Strategy has told investors that Bitcoin would have to collapse to around $8,000 before its crypto holdings no longer cover the company’s net debt, even as paper losses continue to deepen.

The Michael Saylor-led firm made the disclosure in investor materials released alongside its fourth-quarter results on Feb. 5.

At the time of the filing, Strategy said its Bitcoin (BTC) holdings were worth $59.7 billion at a reference price of $84,000, about 10 times compared with net debt of about $6 billion.

With Bitcoin now trading near $63,800, the value of those holdings has fallen to roughly $45.4 billion, as per Saylor Tracker data, down about $10 billion from the company’s average purchase cost.

Debt coverage and balance sheet position

Strategy said its Bitcoin would fail to cover net debt only in what it described as an “extreme scenario” involving a drop to $8,000, a level last seen in early 2020. The company added that its Bitcoin is unencumbered and not pledged as collateral, which limits the risk of forced selling even during sharp market declines.

As of Feb. 1, 2026, Strategy held 713,502 BTC, acquired at a total cost of $54.26 billion, or $76,052 per coin. The firm also reported a 22.8% Bitcoin yield for fiscal year 2025, reflecting gains from capital raising and reinvestment strategies.

During 2025, Strategy raised $25.3 billion in capital, making it the largest U.S. equity issuer for a second straight year. It also completed five preferred stock offerings, raising $5.5 billion, and expanded its digital credit program, STRC, to $3.4 billion.

“We raised $25.3 billion of capital in 2025 to advance our Bitcoin treasury strategy,” said president and CEO Phong Le. “In 2026, we remain focused on expanding STRC to generate amplification and drive growth in Bitcoin Per Share.”

Chief financial officer Andrew Kang said the company’s capital structure is stronger than in previous cycles, citing its $2.25 billion reserve fund, which covers more than two years of dividend and interest payments.

Michael Saylor described Strategy’s balance sheet as a “digital fortress,” built around its Bitcoin holdings and digital credit platform.

Losses, valuation, and sector-wide pressure

Strategy’s confidence in its debt coverage comes as losses linked to Bitcoin volatility continue to weigh on financial results.

Due to unrealized losses on digital assets under fair value accounting, the company reported an operating loss of $17.4 billion for the fourth quarter of 2025. Common shareholders incurred a net loss of $12.6 billion, or $42.93 per diluted share.

With Bitcoin trading in the low $60,000 range, Strategy’s holdings are now valued at about $45.4 billion, well below their $54.26 billion acquisition cost. Since late 2025, as prices fell and selling pressure mounted on cryptocurrency markets, that gap has grown. 

At the moment, the company’s diluted multiple to net asset value, or mNAV, is about 0.85x. mNAV measures how the market values a firm’s equity relative to the net value of its assets, mainly its Bitcoin holdings, after accounting for debt. A ratio below 1 means the stock is trading at a discount to the underlying asset value.

Pressure is also building across the wider crypto treasury sector. Data from Artemis shows that unrealized losses among crypto accumulation firms have surpassed $25 billion. None of those firms has generated profits that exceed acquisition costs.

Some analysts view Strategy’s $8,000 threshold as a theoretical floor rather than a realistic risk. Others note that prolonged weakness below $60,000 could test investor confidence, raise re-financing costs, and limit the company’s ability to raise new capital on favorable terms.

Vietnam is moving to formalize how crypto transactions are taxed and regulated, signaling a push toward a tightly controlled but economically significant digital asset market. A draft circular circulated by the Ministry of Finance would impose a 0.1% personal income tax on the value of each crypto transfer executed through licensed service providers, aligning digital asset activity with the country’s securities trading framework. While transfers and trading would be VAT-exempt, the plan taxes turnover, applying the levy to investors regardless of residency. For institutions, crypto-related income would be taxed at 20% corporate rate, calculated after deducting purchase costs and related expenses. The measures also set a high bar for exchanges, including a 10 trillion dong charter capital threshold and a 49% foreign-ownership cap, reflecting a cautious approach to market infrastructure.

The draft circular, released for public consultation, also formalizes a definition of crypto assets as digital assets issued, stored or transferred using cryptographic or similar technologies. It arrives as Vietnam accelerates a broader, five-year pilot program for a regulated crypto-asset market that began in September 2025. By October 2025, officials indicated no companies had applied to participate in the pilot, underscoring barriers related to capital requirements and eligibility criteria. Separately, authorities have begun opening licensing windows for digital asset trading platforms, signaling that the regulatory framework could start to take shape in early 2026.

As the policy discussion unfolds, Vietnam’s approach appears to be balancing tax revenue opportunities with stringent oversight of who can operate and how financial flows are monitored. The Ministry of Finance’s draft circulates alongside ongoing regulatory experiments and a push to bring crypto activity into formal channels, while the broader ecosystem weighs the implications for retail investors, institutions, and technology providers. The Hanoi Times highlighted the 0.1% PIT as the centerpiece of the tax framework, noting that the tax would be levied on transfers through licensed providers and would mirror the existing stock-trading levy in form and function. The article also points to a clear distinction between value-added tax treatment and turnover taxes, a nuance that could influence how exchanges structure their operations and how tax authorities monitor cross-border activity.

Vietnam formally defines crypto assets

In what appears to be a step toward regulatory clarity, authorities described crypto assets as digital instruments that rely on cryptographic or analogous technologies to issue, store and verify transfers. This definitional move is a precursor to stricter licensing criteria and more predictable tax treatment, which in turn could attract legitimate players while screening out speculative, non-compliant activity. The proposed regime sets a higher capital bar for exchanges than many industries require for traditional banks, signaling an intent to ensure resilience and risk controls in markets that are closely linked to global capital flows.

Under the proposed rules, operators seeking to run a digital asset exchange would need substantial capital, with charter requirements set at 10 trillion dong (about $408 million at current exchange rates). Foreign ownership would be allowed but capped at 49% of an exchange’s equity, limiting influence from outside the country while still enabling international participation. Such thresholds underscore the government’s preference for domestic guardianship of critical financial infrastructure, even as it permits foreign-backed ventures to participate under strict caps and regulatory oversight.

The broader regulatory arc has been visible since Vietnam launched a five-year crypto market pilot in September 2025, a landmark shift intended to test how a regulated ecosystem could coexist with a growing domestic economy. By early October, authorities acknowledged that no companies had yet submitted applications to join the pilot, a reflection of the substantial entry hurdles and careful qualification criteria in play. This admission came alongside reports that the pilot’s scope would eventually be complemented by formal licensing for trading platforms, a move that would bring crypto activity under formal government supervision and pave the way for standardized reporting and consumer protections.

Vietnam opens licensing for crypto exchanges

In the lag time between policy signals and practical rollout, Vietnam began accepting applications for exchange licenses, marking a tangible step toward operationalizing a regulated crypto market. The State Securities Commission of Vietnam (SSC) stated that applications would be accepted starting January 20, 2026, framing the licensing process as a deliberate, multi-year effort to bring crypto activities into a formal regulatory framework. The liquidity and risk-management requirements implied by the licensing window are designed to channel legitimate market participants into a controlled environment, potentially reducing fraud and improving transparency for investors and policymakers alike.

Key takeaways

• The Ministry of Finance’s draft circular would impose a 0.1% personal income tax on the value of each crypto transfer conducted through licensed providers, aligning crypto transfers with the country’s stock-trading levy.
• Crypto transfers and trading would be exempt from value-added tax, while turnover-based taxation would apply to investors regardless of residency status.
• Institutional investors earning income from crypto transfers would face a 20% corporate income tax on profits after deducting costs and expenses.
• Exchanges would face a high capital requirement of 10 trillion dong (roughly $408 million) and foreign ownership would be limited to 49% of equity.
• A formal definition of crypto assets would anchor regulatory rules, helping separate compliant activity from informal or illicit use cases.
• The country has launched a five-year pilot for a regulated crypto market (Sept 2025) with licensing for exchanges anticipated to begin in 2026, although initial participation had not materialized by Oct 2025.

Market context: The policy comes as many jurisdictions reassess how to regulate crypto markets, balancing tax revenue with consumer protection and financial stability. Vietnam’s approach leans toward rigorous control, reflecting a global trend toward centralized oversight while still signaling potential for regulated participation by international players under strict conditions.

Why it matters

The package signals a deliberate attempt to integrate crypto activity into the formal economy, with taxes and licensing acting as primary levers to enhance oversight. For retail investors, the PIT on transfers through licensed providers creates a clear tax path that will influence trading behavior and cost considerations. Institutions face a defined tax regime and a high bar for market entry, potentially filtering participants to those willing to navigate substantial capital prerequisites and regulatory compliance obligations.

From a market infrastructure perspective, the 10 trillion dong charter capital threshold and 49% foreign-ownership cap set a high ceiling for domestic exchanges, aiming to safeguard the financial system while still inviting foreign expertise. The definitional clarity around crypto assets helps align Vietnamese rules with broader financial standards, reducing ambiguity for developers, exchanges, and custodians seeking to establish local operations. Observers will watch how this framework interacts with ongoing pilot programs and whether the regulatory appetite broadens to accommodate more players over time.

For policymakers, the balance between revenue collection, investor protection, and market growth is delicate. Vietnam’s approach suggests a patient, data-driven trajectory: tax structures that incentivize compliance, capital requirements that deter low-capital risk, and licensing that creates an auditable, auditable market foundation. If successful, the model could influence neighboring economies contemplating similar regulated pathways for digital assets, especially in a region where adoption is uneven and regulatory certainty remains a key obstacle for institutional participation.

What to watch next

• January 20, 2026: Applications open for digital asset exchange licenses, establishing a formal entry point for market participants.
• Public responses to the draft circular: Feedback from domestic and international stakeholders could shape final text and practical implementation.
• Details on how PIT and corporate tax will be administered across different crypto products and services, including calculation methodologies and reporting requirements.
• Progress of the five-year pilot: uptake, participant eligibility, and any regulatory adjustments arising from early pilot findings.
• Any updates to foreign ownership rules or capital thresholds as exchanges begin building their local presence under clarified regulatory conditions.

Sources & verification

• Draft circular on crypto taxation and licensing circulated by Vietnam’s Ministry of Finance for public consultation.
• The Hanoi Times report outlining the 0.1% personal income tax on crypto transfers through licensed providers.
• Five-year crypto market pilot launched in September 2025, with a status update stating no applicants as of October 6, 2025.
• State Securities Commission of Vietnam (SSC) statement on the licensing window for digital asset exchanges and the January 20, 2026 start date.
• Coverage of Vietnam opening licensing for crypto exchanges and related regulatory developments referenced in contemporaneous reporting.

Meme coin launchpad Pump.fun has announced the acquisition of trading terminal Vyper, a move aimed at expanding its cross-chain trading capabilities.

The deal was confirmed on February 5, 2026, though financial terms were not publicly disclosed. Vyper’s team and technology will now join Pump.fun’s broader product suite as part of this strategic expansion.

Pump.fun integrates Vyper into its Terminal

Pump.fun is a Solana-originated meme coin launchpad and token creation platform that has grown into one of the most active crypto applications. Since its launch in early 2024, it has allowed users to create and trade tokens without technical expertise and has played a major role in the surge of memecoin activity on Solana.

Under the acquisition plan, Vyper’s infrastructure will be integrated into Pump.fun’s Terminal platform, while the standalone Vyper product will be phased out. The Terminal, previously built after Pump.fun acquired another trading terminal product called Padre, aims to serve as a multi-chain trading hub focused on fast execution and broad market support.

In a post announcing the integration, the Terminal team stated: “EVM support is a core focus for Terminal. With Vyper’s infrastructure & talent, expect trading on EVM (including Base) to massively improve.”

Pump.fun co-founder Alon Cohen also commented on the deal via social media. He framed the acquisition as part of a broader growth strategy, writing that “despite market conditions, we’re expanding our team rapidly and aggressively,” and highlighted the importance of building “super rapid and efficient cross-chain trading infrastructure.”

For Pump.fun, adding Vyper’s technical expertise strengthens its Terminal offering and helps accelerate its reach into EVM-compatible networks like Base and others. This is crucial for broad cross-chain liquidity and execution quality. For Vyper, integration into a larger ecosystem offers a clearer path for product evolution than remaining a standalone service.

Hyperliquid price has stayed resilient above key support levels despite a $340 million token unlock and wider crypto market weakness.

Despite a decline in the overall cryptocurrency market, Hyperliquid is up 2.9% on the day, trading at $34.80 at the time of writing. Most top-100 tokens posted losses, yet HYPE continued to attract buyers, maintaining a strong multi-week run.

The token is up 20% over the past seven days, 25% over the past month, and 36% year-over-year. Over the last week, Hyperliquid (HYPE) has traded between $28.23 and $37.84, showing wide but controlled price movement. Trading activity has surged alongside price, with daily volume jumping 65% to $1.31 billion.

Derivatives data support this trend. As per CoinGlass data, futures volume rose 33% to $5.43 billion, while open interest increased 2.3% to $1.59 billion. Rising price alongside growing open interest points to fresh positioning rather than short covering.

Token unlock pressure meets structural demand

On Feb. 6, roughly 9.92 million HYPE tokens were unlocked, roughly 2.8% of the circulating supply. At current prices, that equals about $340 million. The market absorbed the supply without experiencing major price fluctuations despite the large number of tokens entering circulation. 

According to Tokenomist data, approximately 395 million HYPE, or 40% of the entire supply, have already been made available. The majority of these tokens were reserved for distribution to the community, early ecosystem incentives, and core contributors. 

In a significant change, Hyperliquid also cut the number of team-related unlocks by 90%, resulting in a February allocation of about 140,000 HYPE, or about $4.5 million, instead of 1.2 million tokens. Monthly unlocks of around 9.9 million HYPE are expected through late 2027, though reduced team allocations could continue.

To offset supply pressure, the protocol uses an Assistance Fund that converts about 97% of trading fees into HYPE buybacks. Hyperliquid just posted a record $29 billion in 24-hour trading volume, generating close to $6 million in fees that feed directly into this mechanism.

Another tailwind came on Feb. 5, when Coinbase announced spot trading for HYPE/USD. Trading went live the same day, marking HYPE’s first appearance on a major U.S. exchange.

While HYPE had already been listed on Kraken and Gemini, Coinbase’s reach is often seen as more impactful, especially since it attracts U.S.-based institutional traders.

Hyperliquid price technical analysis

Technically, Hyperliquid’s bullish structure is still present. Price continues to hold above the former range high around $32–33, a level that has flipped into support. This area has now absorbed both market-wide weakness and the recent unlock.

Buyers are taking advantage of pullbacks, as shown by a distinct sequence of higher lows. Since the breakout, the 20-day moving average has served as dynamic support, and the price is still above it. 

Bollinger Bands tightened following the initial rally, suggesting consolidation as opposed to distribution. The relative strength index is above 60, indicating that although momentum has slowed, buyers are still in charge of the trend. 

Downside follow-through after the unlock has been limited. Price hasn’t slipped back into the prior range, and recent red candles are small. This behavior suggests that much of the supply was priced in ahead of time.

If HYPE continues to hold above the $32–33 zone, the setup favors continuation toward the $38–40 area, especially if exchange-driven demand persists. Although the current structure still favors buyers, a clean daily close below that support would weaken the setup and pave the way for a deeper pullback.

U.S. Senator Cynthia Lummis said banks should embrace digital assets rather than resist them, arguing that cryptocurrencies and stablecoins offer new products and revenue opportunities for traditional financial institutions.

In a Fox News interview shared on X, the Wyoming Republican said blockchain-based payments can make financial services faster and cheaper while expanding what banks can offer their customers.

Lummis says digital assets offer new opportunities for banks

“One of the things I don’t understand about the bank’s resistance is this gives them an entirely new financial product that they can offer to their customers,” Lummis said.

She pointed to digital asset custody and stablecoin payments as areas where banks could play a larger role.

“Whether it’s custody of digital assets, which three states already allow, or the use of stablecoins as a payment mechanism that’s faster and cheaper than a debit card,” she said, banks stand to benefit.

Faster and cheaper payments for consumers

Lummis emphasized that the primary benefit of digital assets would be felt by consumers. She said blockchain technology allows money to move more efficiently than existing banking infrastructure, especially for cross-border payments.

“For consumers, it’s going to be faster and cheaper to do business, whether it’s across the country or overseas,” she said. “Money can be transmitted on the blockchain more quickly than it can if you’re going through existing bank structures.”

She argued that these efficiencies could lower costs for everyday transactions and international transfers. She also noted that lawmakers and regulators have been working to ensure consumer protection as digital assets become more widely used.

“We want to make sure that not only is it faster and cheaper, but that it’s still safe,” she said. Lummis added that discussions with the Federal Reserve have focused on ensuring appropriate safety mechanisms are in place.

The senator framed digital assets as a natural evolution of financial services rather than a threat to the existing system. She said a range of stakeholders are working to integrate blockchain-based products into modern finance.

“There are a lot of interested parties in making sure that as we integrate this into the 21st century financial services industry, that it integrates beautifully,” she said.

BlackRock’s iShares Bitcoin Trust ETF has hit a new all-time high in daily trading volume as the bellwether cryptocurrency posted one of its largest intraday drops on Thursday.

As noted by Bloomberg ETF analyst Eric Balchunas, IBIT reportedly “crushed its daily volume record” on Feb. 5 as nearly $10 billion worth of shares were traded.

Last time the fund posted a volume record was on Nov. 21, when it saw $8 billion in volume, and over the past several trading sessions, it has recorded daily volumes above $5 billion.

Thursday also marked the ETF’s “second-worst daily price drop since it launched,” as it fell 13% on the day.

As of Feb 4, IBIT recorded outflows totaling $373.4 million following two subsequent days of inflows where over $200 million had flowed in. Likewise, it has struggled to maintain a steady inflow pattern, primarily due to Bitcoin’s persistent downtrend since its October all-time high of $126,080.

According to Unlimited Funds chief asset manager Bob Elliot, by last week’s close, IBIT was already underwater on average investment cost, with many holders sitting on losses.

Bitcoin (BTC) has dropped over 49% since hitting its all-time high, and has posted one of its largest single-day drops on Thursday as it fell by 15% from $73,100 at open to a low near $62,400.

Risk sentiment seems to have faded from the market as investors reacted to weak jobs data and tightening macroeconomic and geopolitical factors, alongside concerns over artificial intelligence sector-related spending.

The situation could worsen from here on, as Bitcoin has slashed through multiple key support areas and was trading just above $64,800 at press time.

According to Bloomberg analysts, the recent global market stress could push Bitcoin as low as $10,000 as the current situation bears similarities to the 2008 financial crisis and the 2000–2001 dot-com downturn.

The week of February 1-7, 2026, recorded $251.9 million in crypto VC funding across 12 projects, with Anchorage Digital’s $100 million strategic round leading.

Here’s a deep dive into this week’s crypto funding activity as per Cryptofundraising data.

Anchorage Digital

• Anchorage Digital raised $100 million in a strategic round
• Backed by Tether
• Anchorage Digital is a regulated global crypto platform
• The project has raised $587 million so far

TRM Labs

• Secured $70 million in a Series C round
• Fully diluted valuation of $1 billion
• Investors include Blockchain Capital, CMTDigital, and Goldman Sachs
• TRM Labs is a blockchain intelligence company and has raised $219.9 million so far

Jupiter

• Raised $35 million in a strategic round
• Jupiter is a Solana-based decentralized exchange aggregator

Bluff

• Bluff gathered $21 million in a strategic round
• Backed by 1k(x), Makers Fund, and MEV Maximum Extraction
• Bluff is a social-centric betting and entertainment platform