Crypto Currents: Strategy shares stabilize following bitcoin price recovery

Strategy shares stabilize as analysts predict the stock could double in value , while Solmate agrees to acquire RockawayX to build a $2B institutional crypto group. Meanwhile, Deutsche Borse and BNY Mellon back new digital asset initiatives, and Connecticut regulators issue cease-and-desist orders to prediction market operators like Robinhood. 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 STOCK STABILIZES AS ANALYSTS PREDICT DOUBLE: Shares of Strategy (MSTR) have stabilized as the price of bitcoin (BTC-USD) recovered to $93,000, boosting the value of the company’s holdings to over $60.45B. According to crypto.news, Wall Street analysts believe the stock could double in the next 12 months, with Mizuho predicting a jump to $521. Cointelegraph reports that the stock recently printed a rare “Abandoned Baby” bullish reversal pattern on its daily chart, suggesting the recent downtrend may be running out of steam.

SOLMATE TO ACQUIRE ROCKAWAYX IN $2B DEAL: Solana-focused (SOL-USD) digital asset treasury firm Solmate (SLMT) has signed a term sheet to acquire RockawayX in an all-stock deal. The combination will create an institutional crypto group with more than $2B in assets. The merged entity will fold RockawayX’s infrastructure and asset management units into Solmate. The news sent shares of SLMT higher in pre-market action following the news.

DEUTSCHE BORSE TAPS KRAKEN AS BNY MELLON AND NASDAQ BACK TOKENIZATION FIRM: Traditional finance continues to bridge the gap with the digital asset world. Deutsche Borse (DBOEY) has entered a strategic partnership with Kraken to create unified access across traditional and digital markets, focusing on tokenized stocks and derivatives. Meanwhile, Digital Asset Holdings raised an additional $50M from backers including Bank of New York Mellon (BK) and Nasdaq (NDAQ) to support the Canton Network, a blockchain designed for institutional tokenization.

CITADEL URGES SEC TO SCRUTINIZE DEFI AS CONNECTICUT TARGETS PREDICTION MARKETS: Tensions regarding regulation remain high. Citadel Securities urged the SEC to scrutinize decentralized finance protocols, arguing they should face oversight comparable to traditional exchanges. Meanwhile, Cointelegraph notes that Coinbase (COIN) CEO Brian Armstrong stated major banks are running pilots with his exchange. On the state level, Connecticut regulators issued cease and desist orders to Robinhood (HOOD), Kalshi, and Crypto.com regarding prediction markets.

IREN REBOUNDS ON $3.6B RAISE AS AMERICAN BITCOIN CRASHES AND XRP ETFS NEAR $1B: In the mining sector, (IREN) rebounded after the company announced a $3.6B capital raise to fund AI expansion. Conversely, crypto.news reports that American Bitcoin (ABTC) shares cratered 40% as a lockup period expired. In the ETF market, Cointelegraph notes that the new Grayscale chainlink (LINK-USD) ETF drew $41M in inflows on its debut.

PRICE ACTION: As of the time of writing, bitcoin (BTC-USD) is trading around $93,173.64, while ether (ETH-USD) is trading near $3,221.31, according to price data from CoinDesk.