Ray Dalio has warned that the AI investment boom could break when investors need real cash, not when the technology itself disappoints.

Bloomberg reported that the founder of Bridgewater Associates issued the warning during a television interview, in which he argued that bubbles often end when holders of valuable assets are forced to convert paper gains into spendable money. Dalio said the danger posed by artificial intelligence lies less in the quality of the technology and more in how financial markets fund fast-growing wealth.

According to Dalio, investors often confuse wealth with money. A private company may gain a billion-dollar valuation after raising a much smaller amount of capital, yet that valuation cannot be spent unless shares are sold. In his view, the pressure begins when many holders simultaneously try to convert that wealth into cash.

Dalio flags cash risk behind AI boom

During the Bloomberg interview, Dalio said major technology changes usually create bubbles because investors struggle to value the opportunity correctly. He said companies often spend heavily to win market share, even before the final winners are clear.

Bridgewater estimated that Alphabet, Amazon, Meta, and Microsoft could spend about $650 billion on AI infrastructure in 2026. The firm compared that with roughly $410 billion in 2025, showing how much large technology companies may commit to data centers, chips, and related systems.

Dalio tied that investment scale to a fragile market setup. He said paper wealth can rise much faster than the money supply, leaving investors exposed when debt payments, tax bills, or fund withdrawals force them to sell.

Government debt adds to the strain

In the same interview, Dalio connected the AI bubble risk to pressure on the U.S. government balance sheet. He said the United States spends about $7 trillion while collecting about $5 trillion in revenue, leaving the government dependent on additional borrowing.

Dalio said that heavy borrowing can strain the bond market, especially when long-term rates rise against short-term rates. He has made similar arguments in past warnings about debt, inflation, and the global monetary system.

His bubble indicators, according to Dalio, now sit near levels seen before the 2000 dot-com crash and the 1929 market collapse. He did not frame that as a reason for immediate panic, but he said investors should prepare for weaker returns.

Election timing could raise market tension

Dalio also pointed to a sensitive political window after the midterm elections and before the next presidential vote. He said tax debates during that period could pressure wealthy investors if policymakers push for changes that require asset sales.

At the same time, Dalio said that outside shocks could accelerate a downturn. He warned that any halt in chip exports from Taiwan would hit AI stocks hard because many AI companies depend on an advanced semiconductor supply.

Dalio’s argument also reaches crypto markets, where investors often hold assets whose value depends on liquidity. Bloomberg noted that Dalio still prefers Bitcoin, which he has described as digital gold, over cash.

In a sign of growing political muscle for crypto-friendly groups, Democratic and Republican candidates across California, New Jersey, and South Dakota benefited from targeted media buys financed by industry-backed political action committees (PACs). The campaigns underscore how crypto advocacy outfits are weaving into the U.S. election landscape, backing candidates who promise clearer guardrails for the industry and, in some cases, sharper pro-crypto stances.

Key takeaways

• Crypto-aligned PACs spent about $3.5 million on media buys to support California primary candidates, amplifying a coordinated messaging effort in a high-stakes race.
• Fairshake, a PAC backed largely by Coinbase and Ripple, finances these efforts and reported a war chest of roughly $193 million in January, signaling substantial long-term political ambitions.
• Maryland’s June primary in the 5th Congressional district could become a new focal point, with Protect Progress reporting more than $3.1 million in activity supporting a Democratic contender as of midweek.
• Defend Developers, a new hybrid PAC aimed at defending “incumbent members who champion developer protections and crypto builders,” launched with a roster of industry executives but has yet to show reported fundraising activity with the FEC.

Crypto advocacy groups tilt messaging in California primaries

California’s congressional primaries began shaping as a testing ground for crypto-friendly messaging and financier-backed political action. Several Democratic candidates—Jacqui Irwin, Ted Lieu, Zoe Lofgren, Dave Min, Mike McGuire, Hilda Solis, George Whitesides, Lou Correa, and Lateefah Simon—advanced to their party’s nominations, while in New Jersey, Democrat Rob Menendez won a primary for the 8th Congressional District and Republican Mike Rounds secured a primary win in South Dakota for a Senate seat. The results were reported in coverage of the day’s primary outcomes.

The coordinated push appears to have roots in the Protect Progress and Defend American Jobs PACs, which together spent roughly $3.5 million on media buys to back these candidates. The groups are affiliated with Fairshake, a PAC funded predominantly by major crypto firms, including Coinbase and Ripple. In January, Fairshake reported a war chest of about $193 million, underscoring the scale of financial backing behind these political efforts.

“America needs members of Congress who will act to lay out responsible guardrails for the community to maintain our global leadership,” Fairshake spokesperson Geoff Vetter told Cointelegraph, framing the activity as a bid to establish clear, constructive policy parameters for the industry.

The California effort followed prior coverage of crypto-backed media buys in Texas primary contests, which Cointelegraph noted last week. There, Democratic and Republican candidates aligned with the broader crypto-influenced advocacy play seen in California, signaling a broader, national effort to shape the policy environment ahead of the 2026 midterms. The Texas result highlighted that several beneficiaries had publicly supported pro-crypto legislation, such as measures like the GENIUS Act or other industry-friendly policy positions.

From Maryland to Texas: a broader campaign cycle

Looking beyond California, Maryland has emerged as a potential next focal point for Fairshake and its allies. Federal Election Commission filings indicated that Protect Progress spent more than $3.1 million as of midweek to support Democratic candidate Adrian Boafo in Maryland’s 5th Congressional district, where a primary is set for June 23. The data suggest a continued push to use media to shape outcomes in key races ahead of national elections.

The coordinated approach across states illustrates how crypto-focused groups are attempting to place friendly legislators into office who can articulate regulatory approaches favorable to the industry—whether through explicit pro-crypto votes or through crafting the policy context that governs digital assets in the United States.

Defend Developers: a new, developer-focused PAC

In a separate development, industry stakeholders unveiled Defend Developers, a hybrid PAC designed to back incumbent lawmakers who actively champion protections for developers and crypto builders. The group said its mission centers on clarifying the regulatory environment while legislation and rulemaking catch up with rapid technical innovation. Its board of directors features leaders from notable crypto policy and ecosystem organizations, including the DeFi Education Fund, Orca Creative, the Solana Policy Institute, and Uniswap Labs.

“For too long, developers building decentralized technologies have faced regulatory uncertainty and enforcement actions instead of clear rules and guidelines,” said Defend Developers founder Gavin Zavatone. “While legislation and rulemakings are being written as we speak, for some policymakers there is limited incentive to understand the fundamental nature of software development.”

No official fundraising data for Defend Developers had appeared on the FEC portal as of Wednesday. The PAC’s statement of organization listed Nick Stoltzfus, co-CEO of on-chain student loan platform Stratofied, as treasurer and custodian of records as of May 15. Cointelegraph reached out to Defend Developers for comment but did not receive an immediate reply. The lack of visible funding activity suggests the group may still be in an early-stage or exploratory phase as it positions itself for the 2026 midterms.

These developments sit at the intersection of campaign finance, technology policy, and how the crypto industry seeks to influence lawmakers. They also raise questions about transparency and the effectiveness of such advocacy in shaping legislation that affects developers, exchanges, and users nationwide. While the public data points to increasing activity, the true impact on policy outcomes remains to be seen, and readers should watch how the midterm races unfold and how regulators respond to evolving political spending.

As the cycle progresses, investors, users, and builders will want to monitor whether these PACs translate funding into tangible policy wins, particularly around how the US approaches digital assets, custody, staking, and on-chain governance. The next major milestones are forthcoming primary results, FEC disclosures, and any formal policy proposals or bills that emerge from the committees most closely tied to technology and financial regulation.

BitMine Immersion Technologies (BMNR), an Ethereum treasury company led by Fundstrat co-founder Tom Lee, is borrowing a page from Strategy’s financing playbook and launching a $300 million preferred stock offering as crypto treasury firms search for new ways to secure funding.

According to a Wednesday filing with the U.S. Securities and Exchange Commission (SEC), the company is offering 3 million shares of its Series A Perpetual Preferred Stock at a stated value of $100 per share. The securities carry a 9.5% annual dividend rate, with dividends paid weekly in cash if declared by the company’s board.

The preferred shares will be listed on the New York Stock Exchange (NYSE) under the ticker BMNP, subject to approval, BitMine said.

The offering comes as digital asset treasury firms, recently under pressure from the downturn in crypto prices, explore new funding sources. Strategy (MSTR), the largest corporate holder of bitcoin, introduced various classes of preferred equities. Bitcoin treasury peers Strive (ASST) and Metaplanet also issued dividend-paying preferred stocks.

Bitmine is aiming to bring that playbook to its Ethereum treasury strategy, according to the filing.

The firm has been among the most aggressive buyers in the sector, accumulating more than 5.3 million ETH worth roughly $10 billion and controlling about 4.5% of Ethereum’s circulating supply over the past year. That ETH bet is currently sitting at an estimated $9 billion unrealized loss as ETH prices fell below $1,800 from around $5,000 in October.

Bitmine’s preferred stock can be redeemed by the company at premiums ranging from 10% to 0% depending on when the redemption occurs. Holders will also have repurchase rights if certain fundamental corporate changes occur. The filing did not specify how BitMine intends to use the proceeds.

The timing is notable given the growing pressure on Strategy’s preferred equity funding model. The firm’s STRC preferred stock fell 5% below its $100 par value on Wednesday as investors debate whether the company can comfortably maintain its dividend payments while bitcoin prices slide.

Politicians in Argentina have called for the government agency probing the LIBRA scandal to be handed more resources after it was discovered that its free crypto tracking software has expired and not been renewed.

According to La Nación, four parliamentarians who originally contributed to a LIBRA investigative committee have called for Argentina’s Attorney General, Eduardo Casal, to allocate more resources to the Specialized Cybercrime Prosecutor’s Unit (UFECI).

This is upon the discovery that the UFECI is lacking the resources and technical licenses to carry out its LIBRA cryptocurrency tracing. 

When federal prosecutor Eduardo Taiano called for the UFECI investigation, the body was able to trace 74 digital wallets collectively buying $13 million worth of LIBRA before the token’s promotion by Argentine President Javier Milei. 

Bitmine Immersion Technologies (BMNR), the largest corporate holder of ether (ETH), is staring at nearly $9 billion in losses as the token’s slide below $1,800 drags down the value of its massive treasury.

Shares of the Tom Lee-chaired company fell another 5.9% Wednesday, slipping below $17 and extending their decline to 28% since early May. The stock has now dropped below its February lows to its weakest level since the company announced its pivot to an Ethereum treasury strategy in 2025.

The selloff comes as ETH retests its February lows. The second-largest cryptocurrency has lost more than 20% since early May, when Lee, Fundstrat’s co-founder and BitMine’s chairman, argued that the market’s “mini crypto winter” had likely ended and a new “crypto spring” had begun.

Under Lee’s leadership, Bitmine has amassed more than 5.4 million ETH, or roughly 4.5% of Ethereum’s circulating supply, in roughly a year. That position is worth about $10 billion at current prices.

Those holdings, however, are now deeply underwater, carrying an estimated $8.9 billion in unrealized losses, according to data collected by DropsTab.

Digital asset treasuries under pressure

Bitmine’s drawdown highlights renewed pressure across the digital asset treasury sector, where companies seek to replicate the playbook pioneered by Michael Saylor’s MicroStrategy (MSTR): raise capital through public markets and use the proceeds to accumulate crypto.

That model has become increasingly harder to sustain as crypto prices weakened and many treasury stocks drifted below the value of their underlying assets.

Strategy itself recently disclosed its first bitcoin sale since 2022, sparking debate about how the company might fund future obligations tied to its preferred stock offerings.

Read more: Saylor’s Strategy sold bitcoin for the first time since 2022. These firms are still buying

Bitmine’s situation differs in some key respects. The company financed its ether purchases primarily through equity issuance rather than debt, leaving it without the leverage concerns and interest payments that some treasury peers face.

The company also generates revenue from staking its ETH and operating its staking service MAVAN. Bitmine said it has staked more than 4.7 million ETH — about 87% of its holdings — and recently estimated annualized staking revenue at roughly $276 million.

Lee calls for $250,000 ETH

The recent price action has not tempered Lee’s long-term outlook.

Speaking at the Proof of Talk conference in Paris earlier this week, he said ETH could eventually reach $250,000 as tokenization, AI-driven transactions and corporate staking reshape Ethereum’s role in the global financial system.

For now, investors appear focused on a more immediate reality. Ether is back near levels last seen during February’s selloff, leaving Bitmine’s treasury deep underwater and highlighting the gap between Lee’s long-term thesis and the market’s current view of the asset.

Binance disclosed a revenue-sharing arrangement with custodian and brokerage infrastructure API provider Alpaca, which has become a major infrastructure provider in the custody of tokenized US stocks and exchange-traded funds (ETFs).

Under Binance Securities Trading Terms published Tuesday, Binance will receive 50% of Alpaca’s payment-for-order-flow fees and 65% of remaining profit from user stock lending after users are paid interest, Binance will receive 50% of Alpaca’s payment-for-order-flow, or PFOF, fees and 65% of profit from user stock lending after the platform pays user interest.

Alpaca provides brokerage, clearing and custody infrastructure for Binance’s stock trading product and is also a major infrastructure provider in tokenized US stocks and ETFs. The company raised $150 million at an $1.15 billion valuation for its brokerage infrastructure in January.

The disclosure shows how Binance may monetize its push beyond crypto after launching access to more than 7,000 US-listed stocks and ETFs and previewing a later tokenized stock product called bStocks.

Cointelegraph contacted Binance for comment on the arrangement and asked whether it holds a minority stake in Alpaca.

Binance Securities Trading Terms for tokenized stocks and ETFs, Revenue-Sharing Arrangements. Source: Binance

Alpaca said it held $480 million in assets under custody (AUC) as of December 2025, which represents a 29% market share of the current $1.62 billion value of total tokenized stocks, according to data provider RWA.xyz.

The total value of tokenized stocks rose by around 29% during the past 30 days, while holders rose 35% to 304,700. However, monthly active addresses declined by over 77%, to 31,877, signaling that investors are holding, rather than actively trading, these assets.

Tokenized stock market total value. Source: RWA.xyz 

Crypto exchanges expand into tokenized US stocks

Other large cryptocurrency exchanges are also expanding their offering to include US stocks and ETFs, responding to the growing investor demand for more accessible blockchain-based trading products.

In April, crypto exchange Bitget launched a proxy offering tied to the pre-initial public offering (IPO) phase of Elon Musk’s aerospace manufacturing and space transportation company, SpaceX, Cointelegraph reported at the time. 

Related: South Korea plans July rules for tokenized securities

Binance also launched a SpaceX-linked pre-IPO futures product tied to the expected valuation of the company ahead of its public listing, Cointelegraph reported on May 21.

Source: Binance

In January, Vienna-based crypto exchange Bitpanda said it was expanding its offering to include about 10,000 stocks and ETFs.

In April 2025, Kraken launched  11,000 US-listed stocks and ETFs with commission-free trading in an effort to bring “equities and digital assets together” under one trading platform, as part of a “phased national rollout.” 

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