Artificial intelligence now helps write more than 95% of Coinbase’s code, offering new insight into the crypto exchange’s AI strategy following its decision to cut 14% of its workforce earlier this year. 

Coinbase cut 700 staff in May. In an email to employees, Coinbase CEO Brian Armstrong said AI has “dramatically” changed the pace of work and there was a need to “return to the speed and focus of our startup founding, with AI at our core.” 

“Effectively, 100% of our employees are using AI on a daily basis here,” Coinbase’s head of platform, Rob Witoff, told Cointelegraph. “And close to 100% of our code, probably somewhere between 95% and 100%, is written by or with LLMs today.”

The figure is more than double Coinbase’s February estimate, when the company said 40% of its code was written with AI, reflecting the accelerating pace of AI adoption across tech and crypto companies.  

Rob Witoff talks about Coinbase’s adoption of AI. Source: Cointelegraph

Witoff, however, said there is a “wide spectrum” in how it is used and the degree to which it is relied on. While writing core cryptography mainly relies on human input, prototyping is fully automated and core systems sit somewhere in the middle, he said. 

“For example, when we’re writing core cryptography, we have industry-leading cryptographers that are meticulously researching and reviewing one line at a time.”

“We’re using AI quite a bit to test and make sure the code we’ve written is working the way it should, there’s no vulnerabilities, we’re verifying the math, but that’s a much more manual part than where we’re building internal prototypes, which is now effectively a 100% automated.”

Smaller teams with “tastemakers”

The shift has allowed Coinbase to reorganize around smaller, more senior teams, Witoff said, with two or three employees now capable of handling work that previously required 10 or more people. 

“There were a lot of junior development roles that were impacted,” he said of the May layoffs, though the cuts extended across the company, including marketing, legal, customer support and compliance roles. 

“For those smaller teams to work, for people to have the taste, the judgment, I think a lot about people having the battle scars so they know how to point agents in the right direction.”

Witoff said that most Coinbase engineers now have five to 10 AI agents operating at any given time, with AI agents collectively performing the coding work of about 1,200 employees. 

By 2030, Coinbase could see AI agents doing the equivalent work of 100,000 employees, he said. 

Coinbase said its AI spend has remained “flat” despite growing token use. Source: Brian Armstrong

Related: Robinhood says its AI agent feature will ‘soon’ be assisting crypto traders

Coinbase was part of a wave of companies to lay off staff this year amid a rise in enterprise AI. In March, crypto exchange Crypto.com cut 12% of its staff, impacting roles “that do not adapt in our new world.” 

In February, Block CEO Jack Dorsey said he was cutting 40% of Block’s workforce. 

“We’re already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company,” Dorsey said on X. 

Other crypto companies that cited AI-related efficiencies in this year’s layoffs included Kraken, Gemini, Messari and Dune. 

Magazine: Robinhood L2 sparks ETH optimism, Saylor ‘muddies waters.’ Hodler’s Digest, July 5-12, 2026

Circle Internet Group shares have dropped more than 2% in pre-market trading after US banking groups urged the Senate to tighten stablecoin provisions in the CLARITY Act, adding fresh pressure to the stock.

According to a joint letter from several US banking organizations, the groups have asked Senate majority and minority leaders to revise Section 404 of the CLARITY Act before lawmakers move the bill forward.

The banks argue that the current wording could allow stablecoin issuers to offer interest-like incentives that encourage customers to move money out of traditional bank deposits and into stablecoins such as Circle’s USDC.

The letter warns that unclear language around yield-related incentives could increase deposit flight, particularly from community and regional banks.

“Ensuring that stablecoin regulations draw clear and enforceable boundaries around interest- and yield-like incentives is therefore essential.”

The renewed lobbying effort comes days after President Donald Trump called on Congress to pass the CLARITY Act in honor of Senator Lindsey Graham, who died on July 12. However, crypto.news previously reported that the bill’s chances of clearing the Senate have weakened after a key White House adviser supporting the legislation took a one-month leave.

The report added that the probability of passage has fallen to 37%, although a Senate floor vote is still expected before lawmakers begin their August 7 recess.

Selling pressure keeps Circle stock near a critical support zone

Fresh political uncertainty has coincided with continued weakness in Circle shares, which have extended their decline after retreating sharply from the stock’s June peak near $140.

The daily chart shows CRCL trading around $61, just above a major Fibonacci support level at $59.39. This area has become an important line for buyers, as a decisive break below it would leave little chart support before the psychologically important $50 level.

Momentum indicators also continue to favor sellers. The Chaikin Money Flow remains near -0.39, indicating sustained capital outflows from the stock, while the Average Directional Index sits around 24.7, suggesting the existing downtrend still carries moderate strength.

Even if buyers manage to stabilize the decline, recovery attempts would likely face resistance at successive Fibonacci retracement levels near $76.63, $90.17, $99.67, $109.18, and $120.94, making any rebound technically challenging unless market sentiment improves.

Analysts remain divided despite long-term growth drivers

Despite the recent weakness, several developments continue to support Circle’s longer-term outlook.

Circle recently secured an Office of the Comptroller of the Currency national trust bank charter, allowing the company to operate a federally regulated trust bank. Separately, ARK Invest purchased roughly $13.8 million worth of CRCL shares on July 9, signaling continued confidence from the investment firm even as the stock traded well below its recent highs.

At the same time, Baird has adopted a more cautious stance. The investment bank lowered its price target on Circle from $138 to $100, citing expectations that the company’s second-quarter 2026 revenue will fall short of Wall Street estimates.

Baird also warned that the launch of the OUSD stablecoin on June 30 could erode Circle’s share of the stablecoin market over time, potentially weighing on future demand for CRCL shares. Still, the firm maintained that Circle’s compliance with the GENIUS Act could strengthen adoption of USDC as the regulatory framework for dollar-backed stablecoins develops.

Ripple-backed Evernorth has unveiled a $44 million CEO equity package in a fresh SEC filing while advancing its merger to create a Nasdaq-listed XRP treasury company.

According to Evernorth Holdings’ fourth amended Form S-4 registration statement filed with the U.S. Securities and Exchange Commission, the company updated executive and director compensation arrangements while advancing the paperwork required for its proposed business combination with Armada Acquisition Corp II, a special purpose acquisition company backed by Arrington Capital.

The filing sets CEO Asheesh Birla’s base salary and grants him an initial equity award valued at about $44 million, together with vesting terms. Chief financial officer Matt Frymier would receive a base salary, annual bonus eligibility and an equity award worth about $5.6 million.

Evernorth also disclosed restricted stock unit awards valued at $750,000 for executives, subject to approval by the board’s compensation committee and the company’s shareholders.

Merger filing moves XRP treasury listing closer

Beyond executive compensation, the amended filing moves Evernorth another step toward completing its merger with Armada Acquisition Corp II. If the transaction receives regulatory and shareholder approval, the combined company is expected to trade on Nasdaq under the ticker XRPN while operating what Evernorth has described in its SEC filings as the largest publicly listed XRP treasury company.

According to the filing, Evernorth has secured more than $1 billion in gross proceeds from investors including Ripple, Arrington Capital, SBI Holdings, Pantera Capital and Kraken.

Board appointments were also updated. Ripple chief legal officer Stuart Alderoty is expected to join the board alongside CEO Asheesh Birla and Ted Janus. The proposed board would also include OpenAI Foundation chief financial officer Robert Kaiden and Antalpha chief operating officer Derar Islim.

Separately, Evernorth has expanded its public communications by launching a Japanese-language social media account focused on XRP-related updates and market education. In its introductory message, the company stated that Japan had supported XRP early and that it would continue building from there. However, Evernorth did not announce a new office, regulatory license, investment, product launch, or local operating business in Japan.

The company added that the Japanese account would explain market developments in simple terms and provide professional information without discussing XRP price movements or forecasts. Evernorth has not disclosed local staffing, partnerships or services connected to the initiative, while its website continues to list San Francisco as its primary headquarters.

XRPN stock holds steady as XRP activity grows

While the merger still awaits regulatory approval, Armada Acquisition Corp II shares have largely held their gains. The stock is up about 2.25% since the beginning of the year and has gained nearly 0.5% over the past month, although it closed 0.10% lower on Monday. Its 52-week high stands at $10.91.

Evernorth has also pointed to rising XRP adoption across several areas. According to the company, tokenized real-world assets on the XRP Ledger increased from roughly $150 million to $4 billion over the past year, supported by growth in spot XRP ETF inflows and an increase in newly created XRP wallets.

Meanwhile, XRP (XRP) traded at about $1.10 after rising 2.3% over the previous 24 hours. The token fluctuated between $1.06 and $1.11 during the session, while trading volume rose nearly 16% ahead of the release of U.S. consumer price index inflation data.

Bitcoin has climbed back toward the $65,000 level after softer-than-expected U.S. inflation data sharply reduced market expectations of a Federal Reserve rate hike at the July policy meeting.

According to the U.S. Bureau of Labor Statistics, the consumer price index (CPI) slowed to 3.5% year over year in June, below the 3.8% economists had expected. Monthly CPI fell 0.4%, compared with forecasts for a 0.1% decline. The inflation report triggered a fresh move higher in risk assets, helping Bitcoin recover from losses linked to renewed geopolitical tensions.

Bitcoin (BTC) rose nearly 5% to an intraday high of $64,830 on July 14 before easing to around $64,560 at press time. The recovery followed a drop below $62,000 during the previous session, when escalating conflict between the United States and Iran weighed on market sentiment.

Core inflation data also came in below forecasts. The Bureau of Labor Statistics reported core CPI at 2.6% year over year and flat on a monthly basis, compared with expectations of 2.8% and 0.2%, respectively.

The latest figures improved from May, when headline CPI stood at 4.2% year over year, and core CPI reached 2.9%, adding to expectations that inflation pressures may be easing despite the ongoing conflict in the Middle East.

Cooling inflation has lowered expectations for a July rate hike

Interest-rate expectations changed quickly after the inflation release. According to CME FedWatch data, traders now assign only a 16.6% probability to a Federal Reserve rate hike at the July Federal Open Market Committee meeting.

Prediction markets also adjusted their outlook. Data from Polymarket showed the perceived probability of a July rate hike falling to 9%, down from as high as 34% previously. The platform also showed the chance of at least one rate hike during 2026 declining to 53%, compared with a recent peak of 71%.

The inflation report arrived only days after Federal Reserve Governor Chris Waller indicated he could support higher interest rates if inflation remained elevated. Against that backdrop, the weaker-than-expected CPI figures reduced expectations that policymakers would tighten policy this month, providing support for Bitcoin and other risk-sensitive assets.

Attention has now turned to Federal Reserve Chair Kevin Warsh, who is scheduled to testify before Congress over two days. Investors are also preparing for the producer price index (PPI) report, which could influence expectations for future monetary policy and lead to fresh volatility across cryptocurrency markets.

Geopolitical risks continue to limit upside

Even with inflation easing, macro risks remain in focus. Recent weakness in Bitcoin followed renewed fighting involving the United States and Iran, while President Donald Trump’s decision to reinstate the Iranian blockade added pressure to global markets before the CPI-driven rebound.

Another source of uncertainty comes from Trump’s proposal to impose a 20% cargo fee on ships that receive U.S. assistance while transiting the Strait of Hormuz. Market participants have warned that any disruption to shipping through the waterway could tighten global oil supplies and complicate the inflation outlook in the months ahead.

As a result, softer inflation has improved the immediate outlook for cryptocurrencies by reducing expectations of a July rate increase, but upcoming Federal Reserve commentary, fresh inflation data and developments in the Middle East remain key factors that could determine whether Bitcoin can extend its recovery toward the $65,000 level.

Ripple has joined the x402 Foundation as a Premier Member, adding support for XRP and RLUSD in the Foundation’s effort to build an open payment standard for AI agents.

According to Ripple, AI agents are beginning to handle more of the transaction process, creating demand for payment infrastructure that can move value as efficiently as these systems already exchange information.

The company stated that its work on the XRP Ledger provides developers with tools to support agentic payments through the x402 protocol, allowing AI-powered applications to settle transactions using XRP and its RLUSD stablecoin.

The announcement places Ripple alongside other Premier Members including Coinbase, Circle, Google, Mastercard, Visa, Amazon Web Services, Stripe, Shopify, American Express, Adyen, Cloudflare, Fiserv, the Solana Foundation, the Stellar Development Foundation, the Monad Foundation, and MoonPay.

Ripple expands XRP Ledger role in AI payments

Building on earlier development work, Ripple launched the XRPL AI Starter Kit in June to help developers integrate AI applications with the XRP Ledger. The toolkit introduced support for agentic payments using XRP and RLUSD, allowing autonomous software agents to send and receive blockchain-based payments.

Soon after, Ripple-backed t54.ai introduced the XRPL AI Hub with support from Ripple developers and the XRPL Foundation. The platform was designed to provide resources and infrastructure for developers building AI-powered applications on the XRP Ledger.

Activity on the network has also increased following the rollout of x402 support. The XRPL Foundation recently announced that the XRP Ledger has processed more than one million agentic transactions, indicating growing developer testing and adoption of AI-driven payment workflows.

Ripple stated that combining blockchain settlement with AI agents could allow software systems to complete financial transactions without relying on traditional payment rails while using XRP and RLUSD as settlement assets.

Linux Foundation formalizes x402 governance

Separately, the Linux Foundation announced the operational launch of the x402 Foundation after Coinbase completed the contribution of the x402 protocol. According to the Linux Foundation, the organization will now oversee the protocol under an open governance model intended to guide future technical development.

The Linux Foundation said developers, financial institutions, cloud providers, and other community participants will be able to contribute to the protocol’s direction through the Foundation’s governance framework rather than under the control of a single company.

Membership in the Foundation extends beyond its Premier Members. General Members include Injective, the Near Foundation, Polygon Labs, and World Liberty Financial, while Associate Members include the Cardano Foundation, the BSV Association, Casper, the Japanese Contents Blockchain Initiative, and OMA3.

Coinbase originally introduced x402 as an open internet payment protocol designed to let applications, APIs, and AI agents exchange digital payments through standard web infrastructure.

With Ripple now joining the governing body, XRP and RLUSD gain a larger role in ongoing work to develop payment standards for autonomous software systems while development continues under the Linux Foundation’s stewardship.

Anchorage Digital has introduced native TRX staking for institutional clients, adding to its portfolio of regulated staking services and widening its support for the Tron network. The update is designed to let clients earn protocol rewards while keeping TRX within Anchorage’s custody environment or using their existing Porto self-custody setup.

The move underscores a broader industry shift: custody providers and market infrastructure firms are increasingly bundling staking capabilities into institutional workflows, responding to demand for regulated ways to generate yield from blockchain networks without requiring investors to run their own validator operations.

Key takeaways

• Anchorage now supports native TRX staking for institutional clients on its custody platform, with an option to stake via Porto self-custody.
• Anchorage previously added institutional custody for TRX earlier in 2026, and this rollout builds directly on that foundation.
• Anchorage points to Tron’s scale in USDT settlement activity, citing Tron’s Q1 2026 transfer and usage metrics.
• The expansion reflects a wider market trend toward custody-integrated staking across major institutional infrastructure providers.

Anchorage adds TRX staking without changing custody workflows

Anchorage Digital’s new offering enables institutional clients to stake TRX while keeping assets in their established custody arrangement. According to the company, users can stake directly from Anchorage’s custody platform or from the company’s Porto self-custody wallet.

In practical terms, the feature is meant to reduce operational friction. Instead of moving assets to a separate staking environment—or requiring institutions to independently manage validator responsibilities—clients can participate in securing the Tron network and earning protocol rewards from within the custody setup they already use.

This expansion comes after Anchorage introduced institutional custody for TRX earlier in 2026, making the staking feature a direct follow-on to its initial Tron-focused custody support. The company frames the update as a response to increasing institutional interest in the Tron ecosystem.

Why Tron staking demand is growing

Anchorage ties the rollout to the Tron network’s role in stablecoin settlement, particularly for USDT. The company says Tron processed roughly $2 trillion in USDT transfers during the first quarter of 2026, while averaging 10.9 million daily transactions and 3.2 million active addresses.

Anchorage also cites data published by Tether showing that nearly $90 billion of USDT is currently circulating on the Tron network, referencing Tether’s transparency portal: https://tether.to/en/transparency/?tab=usdt.

For institutional investors, the relevance is straightforward: networks with high transaction throughput and heavy stablecoin usage tend to attract more liquidity and broader ecosystem participation. By offering TRX staking in a regulated custody-integrated format, Anchorage is positioning staking participation as another institutional-access layer around an already intensively used chain.

Staking is becoming a standard add-on to institutional custody

Anchorage’s decision aligns with a broader trend across crypto infrastructure. Institutional platforms have increasingly moved beyond “store-and-hold” custody, expanding staking capabilities as asset managers and financial institutions seek compliant, regulated routes to earn yield.

In October 2025, for example, Coinbase and Figment broadened their staking partnership to allow Coinbase Prime clients to stake proof-of-stake assets including Solana (SOL), Avalanche (AVAX), Sui (SUI) and Aptos (APT) directly from custody. The next step of that evolution continued as institutions looked for similar convenience across different ecosystems.

Then, in early 2026, Ripple integrated Figment and Securosys into its institutional custody stack, enabling banks and custodians to offer staking without operating their own validator infrastructure. The pattern is consistent: providers aim to package validator access, operational controls, and custody handling into a single workflow.

Asset managers have also pursued integrated custody and staking structures. BitGo, for instance, expanded its partnership with 21shares to provide regulated custody and staking for 21shares’ US exchange-traded funds and global exchange-traded products through regulated US and European entities, as reported by Cointelegraph: https://cointelegraph.com/news/bitgo-expands-custody-and-staking-partnership-with-21shares-across-us-and-europe.

Corporate treasuries are joining this shift as well. Bitmine launched its MAVAN staking platform in March, initially building validator infrastructure for its own Ether treasury and later opening it to external institutions and custodians, according to Cointelegraph coverage: https://cointelegraph.com/news/bitmine-launches-mavan-an-institutional-ethereum-staking-platform.

On Monday, Bitmine said it holds 5.77 million ETH (about 4.8% of Ether’s total supply) and has staked 4.92 million ETH through MAVAN, according to its statement reported by PR Newswire: https://www.prnewswire.com/in/news-releases/bitmine-immersion-technologies-bmnr-announces-eth-holdings-reach-5-77-million-tokens-and-total-crypto-and-total-cash-holdings-of-11-3-billion-302823533.html.

What’s next for institutions watching staking access

Anchorage’s TRX rollout adds another asset and another chain pathway for institutions that want regulated yield opportunities without re-engineering their custody operations. For market participants, the key question to watch is whether similar “native staking” expansions continue across major custody providers—especially as institutional demand for simplified staking access grows and stablecoin settlement activity remains a core driver of network relevance.

Chainlink price has jumped more than 5% after Mantle completed the migration of its $2.5 billion Super Portal to Chainlink’s cross-chain infrastructure, extending a crypto market rally driven by softer U.S. inflation data.

According to data from crypto.news, Chainlink (LINK) price traded around $8.29 after briefly touching $8.40, extending its weekly gain to roughly 7%.

The move came as Bitcoin climbed above $64,600 and Ethereum approached $1,875 after U.S. inflation data strengthened expectations that the Federal Reserve could adopt a less restrictive policy later this year. Total crypto market capitalization also advanced more than 3% to about $2.30 trillion.

Mantle’s infrastructure upgrade adds to a string of recent enterprise integrations for Chainlink. Aave recently selected the protocol for automated vault rebalancing, while Robinhood has incorporated Chainlink infrastructure into its expanding Layer-2 ecosystem.

Network adoption has also continued on-chain, with the number of non-empty Ethereum wallets holding LINK surpassing 900,000 for the first time.

On-chain accumulation suggests large investors positioned ahead of the announcement rather than reacting afterward. Wallets holding more than 1,000 LINK reached their highest level this year, while addresses controlling over 100,000 LINK expanded to a record 805.

These purchases absorbed much of the selling pressure created by the scheduled unlock of 21 million LINK tokens, reducing the impact of the additional supply entering circulation.

Derivatives traders have joined the rally. Open interest increased roughly 10% alongside the price advance, showing fresh leveraged participation instead of a short-lived spot spike. The combination of rising price and rising open interest typically suggests new positions entering the market rather than existing shorts simply closing.

Technical breakout places $8.40 and $8.70 in focus

The daily chart shows LINK pressing against the upper boundary of a descending wedge that has contained price since early June. Tuesday’s rally pushed the token above $8.20 and toward immediate resistance near $8.40, where sellers rejected price earlier in the session.

A confirmed daily close above that level would strengthen the breakout case and expose the next resistance zone around $8.70, followed by psychological resistance near $9.00.

Momentum indicators have also improved. The daily RSI has climbed to around 60 after recovering from oversold territory, showing buyers have regained control without entering overbought conditions. The Aroon Up indicator has returned to 100 while the Aroon Down remains near single-digit readings, highlighting a renewed bullish trend.

On the 4-hour chart, the MACD has completed a bullish crossover above the signal line, while the Chaikin Money Flow remains positive above zero, showing capital continues to enter the market.

CoinGlass liquidation data reinforces the technical picture. The one-week heatmap shows a dense concentration of leveraged short positions clustered between $8.15 and $8.30, many of which were cleared during the latest rally. Above current prices, another sizeable liquidity pocket sits around $8.45-$8.70, creating a potential magnet if buyers maintain momentum.

Loss of $8.00 support would weaken the bullish case

Several risks could still interrupt LINK’s recovery. Markets remain sensitive to upcoming U.S. Producer Price Index data and any Federal Reserve comments that challenge expectations for easier monetary policy. Renewed geopolitical tensions or another rise in oil prices could also reduce appetite for risk assets across digital markets.

From a technical perspective, failure to hold above the $8.20 breakout zone would leave $8.00 as the first important support.

A decisive break below that level could pull LINK back toward the $7.70-$7.50 demand area, where the liquidation heatmap shows another large concentration of leveraged positions. Such a move would invalidate the immediate breakout structure and postpone any attempt to challenge the $9.00 resistance zone.

Michael Saylor’s career has long been defined by high-stakes financial bets—first during the dot-com era, when MicroStrategy’s stock collapse wiped out billions of dollars of shareholder value in a single day, and now through Strategy’s latest phase as the most prominent corporate Bitcoin holder on Wall Street.

Strategy (formerly MicroStrategy) currently holds 843,775 Bitcoin, according to the company’s public disclosures, and has become an influential reference point for firms experimenting with Bitcoin as a treasury reserve asset. But the debate surrounding Saylor’s model has shifted: attention is moving from simply whether to hold Bitcoin to how the position is funded, managed, and potentially reduced.

Key takeaways

• Strategy has evolved from an accumulation-first posture into an active treasury framework that can involve selling Bitcoin to support other capital needs.
• Recent disclosures include the sale of 3,588 Bitcoin, described as the largest disposal since Strategy made Bitcoin its primary treasury reserve asset in 2020.
• The market conversation is increasingly focused on capital structure risks—particularly the company’s use of convertible debt and preferred stock—rather than on Bitcoin custody alone.
• Analysts argue the core risk is not just Bitcoin volatility, but the premium investors pay for leveraged exposure through Strategy’s equity.
• Supporters view the changes as practical treasury management; critics warn that prolonged market stress could strain the financing-dependent model.

From Bitcoin accumulation to “capital framework” decisions

On June 29, Strategy unveiled a new capital framework designed to allow it to sell Bitcoin as a source of funding. The stated purpose was to support preferred stock dividends, strengthen cash reserves, and repurchase securities.

For investors who associated Strategy with an accumulation doctrine—where Bitcoin holdings were meant to be built rather than reduced—the framework raised immediate questions about what had changed. The company, after all, had spent years positioning Bitcoin as an asset to be accumulated rather than monetized.

Days after the framework was announced, Strategy disclosed the sale of 3,588 Bitcoin, which Cointelegraph previously described as the largest disposal since Strategy adopted Bitcoin as its primary treasury reserve asset in 2020.

Talos’ Drew Forman, senior vice president and head of strategy, told Cointelegraph that the discussion should move beyond acquisition and toward management: “The conversation shifts beyond simply acquiring Bitcoin to how those positions are financed, managed and, when necessary, traded or monetized.”

The dot-com crash as a template for investor skepticism

To understand why Strategy remains a flashpoint, it helps to revisit MicroStrategy’s earlier history. In March 2000, MicroStrategy announced it needed to restate its financial results for fiscal years 1998 and 1999 due to accounting errors, according to filings and reporting from that period.

MicroStrategy’s stock plunged sharply—dropping from $260 per share to $86 in a single session—and fell further in the weeks that followed. Later, the company disclosed it would also need to restate its 1997 results.

MicroStrategy ultimately settled civil fraud charges with the U.S. Securities and Exchange Commission over accounting practices, according to the SEC’s litigation release, without admitting or denying wrongdoing.

That episode became a lasting reference point for corporate blowups during the dot-com era, and it remains part of the backdrop for how investors evaluate Strategy’s modern Bitcoin experiment.

How the Bitcoin treasury changed—and where the risk debate now concentrates

In 2020, MicroStrategy (now Strategy) announced that it would make Bitcoin its primary treasury reserve asset, and Saylor became one of the most vocal corporate advocates for the approach. Early on, the strategy was widely treated as a high-risk experiment: few public companies held Bitcoin on their balance sheets at the time. But as Bitcoin’s price rose amid broader liquidity conditions, Strategy’s market profile expanded and the company became a highly visible proxy for corporate leverage to Bitcoin.

Still, critics say the model only functions cleanly when Bitcoin continues trending upward and when investors are willing to keep providing new capital. Under prolonged stress, skeptics argue that Strategy’s financing approach could worsen the situation—an idea Cointelegraph previously explored in the context of “death spiral” concerns.

Where the debate has sharpened is in how Strategy’s exposure is structured. In an email to Cointelegraph, NYU Stern finance professor Aswath Damodaran characterized the setup as extremely hard to justify, adding that he did not have enough resources to evaluate it further.

David Trainer, CEO of investment research firm New Constructs, also takes a cautious stance. He argued that, while today’s Strategy looks different from the software business of 2000, the underlying issue is similar: equity holders are positioned like a “leveraged wrapper” around a volatile asset without fundamental earnings power supporting the valuation.

Trainer contrasted the 2000 problem—incorrect financial reporting, as the SEC alleged at the time—with today’s structural risk. He argued the company’s modern risks sit inside its capital structure rather than inside the accounting. Specifically, Trainer pointed to Strategy’s use of convertible notes and preferred stock to fund Bitcoin purchases.

According to Trainer, Strategy had $6.7 billion in convertible notes and $15.5 billion in preferred stock outstanding as of late May 2026, referencing an SEC filing: Strategy’s SEC document. Trainer also said the software business is now a minor component compared with the balance sheet exposure.

In his view, the biggest worry is not only Bitcoin’s volatility but also the potential for investors to stop paying a premium for Strategy’s equity exposure. If that premium narrows or disappears, he said the company would face fewer favorable options—potentially forcing it to sell Bitcoin, rely on more expensive financing, or slow growth.

Treasury management as the real differentiator

Forman at Talos pushed back on framing Strategy primarily through the size of its Bitcoin holdings. In his view, Strategy’s position cannot be understood just by looking at the Bitcoin balance; it must be assessed by how the treasury strategy works in practice—especially how liquidity and risk are managed as market conditions change.

Forman argued that Strategy’s willingness to sell Bitcoin is not necessarily a sudden break from the underlying philosophy, but rather a practical feature of a more sophisticated corporate treasury plan. “I see it as a pragmatic evolution of a more complex treasury strategy,” he told Cointelegraph.

He also broadened the implications for the broader corporate sector: Bitcoin is increasingly treated as an institutional asset class. That shift, Forman suggested, means companies will need governance, liquidity management, execution discipline, and risk controls—not simply a yes-or-no decision about buying Bitcoin in the first place.

Has the legacy truly been rewritten?

Twenty-six years after MicroStrategy’s accounting crisis, the questions around Strategy look different. Fewer critics focus on the company’s financial reporting integrity today; instead, the attention is on whether a complex Bitcoin-centered corporate capital structure can hold up when markets turn unfavorable.

Saylor’s approach has already reshaped how many public companies think about treasuries, and it has inspired numerous listed firms to explore Bitcoin allocations. Yet the durability of Strategy’s model may not be judged by the next rally, but by how well it performs through extended periods of stress.

Investors watching Strategy next should focus on whether its financing and monetization choices keep improving its liquidity profile, and whether the market continues to value Strategy’s equity premium under changing Bitcoin conditions.