Crypto Currents: White House unveils cryptocurrency policy report

As bitcoin, ethereum and other cryptocurrencies see major legal, institutional, and technological developments, the financial landscape continues to adapt. Stay up on the crypto news that matters with the “Crypto Currents” weekly from The Fly. Also, join us for your essential daily recap, every day at 2 PM ET on FlyCast radio.

WHITE HOUSE UNVEILS CRYPTO POLICY REPORT: On Wednesday, a cryptocurrency working group established by President Donald Trump released a report urging Congress to enhance crypto legislation. The report said the country should “adopt a pro-innovation mind-set toward digital assets” and ensure that crypto becomes a “hallmark of the new American Golden Age.” It also calls for new rules that would “immediately enable the trading of digital assets at the federal level” and grant oversight of much of the market to the Commodity Futures Trading Commission.

In a summary of the report, the White House said, “The Trump Administration has already ended Operation Choke Point 2.0 once and for all by working to end regulatory efforts that deny banking services to the digital assets industry. A sound and predictable banking regulatory framework that embraces the promise of blockchain technology will allow depository institutions to meet customer demand for core banking services for digital assets, and make it easier for those customers to access digital asset markets… Our tax rules must align with new technologies and eliminate compliance hurdles for both individuals and businesses engaged in activities involving digital assets.”

CRYPTO EARNINGS: On Thursday, Coinbase (COIN) reported second quarter adjusted earnings per share of 12c on revenue of $1.497B, which compared to adjusted EPS of $1.10 for the same period last year and analyst revenue consensus of $1.59B. The company also guided to Q3 subscription and services revenue of $665M-$745M and transaction expenses in mid-teens as a percentage of net revenue.

The company said, “We are working to bring the financial system onchain and made progress in Q2 across each phase of crypto adoption: first, as an investment, second, as financial services, and third, as an app platform. For investments, we continued to innovate and scale our derivatives business, launching the broadest suite of CFTC-regulated crypto perpetual futures products in the U.S. and achieving all-time highs in derivatives trading volume and open interest on our international derivatives exchange. For financial services, we helped grow USDC adoption, with average balances in Coinbase products increasing 13% Q/Q to $13.8B, driven in part by an extension of our rewards program, and announced new initiatives like USDC on Base Chain going live in Shopify Payments, Coinbase Business, and Coinbase One Card, all of which increase the daily utility of crypto. As an app platform, we continued to scale the Base Chain, reaching new milestones of transactions processing in milliseconds for millicents, reinforcing its position as the fastest and cheapest Layer 2 network. Additionally, we launched the Base App in open beta and have over 700,000 people on the waitlist, creating a unified experience for trading, payments, social, and more.”

Following the report, Barclays lowered the firm’s price target on Coinbase to $352 from $359 and kept an Equal Weight rating on the shares. The company’s Q2 results came in below Street estimates, driven by a sales miss and higher spending, and the Q3 guidance was mixed, the analyst said. The firm believes Coinbase’s tone on the earnings call was “quite optimistic” on future growth opportunities against an improving regulatory backdrop.

Meanwhile, Oppenheimer lowered the firm’s price target on Coinbase to $413 from $417 and kept an Outperform rating on the shares. The firm was a weak quarter as expected and the stock traded off post-print. But Oppenheimer is getting more constructive coming out of the print because of improving Q3 trading volume; strong July trading revenue and S&S guidance; potential passage of the CLARITY Act in late September; recent completion of the Deribit acquisition; and a strong balance sheet to aid organic and inorganic growth. If the CLARITY Act is signed into law, the firm expects an “altcoin summer.”

Additionally on Wednesday, JPMorganChase (JPM) and Coinbase announced a strategic partnership to introduce features designed to enhance access and optionality for mutual customers. Through JPMorgan’s secure API, Chase customers will be able to seamlessly link their bank accounts to Coinbase wallets. Chase customers will be able to transfer their Chase Ultimate Rewards points to their Coinbase Account. This marks the first time a major credit card rewards program will be used to fund a crypto wallet. Beginning this Fall, customers will have the ability to fund their Coinbase accounts using Chase credit cards. The companies expect the direct bank-to-wallet and Ultimate Rewards features to go live in 2026.

Also on Thursday, Strategy (MSTR) reported Q2 EPS of $32.60 on revenue of $114.5M, which compared to a loss per share of (57c) last year and revenue consensus of $112.52M.

“In the second quarter and into July, Strategy delivered another period of exceptional execution and growth. We expanded our bitcoin holdings to 628,791 bitcoins, raised over $10B through our ATM programs and IPOs, and saw growing institutional and retail demand for our securities. STRC, our short duration, high yield credit instrument, which was our largest ever IPO, demonstrates how we amplify our bitcoin holdings through intelligent leverage. Our overall capital raising activities have resulted in our Bitcoin per Share increasing by 25% year-to-date and as a result we are raising our full year BTC Yield and BTC $ Gain KPI targets to 30% and $20B, respectively,” said Phong Le, CEO.

CFO Andrew Kang, added, “In addition, we are announcing FY25 guidance for Operating Income of $34B, Net Income of $24B, and Diluted EPS of $80 per share, based on a BTC price outlook of $150,000 at the end of the year.”

Following the report, Benchmark raised the firm’s price target on Strategy to $705 from $650 and kept a Buy rating on the shares. Strategy’s Q2 report may be remembered less for the company’s “record-shattering financial performance” and more for “the two-hour masterclass its executives delivered during last evening’s conference call on their long-term vision to become not just the dominant bitcoin treasury company, but the world’s largest corporate treasury,” the analyst said.

BTIG raised the firm’s price target on Strategy to $700 from $620 and kept a Buy rating on the shares. The firm is positive on the company’s Q2 results and insights on the increased government support of bitcoin, corporate support of bitcoin, global support of bitcoin, a deep-dive on the company’s several investment vehicles, and for the first time ever GAAP guidance for the company, the analyst said. BTIG expects Strategy to continue creating shareholder value through its bitcoin treasury operations as it follows the capital-raising parameters it shared during its conference call.

Meanwhile, Cantor Fitzgerald raised the firm’s price target on Strategy to $697 from $680 and kept an Overweight rating on the shares. Strategy posted a record quarter, with $14B in operating income and $10B in net income, the analyst said. Cantor continues to view Strategy as the top pick in the Bitcoin treasury industry, as the firm believes the company’s Bitcoin position of 628,791 will likely never be matched by another treasury company.

MORE CRYPTO EARNINGS: On Thursday, Riot Platforms (RIOT) reported Q2 EPS of 58c on revenue of $152.99M, which compared to a loss per share of (32c) and revenue of $70M for the same period last year. The company produced 1,426 bitcoin, as compared to 844 during the same three-month period in 2024 and held 19,273 bitcoin as of June 30.

“We are immensely proud of our evolution over the past several years, having built world-class capabilities in power procurement, bitcoin mining at global scale, and infrastructure engineering, culminating in a strong position to control our destiny and maximize shareholder value. Our strategy centers on optimizing our ready-for-service power portfolio – anchored by flagship sites in Rockdale and Corsicana – while progressively shifting capacity toward high-value data centers, bolstered by our addition of hyperscale expertise through recent hires, in particular Jonathan Gibbs as Chief Data Center Officer. With a robust balance sheet, battle-hardened teams, and significant access to capital markets, we are uniquely positioned at the intersection of surging high performance computing demand and Bitcoin growth to maximize utilization of our significant power capacity, expand thoughtfully, and drive compelling long-term value for our shareholders,” said CEO Jason Les.

Following the report, Clear Street lowered the firm’s price target on Riot Platforms to $16 from $17 and kept a Buy rating on the shares. The firm still thinks Riot will likely monetize its Corsicana site through High-Performance Computing contracts, but lowered its target due to a more conservative cost-to-mine outlook based on current trends.

On Tuesday, MARA Holdings (MARA) reported Q2 EPS of $1.84 on revenue of $238.5M, which compared to a loss per share of (72c) and revenue of $145.1M for the same period last year. The company mined 2,358 bitcoin in Q2 and bitcoin holdings increased to 49,951.

The company said, “We are a bitcoin miner at our core, focused on building a resilient and sustainable business. We accomplish this by using mining not just to acquire bitcoin but also to optimize energy systems, monetize stranded assets, and advance our position in digital energy infrastructure. We’ve built MARA at the intersection of two of the fastest-growing industries on Earth: energy and compute. In doing so, we’re working to define a new category of company, one that powers the technologies shaping the future. That’s why we believe MARA is fundamentally different. We are more than a bitcoin treasury company.”

On Monday, Bakkt (BKKT) reported preliminary Q2 revenue between $577M-$579M and available cash and cash equivalents of $60M-$62M. The company also announced it entered into a definitive agreement to sell its Loyalty business to Project Labrador, a wholly owned subsidiary of Roman DBDR Technology Advisors. The transaction, which is subject to customary closing conditions, is expected to close in Q3. The transaction will include monetary accommodations to the buyer of an amount of cash equal to $11M plus the amount of estimated negative working capital of the business as of the closing and the amount of estimated indebtedness, subject to post-closing adjustments, as well as a short-term loan of certain restricted cash transferred with the business to facilitate the transfer. The company will report the Loyalty business as a discontinued operation beginning in Q3, allowing management to focus resources on core crypto offerings and stablecoin payments infrastructure.

“With the pending sale of our Loyalty business, Bakkt is achieving a significant milestone and fully embracing its future as a streamlined, pure-play crypto infrastructure company,” commented Andy Main, Co-CEO. “This strategic realignment is about sharpening our focus, allowing us to dedicate all our resources to our core crypto offerings and the immense opportunities in the stablecoin payments ecosystem. We are pleased with the capabilities of Roman DBDR to innovate the loyalty business and serve clients with excellence.”

CANAAN TO SUPPLY MINERS TO CLEANSPARK: Canaan (CAN) announced Thursday that its U.S. subsidiary has received a purchase order from CleanSpark (CLSK) to supply additional Avalon A1566I immersion-cooling miners. Each unit delivers a hashrate ranging from 249 to 267 terahashes per second, without overclocking. CleanSpark placed its initial order for 3,800 Avalon A1566I miners with an average hashrate of 249 TH/s in November 2024.

“Following CleanSpark’s initial order in November, we are pleased to continue supporting this cutting-edge company as it scales its state-of-the-art immersion mining fleet in Norcross, Georgia,” said Nangeng Zhang, CEO. “CleanSpark’s commitment to enhancing fleet efficiency and maximizing uptime aligns perfectly with Canaan’s dedication to innovation and performance. As CleanSpark expands its footprint across the United States, we are honored to serve as their trusted partner on this journey.”

Canaan also announced Wednesday that it has adopted a Cryptocurrency Holding Policy.  The Policy establishes a clear and disciplined framework for the acquisition, custody, and disposition of cryptocurrencies, ensuring that such holdings are managed in a manner that supports the company’s liquidity needs, risk tolerance, and long-term strategic objectives. Under the Policy, bitcoin is designated as the Company’s primary long-term reserve asset.

On Monday, JPMorgan raised the firm’s price target on CleanSpark to $15 from $14 and kept an Overweight rating on the shares. The firm updated ratings and price targets for the bitcoin miners to reflect the Q2 operating metrics and changes in bitcoin price and the network hashrate. JPMorgan favors the pure-play operators and says CleanSpark is its top pick.

Additionally, Ladenburg initiated coverage of CleanSpark with a Buy rating and $20.25 price target.

Cantor Fitzgerald raised the firm’s price target on CleanSpark to $25 from $22 and kept an Overweight rating on the shares. The publicly traded bitcoin treasury companies own, or have raised capital to acquire, 904,000 bitcoin, and this number will continue to increase given their capital market advantages, the analyst said.

GALAXY INITIATIONS: On Thursday, Goldman Sachs initiated coverage of Galaxy Digital (GLXY) with a Neutral rating and $30 price target, implying 12% upside. The firm said the business is transitioning from a pure play digital assets investment and merchant bank to providing artificial intelligence data center infrastructure. Goldman views Galaxy’s business and growth as attractive, but said the stock’s valuation appears elevated at current share levels.

Maxim initiated coverage of Galaxy Digital with AI data-centers, the analyst said. Maxim expects Galaxy’s gross profit to grow 88% in 2026 and 78% in 2027, reflecting contracted datacenter lease payments from CoreWeave (CRWV) and stronger institutional demand for digital assets.

OTHER CRYPTO NEWS:

• Hut 8 (HUT) price target raised to $25 from $18 at BTIG
• FIS (FIS) partners with Circle (CRCL) on stablecoin money movement functionality
• Semler Scientific (SMLR) initiated with an Overweight at Cantor Fitzgerald
• IREN (IREN) downgraded to Neutral from Overweight at JPMorgan
• Hive Digital (HIVE) surpasses 14 EH/s of Bitcoin mining hashrate across operations

CRYPTO STOCK PLAYS: Publicly traded companies in the space include Bit Digital (BTBT), Coinbase, Core Scientific (CORZ), Greenidge Generation (GREE), Mara Holdings, Strategy, Riot Platforms and TeraWulf (WULF).

PRICE ACTION: As of time of writing, bitcoin was roughly flat this week to $115,669 in U.S. dollars, according to CoinDesk.