Tesla Maintains Bitcoin Holdings Amid $239M Market Loss
The intersection of massive artificial intelligence capital expenditure and pivotal legislative maneuvers is redefining the digital asset landscape, as bitcoin miners transition into high-performance computing partners while the White House moves to break the regulatory deadlock on market structure. From the expansion of stablecoin utility on Wall Street to the push for tokenized equities, the migration of traditional finance to digital rails is accelerating across every major sector. Stay up on the crypto news that matters with "Crypto Currents," daily from The Fly. Join us at 2 PM ET for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio.ARTIFICIAL INTELLIGENCE SPENDING DRIVE FUELS BITCOIN MINER REVENUE PIVOT:The relentless demand for artificial intelligence infrastructure is transforming the bitcoinmining sector into a critical partner for Silicon Valley. Q4 earnings results from Microsoftand Metaconfirm no slowdown in AI capital expenditure, with Meta forecasting 2026 spending between $115B-$135B. This spending cycle has proven lucrative for bitcoin miners like Iren, which recently secured a multiyear cloud-services contract with Microsoft, and Cipher Mining, which is delivering 300 MW of capacity to AmazonWeb Services. Similarly, Hut 8has successfully leveraged its data centers to host high-performance computing machines.TRUMP ADMINISTRATION SEEKS TO BREAK CLARITY ACT DEADLOCK:The White House is intervening to resolve a legislative impasse that has stalled the CLARITY Act, a pivotal market-structure bill intended to define oversight between the SEC and the CFTC.that the Trump administration will convene a meeting on Monday between banking executives and crypto firms to discuss contentious provisions regarding interest and rewards on dollar-pegged stablecoins. While Bank of AmericaCEO Brian Moynihan warned, during the bank's Q4 earnings call, that interest-bearing stablecoins could drain up to $6T from traditional bank deposits, firms like Ripple and Kraken continue to advocate for the Senate's version of the bill. Despite Coinbasewithdrawing its support, HSBCremains optimistic that legislative momentum remains strong.TRADITIONAL FINANCIAL INSTITUTIONS UPGRADE OUTLOOK ON STABLECOIN ADOPTION:Wall Street is increasingly bullish on the utility of digital settlement layers, particularly as prediction markets gain mainstream traction. Mizuho upgraded its outlook on Circle Internet Group, the issuer of the USDCstablecoin, raising its price target to $77. Analysts Dan Dolev and Alexander Jenkins noted that the growth of platforms like Polymarket, which settles all bets in USDC, is directly fueling stablecoin market cap growth. This trend is part of a broader shift where crypto ownership has grown to 9% of the global population, and on-chain settlements have begun to rival the volumes of legacy payment processors like Visaand Mastercard.NEOBANKING AND INSTITUTIONAL INFRASTRUCTURE INVESTMENTS ACCELERATE:Crypto-native platforms are rapidly evolving into full-service financial institutions to bridge the gap for both retail and professional investors.a service providing personal IBAN accounts that support 18 fiat currencies, positioning the exchange as a "neobank". On the institutional side, Robinhoodis deepening its ecosystem by participating in a $150M Series B extension for Talos, a digital asset trading infrastructure provider now valued at $1.5B., this investment round saw participation from traditional giants including BNY Mellonand Fidelity Investments, underscoring the ongoing migration of traditional asset classes to digital rails.TOKENIZED EQUITY AND REGULATORY GUIDANCE ON THE BLOCKCHAIN:Marking the five-year anniversary of the GameStoptrading halt, Robinhood CEO Vlad Tenev advocated for the transition of stocks to the blockchain., Tenev argued tokenized stocks could enable 24/7 trading and provide real-time settlement, potentially preventing future liquidity crises. This push comes as the SEC released a fresh framework distinguishing between issuer-sponsored tokenized securities and third-party synthetic products. The SEC clarified that while it supports innovation in real-world asset tokenization, synthetic instruments that do not confer actual equity ownership will face heightened scrutiny.Amidst these discussions on tokenization, rumors of a potential liquidation have hit the market.confirms that GameStop recently moved its entire 4,710 bitcoin stash, worth approximately $420M, to Coinbase Prime addresses. Analysts suggest this full transfer of the company's publicly disclosed position is a strong signal that the retailer is preparing to sell its holdings.TESLA MAINTAINS STRATEGIC BITCOIN TREASURY AMID MARKET VOLATILITY:Teslacontinues to hold its digital asset position despite experiencing a paper loss during the most recent quarter.that the electric vehicle manufacturer made no changes to its holdings of 11,509 bitcoin, though it recorded a $239M after-tax mark-to-market impairment loss as the token price fell from $114,000 to $88,000. The company has kept its treasury stable since 2022 and remains one of the largest corporate holders of the asset alongside Strategy.PRICE ACTION:As of time of writing, bitcoin was trading at $84,636.04, while ether was trading at $2,811.04,.
Get Free Real-Time Notifications for Any Stock
Analyst Views on MSFT
About MSFT
About the author
Microsoft Shares Plunge 10.23% After Earnings Report
- Stock Decline: Microsoft (MSFT) closed at $433.50, down 9.99% on Thursday, primarily due to investor concerns over slowing cloud growth, leading to a significant drop in share price.
- Surge in Trading Volume: Trading volume reached 126.5 million shares, approximately 366% above the three-month average, indicating a strong market reaction to Microsoft's earnings report, despite the company exceeding Wall Street's expectations for sales and EPS in Q2.
- Capital Expenditure Spike: Microsoft's capital expenditures surged 89% year-over-year, raising concerns about ROI as its Intelligent Cloud unit saw a 29% growth in Q2, with the market focusing on the short-lived nature of many investments.
- Valuation Analysis: With a forward P/E ratio of 26, the significant stock sell-off appears extreme given the company's ongoing sales and EPS growth, as management noted that much of the capex was directed towards short-lived assets, prompting investors to seek higher returns.
Microsoft Azure Growth Falls Short of Expectations
- Performance Shortfall: Microsoft reported better-than-expected Q2 revenue and earnings; however, Azure's growth declined from 39% to 38% year-over-year, indicating a slowdown that may affect investor confidence.
- Analyst Rating Adjustments: Morgan Stanley removed Microsoft from its 'Top Pick' list while maintaining an 'Overweight' rating and a $650 price target, suggesting over 45% upside from the current price of $446.
- Market Reaction Fluctuations: Despite a 7.5% drop in stock price, retail sentiment on Stocktwits shifted to 'extremely bullish', reflecting confidence in Microsoft's future potential, even amid near-term pressures.
- AI Investment Direction Change: Barclays analysts noted that Microsoft's new AI capabilities are increasingly directed towards first-party products like Copilot, which may alter future growth expectations and impact overall market strategy.
