Public Keys: Crypto Market Roundup

This week’s edition tracks key publicly traded cryptocurrency companies. Highlights include Circle’s stock surge following the Senate’s GENIUS Act vote and ongoing discussions around Bitcoin treasury models.

Stroke of GENIUS

Circle (CRCL) witnessed a remarkable stock surge following the Senate’s approval of the GENIUS Act. The company’s shares climbed from $156.36 to nearly $249, representing an increase of over 59%, far exceeding its initial public offering price.

Analysts predict the stablecoin market could reach $2 trillion, significantly expanding from its current $260 billion valuation. This expansion is viewed by analysts as a primary driver behind the stock appreciation.

Competitor Coinbase (COIN) also saw gains, rising approximately 30% during the week.

Challenges of the Bitcoin Treasury Model

The business model adopted by companies like MicroStrategy (MSTR) and Block (BTC), involving holding large treasuries of Bitcoin, faces valuation challenges.

While established players like MicroStrategy saw their stock-to-BTC valuation improve slightly recently, newer entrants like Fold are raising capital specifically to build Bitcoin holdings, navigating market uncertainties.

Meanwhile, industry giants Tesla and Block hold Bitcoin at a significant unrealized gain, though they face different pressures compared to companies whose core business model is intrinsically tied to Bitcoin’s price appreciation.

Market Moves: Other Keys

• Tron (TRON) Listing: Tron is pursuing a Nasdaq listing via reverse merger with SRM Entertainment, despite denials of direct public involvement from Eric Trump. The deal includes a $100 million token purchase by the partner company.
• Bitdeer Stock Drop: Bitcoin miner Bitdeer’s stock price fell 12% following a $330 million capital raise aimed at call options, cash payments, and data center expansion, not directly acquiring Bitcoin.
• FalconX Exploring IPO: Prime broker FalconX is in early discussions for an IPO, reportedly exploring the process with investment banking advisors, though not yet confirming the engagement.