Crypto Currents: Strategy slides while stablecoin yield talks stall

Strategy slides as Galaxy Digital reports a $482M loss, but Wall Street is buying the dip with record ETF inflows. Meanwhile, White House negotiations over stablecoin legislation hit a stalemate, and new manufacturing data signals a potential “risk-on” shift for the markets. 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,

STRATEGY EXTENDS LOSING STREAK TO EIGHT MONTHS AS GALAXY DIGITAL POSTS $482M LOSS: The institutional crypto sector remains under significant pressure as Strategy (MSTR) navigates its eighth consecutive monthly decline. Shares of the bitcoin (BTC-USD) treasury leader have plummeted roughly 75% from their November 2024 peak, currently trading near $141. According to CoinDesk, the performance gap between Strategy and bitcoin has widened to 35%, a spread that could limit the firm’s future ability to acquire tokens through equity offerings. Simultaneously, Galaxy Digital (GLXY) reported a fourth-quarter net loss of $482M, missing analyst estimates of a $282M loss. Bloomberg reports that billionaire CEO Michael Novogratz remains optimistic despite the “pain,” noting the firm holds $2.6B in cash and stablecoins to weather the cycle.

WHITE HOUSE NEGOTIATIONS REACH DEADLOCK OVER CONTENTIOUS STABLECOIN YIELDS: Regulatory hurdles for the industry intensified on Monday as White House-led negotiations over market-structure legislation ended with no agreement on how to handle the issue of stablecoin yield. The central conflict involves whether platforms like Coinbase (COIN) should be permitted to offer rewards or yield on stablecoins to their users. According to Bloomberg, banking trade groups are pushing for a total prohibition on stablecoin rewards to prevent a flight of traditional deposits, while Coinbase argues it is simply offering a better product. While the Digital Chamber described the session as the first in a series to resolve the issue by the end of February, the deadlock continues to weigh on market sentiment. In contrast, Opera (OPRA) shares surged 15% after its MiniPay wallet added support for tether (USDT-USD) and tether gold, having processed over $153M in transactions in December, CoinDesk notes.

INSTITUTIONAL DIP BUYING FUELS RECORD $562M INFLOW INTO BITCOIN FUNDS: Despite the equity slump, institutional appetite for digital assets at lower prices appears resilient. CoinDesk reports that U.S.-listed bitcoin ETFs recorded a net inflow of $561.8M on Monday, marking the largest single-day haul since Jan. 14. This “cash rush” was led by BlackRock’s (BLK) IBIT fund and Fidelity’s FBTC, even as the average cost basis for ETF holders remains underwater at approximately $84,099. This buying trend was mirrored by Cathie Wood’s ARK Invest, which deployed roughly $72M into the market dip. According to CoinDesk, ARK Invest added $32.7M in Robinhood (HOOD), $9.4M in Circle (CRCL), and $1.3M in Coinbase as bitcoin briefly fell below $75,000.

MANUFACTURING EXPANSION AND INFRASTRUCTURE DEALS SIGNAL SECTOR SHIFTS: The broader economic and infrastructure landscape provided a rare bullish signal for investors. The ISM Manufacturing PMI rose to 52.6 in January, beating forecasts and ending 26 consecutive months of contraction. While analysts suggest this “risk-on” signal historically precedes bitcoin rallies, the mining sector faces immediate challenges as falling prices push older rigs into the red. TeraWulf (WULF) bucked the trend, gaining 11% after acquiring two power-heavy sites in Kentucky and Maryland, more than doubling its capacity to 2.8 gigawatts.

H.C. WAINWRIGHT HIGHLIGHTS INSTITUTIONAL MOVES AND “PRIVATE GRID” PIVOT AMID MARKET VOLATILITY: Providing a critical fundamental counterbalance to recent price pullbacks, H.C. Wainwright analyst Mike Colonnese’s early February 2026 roundup details a period of significant digital asset declines contrasted by massive infrastructure expansion. While bitcoin dropped 11% week-over-week to $76,911, impacted by $1.5B in spot ETF outflows and a 7.8% network hash rate dip following U.S. winter storms, the report underscores a rapid shift toward the “Private Grid” era for AI. This is exemplified by the approval of Pacifico Energy’s 7.65 GW natural gas-fueled AI power campus in Texas, designed to bypass the ERCOT grid entirely. On the corporate front, Wainwright highlights institutional floor-setting maneuvers, including Binance’s 30-day plan to convert $1B of its SAFU stablecoins into BTC and the advancement of the CLARITY Act in the Senate. The report specifically identifies IREN as a leader in the high-performance computing pivot, maintaining a sector-leading contracted annual recurring revenue of $1.94B through its AI cloud deal with Microsoft (MSFT).

Mike Colonnese provided the following updates on the crypto and AI industry, noting that public companies purchased a combined ~1,460 BTC last week:

• Strategy (MSTR): Buy rating and $500 price target; purchased 855 BTC last week.
• Galaxy Digital (GLXY): Buy rating and C$63 price target.
• Circle Internet Group (CRCL): Neutral rating and $85 price target.
• American Bitcoin (ABTC): Buy rating and $4 price target.
• Applied Digital (APLD): Buy rating and $40 price target.
• Bitfarms (BITF): Buy rating and $4 price target.
• Bit Digital (BTBT): Buy rating and $7 price target.
• Bitdeer Technologies (BTDR): Buy rating and $30 price target.
• Cango (CANG): Buy rating and $3 price target.
• Cipher Mining (CIFR): Buy rating and $30 price target.
• CleanSpark (CLSK): Buy rating and $27 price target.
• Coinbase Global (COIN): Buy rating and $425 price target.
• Core Scientific (CORZ): Buy rating and $25 price target.
• CoreWeave (CRWV): Buy rating and $180 price target.
• BitFuFu (FUFU): Buy rating and $7 price target.
• HIVE Digital Technologies (HIVE): Buy rating and $10 price target.
• Hut 8 (HUT): Buy rating and $80 price target.
• IREN (IREN): Buy rating and $80 price target.
• MARA Holdings (MARA): Buy rating and $28 price target.
• Mawson Infrastructure (MIGI): Neutral rating.
• Riot Platforms (RIOT): Buy rating and $26 price target.
• Soluna Holdings (SLNH): Buy rating and $5 price target.
• WhiteFiber (WYFI): Buy rating and $34 price target.

PRICE ACTION: As of time of writing, bitcoin was trading at $76,748.00, while ether (ETH-USD) was trading at $2,249.09, according to price data from TipRanks.