Crypto Currents: Strategy builds $1.44B cash reserve to ease liquidation fears

Strategy fortifies its balance sheet to protect its massive bitcoin treasury, Sony prepares a stablecoin for PlayStation gamers, and Japan proposes a major tax cut for crypto traders. Meanwhile, prediction markets heat up over the next Fed Chair. 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, Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

STRATEGY BUILDS $1.44B BITCOIN SHIELD: To quell investor concerns regarding potential forced selling of its digital assets, Strategy (MSTR), announced the creation of a $1.44B reserve. According to Bloomberg, this capital pile is designed to cover at least 21 months of dividend and interest payments, ensuring the company won’t have to liquidate any of its 650,000 bitcoin (BTC-USD) stack even if prices decline. The firm also updated its FY25 guidance, projecting a wide range for operating income depending on whether bitcoin ends the year near $85,000 or $110,000. Additionally, CoinDesk reports that despite recent volatility, Benchmark defended the stock, maintaining a Buy rating and dismissing solvency fears as “noise.”

SONY PLANS STABLECOIN: Gaming giant Sony (SONY) is making a significant push into Web3. Nikkei Asia reports that the company’s banking arm is preparing to launch a U.S. dollar-pegged stablecoin in 2026. The token is expected to integrate with the PlayStation ecosystem, allowing users to pay for games and subscriptions while reducing transaction fees. Sony is reportedly partnering with Bastion and has applied for a U.S. banking license to facilitate the move.

JAPAN SLASHES TAXES BETTING ON THE NEW FED CHAIR: Speculation regarding U.S. monetary policy is intensifying. Cointelegraph notes that prediction markets like Polymarket now heavily favor Kevin Hassett, a former advisor to Coinbase (COIN), to replace Jerome Powell as Federal Reserve Chair. In other policy news, White House AI and crypto czar David Sacks publicly rejected conflict-of-interest claims regarding his tech investments, calling a recent New York Times investigation a “nothing burger.” Across the Pacific, Nikkei Asia reports that the Japanese government is preparing to slash the tax rate on crypto gains to a flat 20%, a major reduction from the current progressive system that charges up to 55%.

YEN SPIKE HITS BITCOIN AS TRADING COOLS: Global markets stumbled Monday after Bank of Japan Governor Kazuo Ueda hinted at an imminent interest rate hike. Bloomberg reports that the hawkish signal sent the yen higher and pushed bitcoin down over 5% to the $86,000 level. This macro pressure comes as trading activity cools; The Block data shows that crypto exchange volumes dropped to $1.6T in November, the lowest level since June, as volatility vanished following October’s frenzy. despite the price slump, Bernstein analysts argue that crypto operating businesses like Coinbase and Robinhood (HOOD) remain “strong” as they diversify revenue streams.

BIG MONEY RETURNS: Despite the price chop, institutional appetite appears resilient. CoinShares data shows that crypto investment products saw a rebound with $1.07B in inflows last week. On the corporate treasury front, BitMine Immersion Technologies (BMNR) bought nearly 97,000 ether (ETH-USD) last week. According to CoinDesk, Tom Lee, who backs the firm, cited the upcoming “Fusaka” network upgrade and a dovish Fed as catalysts for a potential “V-shaped” recovery.

RIPPLE WINS IN SINGAPORE, CHINA STAYS STRICT: Ripple received a regulatory boost in Singapore, with CoinDesk reporting that the Monetary Authority of Singapore granted approval for the firm to offer wider services, including settlement via its XRP (XRP-USD) and RLUSD tokens. Meanwhile, HashKey Holdings is edging closer to an IPO in Hong Kong. However, Cointelegraph notes that while Hong Kong pushes for growth, mainland China is reportedly cooling stablecoin plans for Chinese tech giants like JD.com (JD), reiterating its strict stance against speculation.

PRICE ACTION: As of time of writing, bitcoin was trading at $84,785.43, while ether was trading at $2,735.47, according to price data from CoinDesk.