as the largest corporate holder of the asset.
The latest acquisition was much smaller than the one Strategy announced a week earlier. In that earlier update, Saylor said the company had spent $1.57 billion to acquire 22,337 BTC.
Even so, the new purchase showed that Strategy has kept its regular buying approach in place. The company continues to announce bitcoin buys on Mondays, even as markets remain sensitive to macro and geopolitical developments.
Bitcoin price swings shape market backdrop
Bitcoin traded above $74,000 by Wednesday morning last week before reversing lower. The decline deepened around and after the year’s second FOMC meeting, adding pressure to the broader crypto market.
By press time, bitcoin had fallen below $70,000 after a brief rebound to $71,500. That move followed Trump’s latest “statement” on the war in Iran, which briefly pushed prices higher before the rally faded.
Strategy’s bitcoin stack remains under pressure as the asset trades below the company’s latest average purchase price. The market correction has left the firm sitting on unrealized losses based on current spot levels.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Cloud mining evolves in 2026 as users prioritize transparency, flexibility, and real returns over raw computing power.
Summary
- HashBitcoin simplifies mining with daily payouts and no hardware setup required.
- HashBitcoin uses renewable-powered mining farms in North America and Europe for stable, transparent returns.
- Cloud mining grows as a mainstream tool in 2026, with HashBitcoin targeting beginners and passive income seekers.
Once upon a time, mining was a playground for tech geeks and big investors. In 2026, cloud mining has quietly become a popular financial tool for the masses — no expensive equipment, no technical barriers, just a phone or computer, and anyone can earn Bitcoin (BTC), Dogecoin (DOGE), and other digital assets every day.
As mining difficulty rises and global electricity prices fluctuate, user demands have fundamentally changed: computing power is no longer the only pursuit. Transparent earnings, flexible contracts, and real returns are now the core competition points for cloud mining platforms.
This article will help someone understand the latest industry trends and reveal seven cloud mining platforms worth attention, helping them start their journey to passive income with digital assets.
Quick comparison: Which cloud mining platform is right?
| Platform | Supported Coins | Entry Threshold | Daily Payout | Unique Features |
| HashBitcoin | BTC, DOGE | $200 | Yes | High returns, ultra-simple, ideal for beginners |
| BitFuFu | BTC | $500+ | Yes | Enterprise-level mining, for professional investors |
| NiceHash | BTC | Flexible | Yes | Hashpower trading, strategy lovers’ paradise |
| ECOS | BTC | $150+ | Yes | Long-term contracts, conservative and stable |
| StormGain Alt | BTC | Free/Paid | Limited | “Zero-risk” experience, entry-level for casual users |
| Binance Pool | BTC, DOGE | Flexible | Yes | Seamless exchange integration, for ecosystem users |
| Kryptex | BTC | Very Low | Variable | Desktop mining, for hardware enthusiasts |
1. HashBitcoin — Let every day “mine gold” automatically
HashBitcoin has completely simplified the cloud mining process: users just choose a contract, with no hardware installation required, and earnings are automatically credited daily.
The platform is based on real mining farms in North America and Europe, powered by renewable energy for both stability and eco-friendliness. Real-time dashboards make earnings crystal clear, and contract returns are fully transparent.
Popular contracts overview
| Mining Plan | Investment | Contract Term | Daily Rewards | Total Return (Principal + Profit) |
| Newbie Mining Plan | $200 | 1 Day | $7 | $200 + $7 |
| Avalon A15 Pro Mining Rig | $1,200 | 2 Days | $43.2 | $1,200 + $86.4 |
| BitDeer SealMiner A2 | $3,600 | 3 Days | $136.8 | $3,600 + $410.4 |
| Avalon Nano 3S Miner | $8,000 | 2 Days | $344 | $8,000 + $688 |
| Antminer S23 Hyd | $16,800 | 3 Days | $924 | $16,800 + $2,772 |
| Whatsminer M63S (390T) | $33,000 | 2 Days | $2,145 | $33,000 + $4,290 |
| Antminer E9 Pro | $58,000 | 1 Day | $5,104 | $58,000 + $5,104 |
Innovative features:
- Instant mining after purchase, earnings credited immediately
- $15 bonus for new users, lowering the entry barrier
- Clear contract terms and returns
- Eco-friendly mining farms for extra trust
HashBitcoin is perfect for those looking to quickly experience cloud mining, pursue short-term returns, or stabilize their assets in a volatile market.
2. BitFuFu — Enterprise mining for professionals
Backed by large-scale mining farms, BitFuFu delivers strong hashpower and transparent data, ideal for investors familiar with mining economics. While the entry cost is higher, returns are stable, and risks are controlled, making it the top choice for institutions and high-net-worth users.
3. NiceHash — Hashpower trading for strategy enthusiasts
NiceHash isn’t a traditional cloud mining platform but a “hashpower marketplace.” Users can buy and sell hashpower, switch algorithms, and create personalized strategies. It offers high flexibility but isn’t beginner-friendly, best suited for those who love DIY and chasing optimal returns.
4. ECOS — Stable long-term contracts
ECOS focuses on long-term mining contracts, is regulated, and operates in Armenia’s Free Economic Zone. With mobile app support and predictable earnings, it’s suitable for conservative investors. While returns are lower, risks are better managed.
5. StormGain alternatives — Zero-risk experience for easy entry
Some platforms offer free mining experiences, allowing users to earn small amounts of digital assets without investment. Although earnings are limited, it’s a good way for newcomers to try and learn the cloud mining process — a “zero-risk” entry point.
6. Binance Pool — Mining expansion for exchange users
Binance Pool integrates seamlessly with the Binance ecosystem, supporting BTC and DOGE. It’s ideal for active Binance users, with reliable infrastructure, though it requires some management effort and is best for those looking to diversify their asset allocation.
7. Kryptex — desktop mining for hardware enthusiasts
Kryptex runs on users’ local computers, automatically converting earnings to Bitcoin. With a user-friendly interface, it’s great for beginners with good hardware, though it’s not a true cloud solution and returns depend on their own equipment.
2026 trends: Mining is no longer a hardcore game
This year, four major trends have emerged in cloud mining:
1. Short-term contracts are popular: Fast capital turnover, users prefer quick settlements.
2. Daily payouts are standard: Earnings are credited daily, and weekly settlements are fading out.
3. Energy transparency matters: Green mining farms earn more trust, and eco-friendliness is a bonus.
4. Ultra-simple user experience: The easier the registration, the higher the user retention.
HashBitcoin aligns perfectly with these trends and has become a rising star in the industry.
Conclusion: Cloud mining makes passive income easy
In 2026, cloud mining has evolved from a “tech game” to a mainstream financial tool. With ultra-simple operation, stable returns, and real mining farms, HashBitcoin is the leading choice for beginners and passive income seekers. Whether someone is new to digital assets or looking to grow wealth, cloud mining is worth a try — let every day automatically “mine gold” and start the new digital wealth life with ease!
Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.
Shares in NovaBay Pharmaceuticals jumped nearly 19% after the company announced it would change its name to Stablecoin Development Corporation as part of its strategic crypto pivot.
NovaBay Pharmaceuticals CEO Michael Kazley said in a statement on Monday that the company’s plan going forward is to access cash flows within the growing stablecoin economy.
“The name change to Stablecoin Development Corporation reflects our conviction that stablecoins represent the most compelling structural opportunity in digital finance,” he said.
It adds to a wave of companies over the last year that have pivoted to a crypto strategy to improve their fortunes. However, with crypto markets down since October, there are warnings of potential consolidation ahead.
The company’s stock ticker will change from NBY to SDEV, effective April 3. It has also disclosed that it holds two billion Sky (SKY) tokens as of March 16, representing more than 8% of the total supply.
Shares of NovaBay Pharmaceuticals (NBY) spiked 19% to trade at $1.38 in the trading session following the announcement.
SKY holdings are already over two billion
NovaBay Pharmaceuticals began life in 2000 as a California-based biopharmaceutical company focused on eye care products.
The company disclosed in a January SEC filing that it was changing tactics to operate under an “on-chain holding company framework focused on long-duration participation in protocol-level digital asset ecosystems.”
As part of the pivot, NovaBay Pharmaceuticals entered into a $134 million private placement backed by Tether Investments, an affiliate of the stablecoin issuer, to buy and hold assets within the SKY protocol ecosystem.
NovaBay Pharmaceuticals has since acquired more than two billion SKY tokens and has generated cumulative staking rewards of 26.6 million SKY tokens. SKY is trading at $0.073 as of Tuesday, according to CoinGecko.
Under its new framework, the company said it can “hold protocol-aligned digital assets for extended periods in order to participate in protocol-level economic activity.”
Related: Stablecoin inflows rebound to $1.7B as Washington battles over yield rules
Efforts are also underway to continue buying additional SKY tokens on the open market, according to the announcement.
Company is interested in yield-bearing stablecoins
At this stage, the SKY token is the only digital asset approved under the company’s operating and risk management framework.
However, NovaBay Pharmaceuticals flagged “stablecoins as an increasingly important component of global digital financial infrastructure” and said it has a particular interest in yield-bearing stablecoins.
“These instruments represent a compelling evolution in digital finance, functioning as productive financial assets that unlock new primitives for savings, treasury management, and capital formation.”
Magazine: Banks want to run Vietnam’s crypto exchanges, Boyaa’s $70M BTC plan: Asia Express
Two major prediction market platforms, Kalshi and Polymarket, on Monday announced new trading guardrails to address insider trading amid mounting concerns of market manipulation on recent event contracts.
It comes the same day that US lawmakers introduced a bipartisan bill to ban event contracts that resemble a “sports bet” or “casino-style game.”
Kalshi on Monday said it would preemptively ban political candidates from trading on their own campaigns and those known to be involved in college and professional sports, such as athletes, personnel, and referees.
Kalshi’s ban followed just hours after rival Polymarket revealed comparatively broader prohibitions to ban users who trade using stolen confidential information, illegal tips or those who can influence the outcome of a market.
The platforms have faced mounting criticism over insider trading after Polymarket users profited from well-timed bets before US and Israeli strikes on Iran and a US military operation to capture Venezuelan President Nicolás Maduro.
Ben Yorke, a former Cointelegraph research analyst, told The Guardian on Monday that the Iran strike bets were “someone with some degree of inside info,” as the bets were made at market price, and multiple accounts were used in an apparent attempt to obfuscate their identity.
Kalshi said its ban has “been in the works for months” and was made to proactively address regulatory guidance and legislation introduced in Congress involving insider trading and market manipulation on prediction markets.
Bipartisan bill would ban sports event contracts
Kalshi and Polymarket’s bans come after Democratic Senator Adam Schiff and Republican Senator John Curtis introduced a bill on Monday to ban certain event contracts “that are indistinguishable from gambling.”
The so-called Prediction Markets Are Gambling Act would ban Commodity Futures Trading Commission-registered entities, which would include Kalshi and Polymarket US, from listing event contracts that resemble “a sports bet or a casino-style game.”
“Sports prediction contracts are sports bets — just with a different name,” Schiff said. “These contracts have been offered in all fifty states in clear violation of state and federal law.”
Curtis said that the legislation “clarifies regulatory jurisdiction, ensuring that states can maintain their authority over sports betting and casino gaming.”
Related: US Senate bill targets prediction markets on war and assassinations
Tarek Mansour, the CEO of Kalshi, which is a member of the Coalition for Prediction Markets lobby group, posted to X that the bill was the “casino lobby hard at work.”
“This bill isn’t about protecting consumers; it’s about protecting monopolies,” he added.
Prediction market platforms, including Kalshi, Polymarket and Coinbase, are embroiled in legal action across multiple states, which have asserted that sports event contracts are gambling that requires a state license to offer.
The platforms have argued that their contracts are not illegal betting and are, regardless, subject to the exclusive jurisdiction of the CFTC, not state authorities.
Magazine: When privacy and AML laws conflict — Crypto projects’ impossible choice
Bitcoin (BTC) price is struggling to maintain footing above $68,000 today, down 1% as the prediction of selling pressure mounts following a rigid rejection at the $76,000 ceiling a week ago. The market leader is currently navigating a perilous consolidation phase analysts call a “No-Trade Zone,” where conflicting signals between derivatives data and spot buying are creating high volatility.
The rejection at higher levels coincides with a distinct shift in institutional sentiment, evidenced by ETF flows showing signs of reversal amid broader geopolitical uncertainty.
On-chain data from Santiment reveals that large wallet holders, specifically those with significant BTC balances, trimmed positions on the 22nd, dropping collective holdings from 1.15 million to 1.14 million BTC. This distribution suggests that without a decisive catalyst, the path of least resistance remains sideways to down.
Can BTC Hold the $65,000 Support Level Amid Bear Flag Fears?
Bitcoin price technical structure on the 1-day chart presents a precarious setup for bullish prediction. Trading just above $68,000, BTC is oscillating within a narrowing range defined by fading buyer strength.
The immediate concern is the massive volume node between the $70,700 and $63,500 area, where approximately 1.72 million BTC have been transacted. This range acts as a critical battleground; a loss of the lower bound could trigger a cascading liquidation event.
Technically, the formation of a bear flag following the recent 39% flagpole decline raises the risk of a deeper capitulation. If sellers force a daily close below the $63,700 trigger level, Fibonacci extension targets suggest downside exposure toward $57,000 and potentially $52,700.
Conversely, momentum indicators like the RSI are flattening, hinting at a potential hidden divergence that typically precedes a reversal, but confirmation is absent. (Where are the bulls waiting? Likely at the 200-day SMA near $93k or lower trendline support.
For the bullish case to regain validity, price action must decisively reclaim the $71,000 mid-range resistance. Until then, the divergence between stabilizing smaller wallets (1k-10k BTC) and profit-taking mega-whales paints a picture of a market in conflict, often resulting in extended consolidation before the next major impulse.
Discover: The Best New Crypto
Bitcoin Price Prediction Is Down, But Investors Rotate to Infrastructure as Hyper Targets SVM Scalability
While spot Bitcoin struggles with overhead resistance, smart money creates a noticeable trend of capital rotation into high-beta infrastructure plays. Investors often hedge against mainnet chop by allocating to Layer 2 protocols that promise to solve Bitcoin’s velocity constraints. Leading this surge is Bitcoin Hyper ($HYPER), the first-ever Bitcoin Layer 2 to integrate the Solana Virtual Machine (SVM).
The project has defied the broader market pullback, amassing an impressive $32 Million in its ongoing presale. Bitcoin Hyper aims to deliver sub-second finality and high-speed smart contracts directly to the Bitcoin ecosystem, effectively bridging the gap between Bitcoin’s security and Solana’s speed. Current data prices $HYPER at $0.0136 with 36% APY on staking rewards.
This massive fundraising milestone indicates that investors are rotating toward infrastructure capable of unlocking trillions in dormant BTC capital. By utilizing a Decentralized Canonical Bridge, Bitcoin Hyper allows seamless asset transfers, addressing the critical lack of programmability on the main chain. While emerging Layer 2s carry inherent execution risks, the sheer volume of capital raised suggests the market views SVM integration as a necessary evolution for Bitcoin.
Those looking to position themselves before next-generation L2s go live can research Bitcoin Hyper here.
The post Bitcoin Price Prediction: Will BTC Hold? Or A Drop Is Inevitable? appeared first on Cryptonews.
Strategy, the Bitcoin-focused vehicle led by Michael Saylor, is intensifying its capital-raising efforts to fund ongoing BTC purchases. In a recent 8-K filing with the U.S. Securities and Exchange Commission, the company disclosed plans to raise as much as $44.1 billion through a mix of equity and perpetual preferred stock offerings, backed by new at-the-market programs. The financing plan comprises up to $21 billion from selling Strategy (MSTR) common stock, up to $21 billion from the perpetual preferred stock Stretch (STRC), and up to $2.1 billion from its perpetual preferred stock STRK. The filings indicate the issuances will occur “from time to time,” with no fixed timetable.
The filings also show that Strategy is marketing these securities as a way for investors to gain exposure to Bitcoin, which remains far from its all-time high and has weighed on the company’s balance sheet. In addition to the equity moves, the firm’s ATM program is intended to facilitate incremental share sales into the open market rather than relying solely on large, one-off financings. The 8-K underscores that the new financing channels are designed to expand the company’s Bitcoin holdings while limiting dilution of Strategy’s common stock through a diversified set of instruments.
Key takeaways
- Strategy aims to raise up to $44.1 billion for Bitcoin purchases: up to $21 billion via MSTR common stock, up to $21 billion via STRC perpetual preferred stock, and up to $2.1 billion via STRK perpetual preferred stock, with issuances occurring on a flexible basis.
- Stretch (STRC) and STRK are described as perpetual preferred stocks that provide monthly dividends while enabling Strategy to grow its BTC treasury without issuing additional MSTR common shares.
- The company’s updated plan follows an at-the-market (ATM) framework, allowing ongoing, incremental capital raises rather than relying solely on large external offerings.
- Strategy has added 90,000 BTC to its treasury in the first quarter of 2026, bringing total holdings to 762,099 BTC valued at about $54 billion, with an unrealized loss on BTC holdings of 6.3%.
- Bitcoin’s price backdrop remains a core driver of Strategy’s strategy, with BTC down roughly 70% from its all-time high; the financing moves reflect an appetite to scale exposure through securities markets even as the price trades below peaks.
Financing Bitcoin: The anatomy of Strategy’s capital-raising plan
According to the 8-K filing, Strategy intends to raise up to $21 billion by selling additional shares of its common stock (MSTR). Simultaneously, the company plans to raise up to another $21 billion through the sale of two perpetual preferred stock structures, Stretch (STRC) and Strike (STRK), via new at-the-market programs. The filing notes that STRC and STRK are designed to provide investors with exposure to Bitcoin while offering the potential for monthly dividends, a feature that can appeal to income-focused investors seeking indirect BTC participation.
Notably, the company did not commit to a fixed issuance timetable. Instead, it stated that shares may be sold “from time to time,” signaling ongoing flexibility in how it taps the capital markets to finance its Bitcoin accumulation program. The arrangement stands in contrast to earlier financing approaches that relied more heavily on convertible debt or larger, discrete fund-raisings rather than continuous, market-based issuances.
In parallel with the equity-raising plan, Strategy continues to position its securities as accessible pathways for investors to gain Bitcoin exposure, a strategy that aligns with Michael Saylor’s long-standing thesis of using corporate finance mechanisms to expand cryptocurrency holdings rather than diluting existing equity through a single, massive equity raise.
A growing treasury: Bitcoin purchases and holdings in 2026
Strategy has been actively deploying capital to expand its Bitcoin base in 2026. In its latest filing notes, the company disclosed that it bought 1,031 BTC for approximately $76.6 million in a near-term purchase. This follows a broader set of acquisitions this month that included 17,994 BTC on March 9 and 22,337 BTC on March 16, bringing cumulative purchases in the quarter to roughly 90,000 BTC. The company described these movements as a “larger-than-usual” pace of accumulation in March, contributing to a year-to-date total that has significantly boosted the treasury’s BTC position.
Overall, Strategy now holds 762,099 BTC, with a reported market value around $54 billion. This tally places Bitcoin holdings at the center of Strategy’s balance sheet strategy, as the firm continues to fund expansion via an array of equity-like instruments rather than relying solely on common stock issuances.
However, the turnaround comes with risk markers. The firm reported an unrealized loss of 6.3% on its BTC holdings, underscoring the sensitivity of this strategy to price movements in Bitcoin. The BTC backdrop has been challenging, with the asset down substantially from its all-time highs, which further amplifies the potential impact of ongoing purchase activity on Strategy’s reported gains or losses in any given reporting period.
Market and investor implications
Strategy’s approach illustrates a broader trend among large acquirers seeking to scale Bitcoin exposure through diversified financing channels. By layering up through MSTR common stock and perpetual preferred securities, the company creates multiple conduits for raising capital while attempting to avoid repeatedly diluting current shareholders. For investors, the appeal lies in the potential for BTC exposure embedded in STRC and STRK, paired with the income stream from monthly dividends inherent to perpetual preferred structures.
From a market perspective, the continued utilization of ATM programs and perpetual preferred issuances could influence how investors view corporate risk and Bitcoin correlates. If the financing proves effective in growing the Bitcoin treasury without triggering large one-off equity dilutions, Strategy may set a precedent for other corporates seeking to monetize crypto holdings through structured finance instruments. Yet the strategy also hinges on BTC price dynamics: sustained declines can widen unrealized losses and pressure returns, even as the company’s Bitcoin balance expands.
Regulatory and accounting considerations will also matter over time. As Strategy scales its use of perpetual preferred stock and ATM sales, investors will want clarity on cost of capital, dividend coverage, and any potential impacts on equity or credit metrics. The company’s 8-K filings provide the baseline disclosures, but the evolution of these instruments in a volatile crypto backdrop will likely attract ongoing scrutiny from investors and analysts alike.
For readers tracking this narrative, the next developments to watch include any new ATM drawdowns, the timing and scale of STRC and STRK issuances, and the trajectory of Strategy’s Bitcoin purchases as market prices and macro conditions shift. The intersection of traditional markets and crypto balance sheets remains a dynamic space, and Strategy’s multi-pronged funding approach offers a clear case study in how corporate treasury strategies are adapting to the Bitcoin era.
As Strategy presses forward with its capital-raising plan and treasury expansion, market watchers will be keen to see how the balance between funding costs, Bitcoin price movements, and the cash-flow characteristics of its perpetual preferred securities plays out in the months ahead.
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