Key Points: – GameStop’s board has approved Bitcoin as a treasury reserve asset, following speculation about the company’s interest in cryptocurrency. – The stock jumped nearly 13% in premarket trading after the announcement. – Analysts remain skeptical, comparing the move to MicroStrategy’s Bitcoin strategy, but questioning its long-term impact on GameStop’s stock.
GameStop (NYSE: GME), the video game retailer-turned-meme stock, saw its shares surge nearly 13% in premarket trading on Wednesday after confirming plans to allocate a portion of its cash reserves to Bitcoin. The move signals yet another pivot for the company as it looks to redefine its business strategy and capture investor interest amid ongoing challenges in the retail gaming sector.
In a statement released Tuesday, GameStop announced that its board of directors unanimously approved an update to its investment policy, officially allowing the company to purchase and hold Bitcoin as a treasury reserve asset. This decision follows weeks of speculation, fueled in part by a cryptic social media post from GameStop Chairman Ryan Cohen in early February, featuring a meeting with MicroStrategy CEO Michael Saylor, a well-known Bitcoin advocate.
GameStop’s announcement aligns it with MicroStrategy (NASDAQ: MSTR), a company that has aggressively invested in Bitcoin as part of its corporate treasury strategy. MicroStrategy currently holds over 447,000 Bitcoin, a move that has significantly boosted its stock price during Bitcoin bull runs.
The decision to invest in Bitcoin represents a major strategic shift for GameStop, which has struggled to define a clear business model in recent years. Following its infamous Reddit-fueled short squeeze in 2021, GameStop has experimented with NFT marketplaces, digital asset wallets, and e-commerce expansions, but none have significantly altered its financial trajectory.
While Bitcoin has seen strong gains in 2024 and 2025, GameStop’s move raises questions about its long-term financial strategy. Unlike MicroStrategy, which transformed itself into a Bitcoin-centric company, GameStop remains primarily a retail business with declining revenue. The company’s fourth-quarter earnings report, also released Tuesday, revealed a 28% decline in net sales year-over-year, further emphasizing the financial struggles it faces.
Despite the stock’s rally, analysts remain divided on whether GameStop’s Bitcoin investment will provide meaningful value. Wedbush analyst Michael Pachter voiced concerns about the decision, noting that MicroStrategy trades at approximately twice the value of its Bitcoin holdings, meaning that even a full allocation of GameStop’s $4.6 billion cash reserves into Bitcoin may not provide the same level of stock appreciation.
Additionally, Bitcoin’s volatility presents a risk for GameStop, which is already navigating declining brick-and-mortar sales, shifting consumer preferences, and increased digital gaming competition. A sudden drop in Bitcoin’s price could negatively impact GameStop’s financial position, leaving it with fewer options to reinvest in its core business.
GameStop’s Bitcoin strategy will likely fuel speculation and volatility in its stock price, much like previous meme stock cycles. However, whether this move translates into long-term value remains uncertain. Investors will be watching closely to see how GameStop executes its Bitcoin investment plan and whether it adopts a broader digital asset strategy beyond cryptocurrency holdings.
For now, the announcement has given GameStop bulls a new reason to rally, but the company’s future remains uncertain as it bets on Bitcoin to help redefine its financial outlook.
Experienced Financial Leader Joins Bitcoin ATM Pioneer to Drive Growth and Financial Strategy
ATLANTA, March 24, 2025 (GLOBE NEWSWIRE) — Bitcoin Depot (NASDAQ: BTM), a U.S.-based Bitcoin ATM (“BTM”) operator and leading fintech company, announced today that David Gray has been appointed Chief Financial Officer (CFO), effective immediately. Gray brings over 20 years of financial leadership experience, with a proven track record of success in driving business transformation, optimizing financial performance, leading high-value mergers and acquisitions, and advising on the impacts of complex strategic initiatives.
As CFO, Gray will oversee Bitcoin Depot’s financial strategy, treasury, and corporate development, ensuring the company remains well-positioned for continued growth amid an evolving cryptocurrency landscape.
Gray joins Bitcoin Depot from Aviat Networks, where he served as CFO and helped lead the company’s growth from $275 million to nearly $500 million in revenue through strategic acquisitions and financial transformation initiatives. Previously, he held CFO and senior finance leadership roles at Superior Essex, Eaton Corporation, and Newell Brands.
“David’s expertise in financial strategy, operational excellence, and strategic planning makes him a valuable addition to our leadership team,” said Brandon Mintz, CEO of Bitcoin Depot. “His experience navigating complex financial landscapes and driving sustainable growth will be crucial as we continue to expand Bitcoin access, scale our operations, and reinforce our market leadership.”
Commenting on his appointment, Gray said: “Bitcoin Depot has built a strong foundation as a leader in the Bitcoin ATM sector, and I’m eager to contribute to its financial strategy during a time of rapid innovation and expansion. I look forward to collaborating with the leadership team to enhance Bitcoin Depot’s financial strength, drive strategic growth, and support its mission of expanding access to Bitcoin.”
Gray holds a B.S. in Accounting from Penn State University and is a Certified Management Accountant (CMA) and a Certified Public Accountant (CPA).
About Bitcoin Depot
Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 29 states through its BDCheckout product. The Company has the largest market share in North America with approximately 8,400 kiosk locations as of December 31, 2024. Learn more at www.bitcoindepot.com.
This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, our ability to strengthen our financial profile, and worldwide growth in the adoption and use of cryptocurrencies. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,“ ”plan,“ ”potential,“ ”priorities,“ ”project,“ ”pursue,“ ”seek,“ ”should,“ ”target,“ ”when,“ ”will,“ ”would,” or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control.
These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; risks relating to the uncertainty of our projected financial information; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change.
We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.
Q4 Revenue of $136.8 Million Compared to $148.4 Million in the Prior Year Quarter
Q4 Operating Expenses Down 16% Year-Over-Year to $15.0 Million
Q4 Net Income up Significantly to $5.4 Million Compared to a Net Loss of $1.7 Million in the Prior Year Quarter
Q4 Adjusted Gross Profit up 18% Year-Over-Year to $25.4 Million
Q4 Adjusted EBITDA up 34% Year-Over-Year to $12.0 Million
ATLANTA, March 18, 2025 (GLOBE NEWSWIRE) — Bitcoin Depot Inc. (“Bitcoin Depot” or the “Company”), a U.S.-based Bitcoin ATM operator and leading fintech company, today reported financial results for the fourth quarter and full year ended December 31, 2024. Bitcoin Depot will host a conference call and webcast at 10:00 a.m. ET today. An earnings presentation and link to the webcast will be made available at ir.bitcoindepot.com.
“As we highlighted in our fourth-quarter pre-announcement, 2024 ended on a strong note, driven by sequential revenue growth and substantial improvements in adjusted EBITDA, both sequentially and year-over-year,” said Brandon Mintz, CEO and Founder of Bitcoin Depot. “In the fourth quarter, we made significant progress in expanding our Bitcoin ATM network and optimizing existing machines to enhance profitability — and the results speak for themselves.
“Looking ahead, we are confident that the optimization efforts we implemented throughout 2024 will begin to positively impact our financial performance as we move through 2025. With our aggressive international and domestic kiosk expansion strategy, we anticipate that 2025 will mark a strong return to growth for the business. As part of this, we are reintroducing financial guidance, projecting robust growth in the first quarter. Additionally, we remain committed to leveraging our strong cash flow to drive shareholder value initiatives, including the potential for a cash dividend. We have also continued to strengthen our Bitcoin treasury holdings, recently increasing our total to 94 BTC, reflecting our confidence in Bitcoin as a valuable financial asset and an integral part of our business model.”
Fourth Quarter 2024 Financial Results
Revenue in the fourth quarter of 2024 was $136.8 million compared to $148.4 million in the fourth quarter of 2023. This decline was driven by the impact of unfavorable legislation that was passed in California that went into effect in January 2024, along with the Company’s continued process of relocating underperforming kiosks to optimize fleet profitability.
Total operating expenses declined 16% to $15.0 million for the fourth quarter of 2024 compared to $17.8 million for the fourth quarter of 2023 due to the costs of going public in 2023 that did not recur in 2024.
Net income for the fourth quarter of 2024 increased significantly to $5.4 million compared to a net loss of $1.7 million for the fourth quarter of 2023. The increase was due to lower depreciation and amortization and lower operating expenses in 2024.
Adjusted gross profit, a non-GAAP measure, in the third quarter of 2024 increased 18% to $25.4 million from $21.6 million for the fourth quarter of 2023. Adjusted gross profit margin, a non-GAAP measure, in the fourth quarter of 2024 increased approximately 400 basis points to 18.6% compared to 14.5% in the fourth quarter of 2023. Please see “Explanation and Reconciliation of Non-GAAP Financial Measures” below.
Adjusted EBITDA, a non-GAAP measure, in the fourth quarter of 2024 increased 34% to $12.0 million compared to $9.0 million for the fourth quarter of 2023. The increase was primarily due to the higher net income. Please see “Explanation and Reconciliation of Non-GAAP Financial Measures” below.
Full Year 2024 Financial Results
Revenue in 2024 was $573.7 million from $689.0 million in 2023. This decline was largely driven by the impact of unfavorable legislation that was passed in California that went into effect in January 2024, along with the Company’s continued process of relocating underperforming kiosks in order to optimize fleet profitability.
Total operating expenses declined 5% to $67.2 million compared to $70.6 million in 2023 due to the costs of going public in 2023 that did not recur in 2024 as well as other cost saving measures.
Net income in 2024 increased by 432% to $7.8 million compared to $1.5 million in 2023. The increase was primarily due to expenses with going public in 2023 that did not recur in 2024 along with other expense reductions.
Adjusted gross profit, a non-GAAP measure, in 2024 was $91.4 million compared to $101.0 million in 2023. The adjusted gross profit margin, a non-GAAP measure, in 2024 increased 120 basis points to 15.9% compared to 14.7% in 2023. Please see “Explanation and Reconciliation of Non-GAAP Financial Measures” below.
Adjusted EBITDA, a non-GAAP measure, in 2024 was $38.7 million compared to $56.3 million in 2023. The decline was due to the lower revenue. Please see “Explanation and Reconciliation of Non-GAAP Financial Measures” below.
Cash, cash equivalents, and cryptocurrencies were $31.0 million as of the end of 2024 compared to $30.5 million at the end of 2023.
Q1 2025 Outlook
Q1 2025 is off to a very strong start as we continue to see growth from our relocation strategy. We anticipate Q1 revenues to be between $151 million and $154 million which would represent growth of between 9% and 11% compared to Q1 2024.
We are projecting adjusted EBITDA for Q1 2025 to be between $12 million and $14 million which would represent growth of over 200% compared to Q1 of 2024.
Conference Call
Bitcoin Depot will hold a conference call at 10:00 a.m. Eastern time (7:00 a.m. Pacific time) today to discuss its financial results for the fourth quarter and full year ended December 31, 2024.
Call Date: Tuesday, March 18, 2025 Time: 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
Phone Instructions U.S. dial-in: 646-968-2525 International dial-in: 888-596-4144 Conference ID: 8224936
A replay of the call will be available beginning after 2:00 p.m. Eastern time through March 25, 2025.
U.S. & Canada replay number: 800-770-2030 U.S. toll number: 609-800-9909 Conference ID: 8224936
If you have any difficulty connecting with the conference call, please contact Bitcoin Depot’s investor relations team at 1-949-574-3860.
About Bitcoin Depot
Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 29 states through its BDCheckout product. The Company has the largest market share in North America with over 8,400 kiosk locations as of February 25, 2025. Learn more at www.bitcoindepot.com.
This press release and any oral statements made in connection herewith include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forward-looking statements are any statements other than statements of historical fact, and include, but are not limited to, statements regarding the expectations of plans, business strategies, objectives and growth and anticipated financial and operational performance, including our growth strategy and ability to increase deployment of our products and services, our ability to strengthen our financial profile, and worldwide growth in the adoption and use of cryptocurrencies. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements are often identified by words such as “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,“ ”plan,“ ”potential,“ ”priorities,“ ”project,“ ”pursue,“ ”seek,“ ”should,“ ”target,“ ”when,“ ”will,“ ”would,” or the negative of any of those words or similar expressions that predict or indicate future events or trends or that are not statements of historical matters, although not all forward-looking statements contain such identifying words. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgments are reasonable, but these statements are not guarantees of any future events or financial results. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control.
These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; failure to realize the anticipated benefits of the business combination; risks relating to the uncertainty of our projected financial information; future global, regional or local economic and market conditions; the development, effects and enforcement of laws and regulations; our ability to manage future growth; our ability to develop new products and services, bring them to market in a timely manner and make enhancements to our platform; the effects of competition on our future business; our ability to issue equity or equity-linked securities; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors described or referenced in filings with the Securities and Exchange Commission. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that we do not presently know or that we currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect our expectations, plans or forecasts of future events and views as of the date of this press release. We anticipate that subsequent events and developments will cause our assessments to change.
We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.
Explanation and Reconciliation of Non-GAAP Financial Measures
Bitcoin Depot reports its financial results in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release includes both historical and projected Adjusted EBITDA, Adjusted Gross Profit, and certain ratios and other metrics derived therefrom such as Adjusted EBITDA margin and Adjusted Gross Profit margin, which are not prepared in accordance with GAAP.
Bitcoin Depot defines Adjusted EBITDA as net income before interest expense, income tax expense, depreciation and amortization, non-recurring expenses, share-based compensation, expenses related to the PIPE financing and miscellaneous cost adjustments. Such items are excluded from Adjusted EBITDA because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core results of operations and renders comparisons with prior periods and competitors less meaningful. In addition, Bitcoin Depot defines Adjusted Gross Profit (a non-GAAP financial measure) as revenue less cost of revenue (excluding depreciation and amortization) and depreciation and amortization adjusted to add back depreciation and amortization. Bitcoin Depot believes Adjusted EBITDA and Adjusted Gross Profit each provide useful information to investors and others in understanding and evaluating Bitcoin Depot’s results of operations, as well as provide a useful measure for period-to-period comparisons of Bitcoin Depot’s business performance. Adjusted EBITDA and Adjusted Gross Profit are each key measurements used internally by management to make operating decisions, including those related to operating expenses, evaluate performance and perform strategic and financial planning. However, you should be aware that Adjusted EBITDA and Adjusted Gross Profit are not measures of financial performance calculated in accordance with GAAP and may exclude items that are significant in understanding and assessing Bitcoin Depot’s financial results, and further, that Bitcoin Depot may incur future expenses similar to those excluded when calculating these measures. Bitcoin Depot primarily relies on GAAP results and uses both Adjusted EBITDA and Adjusted Gross Profit on a supplemental basis. Neither Adjusted EBITDA or Adjusted Gross Profit should be considered in isolation from, or as an alternative to, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP and may not be indicative of Bitcoin Depot’s historical or future operating results. Bitcoin Depot’s computation of both Adjusted EBITDA and Adjusted Gross Profit may not be comparable to other similarly titled measures computed by other companies because not all companies calculate such measures in the same fashion. As such, undue reliance should not be placed on such measures.
Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from the projections of Adjusted EBITDA, together with some of the excluded information not being ascertainable or accessible, Bitcoin Depot is unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measures without unreasonable effort. Consequently, no disclosure of estimated comparable GAAP measures is included and no reconciliation of the forward-looking non-GAAP financial measures is included.
The following table presents a reconciliation of Net (loss) income to Adjusted EBITDA for the periods indicated:
The following table presents a reconciliation of revenue to Adjusted Gross Profit for the periods indicated:
ATLANTA, March 04, 2025 (GLOBE NEWSWIRE) — Bitcoin Depot (“Bitcoin Depot” or the “Company”), a U.S.-based Bitcoin ATM operator and leading fintech company, will hold a conference call and live audio webcast on Tuesday, March 18th at 10:00 a.m. Eastern time (7:00 a.m. Pacific time) to discuss its financial results for the fourth quarter and full year ended December 31, 2024. Bitcoin Depot plans to release results before the market open on the same day.
Call Date: Tuesday, March 18, 2025 Time: 10:00 a.m. Eastern time (7:00 a.m. Pacific time)
Phone Instructions U.S. and Canada (toll-free): 888-596-4144 U.S. (toll): 646-968-2525 Conference ID: 8224936
A replay of the call will be available beginning after 2:00 p.m. Eastern time through March 25, 2025.
U.S. & Canada (toll-free) replay number: 800-770-2030 U.S. toll number: 609-800-9909 Conference ID: 8224936
If you have any difficulty connecting with the conference call, please contact Bitcoin Depot’s investor relations team at 1-949-574-3860.
About Bitcoin Depot Bitcoin Depot Inc. (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to bitcoin at Bitcoin Depot kiosks in 48 states and at thousands of name-brand retail locations in 29 states through its BDCheckout product. The Company has the largest market share in North America with over 8,400 kiosk locations as of February 25, 2025. Learn more at www.bitcoindepot.com.
Key Points: – Bitcoin fell below $90,000 for the first time since January, marking a nearly 20% decline from its all-time high. – A $1.5 billion security breach at Bybit and ongoing macroeconomic uncertainty have contributed to the market selloff. – Crypto-linked stocks like MicroStrategy and Coinbase have also seen significant declines as investor confidence wanes.
Bitcoin, the world’s largest cryptocurrency by market capitalization, tumbled below the $90,000 mark on Monday, extending a broader crypto market selloff. As of 10:57 AM EST, Bitcoin was trading at approximately $87,595, reflecting a 6.8% decline from the previous close. The leading digital asset has now fallen nearly 20% from its record high of $109,000 set in January.
The downturn has impacted the broader cryptocurrency market, with Ethereum (ETH) dropping 8.7% to $2,418 and other major altcoins like Solana (SOL) and Dogecoin (DOGE) posting losses of 7.9% and 8.8%, respectively.
Several factors have weighed on Bitcoin’s price, including macroeconomic uncertainty, regulatory concerns, and a major security breach. The broader financial markets have shown increased volatility, with the S&P 500 posting a three-day losing streak. Investors are wary of persistent inflation and the Federal Reserve’s policy stance, which has added to Bitcoin’s downward momentum.
Adding to the pressure, a $1.5 billion hack on Dubai-based cryptocurrency exchange Bybit last week has shaken investor confidence. Although Bybit reassured customers that their assets remained safe, the breach has reignited fears over crypto security vulnerabilities.
Regulatory uncertainty is also playing a role in market sentiment. The recent inauguration of President Donald Trump has introduced questions about the administration’s stance on cryptocurrency regulation. While Trump’s pro-business policies could favor crypto adoption, the lack of clear guidelines has created short-term uncertainty for investors.
The selloff has extended beyond digital assets, impacting crypto-related equities. Shares of MicroStrategy (MSTR), a major corporate holder of Bitcoin, fell 8.5%, while Coinbase Global (COIN) and Robinhood (HOOD) saw declines of 7% to 9%. The downturn in these stocks underscores Bitcoin’s influence on the broader financial market.
Market analysts remain divided on Bitcoin’s short-term outlook. Some believe the digital asset has not yet found its floor, with Geoffrey Kendrick, global head of digital assets research at Standard Chartered, predicting further declines into the “low $80Ks.”
Others see the price drop as a potential buying opportunity. Data from Kraken suggests an increase in the long-short ratio, indicating that traders are “buying the dip” in anticipation of a recovery. However, given the ongoing volatility, analysts urge investors to exercise caution before making any significant moves.
As Bitcoin navigates uncertain terrain, investors are watching macroeconomic developments, regulatory updates, and market liquidity for further signals. While the cryptocurrency has historically rebounded from sharp corrections, the current environment calls for prudent risk management.
For now, Bitcoin remains at a crossroads, and its next move will depend on whether confidence can be restored in the market.
Key Points: – Hackers stole $1.5 billion from Bybit, marking the largest crypto exchange hack in history. – The Lazarus Group, a North Korean state-backed hacking collective, has been linked to the attack. – Bybit secured a bridge loan to cover losses and reassure customers, but market confidence remains shaken.
A catastrophic security breach has sent shockwaves through the cryptocurrency sector as Bybit, one of the world’s leading digital asset exchanges, lost $1.5 billion in a sophisticated attack. This unprecedented theft surpasses previous major incidents, including the 2021 Poly Network breach ($610 million) and the 2022 Binance exploit ($570 million). Most alarming to security experts is that attackers successfully compromised Bybit’s cold storage system—offline wallets widely considered the most secure method for safeguarding digital assets.
Attack Details and Attribution
Blockchain analytics firms Elliptic and Arkham Intelligence have tracked the stolen funds across multiple blockchain networks as attackers rapidly dispersed and liquidated assets through various platforms. Investigators have attributed the attack to North Korea’s Lazarus Group, a state-sponsored cybercrime collective responsible for stealing billions from financial institutions and cryptocurrency organizations to fund government operations.
The associated addresses have been flagged across all major blockchain monitoring systems. However, the Lazarus Group’s sophisticated laundering techniques utilizing decentralized protocols and mixing services make complete fund recovery highly challenging.
Market Impact and Bybit’s Response
The security breach triggered immediate mass withdrawals from Bybit as users feared potential insolvency risks. CEO Ben Zhou moved quickly to stabilize the situation, assuring users that all withdrawals would continue to process normally. The exchange secured emergency funding from strategic partners to cover potential losses.
Despite these assurances, investor confidence has been severely impacted. Many institutional and retail traders are reassessing their exposure to centralized exchanges, with increasing interest in self-custody solutions and decentralized finance alternatives that minimize counterparty risk.
The incident has attracted heightened regulatory attention, with financial authorities in multiple jurisdictions signaling intentions to impose stricter security requirements and oversight on cryptocurrency exchanges. Industry analysis projects this could accelerate adoption of decentralized exchanges (DEXs), which operate without central custodians and provide users direct control over their assets.
Ethereum Market Dynamics
In an unexpected development, Ethereum markets showed remarkable resilience following the hack. On-chain data revealed significant ETH purchases from Bybit’s treasury addresses, fueling speculation about strategic accumulation during market uncertainty. This activity aligns with institutional behavior from traditional finance giants like BlackRock and Fidelity, which have steadily increased Ethereum holdings throughout recent market cycles.
Layer-2 scaling networks built on Ethereum—including Arbitrum, Optimism, and Celestia—have maintained strong adoption metrics despite the broader market turbulence, suggesting investor confidence in Ethereum’s ecosystem remains intact despite security concerns at centralized exchanges.
Future Security Implications
The Bybit breach represents a watershed moment for cryptocurrency security practices. The successful compromise of cold storage systems—previously considered nearly impenetrable—forces a fundamental reassessment of digital asset protection strategies across the industry.
Expanded implementation of multi-signature authentication requirements, real-time anomaly detection systems, and insurance solutions designed specifically for cryptocurrency theft are becoming industry priorities. Several leading exchanges have already announced enhanced security measures in response to the incident.
Traditional cold storage alone is no longer sufficient protection against sophisticated threat actors. The industry must evolve toward comprehensive security frameworks that combine technical controls with governance safeguards.
As regulatory frameworks evolve and security standards mature, investors should anticipate a period of adjustment across cryptocurrency markets. Whether this incident ultimately drives adoption toward decentralized platforms or strengthens security at centralized exchanges, the fundamental importance of robust security practices has never been more evident in digital asset investing.
Key Points: – Bitcoin hits $104,000, marking a 420% increase from its $20,000 price two years ago – Trump names David Sacks as crypto “czar” and plans regulatory overhaul – Administration aims to create $21 billion Strategic Bitcoin Reserve
Bitcoin’s price surged past $100,000 on Friday as cryptocurrency markets anticipate major policy shifts under President-elect Donald Trump’s incoming administration. The world’s leading cryptocurrency rose approximately 5% to $104,000, reflecting growing optimism about Trump’s promised pro-crypto agenda.
Trump, who once dismissed bitcoin as a “scam,” has undergone a dramatic shift in his stance toward digital currencies. His campaign promises include transforming the United States into the global “crypto capital,” with specific plans for industry-friendly regulations and the establishment of a government cryptocurrency stockpile.
The president-elect has already begun assembling a team of crypto advocates for key positions, including David Sacks as the administration’s cryptocurrency “czar” and Bo Hines as executive director of the Presidential Council of Advisers for Digital Assets. Paul Atkins, Trump’s pick to lead the SEC, has been a vocal supporter of cryptocurrencies, signaling a stark departure from the regulatory approach of the Biden administration.
One of Trump’s most ambitious proposals is the creation of a Strategic Bitcoin Reserve, which would require the Treasury Department to maintain at least $21 billion in bitcoin through its Exchange Stabilization Fund. This initiative would represent a significant shift in government policy, as historically, the U.S. has auctioned off cryptocurrency seized in law enforcement operations.
The cryptocurrency industry, which felt targeted by outgoing SEC Chairman Gary Gensler’s enforcement actions, has welcomed these developments. Peter Van Valkenburgh, executive director of Coin Center, expressed optimism about the expected “tone change at the SEC” under the new administration.
The industry’s enthusiasm is evident in the organization of the first-ever “Crypto Ball,” a sold-out celebration featuring “an elite lineup of musical entertainment” to mark the inauguration of what supporters are calling the first “crypto president.”
However, critics continue to raise concerns about cryptocurrency’s volatile nature and its potential use in illegal activities. Despite these reservations, bitcoin has demonstrated remarkable resilience, with its value increasing dramatically from around $20,000 two years ago to its current record levels.
As Trump prepares to take office on January 20, the cryptocurrency market eagerly awaits the implementation of his promised policies, which could reshape the regulatory landscape for digital assets in the United States.
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
HPC and AI. As of November 30, 2024, Bit Digital had 266 servers actively generating revenue and earned approximately $4.3 million of total unaudited GPU Cloud revenue during the month. At Enovum’s data center, the Company had 13 customers actively generating revenue with colocation revenue of approximately $503,500. We believe the Boosteroid agreement, along with the two MSAs signed in the third quarter should expand revenue in the coming months.
Mining Side. The Company produced 44.9 BTC in the month, a 14.0% decrease from 52.2 BTC in October. The active hash rate was 2.51 EH/s, a slight increase from 2.43 EH/s last month. Bit Digital’s hosting provider, Coinmint, being acquired resulted in the termination of hosting contracts. Management has signed term sheets for the lost hosting capacity and is replacing energy inefficient miners, with a 3.0 EH/s active hash rate expected by the first half of 2025.
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In the wake of recent elections, the stock and cryptocurrency markets have surged as investor optimism is fueled by FOMO (Fear of Missing Out). While this bullish momentum brings opportunities, it also signals caution, especially given the high volatility seen across markets. For investors, understanding the potential and risks in this unique environment is key to making wise decisions.
One notable trend is the recent outperformance of the Russell 2000 index, an index that tracks small-cap stocks, which has shown greater gains compared to larger indices like the S&P 500 and Nasdaq. This trend hints at potential opportunities within small-cap companies, but it’s crucial for investors to recognize the volatile backdrop surrounding these gains.
The Russell 2000 index, composed primarily of small-cap stocks, has experienced a significant uptick in recent weeks, outpacing some of the larger, more familiar indices. Small-cap stocks historically perform well during economic recoveries, as investors tend to favor companies with high-growth potential. Smaller companies often have greater room for expansion compared to established giants, which can lead to impressive returns if these firms capitalize on their growth potential.
For investors who can tolerate a higher level of risk, small-cap stocks within the Russell 2000 may offer appealing opportunities. However, even in an optimistic market, it’s essential to approach these investments carefully, as smaller companies tend to be more volatile and sensitive to economic shifts.
Post-election optimism isn’t unusual, and investors often flock to markets anticipating favorable policies or economic changes that could benefit various sectors. This year, that optimism is even more pronounced as both traditional and digital markets see upward momentum. The crypto markets are also surging, with certain tokens like Bitcoin reaching new highs alongside the rally in stocks. These gains across both asset types contribute to the FOMO effect, where investors feel compelled to jump in quickly, potentially without due diligence.
However, FOMO can lead to hasty decisions, as investors rush to capture potential gains without fully evaluating the risks. In the current climate, it’s critical to remember that the same forces driving prices up can lead to sudden drops as market conditions shift.
Despite these upward trends, the high volatility in both stock and crypto markets should serve as a caution flag. Small-cap stocks, while promising, are known for their vulnerability to rapid price swings. They’re also more likely to be affected by liquidity issues, which can amplify losses during sell-offs. Similarly, cryptocurrencies are notoriously volatile and subject to external forces such as regulatory changes, technological developments, and shifts in investor sentiment.
For those considering investments in these areas, being prepared for sudden price changes and being comfortable with the associated risks is essential.
To navigate these volatile waters successfully, investors should keep the following tips in mind:
Risk Assessment – Understanding your personal risk tolerance is crucial, especially with small-cap stocks and cryptocurrencies. Not every portfolio is suited for high-risk, high-volatility assets, so evaluate carefully before diving in.
Diversification – A diversified portfolio can help manage risk by balancing small-cap and cryptocurrency investments with more stable assets. This approach can soften the impact of any single asset’s fluctuations, creating a more resilient portfolio.
Due Diligence – For investors interested in small-cap stocks, doing thorough research is essential. Look for companies with solid fundamentals, promising growth potential, and innovative offerings that set them apart from competitors.
Stay Informed – Markets can shift quickly, especially during periods of economic or political change. Following relevant news and trends can help investors stay ahead of potential risks and make informed decisions when the market moves.
The post-election market surge brings both promise and caution. Investors looking to take advantage of small-cap stock outperformance or capitalize on crypto market gains should do so with a clear understanding of the risks. In a market driven by FOMO, a balanced approach that includes careful research, risk management, and diversification is key. With these strategies, investors can navigate today’s volatility effectively, capturing opportunities without losing sight of the inherent risks.
Key Points: – Bitcoin surged to $73,544, marking a 13% rise in October as inflation concerns grow. – Spot Bitcoin ETFs have accumulated $66 billion, adding stability and appeal to institutional investors. – Increased odds of a pro-Bitcoin presidency add speculative interest as the election nears.
Bitcoin reached a significant seven-month high of $73,544 on Tuesday, driven by a range of economic and political factors. With the U.S. presidential election just a week away, both major candidates have introduced policies that could impact fiscal stability and inflation rates. These potential economic shifts are increasing demand for Bitcoin as a hedge against inflation and a safe investment during times of uncertainty.
The cryptocurrency’s price increase of roughly 6% has led to an impressive 13% gain in October alone, far outperforming the 1% gain seen in the S&P 500. This recent surge extends beyond Bitcoin, as other major cryptocurrencies like Ethereum and Binance coin have also posted notable gains.
Bitcoin’s surge stems from a mix of inflation concerns, Fed policy changes, and favorable political sentiment. Economists anticipate that proposed government policies, especially those from presidential candidates Kamala Harris and Donald Trump, may lead to a rise in the national debt, which often heightens inflation concerns. As inflation worries grow, traditional and digital safe-haven assets have become increasingly appealing. Since the Federal Reserve cut interest rates last month, Bitcoin has risen as investors seek alternatives, especially since monetary policy may not fully address the inflation outlook.
Another factor is the approval of spot Bitcoin exchange-traded funds (ETFs) by U.S. regulators earlier this year, which has driven billions in inflows from institutional investors. Asset management giants like BlackRock, Fidelity, and Grayscale have collectively accumulated about $66 billion worth of Bitcoin in these ETFs, representing around 5% of the global Bitcoin market. This growing institutional support has added momentum to Bitcoin’s recent rally, increasing investor confidence.
Bitcoin’s status as a potential hedge against inflation has also been supported by recent moves in the gold market. Gold prices have risen 6% since the Fed’s rate cut, indicating a shift by investors toward assets that retain value during inflationary periods.
Bitcoin is currently the world’s largest digital currency, with a market cap that dwarfs other cryptocurrencies. Despite a turbulent history marked by the 2022 “crypto winter” and notable bankruptcies, such as the collapse of FTX, Bitcoin has recovered strongly, gaining over 300% from its 2022 lows. Today, it remains more than four times the size of the second-largest cryptocurrency, Ethereum.
The political landscape may also play a role in Bitcoin’s performance. Betting markets have shown an increase in the odds of a Trump victory, as the former president advocates for a national Bitcoin reserve. This pro-Bitcoin stance has drawn attention to the digital asset, especially among investors who view it as a more favorable environment for cryptocurrency adoption.
As the U.S. election approaches, Bitcoin may see continued interest from both institutional and individual investors. With the possibility of new fiscal policies that could further fuel inflation, Bitcoin’s role as a digital hedge remains a central narrative in its current price momentum.
Key Points: – 63% of World Liberty Financial tokens will be available to the public. – The platform will offer decentralized finance services like lending and investing. – Concerns arise over the project’s viability amid the Trump family’s limited crypto experience.
The Trump family has finally revealed key details about their latest venture in the digital currency space: World Liberty Financial, a crypto project designed to reshape how people interact with decentralized finance (DeFi). At an event held on X (formerly Twitter), the team behind the project disclosed who can buy the platform’s tokens and how those tokens will be allocated, offering greater transparency on a project that has generated significant interest over the past few weeks.
Token Distribution and Public Availability
According to founder Zak Folkman, 63% of the total tokens from World Liberty Financial (WLFI) will be made available for public purchase, while 20% will be reserved for the founding team, which includes members of the Trump family. An additional 17% will be set aside for user rewards, meant to incentivize active participation on the platform. Folkman assured listeners that there will be no pre-sales or early access for insiders, aiming to keep the token launch fair and accessible to all potential investors.
This announcement has garnered attention due to earlier leaked reports that suggested a 70% founder allocation, which raised concerns about the transparency and fairness of the project. The revised structure has slightly alleviated some of those concerns, although skepticism remains about whether the Trump family can successfully navigate the complex and volatile cryptocurrency market.
Trump’s Shift Toward Crypto
During the event, Donald Trump took center stage, offering insights into his evolving stance on cryptocurrency. Initially, the former president admitted he had little interest in digital currencies, but his involvement grew after witnessing the success of his own NFT collections. These collections, sold to supporters and collectors, were paid for using cryptocurrency, which he said helped change his perception of the digital finance world.
Trump remarked, “Crypto is something we have to do, whether we like it or not.” He also criticized the Securities and Exchange Commission (SEC) for what he perceives as an overly aggressive stance toward the industry. This sentiment reflects ongoing frustration among crypto entrepreneurs, many of whom feel that the SEC has stifled innovation through a regulatory approach focused on enforcement rather than clear guidelines.
Lofty Goals for World Liberty Financial
The Trump family and their business partner, Steve Witkoff, are aiming to create more than just a cryptocurrency token. They envision World Liberty Financial as a comprehensive DeFi platform, offering services that would allow users to borrow, lend, and invest in digital assets. Witkoff, who has traditionally worked in real estate, spoke about his excitement in helping to build a platform focused on “frictionless finance,” designed to provide opportunities for individuals who have limited access to traditional credit or banking services.
Despite these ambitious goals, the project has faced criticism and skepticism, with questions arising about the Trumps’ limited experience in the cryptocurrency sector. While the Trump brand brings name recognition, the complex nature of blockchain technology and DeFi operations may pose challenges for the team as they seek to gain credibility in the space.
Potential Risks and Challenges
Launching this crypto platform during a heated presidential campaign adds further intrigue. Trump’s increasing support for cryptocurrency on the campaign trail could appeal to a niche group of crypto-friendly voters, but it also raises the stakes for this project. Should World Liberty Financial stumble, it could tarnish Trump’s image among both supporters and investors.
Moreover, the cryptocurrency market is notoriously volatile, and new projects like World Liberty Financial often face significant obstacles to achieving long-term success. Investors and enthusiasts will be closely watching how this project unfolds, particularly given the Trumps’ high-profile involvement.
Moving Forward
The team behind World Liberty Financial has promised to release more updates on the project’s progress via official social media channels in the coming months. Meanwhile, potential investors have been urged to stay alert to possible scams, as the project has already attracted significant public interest.
As the Trump family forges ahead in the world of crypto, many remain curious—and cautious—about whether World Liberty Financial can live up to its promises or whether it will become another footnote in the rapidly evolving cryptocurrency landscape.
Key Points: – Trump announces plan to make the US the global crypto leader – Trump Organization rebrands crypto platform to “World Liberty Financial” – Crypto initiative intertwines with Trump’s political campaign and fundraising
In a bold move that blurs the lines between politics, business, and digital finance, former President Donald Trump has announced plans to position the United States as the global leader in cryptocurrency. This declaration comes as the Trump Organization rebrands its crypto platform, signaling a significant shift in the Republican presidential nominee’s stance on digital currencies.
Trump took to X (formerly Twitter) to share his vision with his 90 million followers. In a video message, he declared, “This afternoon, I’m laying out my plan to ensure that the United States will be the crypto capital of the planet.” This announcement marks a dramatic turnaround from his previous skepticism towards cryptocurrencies during his presidency.
The Trump Organization has rebranded its crypto platform from “The DeFiant Ones” to “World Liberty Financial.” This move appears to be a family affair, with Trump’s sons, Donald Jr. and Eric, actively promoting the initiative. Eric Trump announced the launch on X, hinting at “a new era in finance.”
While details about World Liberty Financial remain scarce, Donald Trump Jr. has suggested that the platform aims to rival traditional banking systems, emphasizing decentralized finance as a solution to perceived inequalities in access to financial services.
The timing of this crypto push, coinciding with Trump’s presidential campaign, raises questions about the interplay between his political ambitions and business interests. The campaign has reported raising $25 million in crypto-related donations, though this figure hasn’t been independently verified.
Trump’s embrace of crypto appears to be part of a broader strategy to court the crypto voting bloc and donors. By positioning himself as the pro-crypto candidate, Trump is tapping into a growing demographic of digital currency enthusiasts and investors.
The crypto platform launch follows Trump’s release of a new round of NFT trading cards, further cementing his foray into digital assets. Eric Trump has also hinted at the possibility of digital real estate offerings, potentially involving tokenized real-world assets or digital properties in the metaverse.
For investors, Trump’s crypto push could signal increased mainstream acceptance and potential regulatory changes favorable to the crypto industry. However, it also raises questions about the potential risks and rewards of politically aligned crypto ventures.
As the 2024 presidential race heats up, the intersection of politics and cryptocurrency is likely to become an increasingly important topic. Investors and voters alike will need to navigate this complex landscape carefully, considering both the potential opportunities and the inherent risks of this rapidly evolving sector.
Key Points: – Nine Ethereum ETFs launched on U.S. stock exchanges, attracting $106 million in net inflows on the first day – BlackRock, Bitwise, and Fidelity ETFs saw the highest inflows – Grayscale’s converted Ethereum Trust experienced significant outflows, likely due to higher fees – The success of Ethereum ETFs follows the January launch of spot Bitcoin ETFs – Crypto ETFs could impact traditional stock markets by offering new diversification options
The launch of nine exchange-traded funds (ETFs) tied to the spot price of Ethereum on U.S. stock exchanges marks another significant milestone in the integration of cryptocurrencies into traditional financial markets. On their first day of trading, these ETFs collectively attracted net inflows of $106 million, demonstrating substantial investor interest in gaining exposure to the world’s second-largest cryptocurrency through regulated investment vehicles.
The debut of Ethereum ETFs follows the successful launch of spot Bitcoin ETFs in January 2024, which saw considerable inflows and sparked increased institutional interest in cryptocurrencies. The positive reception of Ethereum ETFs suggests that the appetite for crypto-based investment products extends beyond Bitcoin, potentially paving the way for broader adoption of digital assets in mainstream finance.
Among the new Ethereum ETFs, BlackRock’s iShares Ethereum Trust ETF led the pack with $266.5 million in inflows, followed closely by the Bitwise Ethereum ETF with $204 million. Fidelity’s Ethereum Fund also saw significant interest, attracting $71 million in assets. These figures mirror the success of spot Bitcoin ETFs from the same issuers, indicating that established financial institutions are successfully leveraging their reputations to attract investors to crypto-based products.
An interesting development was the conversion of the Grayscale Ethereum Trust into an ETF. Despite launching with over $9 billion in assets, it experienced outflows of $484 million on its first day as an ETF. This outflow, significantly larger than what Grayscale’s converted Bitcoin ETF experienced in January, may be attributed to its higher fee structure compared to competitors. The market’s reaction suggests that investors are price-sensitive and willing to move their assets to more cost-effective options.
The introduction of Ethereum ETFs, following Bitcoin ETFs, represents a broader trend of cryptocurrencies gaining legitimacy in traditional financial markets. These products provide investors with exposure to digital assets without the complexities of direct ownership, such as wallet management and security concerns. This ease of access could potentially drive greater adoption of cryptocurrencies among both retail and institutional investors.
The impact of crypto ETFs on stock markets is multifaceted. Firstly, they provide a new asset class for investors to diversify their portfolios, potentially affecting allocations to traditional assets. Secondly, the performance of these ETFs could influence market sentiment, as cryptocurrencies are often seen as indicators of risk appetite. Lastly, the success of crypto ETFs may encourage more traditional financial institutions to develop crypto-related products, further blurring the lines between conventional and digital finance.
However, it’s important to note that the cryptocurrency market remains highly volatile, and regulatory scrutiny continues to evolve. The performance of these ETFs will likely be closely watched by investors and regulators alike, potentially influencing future policy decisions regarding digital assets.
Looking ahead, the success of Bitcoin and Ethereum ETFs may pave the way for similar products based on other cryptocurrencies. As the crypto ecosystem continues to mature, we may see ETFs tied to other major digital assets or even basket products that offer exposure to multiple cryptocurrencies.
In conclusion, the launch of Ethereum ETFs represents another step in the mainstream acceptance of cryptocurrencies. While it’s too early to determine their long-term impact, the strong initial interest suggests that investors are eager for regulated ways to gain exposure to digital assets. As the landscape continues to evolve, the interplay between cryptocurrencies and traditional financial markets will be an area of significant interest for investors, regulators, and market observers alike.
