Trump Media Company Launches Crypto Token for Investors
As 2025 concludes with a convergence of politics and digital finance, U.S. president Donald Trump's media company unveils a crypto token distribution for the company's investors, while asset managers flood the zone with new filings. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us daily at2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.TRUMP MEDIA LAUNCHES SHAREHOLDER TOKEN:In a major year-end development, Trump Media & Technology Grouphas. The operator of Truth Social will distribute the token to shareholders in partnership with Crypto.com. The project is expected to operate on the Cronos blockchain, home to the native cronos token, and aims to reward shareholders while promoting "fair and transparent markets." This follows a trend of crypto-adjacent ventures from the president, whose return to the White House has already catalyzed a more favorable regulatory environment. Other crypto-related ventures that the U.S. president and his family has been involved in this past year include mining companies such as Hut 8, ALT5 Sigma Corp, American Bitcoin, and the SPAC merger with Crypto.com named Trump Media Group CRO Strategy, Inc, in addition to cryptocurrency tokens such as WLFI-USD, CRO-USD, TRUMP-USD, MELANIA-USD, and the USD-pegged stablecoin USD1.BITWISE FILES WITH SEC FOR ELEVEN STRATEGY ETFS:Asset managers are looking beyond spot assets to more complex strategy products to ring in the new year. Bitwise has. These proposed funds would utilize a rules-based strategy targeting assets such as aave, uniswap, and sui, combining direct token exposure with derivatives to capture the next wave of institutional capitalKEEFE BRUYETTE UPGRADES TERAWULF PRICE TARGET TO $24:Analysts at Keefe Bruyette have upgraded bitcoinminer TeraWulfto Outperform from Market Perform and raised its price target to $24 from $9.50. The analysts believe the market is underestimating the earnings upside from the company's strategic shift away from mining and toward high-performance computing and artificial intelligence leasing. Analysts project that high-performance computing leasing could generate roughly two-thirds of TeraWulf's revenue in 2026CYPHERPUNK BUYS ZCASH, BITMINE STAKES ETHER, AND STRATEGY BUYS BITCOIN:Public companies are closing out the year with significant moves in their digital asset portfolios. Cypherpunk Technologies(ZEC-USD), now holding roughly 1.76% of the token's circulating supply.Bitmine Immersion Technologieshas staked an additional $352M in ether, bringing its total staked holdings to approximately $1.37B. Meanwhile, in the blue-chip space, Strategyacquired over 22,000 bitcoin in December alone.COINBASE WARNS SENATE ON STABLECOIN RULES:A senior executive at Coinbasehas issued a warning regarding potential changes to U.S. stablecoin regulations., the exchange's chief policy officer stated that mishandling the "GENIUS Act" could hand China a competitive edge in the global digital payments race. This comes as China's central bank outlines plans to allow commercial banks to pay interest on digital yuan balances starting in 2026BLACKROCK LEADS BITCOIN ETF INFLOWS:Institutional demand remains robust heading into the new year., U.S. spot bitcoin ETFs ended a seven-day outflow streak with $355M in inflows on Tuesday. BlackRockled the rebound with $143.75M in inflows for its iShares Bitcoin TrustPRICE ACTION:As of time of writing, bitcoin was trading at $87,476.38, while ether was trading at $2,973.01,.
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Hut 8 Faces Shareholder Lawsuit Investigation
- Lawsuit Investigation: Bragar Eagel & Squire, P.C. is investigating Hut 8 Corp. for potential breaches of fiduciary duty by its board of directors, particularly in light of a class action complaint filed on February 7, 2024, covering the period from November 9, 2023, to January 18, 2024.
- Merger Controversy: Following Hut 8's merger with USBTC in November 2023, which included a 50% stake in the King Mountain JV in Texas, a report by J Capital Research alleged that the merger was based on several false statements, potentially exposing shareholders to significant losses.
- Stock Price Plunge: On January 18, 2024, Hut 8's stock price fell by $2.16, or 23.3%, closing at $7.12 per share, reflecting severe market concerns regarding the company's financial health following the negative news.
- Investor Rights Protection: The law firm encourages long-term shareholders to reach out to discuss their legal rights, indicating a commitment to support affected investors and ensure their interests are protected in the legal proceedings.
Hut 8 and Duolingo's Growth Potential
- Hut 8's Market Opportunity: Hut 8's stock price has more than doubled over the past year, primarily due to its pivot towards data centers, with Morgan Stanley estimating corporate spending on AI could reach $10 trillion; Hut 8 has over 9 gigawatts of data center capacity that is expected to drive significant growth for shareholders.
- Key Contract Signing: Hut 8 signed a $7 billion deal with Anthropic to supply 245 megawatts of power, with the total contract value potentially reaching $17.7 billion if all options are exercised, further solidifying its market position through strategic partnerships.
- Duolingo's Education Market: Duolingo's mobile education app is tapping into the $5 trillion global education market, with a 36% year-over-year increase in daily active users in Q3, showcasing its competitive edge as AI education technology gains traction.
- AI-Driven Growth: Duolingo plans to leverage AI to rapidly launch new content, enhancing user experience and reducing costs; the market's positive outlook on its $6 billion valuation indicates strong long-term growth potential in the education sector.
Hut 8 and Duolingo's Growth Potential
- Hut 8's Market Performance: Hut 8's stock price has more than doubled over the past year, primarily due to its pivot towards data centers, with Morgan Stanley estimating corporate spending on AI could reach $10 trillion, and Hut 8 has over 9 gigawatts of data center capacity that can significantly drive shareholder growth.
- Key Contract Signing: Hut 8 signed a $7 billion deal with Anthropic to supply 245 megawatts of power, with the total contract value potentially reaching $17.7 billion if all options are exercised, positioning the company for long-term benefits through this strategic partnership.
- Duolingo's Market Opportunity: Duolingo's mobile education app is tapping into the $5 trillion global education market, with AI-driven educational technology expected to drive long-term market growth, and despite a stock price decline, its market potential remains substantial.
- Strong User Growth: Duolingo reported a 36% year-over-year increase in daily active users in Q3, and the application of AI technology will further enhance user experience and profitability, with a market cap of $6 billion indicating significant upside potential in the education market.
Hut 8 Mining Stock Rises on Bitcoin Rebound
- Bitcoin Rebound: Bitcoin's price rebounded by 7% to the $68,000 level after a sharp decline, directly driving Hut 8 Mining's stock rise, indicating a restoration of market confidence in cryptocurrencies.
- Stock Performance: Hut 8 Mining's shares surged 8.86% to $48.42 on Friday, reflecting investor optimism regarding the crypto market recovery and demonstrating the company's strong performance among its peers.
- Market Dynamics: Despite a severe downturn earlier this week that led to double-digit losses for many crypto-related stocks, Hut 8 successfully capitalized on the positive sentiment surrounding Friday's market rebound, showcasing its resilience in a volatile environment.
- Industry Comparison: Hut 8 Mining's stock has increased by 131.99% over the past year, significantly outperforming the average peer performance of just 6.65%, highlighting its dominant position and the substantial gap established with competitors.
The Major Shift: Bitcoin Miners Transitioning to AI Property Owners
Current Trends in Digital Asset Sector: The digital asset sector is experiencing significant divergence, with Bitcoin stabilizing around $62,000, while specific companies pivot from mining to powering AI, indicating a shift in focus and valuation metrics.
Investment Opportunities: Companies in the sector are increasingly valued based on their power capacity rather than just mining speed, creating unique opportunities for investors, particularly in high-performance computing (HPC) applications.
Challenges and Risks: The sector faces logistical challenges, including the need for substantial upfront investments and potential delays in construction, which could impact quarterly targets and overall execution risk.
Emerging Asset Class: The narrative surrounding digital infrastructure is evolving, with companies diversifying revenue streams and positioning themselves as essential partners in the AI revolution, thus changing the investment landscape beyond just cryptocurrency prices.
Cryptocurrency Stocks Recover as Bitcoin Rises 7.86%
- Bitcoin Rebound: Bitcoin surged 7.86% to $65,760.87 on Friday, improving market sentiment and alleviating investor concerns about the cryptocurrency market, potentially laying the groundwork for a rebound in related stocks.
- Mining Stocks Recovery: MARA Holdings Inc rose 7.88% to $7.26 in premarket trading after plummeting 18.72% on Thursday, indicating strong demand for mining stocks and potentially attracting more investor interest.
- Strong Performance by Strategy Inc: Strategy Inc, known for its substantial Bitcoin holdings, saw its stock jump 8.36% to $115.93 in premarket trading, despite a 17.12% selloff on Thursday, reflecting strong fundamentals that continue to attract investor confidence.
- Hut 8 Corp Leads Gains: Hut 8 Corp led the recovery with an 8.68% increase to $48.34 in premarket trading after a 17.89% decline on Thursday, suggesting optimistic sentiment about its future growth potential, which may drive more capital into the company.
Hut 8 Faces Shareholder Lawsuit Investigation
- Lawsuit Investigation: Bragar Eagel & Squire, P.C. is investigating Hut 8 Corp. for potential breaches of fiduciary duty by its board of directors, particularly in light of a class action complaint filed on February 7, 2024, covering the period from November 9, 2023, to January 18, 2024.
- Merger Controversy: Following Hut 8's merger with USBTC in November 2023, which included a 50% stake in the King Mountain JV in Texas, a report by J Capital Research alleged that the merger was based on several false statements, potentially exposing shareholders to significant losses.
- Stock Price Plunge: On January 18, 2024, Hut 8's stock price fell by $2.16, or 23.3%, closing at $7.12 per share, reflecting severe market concerns regarding the company's financial health following the negative news.
- Investor Rights Protection: The law firm encourages long-term shareholders to reach out to discuss their legal rights, indicating a commitment to support affected investors and ensure their interests are protected in the legal proceedings.
Hut 8 and Duolingo's Growth Potential
- Hut 8's Market Opportunity: Hut 8's stock price has more than doubled over the past year, primarily due to its pivot towards data centers, with Morgan Stanley estimating corporate spending on AI could reach $10 trillion; Hut 8 has over 9 gigawatts of data center capacity that is expected to drive significant growth for shareholders.
- Key Contract Signing: Hut 8 signed a $7 billion deal with Anthropic to supply 245 megawatts of power, with the total contract value potentially reaching $17.7 billion if all options are exercised, further solidifying its market position through strategic partnerships.
- Duolingo's Education Market: Duolingo's mobile education app is tapping into the $5 trillion global education market, with a 36% year-over-year increase in daily active users in Q3, showcasing its competitive edge as AI education technology gains traction.
- AI-Driven Growth: Duolingo plans to leverage AI to rapidly launch new content, enhancing user experience and reducing costs; the market's positive outlook on its $6 billion valuation indicates strong long-term growth potential in the education sector.
Hut 8 and Duolingo's Growth Potential
- Hut 8's Market Performance: Hut 8's stock price has more than doubled over the past year, primarily due to its pivot towards data centers, with Morgan Stanley estimating corporate spending on AI could reach $10 trillion, and Hut 8 has over 9 gigawatts of data center capacity that can significantly drive shareholder growth.
- Key Contract Signing: Hut 8 signed a $7 billion deal with Anthropic to supply 245 megawatts of power, with the total contract value potentially reaching $17.7 billion if all options are exercised, positioning the company for long-term benefits through this strategic partnership.
- Duolingo's Market Opportunity: Duolingo's mobile education app is tapping into the $5 trillion global education market, with AI-driven educational technology expected to drive long-term market growth, and despite a stock price decline, its market potential remains substantial.
- Strong User Growth: Duolingo reported a 36% year-over-year increase in daily active users in Q3, and the application of AI technology will further enhance user experience and profitability, with a market cap of $6 billion indicating significant upside potential in the education market.
Hut 8 Mining Stock Rises on Bitcoin Rebound
- Bitcoin Rebound: Bitcoin's price rebounded by 7% to the $68,000 level after a sharp decline, directly driving Hut 8 Mining's stock rise, indicating a restoration of market confidence in cryptocurrencies.
- Stock Performance: Hut 8 Mining's shares surged 8.86% to $48.42 on Friday, reflecting investor optimism regarding the crypto market recovery and demonstrating the company's strong performance among its peers.
- Market Dynamics: Despite a severe downturn earlier this week that led to double-digit losses for many crypto-related stocks, Hut 8 successfully capitalized on the positive sentiment surrounding Friday's market rebound, showcasing its resilience in a volatile environment.
- Industry Comparison: Hut 8 Mining's stock has increased by 131.99% over the past year, significantly outperforming the average peer performance of just 6.65%, highlighting its dominant position and the substantial gap established with competitors.
The Major Shift: Bitcoin Miners Transitioning to AI Property Owners
Current Trends in Digital Asset Sector: The digital asset sector is experiencing significant divergence, with Bitcoin stabilizing around $62,000, while specific companies pivot from mining to powering AI, indicating a shift in focus and valuation metrics.
Investment Opportunities: Companies in the sector are increasingly valued based on their power capacity rather than just mining speed, creating unique opportunities for investors, particularly in high-performance computing (HPC) applications.
Challenges and Risks: The sector faces logistical challenges, including the need for substantial upfront investments and potential delays in construction, which could impact quarterly targets and overall execution risk.
Emerging Asset Class: The narrative surrounding digital infrastructure is evolving, with companies diversifying revenue streams and positioning themselves as essential partners in the AI revolution, thus changing the investment landscape beyond just cryptocurrency prices.
Cryptocurrency Stocks Recover as Bitcoin Rises 7.86%
- Bitcoin Rebound: Bitcoin surged 7.86% to $65,760.87 on Friday, improving market sentiment and alleviating investor concerns about the cryptocurrency market, potentially laying the groundwork for a rebound in related stocks.
- Mining Stocks Recovery: MARA Holdings Inc rose 7.88% to $7.26 in premarket trading after plummeting 18.72% on Thursday, indicating strong demand for mining stocks and potentially attracting more investor interest.
- Strong Performance by Strategy Inc: Strategy Inc, known for its substantial Bitcoin holdings, saw its stock jump 8.36% to $115.93 in premarket trading, despite a 17.12% selloff on Thursday, reflecting strong fundamentals that continue to attract investor confidence.
- Hut 8 Corp Leads Gains: Hut 8 Corp led the recovery with an 8.68% increase to $48.34 in premarket trading after a 17.89% decline on Thursday, suggesting optimistic sentiment about its future growth potential, which may drive more capital into the company.
