Home Blog Page 311

Strategy Opens Door To Bold Bitcoin Sales Pivot Unlocking $2.2 Billion Tax Benefit

0

Strategy Inc. (formerly MicroStrategy, Nasdaq: MSTR), the world’s largest corporate Bitcoin holder and first Bitcoin Treasury Company, held its Q1 2026 earnings call on May 5. The results were dominated by massive non-cash GAAP losses from Bitcoin’s fair-value accounting amid a volatile quarter. Yet the real story, and the market’s focal point, was a clear strategic pivot: the company signaled it is now willing to sell portions of its Bitcoin holdings tactically. This marks a departure from the long-standing “never sell” narrative and positions BTC as an actively managed capital allocation asset rather than untouchable inventory.

The Numbers: GAAP Pain, Operational Resilience, Bitcoin Growth

Strategy reported an operating loss of $14.47 billion and a net loss of $12.54 billion ($38.25 per diluted common share), compared to smaller losses in Q1 2025. The primary driver was a $14.46 billion unrealized fair-value loss on its digital assets as Bitcoin prices declined during the quarter (roughly from ~$87,000 to ~$68,000 by late March). These are non-cash charges under current accounting rules.

The core software business showed modest growth, with total revenues of $124.3 million (up ~12% year-over-year) and gross profit of $83.4 million (67.1% margin). Cash and equivalents stood at $2.21 billion. More importantly for the Bitcoin Treasury thesis:

  • Holdings: 818,334 BTC as of early May (3.9% of total supply), up 22% year-to-date in 2026.
  • Acquisitions: 89,599 BTC purchased in Q1 alone (~$7.3 billion at ~$80,900 average) plus another 56,235 BTC in Q2-to-date.
  • Key Metrics: 9.4% BTC Yield and ~63,410 BTC gain year-to-date (equating to ~$5 billion in dollar gains). Bitcoin per share rose 18% year-over-year to 213,371 sats.
  • Capital Raised: ~$11.7 billion year-to-date (roughly half common equity, half preferred—primarily the flagship STRC “Stretch” digital credit product, which has scaled to $8.5 billion outstanding with strong liquidity and a 11.5% dividend yield). fool.com

The balance sheet remains fortress-like: modest net leverage (~9%), ample cash reserves, and a sophisticated digital credit engine via STRC that has attracted institutional and DeFi interest (including tokenized versions). Executives highlighted a proposed shareholder vote to shift STRC dividends from monthly to semi-monthly for better liquidity, with return-of-capital (ROC) tax treatment expected for the foreseeable future.

The Headline Shift: Tactical Bitcoin Sales as Financial Engineering

The call’s biggest takeaway, echoed in real-time X (Twitter) commentary, was the explicit openness to selling Bitcoin under the right conditions. Executive Chairman Michael Saylor stated the company “will probably sell some Bitcoin to fund a dividend just to inoculate the market, just to send the message that we did it.” President and CEO Phong Le added: “We will sell Bitcoin when it’s advantageous to the company… We’re not gonna sit back and just say, ‘We’ll never sell the Bitcoin.’ We wanna be net aggregators of Bitcoin, increasing our total Bitcoin, but more importantly, increasing our Bitcoin per share.” This isn’t a fire sale or abandonment of accumulation. Instead, as detailed in the earnings presentation slides and elaborated by executives, it’s optimized capital allocation:

  • Tax Harvesting Opportunity: Strategy’s BTC stack has clear cost-basis tiers (from early low-basis holdings to recent higher-cost purchases). Slides illustrated that selling higher-cost-basis BTC (e.g., ~$80k–$100k+ tiers) at current levels could realize substantial capital losses—potentially turning ~$7.6 billion in unrealized losses into immediate tax benefits (estimated $2.2 billion in tax assets at a 29% rate). These losses can offset gains elsewhere, reduce CAMT (corporate alternative minimum tax) exposure, and create valuable tax shields. Because Bitcoin is treated as property by the IRS, wash-sale rules don’t apply, allowing strategic repurchases if desired. thestreet.com
  • Redeployment for Accretion: Proceeds would fund high-BPS-accretive actions—buying back undervalued MSTR shares (especially below ~1.22x mNAV), retiring convertible debt, or supporting dividends—while maintaining or growing Bitcoin per share. A presentation slide modeled a $1 billion “sell BTC to buy MSTR” trade, showing strong positive delta to BTC yield and gains at sub-1.22x mNAV levels (e.g., +636 bps yield at 0.5x mNAV). This could crush shorts, reduce float/dilution risk, and boost mNAV. thestreet.com
  • Dividend and Liability Management: Small, targeted sales could perpetually fund STRC preferred dividends (with STRC issuance potentially outpacing the BTC “breakeven” cost). This inoculates against FUD about forced sales or dilution while keeping the company a net BTC buyer overall.

In short, BTC transitions from a static “digital gold” reserve to a dynamic tool for optimizing taxes, liquidity, capital structure, and shareholder value, without increasing leverage. As one sharp X analysis put it: “BTC is no longer treated as untouchable inventory. It’s becoming an actively managed capital allocation asset optimized around Bitcoin per share, float control, taxes, and capital structure.”

Follow BFC on X.

Market Reaction

Disclaimer: This content was prepared on behalf of Bitcoin For Corporations for informational purposes only. It reflects the author’s own analysis and opinion and should not be relied upon as investment advice. Nothing in this article constitutes an offer, invitation, or solicitation to purchase, sell, or subscribe for any security or financial product.

Robinhood and Bitstamp say banks are ready to build on-chain

0

Wall Street’s long-awaited migration into crypto is no longer theoretical, according to executives from Ondo Finance, Robinhood-owned Bitstamp and Babylon Labs. However, institutional adoption remains slower and more fragmented than many in the industry once expected.

The executives described a financial industry increasingly embracing blockchain rails, tokenized securities and crypto-native yield products on the “Is the Wall Street Herd STILL Coming?” panel at Consensus Miami 2026.

“I think it’s very clear that Wall Street is coming to crypto,” said Ondo President Ian De Bode, pointing to recent partnerships with Broadridge and the Depository Trust & Clearing Corporation (DTCC) aimed at tokenizing securities and enabling blockchain-based shareholder voting.

Robinhood’s Nicola White said that the conversation with banks has shifted dramatically over the past two years. “We’re not having conversations anymore about what blockchain is,” she said. “Now it’s about, how do we help them build?”

The panelists emphasized that crypto infrastructure already improves on traditional finance in terms of settlement speed and market accessibility. De Bode noted Ondo’s tokenized treasury products allow investors to mint and redeem positions over weekends while earning a daily yield, capabilities still largely unavailable in traditional money markets.

“That in and of itself as a value prop is mind-blowing to many in TradFi,” he said.

Still, the speakers acknowledged institutional adoption remains constrained by legacy financial infrastructure and regulation. White said banks continue to build crypto products cautiously while waiting for clearer regulatory guidance.

“There’s not a traditional finance Wall Street company we’ve talked to that has said this isn’t something they’re thinking about,” she said.

Babylon Labs’ Boris Alergant argued institutions are increasingly focused on capital efficiency rather than simply bitcoin price appreciation. He said Babylon’s bitcoin-backed lending products are designed to let investors borrow against native bitcoin holdings without relinquishing custody through wrapped assets or centralized intermediaries.

The panel also highlighted a growing divide between regulated U.S. markets and offshore crypto ecosystems. De Bode said permissionless innovation in decentralized finance will likely continue to flourish outside the United States, even as banks adopt more controlled blockchain-based systems domestically.

“I don’t see a world in which everything that happens offshore finds a home in the U.S.,” he said.

Despite the bifurcation, panelists broadly agreed that the two systems will eventually converge as institutional capital and crypto-native liquidity deepen.

DeFi's stress test ends quietly. Nothing broke.

0

Your day-ahead look for May 6, 2026

Payment news: a digital wallet and stablecoin payments screening for global Anti Money Laundry – AML – and sanctions compliance has been launched

0

Anti Money Laundry AML refers to the laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income. Yesterday, FinScan®, provider of advanced anti-money laundering (AML) and sanctions screening solutions from Innovative Systems, announced that its FinScan Payments solution now supports screening for stablecoin transactions and digital wallets across global sanctions lists, alongside traditional payment rails, enabling a single, scalable approach for payments compliance.

Stablecoin payments are projected to reach $56 trillion globally by 2030, and regulators increasingly expect them to be treated like any other payment rail, including screening at origination. Most fintechs and financial institutions already use point solutions to screen traditional payment rails, but few have a solution for stablecoins.

FinScan Payments closes that gap without having to add vendors or integrations to a firm’s compliance framework or tech stack. It screens every payment against sanctions, politically exposed persons (PEP), and dual-use goods lists simultaneously across all rails including stablecoins.

The solution also screens digital wallet addresses and payment parties against customer-selectable global sanctions lists including OFAC, Israel’s NBCTF, Japan’s Ministry of Finance, the UK Sanctions List, and the United Nations’ Security Council sanctions lists.

This is a good news for payments since AML is a critical pillar of financial system integrity. In addition to that, Money laundering remains massive (trillions annually) and creates problems to institutions including: Growing costs, Increasing regulatory pressure, and Technology-driven transformation.

Recently, the Euroepan Union has established a central regulator (AMLA) starting in 2026. Here for more details on EU Regulation.

Bitcoin ETFs Extend Rally as Two-Day Inflows Near $1 Billion

0

Spot Bitcoin (BTC) exchange-traded funds (ETFs) have recorded almost $1 billion in inflows since the cryptocurrency reclaimed $80,000.

Bitcoin ETFs posted $467.4 million of inflows on Tuesday as BTC surged past $81,000, extending Monday’s $532 million inflows, according to SoSoValue data, bringing the two-day total to more than $999 million.

The latest inflows follow April’s $1.97 billion in total net inflows, pointing to strong demand as Bitcoin’s rebound continues.

Since May 1, the funds have attracted a total of $1.63 billion in inflows, bringing cumulative inflows to $59.7 billion and total assets under management to roughly $109 billion, the highest level so far this year.

Daily spot Bitcoin ETF flows since Friday. Source: SoSoValue

The inflows came despite Strategy executive chairman Michael Saylor signaling potential Bitcoin sales to meet corporate obligations in an apparent departure from his long-standing “never sell Bitcoin” messaging.

Bitcoin ETFs show resilience with 8% outflows vs 50% BTC drawdown

The resilience in Bitcoin ETF flows comes even after a roughly 50% drawdown in Bitcoin during the cycle, while ETFs saw outflows of about 8% of assets, according to Bloomberg ETF analyst Eric Balchunas.

In a Roxom TV interview on Tuesday, the analyst pointed to the role of distribution networks, saying Wall Street wholesalers have effectively been unlocked by the products’ structure.

“Don’t underestimate the firepower of Wall Street wholesalers,” he said in reference to the flows.

Source: Eric Balchunas

The dynamic suggests that ETFs have helped stabilize investor access to Bitcoin during sharp price swings, keeping demand flowing through traditional financial channels even in volatile conditions.

Altcoin ETFs pick up steam with gains across ETH, XRP, SOL and DOGE

The positive trend has been extended across altcoin ETFs, with Ether (ETH) funds posting $97.6 million inflows on Tuesday, according to SoSoValue.

XRP funds gained $11.3 million, while Solana (SOL) ETFs posted minor inflows at $1.7 million.

Related: Crypto products post 5th straight week of inflows despite mid-week selloff

Dogecoin (DOGE) ETFs stood out with roughly $400,000 inflows, marking their first gains since April 27. The move brought DOGE’s total cumulative inflows past $10 million, while total assets under management stand at $14 million.

Magazine: Bitcoiners eye ‘sell in May,’ SBF’s bid for new trial shut down: Hodler’s Digest, April 26 – May 2

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

payabl. on Simplifying Global Payment Acceptance for Merchants

0

At MPE 2026, Ugnė Buračienė, Group CEO of payabl., shares a positive and focused outlook on the payments industry, defining payabl. as the “lego in the payment industry” that puts all the essential payments pieces together for merchantspayabl. offers a complete solution, from acquiring to issuing, through a single platform and one authentication process, to enable global payment acceptanceBuračienė explains that her mission is about tangible improvements, streamlining operations, and ensuring the company is constantly listening to its clients’ actual needs to simplify the complexities of payments. 

payabl. highlights the significant challenge merchants face when trying to integrate multiple payment options, as the compliance, risk assessment, and technical requirements multiply with every new solution they addBuračienė states that this complexity makes it difficult for merchants to offer a smooth checkout experience. This is where payabl. steps in, acting as a crucial partner by simplifying and streamlining the entire payment acceptance process, taking the headache out of merchant operations

As a provider of multi-currency business accounts, card acquiring, and integration with over 300 local and alternative payment methods, payabl. is committed to giving merchants a full suite of payment services so they can focus entirely on growing their businessThis commitment to reducing friction is clear in their adoption of pan-European initiatives like Wero, where payabl. was an early adopter, viewing it as a positive step for consumer and merchant choice.

Looking ahead, payabl. suggests the industry won’t see dramatic changes but rather a positive shift toward reducing the overall friction in global payment acceptanceThe ultimate goal is process simplicity, making sure clients can accept payments globally with less hassle and without having to constantly worry about the underlying technology.

In a revealing moment, Buračienė draws a compelling comparison between the fast-paced, challenging payments industry and her passion for triathlons and training for an Ironman. Buračienė explains that the sport teaches you to persevere, stick to your plan even when things don’t go smoothly, and be prepared for whatever is thrown your way, the lessons of which she applies directly to leading the payabl. team through the ever-changing environment

Lily Liu says Solana is building the payment rails for the ‘AI machine economy’

0

Solana Foundation president Lily Liu said growing adoption of stablecoins by major corporations is validating blockchain’s evolution into global financial infrastructure, while also laying the groundwork for AI-driven “machine economies.”

Speaking at Consensus Miami 2026 on Tuesday, Liu pointed to recent announcements involving Meta and Western Union integrating stablecoin payments on Solana as evidence that large enterprises increasingly view blockchain rails as practical infrastructure rather than speculative technology.

“It’s not new,” Liu said, referencing Visa’s decision in 2023 to build stablecoin settlement capabilities on Solana following what she described as an “extensive objective review” of blockchain networks.

“Fast and cheap is a no-brainer for payments,” she said, adding that enterprises also need deep liquidity, developers and a broad ecosystem of applications surrounding those payment rails.

Liu described Western Union’s move onto blockchain infrastructure as a particularly meaningful milestone for the crypto industry. “When I first came into this industry in 2014, Western Union was always the white whale crypto,” she said.

Exploring the intersection of crypto and artificial intelligence, Liu argued that blockchain-based payments are uniquely suited for “agentic commerce,” where AI agents transact autonomously with other machines and services.

Traditional internet payment systems remain heavily dependent on credit cards, which make micropayments economically impractical because of interchange fees, Liu said. Blockchain rails, by contrast, enable sub-dollar transactions and real-time payment streaming.

“The vast majority of transactions that happen on the internet are actually of microtransaction value,” Liu said. “You literally cannot process those individual transactions because you’ve got to put them through credit cards.”

Liu also defended the Solana ecosystem’s recent interventions following security incidents involving projects such as Vault and Drift, saying preserving industry confidence sometimes outweighs competitive rivalries inside decentralized finance.

Looking ahead, Liu argued the industry is still underestimating blockchain’s ultimate role. Rather than functioning primarily as generalized technology platforms, she said blockchains are fundamentally “financial rails first and foremost.”

She added that crypto’s longer-term promise could extend beyond payments into what she called “internet capital markets,” allowing companies and sovereign entities worldwide to access global capital formation more directly.

Western Union Enters Stablecoin Race With USDPT Launch On Solana

0

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A combined 130 million people in Bolivia and the Philippines now have access to Western Union’s new digital dollar, USDPT — a US dollar-backed stablecoin running on the Solana blockchain.

A Big Name Makes Its Blockchain Debut

Western Union, which moves money for more than 150 million customers across more than 190 countries, has made its first move into blockchain-based payments.

The company launched USDPT on Monday, marking a significant shift for one of the world’s oldest and largest money transfer networks. Plans are already in place to roll the stablecoin out to more than 40 countries before the end of 2026.

The infrastructure behind USDPT involves two major players in the crypto space. Anchorage Digital, the first federally regulated crypto bank in the US, is issuing the stablecoin.

Fireblocks, a crypto infrastructure firm, is handling wallet and settlement operations. Western Union said it also plans to make USDPT available on licensed crypto exchanges and connect them to its broader payments and liquidity network.

Remittance Giants Eye Blockchain Rails

Western Union is not alone in this push. MoneyGram started offering USDC stablecoin services in Colombia in September. Zelle announced plans for stablecoin-powered cross-border transfers in October.

Bitcoin is currently trading at $81,014. Chart: TradingView

The wave of activity among remittance companies follows the passage of the GENIUS Act in July, a piece of US legislation widely seen as favorable to stablecoin development.

Western Union said the launch reflects a broader shift in how global payments are moving, and that more financial institutions are expected to adopt regulated digital assets as core infrastructure going forward.

The Philippines was a natural choice for an early rollout. Remittances make up a significant part of the country’s economy, and reports note that corridors between the US and Central America are expanding fast.

According to Bybit’s former chief marketing officer, Claudia Wang, many routes within Latin America — such as from Argentina to Bolivia — have been largely untouched by crypto-based payment systems, making them ripe for new entrants. She described the Americas as a $174 billion remittance market.

Room To Grow In A Fast-Expanding Market

The stablecoin market is already large and widely expected to get much larger. Data shows the total market cap currently stands at $317 billion.

Both the US Department of the Treasury and Citigroup have projected that figure could climb past $2 trillion by 2030.

Featured image from Unsplash, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Bitcoin approaches $82,000 as oil crashes 6% on fresh Iran peace deal hopes

0

Bitcoin extended gains to trade close to $82,000 during the European morning on Wednesday.

Futures tied to Wall Street’s tech heavy index Nasdaq rose over 1% as risk assets rallied across the globe while oil crashed as reports of progress in U.S.–Iran peace talks boosted risk sentiment. Futures tied to WTI crude oil fell 6% to $95.28 per barrel.

The moves followed an Axios report that Washington and Tehran are close to a one-page memorandum of understanding aimed at ending the war. The draft agreement is said to include negotiations between U.S. envoys Steve Witkoff and Jared Kushner and Iranian officials, conducted both directly and through intermediaries.

The report raised hopes for the normalization of oil flows through the Strait of Hormuz, which has reportedly been mined by Iranian forces. The disrupted flows since late February have wreaked havoc in energy markets across the world, especially in Asia.

Iran would agree to remove highly enriched uranium from the country, a long-standing U.S. demand that Tehran has previously resisted, according to the report However, some market participants questioned the likelihood of a durable breakthrough, particularly around nuclear concessions.

“I’m a bit skeptical on the final point about Iran ceding ground on the nuclear front. But we’ll have to wait and see I guess,” ForexLive’s currency analyst Justin Low said.

Still, the prospect of de-escalation was enough to trigger a broad shift in positioning, with traders moving into risk assets and out of energy exposure on expectations of reduced geopolitical friction.

Enterprises Contain AI Agents to Balance Risk, Reward

0

NEW YORK — As an early adopter of AI, Kevin Hearn, senior vice president and head of consumer bank development at Axos Bank, made one mistake: giving hundreds of people on his team access to the technology without a specific goal. 

During a fireside chat at the AI Agent Conference, Hearn said he gave 300 employees access to an AI agent, which yielded 300 different results.  

Some used the agent to write code, some used it to fix the code, others struggled to prompt the agent effectively, leading to inconsistent results in code quality. 

So Hearn had to reevaluate how to proceed and ultimately decided to shrink his team of AI testers from 300 to about five to seven people focused on experimenting, testing and refining the AI agent. 

“As people come to me with ideas, I may give them the autonomy to go chase it, or I’ll have that team specifically focus on it,” Hearn said in an interview. “The power of that team is that once they’ve solidified an agent in a particular area, meaning they’ve worked with all the consumers of that agent to put a corporate effect on it, we’re now able to perpetuate that consistently.” 

Related:Enter Bob, IBM’s Friendly AI Coding Assistant

Hearn’s strategy is an example of how enterprises are trying to ensure they do not miss out on the powerful technology of AI agents while also mitigating risks and keeping agents within a contained environment so that their use of it does not backfire and cause business mistakes. His strategy also indicates the balancing act enterprises must do when approaching the new technology. 

“Agents aren’t traditional software,” said Matt DeBergalis, CEO and co-founder of Apollo GraphQL, in an interview at the conference. “On the one hand, everybody is banging on the table saying, ‘Go fast, go far, act like a startup.’ But on the other hand, this is the biggest data exfiltration threat to every enterprise.” 

He said that while enterprises need to be able to experiment, they also need strong foundations in place to experiment in a measured way. 

Internal Use Cases 

For Axos, the opportunity AI promised was too great to pass up, so the company found that its approach to risk mitigation was to focus on using AI technology and AI agents internally first. The banking institution uses OutSystems Agent Workbench to create, deploy and manage its AI agents including internal business analyst agents, Scrum Master agents and engineering agents. 

Hearn said that having a small, focused team working on experimenting with AI is key. 

“It’s all coming through that kind of centralized team that ensures the governance is there,” he said. “Governance being that we are using it appropriately. We are not feeding information we should not be. It does not have access to the outside world.” 

Related:SoundHound Launches Self-Learning AI Agent Platform

Like Axos, the fintech company Netevia uses AI, including agentic AI, for internal processes such as customer service. However, it avoids risks by not integrating it into forward-facing applications. 

“Part of the journey is to be able to understand how you thread slowly,” said Vlad Sadovskiy, CEO of Netevia, in an interview at the conference. “You cannot [mess] with people’s money even though the technology is already available to others doing agentic payments, AI-to-AI payments. We are still about a year away from the actual people thinking of adoption.”  

T-Mobile and Upwork 

While some enterprises are more focused on internal use cases, others are  building externally facing agents for consumers. At T-Mobile, AI helps solve customer service issues. 

T-Mobile customers use the company’s AI-powered app, T-Life. The telecommunications company also places a heavy focus on managing potential risks, said Julianne Roberson, director of AI engineering at T-Mobile. 

“We have observability on everything, so if something goes wrong, we see it,” Roberson said in an interview at the conference. “We try not to put things out if we don’t know if they’re going to work.” 

Related:Mistral’s Model Lets You Vibe Long-Running Code in the Cloud

Similarly, Upwork  prioritizes risk mitigation by giving agents a contained environment in which to run. 

“We built a lot of internal tech that provides the safety harness for all of this,” said Andrew Rabinovich, CTO and head of AI at Upwork, in an interview. “Every language model that’s run internally — and they’re all custom-built — they’re all passed through this trust system to avoid hallucination and prevent getting off the rails.” 

He added that Upwork spent time demystifying AI agents for employees so that they understood how they worked. 

“We spent a lot of time teaching and presenting to the whole company all the components of the technology so people get a better sense of it, what to do with it, and then people have an opportunity to interact with it and try to include it on their own as well,” Rabinovich said.  

The containment strategy, where enterprises ensure the right governance and tools are in place before releasing agents more broadly, can be critical because it helps mitigate the risks associated with using AI and agentic AI tools. 

“People see performance, mistake it for confidence, then they get FOMO and it is a mess. As soon as you get into FOMO mode, it is a big mess,” said Robert Blumofe, executive vice president and chief technology officer at Akamai, a cloud computing and security company. He said that organizations should use AI when nothing else works. 

“Use AI for what AI is awesome at and not try to force it into everything,” he said.