Stablecoin issuer Circle Internet Group reported stronger-than-expected fourth-quarter earnings on Wednesday, driven by rapid growth in its USDC stablecoin business and expanding payments operations, underscoring continued momentum in an otherwise challenging crypto market.

For the quarter ending Dec. 31, 2025, Circle posted revenue of $770 million, a 77% increase from a year earlier, and reported net income of $133.4 million, or 43 cents per share. Analysts expected per-share earnings of 16 cents on revenue of $747 million.

The strong quarter was fueled in part by a 72% year-on-year increase in the circulation of Circle’s US dollar-pegged stablecoin, USDC (USDC), which reached about $75.3 billion by year-end.

For the full year 2025, Circle reported revenue of $2.7 billion, up 64% from the prior year. The company recorded a net loss of $70 million for the year, largely due to $424 million in stock-based compensation tied to its 2025 initial public offering (IPO).

Despite the annual loss, operating income was positive at about $157 million, reflecting solid underlying performance.

Circle’s shares surged on the news, rising more than 20% in early trading Wednesday morning, to nearly $74.

Arc rollout and policy tailwinds bolster Circle’s expansion

Circle highlighted several operational milestones during the quarter, including the public testnet launch of Arc, its new blockchain infrastructure platform designed to help institutions build tokenized financial applications. More than 100 institutional participants have joined the testnet, the company said.

The Circle Payments Network, a cross-border payments coordination layer enabling banks to settle transactions using stablecoins, expanded to 55 financial institutions, with additional companies undergoing eligibility review and onboarding.

While Circle is best known for issuing USDC, the world’s second-largest stablecoin by market capitalization, its euro-denominated stablecoin, EURC, also posted strong growth. EURC circulation reached 310 million euros ($365 million), up 284% year over year.

Circle has also benefited from a more favorable regulatory backdrop in the United States under President Donald Trump’s administration, including the passage of the GENIUS Act, which establishes a federal framework for payment stablecoins and issuer oversight.

However, broader industry momentum has faced hurdles. As The Wall Street Journal reported, progress on a separate market structure bill known as the CLARITY Act has stalled amid ongoing tensions between crypto industry advocates and banking groups over issues including stablecoin yield and reward mechanisms.

The Ethereum Foundation has begun staking a portion of its treasury holdings, marking a notable shift in how the organization manages its ETH reserves and participates in the network’s proof-of-stake system.

According to the Foundation, approximately 70,000 ETH has been allocated for staking, with an initial tranche already deposited into validator infrastructure.

The move allows the nonprofit to earn staking rewards while contributing directly to the security and decentralization of the Ethereum network.

Under Ethereum’s proof-of-stake model, validators lock up ETH to help process transactions and secure the blockchain in exchange for yield.

By staking part of its treasury, the Foundation is effectively turning dormant reserves into productive capital. The rewards generated will flow back into the Foundation’s treasury to help fund ecosystem development, protocol research, grants, and other core initiatives.

The decision follows the rollout of a revised treasury management strategy first outlined in 2025. That policy emphasized sustainability and long-term financial planning, including using native staking as a low-risk way to support operations without liquidating significant ETH holdings.

The Foundation said it is leveraging open-source staking infrastructure and client diversity to ensure operational resilience and minimize centralization risks.

By distributing validator responsibilities across different setups, it aims to uphold Ethereum’s core principles of decentralization and neutrality.

The announcement comes at a time when institutional interest in Ethereum staking continues to grow.

As regulatory clarity improves in several jurisdictions, staking is increasingly viewed as a compliant yield mechanism compared to more speculative crypto strategies.

Market observers say the Foundation’s decision could encourage other large ETH holders to adopt similar treasury approaches.

By actively participating in validation, the Ethereum Foundation reinforces confidence in the network’s economic model while aligning its financial strategy with the long-term health of the ecosystem.

Standard Chartered analysts stuck to their forecast that the stablecoin market will reach $2 trillion by late 2028, despite lowering expectations for short-term US Treasury bill demand.

Stablecoins like Tether’s USDt (USDT) and Circle’s USDC (USDC) are expected to push T-bill demand to $2.2 trillion by 2028, Standard Chartered analyst Geoffrey Kendrick and US rates strategist John Davies said in a Monday report shared with Cointelegraph.

Despite the US dollar stablecoin market cap stalling at around $300 billion in recent months amid a broader crypto downturn, the analysts remain bullish since the passage of the US GENIUS Act in 2025.

“We see these issues as cyclical rather than structural, and we continue to expect stablecoin market cap to reach $2 trillion by end-2028,” Standard Chartered’s report said.

Stablecoins may drive Treasury to issue more bills despite lowered demand

According to Standard Chartered, stablecoins are now expected to generate an additional $800 billion to $1 trillion in fresh T-bill demand for use as reserves by late 2028, a hefty reduction from the $1.6 trillion projected in April 2025, despite the passage of the GENIUS Act.

Standard Chartered analysts still expect that the US Treasury may use this potential excess demand as justification to issue more T-bills. They cited Treasury Secretary Scott Bessent’s statements in early February in which he suggested the GENIUS Act could be “an important feature of financing the US government.”

The Treasury’s quarterly refunding announcement on the same day also cited “growing demand for Treasury bills from the private sector,” the analysts noted, adding:

“Stablecoin-related demand, in conjunction with the Fed’s recent decision to commence RMPs [reserve management purchases] and replace its maturing MBS [mortgage-backed securities] with T-bills, could arguably cause T-bills to become overly scarce.”

In addition to forecasting stablecoins to reach $2 trillion by the end of 2028, Standard Chartered previously expected Bitcoin (BTC) to hit $500,000 over the same period.

Amid ongoing uncertainty in crypto markets, the bank’s analysts have recently lowered their BTC price target for 2026 from $150,000 to $100,000, projecting that the cryptocurrency could fall as low as $50,000 before a potential recovery.

MicroStrategy now holds 717,131 BTC after purchasing 2,486 BTC for $168.4 million, as reported by CryptoRank. The update reinforces michael saylor’s ongoing accumulation strategy around the company’s bitcoin treasury.

Prior commentary had cited roughly 714,644 BTC with an average cost near $76,056 per coin before the latest purchase, according to Investing.com. The subsequent addition lifts reported holdings and underscores management’s stated intent to keep adding over time.

Why it matters: debt, refinancing stance, and risk tolerance

Saylor has articulated a refinancing-over-selling stance and indicated the company would endure significant bitcoin drawdowns by extending obligations rather than liquidating core holdings, as reported by Barron’s. That posture implies a willingness to accept equity volatility in exchange for long-horizon bitcoin exposure.

Observers describe the liability side as long-dated and largely in convertible-note form, limiting margin-call dynamics relative to collateralized loans, according to CCN. In practice, that structure gives management time to manage liquidity and capital access through cycles, though it concentrates performance risk in bitcoin.

BingX: a trusted exchange delivering real advantages for traders at every level.

Immediate impact on MSTR stock, NAV premium, and investors

At the time of this writing, MSTR most recently closed at $131.05 on February 20, based on data from Yahoo Finance. Near-term trading will likely continue to reflect bitcoin volatility, funding conditions, and sentiment toward leveraged bitcoin proxies.

MicroStrategy’s equity can trade at a premium or discount to the net asset value (NAV) of its bitcoin holdings due to embedded leverage, equity optionality, and capital-raising flexibility. When sentiment weakens or dilution risk rises, that premium can compress into a discount.

Bitcoin recently dipped below $68,000 amid volatility, as reported by Coingape. Such moves can quickly alter perceived upside from leverage, changing the gap between NAV and market capitalization for MSTR.

Analyst reactions to Michael Saylor Bitcoin strategy and MSTR

Supportive views and nuanced confidence in long-term thesis

Some brokers have tempered expectations while maintaining confidence in the long-term thesis. Cantor Fitzgerald, for example, materially trimmed its 12‑month target but kept a positive rating on the shares, as reported by the Financial Times.

Others argue that a stock premium over bitcoin NAV can be rational if the company increases bitcoin per share and manages capital adeptly. “Not unreasonable,” said Adam Back, CEO of Blockstream, as reported by Cointelegraph.

Critical flags: index risk, dilution, concentration, sentiment

Skeptics highlight concentration in bitcoin, potential exclusion from major indices, and the possibility of forced selling by benchmarked funds if that occurs, according to Forbes. They also flag that equity, debt, or preferred issuance at unfavorable terms could dilute shareholders if the NAV premium narrows.

Wealth managers have questioned whether repeatedly issuing securities to buy bitcoin ultimately destroys value if bitcoin underperforms. Ross Gerber has been particularly critical of the model’s sustainability, as reported by TheStreet.

FAQ about Michael Saylor Bitcoin

If Bitcoin drops sharply, will MicroStrategy sell or refinance, how does its debt structure work?

Saylor indicates refinancing over selling, even in deep drawdowns. Debt is largely long‑dated convertibles with few margin calls, so liquidity pressure is time‑managed, not immediate.

Why does MSTR trade at a premium or discount to its Bitcoin net asset value (NAV)?

Premium reflects leverage, corporate optionality, and investor demand; discounts emerge when sentiment weakens, dilution risk rises, or BTC underperforms relative to embedded leverage in the equity.

The accumulation places the UAE-linked operation among the more significant sovereign-connected Bitcoin mining initiatives globally.

On-chain tracking platforms indicate that wallets associated with Citadel Mining have steadily accumulated BTC, with holdings currently valued at hundreds of millions of dollars based on prevailing market prices.

While neither Royal Group nor Citadel Mining has publicly disclosed exact production figures, analytics firms tracking miner wallet inflows estimate total mined Bitcoin in the range of 6,300 to nearly 6,800 BTC.

The reported 6,782 BTC figure reflects aggregated on-chain attribution linked to the Abu Dhabi-based mining entity.

Citadel Mining operates within the UAE’s broader push to position itself as a digital asset and blockchain hub. Abu Dhabi, in particular, has attracted substantial investment in crypto infrastructure, supported by regulatory clarity and access to competitive energy resources.

Industry observers note that sovereign-linked mining operations reflect a growing trend of state-aligned entities participating directly in Bitcoin network security and block production.

Unlike companies that routinely liquidate mined assets to cover operational expenses, wallets associated with the UAE operation appear to retain a significant portion of mined BTC, suggesting a longer-term treasury strategy.

The development underscores the UAE’s expanding role in the global digital asset ecosystem, spanning mining, exchanges, regulatory frameworks, and institutional investment activity.

As governments and state-affiliated entities increasingly explore strategic Bitcoin exposure, the UAE’s Royal Group-backed mining accumulation may signal a broader shift toward sovereign participation in decentralized financial infrastructure.

Further official disclosures could provide clearer insight into production capacity, energy sourcing, and long-term holding strategy tied to Citadel Mining’s operations.

Riot’s 1.7 gigawatts of fully available power capacity make the company “well positioned to execute high-quality AI/HPC deals,” said Starboard, highlighting two of Riot’s Texas-based sites, Corsicana and Rockdale, as “premier” locations for data center development.

Starboard said that if Riot can monetize its power in line with recent transactions in the space, “it could generate more than $1.6 billion” in annual EBITDA. The group praised Riot’s recent deal with AMD, which is projected to yield $311 million over 10 years.

With a market cap of $4.25 billion, Texas-based Riot is the fifth-largest bitcoin mining company in the U.S. Its shares have risen by 19% in the past year, but remain lower by about 80% from highs hit during the 2021 bitcoin bull market. They've also underperformed miners like IREN, Cipher Mining, and Hut 8, which were quicker to recognize and transition to AI strategies.

Starboard was Riot’s fourth-largest shareholder as of the end of last year, and this isn't its first push on the company. In December 2024, Starboard requested that Riot convert some of its bitcoin mining sites into data centers capable of hosting HPC machines to support big tech companies.

While Riot Platforms has built its business around bitcoin mining, the pivot toward AI infrastructure could diversify revenue as power-hungry models like OpenAI’s GPT-4o and others drive data center demand. Riot’s power access, a rare commodity in the current energy-constrained data center market, could be used to lease capacity to major AI firms.

Starboard urged CEO Jason Les and Executive Chairman Benjamin Yi to act “with urgency” and position Riot as a long-term infrastructure provider for AI workloads.

Previously known for developing competitive LLMs challenging OpenAI, Mistral began expanding into infrastructure with the launch of Mistral Compute in 2025. The acquisition of Koyeb significantly accelerates that strategy.

Koyeb specializes in serverless architecture, enabling developers to deploy applications without managing servers. This approach is particularly valuable for AI workloads that require flexible scaling and efficient GPU utilization. By integrating Koyeb’s technology, Mistral aims to:

Optimize GPU performance

Improve inference scaling

Support on-premises deployment

Strengthen its enterprise offering

The entire 13-person Koyeb team, including its founders, will join Mistral’s engineering division and contribute directly to Mistral Compute.

The acquisition follows Mistral’s recent $1.4 billion investment in Swedish data centers and comes as the company surpasses $400 million in annual recurring revenue. Together, these moves reflect a clear strategy: building a vertically integrated European AI ecosystem spanning models, infrastructure, and deployment.

By combining AI models with serverless cloud infrastructure, Mistral positions itself as a European alternative to AWS, Google Cloud, and Microsoft Azure — emphasizing performance, scalability, and data sovereignty.

This acquisition marks a turning point for Mistral, transforming it from a model developer into a comprehensive AI cloud platform and strengthening Europe’s role in the global AI infrastructure race.

The stock climbed as high as $11.36 intraday, as investors reacted to news that Nexo’s relaunch will run through Bakkt’s regulated trading and custody framework.

The move highlights how infrastructure providers, not just token issuers, are benefiting from renewed institutional activity in the U.S.

Why the Market Reacted

Nexo’s formal re-entry into the United States follows a three-year absence caused by regulatory disputes. Its return requires a compliant operational setup, and that’s where Bakkt comes in.

Under the partnership:

Bakkt provides regulated digital asset trading infrastructure

Custody and compliance systems enable Nexo to offer yield, exchange, and crypto-backed credit services

The structure is designed to meet current U.S. regulatory standards

For Bakkt, the agreement supports its strategic pivot toward institutional-grade infrastructure, tokenization services, and stablecoin payment rails. The company divested its loyalty rewards business in late 2025 to focus more directly on digital asset infrastructure.

The Nexo deal reinforces that shift.

BKKT Stock: Volatile Year, Short-Term Pressure

Despite the 7% rally, BKKT remains a volatile equity.

The stock has experienced significant swings over the past year. Even with Thursday’s gain, BKKT is still down approximately 19.57% over the last 10 trading days, reflecting broader equity market corrections and pressure on digital asset-linked stocks.

The stock climbed as high as $11.36 intraday, as investors reacted to news that Nexo’s relaunch will run through Bakkt’s regulated trading and custody framework.

The move highlights how infrastructure providers, not just token issuers, are benefiting from renewed institutional activity in the U.S.

Why the Market Reacted

Nexo’s formal re-entry into the United States follows a three-year absence caused by regulatory disputes. Its return requires a compliant operational setup, and that’s where Bakkt comes in.

Under the partnership:

Bakkt provides regulated digital asset trading infrastructure

Custody and compliance systems enable Nexo to offer yield, exchange, and crypto-backed credit services

The structure is designed to meet current U.S. regulatory standards

For Bakkt, the agreement supports its strategic pivot toward institutional-grade infrastructure, tokenization services, and stablecoin payment rails. The company divested its loyalty rewards business in late 2025 to focus more directly on digital asset infrastructure.

The Nexo deal reinforces that shift.

BKKT Stock: Volatile Year, Short-Term Pressure

Despite the 7% rally, BKKT remains a volatile equity.

The stock has experienced significant swings over the past year. Even with Thursday’s gain, BKKT is still down approximately 19.57% over the last 10 trading days, reflecting broader equity market corrections and pressure on digital asset-linked stocks.