After months of falling digital asset prices, public companies that adopted Bitcoin (BTC) as a treasury strategy are facing new scrutiny. Activist investors are now questioning these balance sheet terms, echoing widespread concerns about the volatility and long-term viability of Bitcoin’s corporate model.
Meanwhile, Stablecoins continue to anchor the market. Circle posted a stronger-than-expected fourth quarter, even as the first signs of the so-called “crypto winter” emerged.
However, not every payment player shares this speed. PayPal’s foray into digital assets, including the launch of stablecoin PayPal USD, has yet to reverse its decline in shares, with reports suggesting the company is attracting interest.
This week’s Crypto Biz looks at the growing pressure around Bitcoin hoards, the enduring power of sustainable business, and the challenges facing legacy payments giants as they navigate the next phase of crypto.
Empery Digital Faces Shareholder Revolt Over Bitcoin Fund
Empery Digital’s roughly 10% shareholder is calling for a major shakeup, including the sale of nearly 4,000 of the company’s bitcoins and the resignation of its CEO and board.
In a letter to management, investor Tees P. Brown argued that Bitcoin’s treasury strategy failed to maximize shareholder value and instead returned capital.
Empery has pushed back against the allegations and defended its strategy. The dispute highlights the growing tension between activist investors and public companies that have adopted Bitcoin as a major asset on their balance sheets.
Empery, which last year turned its legacy business into a Bitcoin fund, amassed 4,081 BTC, making it one of the 25 largest public holders of the digital asset.
Circle earnings, USDC growth boosts stock growth
Stablecoin issuer Circle had a stronger-than-expected fourth quarter, even as broader crypto market conditions weakened, underscoring momentum in the dollar-denominated stablecoin market.
Fourth quarter revenue reached $770 million, up 77% year-over-year. Net income was $133.4 million, or 43 cents per share. Both were ahead of analysts’ expectations. However, the most obvious figure was the expansion of USDC (USDC). By the end of the year, supply had grown by 72% to $75.3 billion, reflecting the steady demand for onchain dollar liquidity.
For the full year, Circle reported revenue of $2.7 billion and a net loss of $70 million, largely due to stock compensation related to its public offering.
Shares jumped more than 20% after the earnings release, as investors reacted to rising earnings and an expanding stablecoin base.
PayPal is attracting interest after a sharp drop in its stock
PayPal is reportedly attracting early interest after a prolonged decline in its share price as rivals weigh opportunities to consolidate parts of the digital payments market.
According to Bloomberg, some potential buyers are evaluating the entire acquisition, while others may pursue specific parts of the business. Negotiations remain preliminary and no formal offer has been announced. Bitcoin-friendly payments company Stripe later emerged as one of the interested parties.
The development comes as PayPal continues its restructuring efforts and continues to expand into digital assets, including its proprietary stablecoin.
$500 million stablecoin DeFi mortgage deal secures housing
Mortgage lender Better and Framework Ventures are launching a $500 million venture that will focus sustainable liquidity on US mortgage lending and potentially bring real estate financing deeper into decentralized markets.
Under the structure, Better will continue to underwrite and issue home loans, while funding will be sourced through the stablecoin ecosystem. The deal bridges blockchain liquidity with traditional real estate finance, an area that has long been debated but is being used on a significant scale.
The deal shows continued momentum behind real-world tokenized assets, even as broader crypto markets remain volatile.
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