The election of US President Donald Trump was supposed to guide him through the golden age of code. The regulatory star has been adjusted, but the crypto industry has experienced its worst quarter in years.
Bitcoin (BTC) and Ether (ETH) prices recorded the worst first quarter in seven years, market sentiment fell to the lowest point since the last bear market, and Coinbase stocks experienced the worst selling since the FTX fiasco.
With the first quarter finally in the book, investors are looking forward to Bitcoin and the positive catalysts of wider markets. This could be in the form of favorable spring season, more clarity in Trump's tariff policy, and policy change in the Federal Reserve system.
Coinbase stocks are struggling in their worst quarter since 2022
Coinbase stock has long been considered an important pioneer for the crypto industry, but fell 33% in the first quarter despite reporting strong business fundamentals and solid revenue outlook. As reported by Cointelegraph, it was the worst quarterly decline since the FTX exchange collapse in late 2022.
Like other businesses from crypto, Coinbase's performance suffered under Trump's tariff war, volatile digital asset prices and overhanging pressures to tighten their financial position from the last quarter.
But beyond these short-term headwinds, Coinbase is booming. The company's revenue more than doubled in 2024 to $6.6 billion. Adjusted revenues rose to $3.3 billion, marking the second year in a row.
The unstable years of coin stock up until now. Source: Google Finance
Trump Family Supports Bitcoin Mining Ventures
Despite the fear and volatility of knowing the crypto market, Donald Trump's family is doubling its long-term investment in the industry.
On March 31, two Trump's sons, Eric and Donald Jr., announced they would support a new crypto mining venture called American Bitcoin. The venture is majority owned by public cryptominer Hut 8.
American Bitcoin “is aiming to become the world's largest and most efficient pure Bitcoin miner while building a robust strategic Bitcoin reserve,” the announcement states.
Crypto prices are falling, but it's becoming difficult for investors to keep Trump's family bearish in the industry by investing so much. The family is behind Defi Project World Liberty Financial, which has accumulated a large portfolio of digital assets including ether, wrap bitcoin (WBTC), Aave (Aave) and ChainLink.
Tether stacks more BTC
Stablecoin Issuer Tether strengthened its balance sheet in the first quarter by acquiring 8,888 Bitcoin, according to Onchain data later confirmed by CEO Paolo Ardoino. The company currently holds 100,521 BTC worth approximately $8.7 billion.
Tether is able to acquire Bitcoin and expand its venture capital business thanks to its highly profitable Stablecoin business. The company generated $13 billion in profits last year, supporting a large US Treasury holding with interest.
Despite its success, Tether has been the subject of negative reporting by the media, industry and politicians. A recent JPMorgan report claimed that Tether would be forced to sell some of its Bitcoin Holdings.
A company spokesman threw cold water at the conclusion, and JpMorgan told Cointelegraph that “there is no bitcoin or tether.”
GameStop raises $1.5 billion in Bitcoin purchases
Video game retailers are poised to add Meme Stock Gamestop Corporation to their balance sheet after completing their $1.5 billion convertible bond offering.
“The company expects to use net revenue from its offerings for general corporate purposes, such as the acquisition of Bitcoin in a manner consistent with the company's investment policy,” Gamestop said.
Gamestop's board approved plans to invest in Bitcoin last month. The approval also highlighted the company's acquisition of stubcoin in US dollars.
In addition to raising debts to buy Bitcoin, GameStop suggests it could use some of its $4.8 billion cash reserves to fund future acquisitions.
GameStop shares have experienced extreme volatility since they first disclosed plans to acquire BTC from March 26th. Source: Google Finance
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