Decentralized finance (DeFi) lending platform Sky has pitched a proposal to finalize its upgrade from Maker by replacing its governance token and enabling staking.

The proposal, posted on May 1 to Sky’s decentralized autonomous organization (DAO) forum, would see the Sky (SKY) token take over the Maker (MKR) token as the protocol’s governance token.

If the DAO accepts, the change would be slated to take place around May 15 to May 19 and downgrading from SKY to MKR would also be disabled.

Sky co-founder Rune Christensen said in response to the proposal that it was a “huge milestone,” which he “fully supports,” and laments that allowing users to downgrade from SKY back to MKR has been a “key limiting factor preventing exchanges from adopting SKY.”

“With this change, exchanges are likely to move faster in quickly adopting SKY without concerns about fracturing liquidity,” he said.

Source: Sky

Penalties on MKR holders who are slow in switching to SKY have also been proposed. 

According to the proposal, a 1% delayed upgrade penalty would apply to all MKR to SKY upgrades starting Sept. 18, increasing every three months. Users hit with a delayed upgrade penalty will also obtain fewer SKY tokens.

Sky staking, temporary pause on liquidations

Christensen said the most important change would be to see SKY staking enabled as part of the changes to the protocol.

Rewards for its decentralized stablecoin, USDS, which are based on the income the Sky Protocol generates, will be enabled two or three weeks after the upgrade of the governance contract, with a splitter rate of 50%, according to Christensen.

Source: Rune Christensen

“Getting past the full upgrade of MKR to SKY is one of the last pieces missing before Sky can transition to 0 fixed costs at the end of 2025, which will ensure an even greater portion of the income the protocol generates goes to the benefit of SKY buybacks, or SKY Staking Rewards,” he said.

SKY liquidations will also be temporarily disabled while the one-way MKR to SKY transition is still in its early stages.

Related: Sky doubles down on token overhaul: Making MKR unusable, launching subDAOs

“This is necessary to prevent risk from price manipulation to the SKY and MKR price while the transition is happening,” Christensen said.

“When SKY market liquidity is restored, Sky Governance will lift the liquidation freeze and move risk parameters to long-term targets,” he added.

Maker rebranded to Sky in August last year but after confusion and negative feedback, Christensen considered going back to the original Maker name just months later.

However, a November poll saw 79% of tokenholders vote to keep the Sky brand as the back end protocol brand with no further changes.

Magazine: SEC’s U-turn on crypto leaves key questions unanswered

Crypto exchange Kraken has completed its acquisition of the futures trading platform NinjaTrader and reported its first quarter revenues jumped 19% year-on-year to $471.7 million.

Kraken said in a May 1 report that its NinjaTrader acquisition would give its US customers access to the traditional derivatives market, aligning with its plans to expand its offerings and be the go-to platform for all types of trading.

NinjaTrader is a registered Futures Commission Merchant with the Commodity Futures Trading Commission. Last month, it rolled out trading for over 11,000 stocks and exchange-traded funds to certain US clients.

The deal, which Kraken dubbed the largest ever between a crypto and traditional finance firm, allows NinjaTrader to expand to the UK, continental Europe and Australian markets and comes as Kraken is preparing for an initial public offering in early 2026. The company is exploring a debt package worth between $200 million and $1 billion to facilitate that transaction.

Kraken revenue, trading volume falls on Trump’s return

Kraken’s $471.7 million revenue in Q1 marked a 19% increase from the year-ago quarter but a 6.8% fall from Q4 2024.

The exchange reported that trading volume fell 9.6% quarter-over-quarter to $208.7 billion while the value of its custodied assets fell 18% to $34.9 billion over the same time.

Kraken attributed the drop to a “slowdown in overall market trading activity” as US President Donald Trump’s threats of implementing sweeping tariffs triggered an 18% fall in the crypto market cap over the quarter.

Key metrics from Kraken’s Q1 report. Source: Kraken

Kraken is one of several crypto platforms that saw record or near-record highs in trading activity in Q4 as Trump’s November election win sparked larger-than-usual market volatility.

Related: Kraken rolls out ETF and stock access for US crypto traders

Kraken said that despite a “softening market,” its adjusted EBITDA  — earnings before interest, taxes, depreciation and amortization — jumped 1% from the previous quarter to $187.4 million.

The firm also saw the number of funded accounts on its platform increase 10% quarter-on-quarter to 3.9 million, signaling “deeper client engagement.”

Reuters reported on April 18 that Kraken restructured its workforce after Arjun Sethi was appointed as co-CEO last October. Sethi has laid off around 400 employees since.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Tether, the company behind the world’s largest stablecoin by market capitalization, has released its financials for the first quarter of 2025, disclosing nearly $120 billion in exposure to US Treasurys and over $1 billion in operating profit.

According to Tether’s Q1 2025 financial report, the company’s assets include $98.5 billion in direct US Treasury bills, along with over $23 billion in additional exposure through repurchase agreements and other cash-equivalent assets.

Excerpt from Tether’s Q1 2025 financial report. Source: Tether

According to the announcement, Tether holds $5.6 billion in excess of reserves for its USDt (USDT) stablecoin, down from $7.1 billion in excess from the last quarter of 2024. The stablecoin has a market capitalization of $149 billion as of May 1.

“Circulating supply of USDT grew by approximately $7 billion in Q1, with a 46 million increase in user wallets,” it said.

The company’s excess capital continues to fund strategic investments, with more than $2 billion allocated in renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure. 

The stablecoin market is broadly dominated by tokens pegged to the US dollar, with USDT and Circle’s USDC holding a combined 87% share. According to the US Treasury’s Q1 2025 report, the market cap for dollar-backed stablecoins is poised to reach $2 trillion by 2028.

European Union officials have recently raised concerns about the risks of overreliance on dollar-pegged stablecoins. According to the Bank of Italy, disruptions in the stablecoins market or the underlying bonds could have “repercussions for other parts of the global financial system.”

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Key takeaways:

Despite weak US manufacturing data, Federal Reserve liquidity plans and strong corporate earnings keep equities and crypto afloat.

The total crypto market capitalization rose 8.5% since March.

Cryptocurrency traders have frequently zoomed in on the need for crypto to show a clear “decoupling” from the stock market, and over the past 10 days, the intraday movements of Bitcoin (BTC) and major altcoins have closely tracked those of the S&P 500, even as trade war developments have dominated market sentiment.

S&P 500 futures (left) vs. Total crypto cap, USD (right). Source: TradingView/Cointelegraph

A decoupling would validate digital assets as an independent class and address growing concerns about a potential global economic recession. This ongoing correlation has led market participants to question whether the cryptocurrency market is destined to follow the stock market’s lead indefinitely, and what conditions would be necessary for a genuine decoupling to occur.

Stock market shows strength despite trade tensions

The S&P 500 reached its peak on Feb. 19 and has since struggled to reclaim the 5,800 level, a support that had held for four months. Despite persistent pressure from US trade disputes with Canada and Mexico, as well as the imposition of new tariffs affecting nearly every major economic region, equities have demonstrated notable resilience.

Chinese state media recently reported that the United States has quietly initiated trade negotiations. Although China officially maintains a 125% retaliatory tariff on US imports, it has granted waivers for sectors such as ethane, semiconductors, and certain pharmaceuticals. The United States, in turn, has partially exempted automakers from new tariffs. These actions suggest that both sides are gradually making concessions.

There is a reasonable possibility that the S&P 500 established a bottom at 4,835 on April 7, with further gains from the current 5,635 level remaining plausible. The stock market has responded positively to robust first-quarter earnings, as companies adapt to tariffs by relocating production outside China or expanding operations within the United States.

For instance, Microsoft reported a 13.2% year-over-year increase in revenue, with higher margins and strong demand for artificial intelligence. Meta also delivered earnings and revenue that exceeded market expectations on April 30. These results have alleviated concerns about a potential AI bubble or the risk that the trade war could force companies to reduce investment.

The market’s focus shifts to the Federal Reserve

Rather than concentrating on the recent decline in US PMI manufacturing data which reached a five-month low in April, market participants are closely monitoring the Federal Reserve’s next policy moves. Following a year of balance sheet reduction, the Fed is now considering asset purchases to help ease selling pressure.

An increase in liquidity is typically favorable for risk-oriented assets. Therefore, even if a full decoupling does not occur, cryptocurrencies could still benefit from a more supportive macroeconomic environment.

S&P 500 futures (left) vs. Total crypto cap, USD (right). Source: TradingView/Cointelegraph

Despite the short-term correlation, the cryptocurrency market has outperformed equities in recent months. Since March, the total crypto market capitalization has risen by 8.5%, while the S&P 500 has declined by 5.3%.

Over a six-month period, this divergence becomes even more pronounced: the total crypto market cap is up 29%, while the S&P 500 is down 2%. It is therefore inaccurate to suggest that these markets move in perfect synchrony, particularly when viewed over longer timeframes.

Related: Bitcoin to $1M by 2029 fueled by ETF and gov’t demand — Bitwise exec

It is still premature to declare a definitive bottom for the S&P 500 or to conclude that the trade war has been resolved. An economic recession would likely have negative implications for both markets. However, the current strength in equities indicates reduced risk aversion among investors. For the time being, the elevated correlation between cryptocurrencies and stocks may represent the most favorable scenario.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Animoca Brands is looking at trends in real-world tokenized assets, AI projects, and the gaming sector to invest in and develop, according to Omar Elassar, the company’s managing director for the Middle East and the head of Global Strategic Partnerships.

In an interview with Cointelegraph’s Sam Bourgi at Token2049, Elassar said that stablecoins, real-world asset tokenization, the intersection between AI and crypto, alternative use cases such as decentralized science, and Web3 gaming were all niches the company is exploring.

Gaming is “part of our DNA,” the executive said before reflecting on the current state of the Web3 gaming industry:

“It’s gone quiet for some time in terms of less PR, but there’s been building in the background. Recently, there have been a few games that have come out that have been truly fun to play, which I think has been one of the main negative sentiments about Web3 gaming.”

Animoca Brands is one of the foremost crypto-native venture capital firms in the space and can serve as a barometer of hot or emerging market trends for crypto investors.

Related: VC Roundup: Funding surge targets confidentiality, tokenization and Web3 infrastructure

Animoca Brands inks stablecoin, blockchain deals

In February 2025, Animoca Brands, Standard Chartered Bank, and Hong Kong Telecommunications (HKT) signed a deal to develop a Hong Kong dollar stablecoin that will be overcollateralized and pegged to the Hong Kong dollar at a 1:1 ratio.

The stablecoin must first be approved by the Hong Kong Monetary Authority (HKMA) before it begins trading. Hong Kong’s financial authorities are currently working on establishing comprehensive stablecoin regulations.

On March 27, Animoca Brands inked a deal with Soneium, a layer-1 blockchain network developed by Japanese tech company Sony, to develop a digital identification system that features pictures of anime characters that can be assigned to an onchain user to signify identity.

Animoca releases financial assets and token reserves for 2024 as part of its overall financial report for the company’s 2024 fiscal year. Source: Animoca Brands

Animoca reported that it recorded 12% year-over-year growth during the 2024 fiscal year in “bookings” — a figure that accounts for the sum of all revenue plus revenue that has been booked but not yet received by the company.

Magazine: Crypto ‘more taboo than OnlyFans,’ says Violetta Zironi, who sold song for 1 BTC

Despite reports in February suggesting that 2 million pro-crypto voters could decide the outcome of this week’s Australian Federal Election, crypto has barely rated a mention during the campaign.

“I think it’s a missed opportunity,” Independent Reserve founder Adrian Przelozny told Cointelegraph. “Neither side has made crypto a headline issue because they’re wary of polarizing voters or sounding too niche.”

But the good news is that after more than a decade of inaction, both the ruling Australian Labor Party (ALP) and the opposition Liberal Party are promising to enact crypto regulations developed in consultation with the industry. In April, Shadow Treasurer Angus Taylor promised to release draft crypto regulations within the first 100 days after taking office, while the Treasury itself has draft bills on “regulating digital asset platforms” and “payments system modernization” scheduled for release this quarter.

Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, said that both parties “are equally invested in getting this draft legislation across the line.”

“Irrespective of who gets in, we’re in a better position than we were about a year ago.”

Pro-crypto voters have choices in the Senate, too, with the Libertarian Party issuing a 23-page Bitcoin policy in March — calling for the creation of a national Bitcoin (BTC) Reserve and the acceptance of Bitcoin as legal tender.

The minor party is fielding five Senate candidates in different states, including former Liberal MP Craig Kelly, but doesn’t currently have anyone in the Senate. 

The progressive left-wing Greens party has not outlined a position on crypto, while the conservative right-wing One Nation party has campaigned against debanking and CBDCs.

More than a decade of inaction on crypto

Australia’s first parliamentary inquiry into digital assets was held back in 2014, but there’s been more than a decade of regulatory inaction since. The industry says this has led to stagnation and a brain drain of talent to jurisdictions like Singapore and the UAE.

The former Liberal Government was considering the landmark Digital Services Act, based on the 2021 Senate Committee’s crypto recommendations, when it lost office in 2022. Despite ongoing consultations since, the ALP government, led by Prime Minister Anthony Albanese, hasn’t put forward any legislation to parliament.But there has definitely been a vibe shift from the ALP recently, with Treasurer Jim Chalmers telling Cointelegraph that digital assets “represent big opportunities for our economy.”

”We want to seize these opportunities and encourage innovation at the same time as making sure Australians can use and invest in digital assets safely and securely with appropriate regulation.”

His office said exposure draft legislation would be released “in 2025” for consultation, introduced into Parliament “once that feedback has been considered” with the subsequent reforms “phased in over time to minimize disruptions to existing businesses.”The shadow assistant treasurer, Luke Howarth, said the ALP has been slow to act because it didn’t have a blockchain policy when it was elected.

“It wasn’t until the FTX collapse that they acknowledged the need for regulation,” he told Cointelegraph. “The Albanese government initially promised it would put in place regulation by 2023 but have failed to draft legislation or give a clear time-frame for action. After three years, all that was offered to industry was a six-page placeholder document.”

He’s referring to Treasury’s March statement “on developing an innovative Australian digital asset industry.” It provides for the licensing of Digital Asset Platforms (DAPS), a framework for payment stablecoins and a review of Australia’s Enhanced Regulatory Sandbox.

Related: A guide to crypto trading bots: Analyzing strategies and performance

While short on detail, those aims are broadly similar to the crypto regulation priorities that Howarth outlines to Cointelegraph — the big difference being that the opposition has committed to a faster time frame. 

Przelozny praised the 100-day promise as “exactly the kind of urgency we need.”If elected, the Liberal Party’s legislation is expected to take some of its cues from Senator Andrew Bragg’s private members bill in 2023 and some from the more recent work done by the Treasury.

Shadow Assistant Treasurer Luke Howarth. Source: Luke HowarthThe government steps up efforts

The Treasury has been quietly drafting legislation this year, which Goodey understands is “almost complete.”

“There’s been prioritization within Treasury, and I know that their team has almost doubled — the digital asset team — for writing that draft legislation. So, there has been an investment in that over the past six months.”

Przelozny characterizes the ALP’s approach as “cautious and methodical, but it’s been slow,” prioritizing consumer protection and risk management. BTC Markets CEO Caroline Bowler said the election of a pro-crypto Trump administration and the UK’s draft regulations (released this week) likely forced both sides of politics to finally get serious. ”Australia has ground to make up, and I would anticipate this also being a factor in the savvy move by both parties,” she said. 

Sydney is the 10th most crypto-friendly city according to a recent poll.Stand With Crypto campaign and ASIC

The Stand With Crypto campaign is active in Australia but has been fairly low-key during the campaign, with a focus on debanking.Coinbase managing director for APAC John O’Loghlen called on whoever wins the election to launch a “Crypto-Asset Taskforce (CATF) within the first 100 days.” This would include industry and consumer representatives to finally get crypto regulations over the line.

“If Australia doesn’t move now, we risk falling even further behind,” he told Cointelegraph.

“The next government must move beyond consultation and into legislation.”

The Australian Securities and Investments Commission (ASIC) is the local equivalent of the US Securities Exchange Commission (SEC). It released its own crypto regulatory proposals in December. 

Related: Trump’s first 100 days ‘worst in history’ despite crypto promises

Joy Lam, Binance’s head of global regulatory and APAC legal, told Cointelegraph she doesn’t expect ASIC to suddenly change direction if a new government comes in, as the SEC did.

“ASIC doesn’t make the law,” she said. “I don’t expect a complete kind of 180 because ASIC, it is independent, and it does have its own mandate, but it obviously operates within the legislative framework that the government is going to be setting.”

April 20 poll. Source: YouGovWho should single-issue crypto voters back?

In February, a poll by YouGov and Swyftx found that 59% of crypto users would vote for a pro-crypto candidate in the federal election above all other issues. That equates to around 2 million Australians and would be enough to determine the outcome of the election one way.

But the similarities between the major parties on crypto regulation are much greater than the differences. Goodey said both sides of politics have genuinely engaged with the industry about its concerns and priorities.

“You can see in some of the language with their media releases that they both released in March, April this year, that they are in agreement on what the industry issues are,” she said. Owing to Senator Bragg’s campaigning on crypto, the industry sees the Liberal Party as more enthusiastic about digital assets, but after three years in government, the ALP looks to have arrived at roughly the same place. Recent YouGov and Resolve polls suggest the government is likely to be reelected.While internal Liberal polling suggests an ALP minority government is a genuine possibility, the major parties would have enough votes between them to pass bipartisan crypto legislation. Whatever happens, 2025 looks like the year Australia will finally provide the crypto industry with the certainty it needs.

“For industry, the timing is really quite critical now because obviously it’s something that has been discussed and kicked around for quite a few years,” Lam said. 

“I would say that we are cautiously optimistic.”

Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet

Avraham Eisenberg was sentenced to more than four years in prison on child pornography charges, unrelated to his role in the 2022 exploit that drained the decentralized exchange Mango Markets of roughly $100 million.

According to reporting from Inner City Press, a judge sentenced Eisenberg to 52 months in prison at a May 1 hearing in the US District Court for the Southern District of New York. The case was filed in April 2024 after Eisenberg’s 2023 indictment on fraud for the Mango Markets exploit.

Eisenberg was initially scheduled to be sentenced in July 2024 following his guilty plea on the child porn charge. In May 2024, the judge suggested the sentencing for both cases would occur simultaneously in a consolidated proceeding. However, as of May 1, the fraud sentencing remains pending.

The prosecution in the Mango Markets case reflects the growing probability of apprehension for hackers and cybersecurity exploiters plaguing the crypto industry with malicious attacks on platforms and users.

Related: SafeMoon boss cites DOJ’s nixed crypto unit in latest bid to toss suit

The case of Avraham Eisenberg

Mango Markets, a former decentralized crypto exchange, was exploited in October 2022 through a price oracle manipulation, losing $100 million in user funds as a result.

The exchange’s native token, Mango (MNGO), also plummeted immediately following the hack, shedding 52% of its value within 24 hours and leading the Mango Markets team to suspend deposits.

Eisenberg defended the exploit, arguing that the $100 million heist was done through “legal open-market actions” and claimed that he negotiated a settlement for the return of user funds after the exchange’s insurance fund failed to cover the shortfall.

In December 2022, US federal law enforcement authorities arrested Eisenberg in Puerto Rico. FBI officials charged the hacker with one count of commodities fraud and one count of commodities manipulation.

A jury found Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation in April 2024. The defense argued that the exploit was not a cybercrime and represented a “successful and legal trading strategy.”

Following the conviction, the Mango Markets exploiter’s attorneys filed a motion for acquittal in September 2024, which was heavily opposed by US prosecutors, who argued that Eisenberg was correctly convicted through careful evaluation of a “mountain of evidence.”

Magazine: Influencers shilling memecoin scams face severe legal consequences

Avraham Eisenberg was sentenced to more than four years in prison on child sexual abuse material charges, unrelated to his role in the 2022 exploit that drained the decentralized exchange Mango Markets of roughly $100 million.

According to reporting from Inner City Press, a judge sentenced Eisenberg to 52 months in prison at a May 1 hearing in the US District Court for the Southern District of New York. The case was filed in April 2024 after Eisenberg’s 2023 indictment on fraud for the Mango Markets exploit.

Eisenberg was initially scheduled to be sentenced in July 2024 following his guilty plea on the child porn charge. In May 2024, the judge suggested the sentencing for both cases would occur simultaneously in a consolidated proceeding. However, as of May 1, the fraud sentencing remains pending.

The prosecution in the Mango Markets case reflects the growing probability of apprehension for hackers and cybersecurity exploiters plaguing the crypto industry with malicious attacks on platforms and users.

Related: SafeMoon boss cites DOJ’s nixed crypto unit in latest bid to toss suit

The case of Avraham Eisenberg

Mango Markets, a former decentralized crypto exchange, was exploited in October 2022 through a price oracle manipulation, losing $100 million in user funds as a result.

The exchange’s native token, Mango (MNGO), also plummeted immediately following the hack, shedding 52% of its value within 24 hours and leading the Mango Markets team to suspend deposits.

Eisenberg defended the exploit, arguing that the $100 million heist was done through “legal open-market actions” and claimed that he negotiated a settlement for the return of user funds after the exchange’s insurance fund failed to cover the shortfall.

In December 2022, US federal law enforcement authorities arrested Eisenberg in Puerto Rico. FBI officials charged the hacker with one count of commodities fraud and one count of commodities manipulation.

A jury found Eisenberg guilty of wire fraud, commodities fraud, and commodities manipulation in April 2024. The defense argued that the exploit was not a cybercrime and represented a “successful and legal trading strategy.”

Following the conviction, the Mango Markets exploiter’s attorneys filed a motion for acquittal in September 2024, which was heavily opposed by US prosecutors, who argued that Eisenberg was correctly convicted through careful evaluation of a “mountain of evidence.”

Magazine: Influencers shilling memecoin scams face severe legal consequences

Michael Saylot’s tech firm Strategy has earned shareholders a Bitcoin yield of 13.7% in the year-to-date, the company said in its May 1 earnings report.

That equates to a Bitcoin gain of more than 61,000 Bitcoin (BTC), worth approximately $5.8 billion, according to the company. Bitcoin yield and Bitcoin gain are unofficial accounting metrics that Strategy uses to benchmark the success of its BTC buying strategy. 

Bitcoin yield measures the ratio of Strategy’s Bitcoin holdings to the number of outstanding shares of its stock, MSTR. Bitcoin gain quantifies that figure in terms of accrued Bitcoin, Strategy said in February. 

“We are increasing our 2025 ‘BTC Yield’ target to 25% and our 2025 ‘BTC $ Gain’ target to $15 billion,” Andrew Kang, Strategy’s chief financial officer, said in a statement.

Strategy generated a Bitcoin yield of 11% and a Bitcoin gain of nearly 50,000 BTC in the first quarter of 2025, it added. The company also announced plans to offer an additional $21 billion worth of stock to finance future Bitcoin buys.

Strategy’s earnings call highlights. Source: Strategy

Related: Bitcoin, showing ‘signs of resilience’, beats stocks, gold as equities fold — Binance

Bitcoin buying spree

Shares of MSTR are up more than 27% in the year-to-date to around $381 on May 1, according to data from Google Finance. The stock is still trading below November highs of more than $470 per share.

Since starting its Bitcoin buying spree in 2020, Strategy has accumulated a total of more than 550,000 BTC, costing the company nearly $38 billion, according to its earnings report.

The purchases equate to an average price of approximately $68,500 per Bitcoin. As of May 1, Strategy’s treasury is worth more than $53 billion.

Industry executives say institutional Bitcoin buying — including from corporate buyers such as Strategy — could eventually price retail investors out of the market.

As of May 1, public companies hold upward of $73 billion worth of Bitcoin in aggregate, according to data from BitcoinTreasuries.NET. Bitcoin ETFs and other institutional funds hold another roughly $128 billion, the data shows.

Magazine: Pokémon on Sui rumors, Polymarket bets on Filipino Pope: Asia Express

Update (May 1, 11:35 pm UTC): This article has been updated to add Strategy’s revenue, net loss and analyst estimates.

Michael Saylor’s Bitcoin-buying firm Strategy, formerly MicroStrategy, has reported earning a year-to-date yield of 13.7% on its Bitcoin holdings as it missed Wall Street’s first-quarter estimates.

The company said in its May 1 earnings statement that its year-to-date Bitcoin (BTC) yield equates to a gain of more than 61,000 BTC, worth approximately $5.8 billion. Bitcoin yield and gain are unofficial accounting metrics Strategy uses to benchmark the success of its BTC buys. 

Strategy’s chief financial officer, Andrew Kang, said it would increase its Bitcoin yield target for this year to 25% and its Bitcoin gain target to $15 billion.

It comes as Strategy missed top and bottom line analyst estimates. The firm reported revenues of $111.1 million, down 3.6% from the year-ago quarter and missing analyst estimates by around 5%.

Strategy also posted a net loss of $4.2 billion, around $16.49 per diluted share, against analyst estimates of an 11 cents per share loss and a rise from a $53.1 million in the first quarter of 2024.

Strategy’s earnings call highlights. Source: Strategy

The company’s Q1 operating expenses jumped by nearly 2,000% year-on-year to $6 billion, largely due to a $5.9 billion unrealized loss on its Bitcoin holdings.

The company announced it would offer an additional $21 billion worth of stock to finance future Bitcoin buys.

Related: Bitcoin, showing ‘signs of resilience’, beats stocks, gold as equities fold — Binance

Bitcoin buying spree

Shares in Strategy (MSTR) closed May 1 trading up 0.39% to $381.60, falling slightly after hours to $378.50, according to Google Finance.

Strategy closed May 1 trading slightly up before a small fall after the bell. Source: Google Finance

MSTR is up over 31.5% so far this year, but is still trading below its November high of more than $470 per share.

Since starting its Bitcoin buying spree in 2020, Strategy has accumulated a total of more than 550,000 BTC, costing the company nearly $38 billion, according to its earnings report.

The purchases equate to an average price of approximately $68,500 per Bitcoin. As of May 1, Strategy’s treasury is worth more than $53 billion.

Industry executives say institutional Bitcoin buying — including from corporate buyers such as Strategy — could eventually price retail investors out of the market.

Strategy has the largest Bitcoin holdings of a public company. In total, public firms hold upward of $73 billion worth of Bitcoin in aggregate, while Bitcoin funds and other institutional funds hold another roughly $128 billion, according to data from BitcoinTreasuries.NET.

Magazine: Pokémon on Sui rumors, Polymarket bets on Filipino Pope: Asia Express