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Why cautious TradFi firms love staked ether

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Crypto has gone mainstream as a financial asset class and TradFi institutions now feel obligated to dip their toes into the space, if only to show their existing clients that they aren’t afraid to handle innovative technologies.

The problem, for some of them, is that staking — one of crypto’s most basic primitives — is still considered too dangerous. It exposes institutions to risks they are structurally unwilling to accept, like slashing, downtime, operational failures and returns that resist forecasting. As a result, many firms have limited themselves to holding spot ETH or spot SOL or avoided the assets entirely.

That dynamic is now changing. A new generation of insurance-backed staking products, structured around the Composite Ether Staking Rate (CESR) benchmark and underwritten by regulated insurers, is reframing staked ETH as something closer to an institutional yield product than a speculative crypto experiment.

For cautious TradFi firms, this shift matters far more than marginal improvements in headline yield. It opens up a fundamental crypto vertical to a new set of investors.

The institutional appeal of staked ETH

Holding spot ETH offers pure exposure to price appreciation and drawdowns. But staked ETH introduces a recurring yield component that improves total return over time and partially offsets volatility. For institutions accustomed to thinking in risk-adjusted terms, this reframes ETH exposure closer to dividend-paying equities rather than growth assets.

Liquid staking tokens further strengthen the case, because they allow institutions to earn staking rewards while retaining balance-sheet flexibility. Positions can be rebalanced, used as collateral, or exited — without interrupting yield generation.

Just as importantly, staked ETH derivatives are increasingly accepted as transparent, over-collateralized instruments. For TradFi firms designing secured lending products, yield-enhanced notes, or delta-neutral strategies, staked ETH becomes usable in structure, not just in theory.

Yet despite these advantages, one obstacle has remained stubborn: risk.

How CESR and insurance change the equation

The CESR is a daily, standardized benchmark rate developed by CoinDesk Indices and CoinFund to measure the average annualized yield of ETH validator staking. It serves as a trusted reference rate for institutional staking and derivatives.

Thanks to this benchmark, a new method to earn a safe, long-term yield on ETH is emerging. Insurance companies like Chainproof (in partnership with IMA Financial Group) offer policies that essentially top up investors’ yield if their validator’s returns fall below the CESR benchmark and guarantee reimbursements if slashing occurs.

Benchmarking staking returns to the CESR — and wrapping that exposure with insurance — fundamentally alters how institutions perceive staking. Instead of open-ended technical risk, institutions get a defined, underwritten exposure. Downtime and operational failures are no longer existential threats to expected returns.

With insurance in place, CESR-linked staking begins to resemble instruments that TradFi already understands. The parallels are familiar: insured municipal bonds, enhanced money-market products, or short-duration credit with external credit support. These are not risk-free instruments, but they are priceable. Suddenly, staked ETH can be slotted into existing risk frameworks.

And once staking risk is benchmarked and insured, institutions can responsibly structure CESR-linked products. Capital-protected notes with staking yield, yield-plus strategies combining staking returns with basis trades, or delta-neutral ETH strategies with insured yield floors all become viable. Without insurance, compliance teams block these ideas.

TradFi firms cannot rely on informal assurances when dealing with regulators, LPs, or internal model validation teams. The CESR insurance model allows them to say: “Our exposure to ETH is benchmarked, insured, and underwritten by a regulated third party.” That single sentence materially changes how staking exposure is evaluated across compliance and fiduciary review processes.

Introducing ETH to the broader economy

With appropriate risk mitigation, CESR-linked staking begins to resemble infrastructure yield rather than speculative crypto return. That shift, more than yield itself, is why cautious TradFi firms are finally paying attention.

Ethereum’s long-term value proposition has always rested on its role as a global settlement infrastructure. Staking is the mechanism by which that infrastructure is secured and value accrues to participants. Insurance-backed staking does not change Ethereum’s economics; it translates them into a language institutions can understand.

Cautious TradFi firms are doing what they have always done: adopting new assets once risks are legible, bounded and transferable. They are not suddenly becoming crypto-native. CESR-linked, insured staking meets their needs, and that’s why they’re now quietly embracing staking, even though they once dismissed it.

Mistral CEO Says AI Companies Should Pay a Tax in Europe

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Arthur Mensch, co-founder and CEO of Europe’s biggest AI vendor, says all AI vendors operating in Europe should pay a levy for the content they employ to train their models.

Mensch floated his proposal in an opinion piece in The Financial Times on March 20.

Paris-based Mistral has made major strides over the past year, positioning itself as the primary alternative to U.S. AI vendors, and placing strong emphasis on data sovereignty for European states.

This approach is paying off, with the company attracting significant funding, as seen in its $2 billion Series C funding round last September.

Despite this success, Mensch said that Mistral — and indeed all European AI vendors — are not competing on a level playing field with American and Chinese companies.

“Major US companies in the US and China are developing their models under less than permissive or non-existent copyright rules, training them domestically on vast amounts of content — including from European sources,” he wrote. “European AI developers, by contrast, operate in a fragmented legal environment that places them at a competitive disadvantage.”

Related:Trump Administration Releases AI Legislative Framework

The situation has been exacerbated, Mensch said, by the fact that the current “opt-out” framework designed to allow rights holders to prevent AI companies from using content for training without permission is proving unworkable.

This scenario, according to Mensch, is serving no one, with AI companies hamstrung by legal uncertainty, and content creators taking increasingly high-profile steps to highlight how vendors are using their work with no authorization.

However, Mensch has come up with a radical proposal, which would not only go some way toward appeasing creators, but would also address the disadvantage he feels Euro vendors face.

“At Mistral, we are proposing a revenue-based levy that would be applied to all commercial providers placing AI models on the market or putting them into service in Europe, reflecting their use of content publicly available online,” he wrote. “Crucially, this levy would apply equally to providers based abroad, creating a level playing field within the European market and ensuring that foreign AI companies also contribute when they operate here.”

Mensch proposed that the funds raised would go into a central pot to support culture and new content creation in Europe, though he did not specify what percentage of revenues should be contributed. However, the Agence France-Presse subsequently quoted Mistral executive Audrey Herblin-Stoop, suggesting a rate of 1% to 1.5%.

Related:U.S. Launches ‘Tech Corps’ to Bolster AI Abroad

Mensch also made clear that his idea is intended as a starting point for discussion rather than a final blueprint, and invited AI developers, policymakers, creators and rights holders to join the debate.

Currently, the European Union allows AI companies to use copyrighted materials for text and data mining, including AI training — except if a creator has “reserved” their rights.

 

 

 

Hyperscale Data (GPUS) Increases Bitcoin Holdings To $44M

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Hyperscale Data, Inc. (NYSE American: GPUS) revealed today that it now holds 627.8970 bitcoin, valued at approximately $44 million as of March 22, 2026.

In addition to its bitcoin assets, the company maintains $47.5 million in cash and restricted cash, bringing its total financial holdings to $91.5 million. This equates to 147.07% of its market capitalization as of March 23, 2026.

This latest report illustrates a steady increase in Hyperscale Data’s bitcoin portfolio; the figure rose from 617 bitcoin reported on March 10, 2026.

The ongoing accumulation aligns with the company’s strategy to reach 100% parity between its bitcoin holdings and market capitalization, which is part of a broader initiative to establish a $100 million digital asset treasury.

Milton “Todd” Ault III, Executive Chairman of Hyperscale Data, reaffirmed the company’s commitment to this strategy, stating, “We continue to make progress towards our goal of accumulating $100 million of Bitcoin on the Company’s balance sheet.”

This indicates they have confidence in bitcoin as an asset and a strategic alignment with a growing trend among corporations that are increasingly adopting bitcoin as part of their treasury strategies.

The current status of Hyperscale Data’s bitcoin holdings, which now surpass its market capitalization, reflects a robust belief in the asset’s potential. By continuing to pursue its goal of a $100 million treasury composed of bitcoin, Hyperscale Data aims to reflect strong financial health and strategic foresight in a rapidly evolving digital asset landscape.

At the time of writing, GPUS is trading near $0.15 a share.

Hyperscale is following the Bitcoin as a treasury strategy playbook

Strategy Inc. (MSTR) has become the flagship case study in the evolution of bitcoin treasury strategies in the corporate world.

Under the leadership of Michael Saylor, Strategy shifted from a traditional software business to a firm whose primary reserve asset is Bitcoin, pioneering a model where BTC sits at the heart of corporate balance‑sheet strategy.

Strategy uses capital markets to finance its BTC accumulation. Instead of hoarding cash or traditional securities, Strategy has consistently issued equity and convertible debt to fund Bitcoin purchases, aiming to maximize its “BTC per share” metric and align shareholder value with long‑term BTC appreciation.

Strategy’s approach functions as both a treasury and a levered Bitcoin exposure vehicle, effectively turning its balance sheet into a high‑beta proxy for the crypto asset.

This model has inspired other corporations like Hyperscale Data to consider adding BTC to their treasuries.

Editorial Disclaimer: We leverage AI as part of our editorial workflow—supporting research, image generation, and quality assurance processes. However, all content is human-led, rigorously reviewed, and approved by our editorial team, with strict standards for accuracy, originality, and integrity. In Bitcoin, as in media: Don’t trust. Verify.

Bitcoin price on track to hit $150,000 by year end despite Iran war, Bernstein says – DL News

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  • Bernstein reaffirms $150,000 Bitcoin price target.
  • That’s despite the Middle East conflict roiling markets.
  • The research and brokerage firm has a history of making bullish Bitcoin price predictions.

Bitcoin‘s price will buck the geopolitical turmoil brought about by the US and Israel’s war with Iran and more than double by the end of the year to hit an all-time high of $150,000.

That’s the case Bernstein analysts made in a March 24 investor’s note shared with DL News. The research and brokerage firm said that the top cryptocurrency’s relative strength versus other assets, coupled with a strong base of long-term holders which includes Michael Saylor’s Strategy, is fuelling its conviction in a blow-out rally in the coming months.

“We believe Bitcoin has found its trough and is now heading higher,” the analysts said in the note. “We retain $150,000 as our 2026 year-end expected price for Bitcoin.”

Bernstein’s renewed conviction comes as the ongoing conflict in the Middle East and its impact on the global economy plagues financial markets.

The price of oil is roughly 30% higher than before the US and Israel first struck Iran on February 28, fuelling inflation concerns among financial analysts and central banks.

Gold, typically viewed as a store of value in times of uncertainty, has fallen over 17% from its pre-war price. US stocks have also taken a broad beating.

Yet amid the chaos, Bitcoin has fared better than most other assets. It’s up almost 8% since the conflict began.

Bitcoin is up almost 8% since the US and Israel attacked Iran.

Bullish signs

Bernstein has listed three reasons for its bullish outlook.

Firstly, Michael Saylor’s Strategy keeps buying. According to Bernstein’s forecasts, the treasury firm has plenty of room to continue scooping up Bitcoin, and shows no signs of slowing.

That’s despite widespread chaos among other Bitcoin treasury firms, and shorts piling into Strategy as they attempt to profit from Bitcoin’s falling price, and the firm’s exposure to it.

Secondly, investors are continuing to buy Bitcoin exchange-traded funds.

Bitcoin ETFs have added $2.2 billion over the last four weeks, and have seen more long-term allocations from wealth managers and institutional funds, including pension and sovereign funds, the Bernstein analysts said.

Finally, existing long-term Bitcoin holders haven’t sold, despite a near 50% drawdown from the asset’s October all-time high.

“Bitcoin holders inactive for more than one year stand at 60% of total supply,” the Bernstein analysts said.

“This ownership structure is unique to Bitcoin signifying long term ‘believers’ who remain insensitive to Bitcoin volatility holding Bitcoin as a ‘store of value.’”

‘Weakest Bitcoin bear case in history’

Bernstein has a history of making bullish Bitcoin price predictions, but has yet to see one of them come through.

In early 2024, the firm first predicted Bitcoin would hit $150,000 by the end of 2025. It then raised that target to $200,000 in June 2024, then reaffirmed the target throughout 2025 and called it “conservative.”

In December as Bitcoin traded around $90,000, Bernstein retracted the $200,000 target and shifted to a new framework that forecast the top cryptocurrency to hit $150,000 by the end of 2026, with a potential cycle high of $200,000 in 2027.

Last month, Bernstein called the Bitcoin selloff, which saw the top cryptocurrency trade below $63,000, the “weakest bear case in history.”

Punters on Polymarket give Bitcoin a 10% chance of hitting $150,000 before the end of the year and a 25% chance that the price will drop as low as $30,000.

Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.

Polkadot (DOT) drops 2.3% as index trades lower

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CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 2044.07, down 0.2% (-3.83) since 4 p.m. ET on Monday.

Ten of 20 assets are trading higher.

Leaders: APT (+4.4%) and XLM (+1.5%).

Laggards: DOT (-2.3%) and XRP (-1.3%).

The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

Bitcoin Bottomed, $150,000 BTC Price This Year

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Wall Street broker Bernstein says bitcoin has likely hit its bottom, reaffirming a $150,000 year-end price target as strong ETF flows and growing corporate treasury demand support a rebound. 

Analysts led by Gautam Chhugani highlighted that Strategy (MSTR), a high-beta proxy for bitcoin, remains resilient, now holding roughly 3.6% of total bitcoin supply, valued at around $53.5 billion, according to StreetInsider.

The firm has continued adding to its holdings at recent lows, raising $7.3 billion in 2026 to expand its position.

Bernstein also noted rising interest in Strategy’s preferred shares, STRC, whose structure helps limit dilution while providing steady long-term capital. 

Despite bitcoin’s sharp pullback from late-2025 highs, the broker characterized the correction as a temporary reset in sentiment rather than a breakdown in fundamentals, with institutional flows and ETF demand pointing to further upside.

Strategy’s multi-billion dollar raise to buy bitcoin

Strategy has moved to significantly expand its capacity to raise capital through at-the-market (ATM) offerings, a step that could further support its aggressive Bitcoin treasury strategy. 

The company disclosed on March 23 that it has added Moelis & Company, A.G.P./Alliance Global Partners, and StoneX Financial as new sales agents under its existing Omnibus Sales Agreement, joining a syndicate that already included major Wall Street firms such as Barclays, Morgan Stanley, TD Securities, and Cantor Fitzgerald.

These additions give Strategy the ability to execute additional ATM programs for its Class A common stock and preferred shares, allowing the company to sell up to $21 billion of new common stock, $21 billion of STRC preferred shares, and $2.1 billion of STRK preferred shares. 

These new programs supplement existing authorizations, while the prior STRK ATM program was terminated and replaced by the new $2.1 billion offering.

Bitcoin surged near $71,000 on Monday at the start of the week after the U.S. President Donald Trump announced a brief pause on planned strikes against Iran, only to retrace as Tehran denied talks had occurred, highlighting market sensitivity to geopolitical uncertainty. 

Iran’s Foreign Ministry, via state media, denied that any talks had occurred in the form Trump described. Bitcoin still held strong. 

Despite all the volatility, BTC has risen roughly 7% since late February, outperforming traditional assets, while technicals suggest consolidation with potential moves toward $85,000–$90,000 if $75,000 is breached.

From OG Bitcoin Miner To Astronaut

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On March 31, 2025, Chun Wang, co-founder of the historic Bitcoin mining pool f2pool, launched as mission commander of Fram2—the first crewed spacecraft to enter a polar orbit. The SpaceX Crew Dragon Resilience lifted off from the Kennedy Space Center on a Falcon 9 rocket into a 90-degree retrograde inclination orbit passing directly over the North and South Poles. No prior crewed mission had achieved this trajectory; the previous highest inclination for humans in orbit was 65 degrees on the Soviet Vostok 6 flight in 1963.

In an exclusive interview with Bitcoin Magazine, Wang shared one of his most memorable moments in space: “I don’t remember much from my time in space, but gazing down at the Earth rotating below, I just kept thinking: we’re flying so fast, how could we possibly get back down to the ground? The distance itself isn’t actually that great, less than 500 km, but the enormous difference in velocity is what matters. It reminded me of what I learned about the uncertainty principle,” he added, referring to Heisenberg’s 1927 physics theorem, which states that there is an inherent limit to how precisely certain pairs of physical properties of a quantum particle can be known simultaneously. The most famous pair is position (x) and momentum (p, which is mass times velocity).

He continued, “Δx ⋅ Δp ≥ ℏ/2: position only makes sense when you consider momentum together with it. Both determine whether two objects can really ‘meet.’ Here, distance isn’t just the difference in position vectors; it must be considered together with the velocity vectors, too.” The two objects he was probably considering were Earth and the Fram2 spaceship he was aboard, both moving at incredible speeds, and which could easily miss each other for landing if not for the minds of great engineers. 

Wang led an all-civilian crew of first-time astronauts: vehicle commander Jannicke Mikkelsen, a Norwegian filmmaker and polar explorer, pilot Rabea Rogge, a German robotics researcher, and mission specialist Eric Philips, an Australian polar explorer. The mission lasted three and a half days with no docking to the International Space Station. The primary objectives were polar Earth observation and execution of 22 research experiments. 

Space may have been the most extreme travel destination for Wang, but it was far from the first. Wang is on a self-declared mission to visit every territory on earth, described on his X profile as “Documenting my travel to every country/territory in the world following ISO 3166: 60% (150 of 249) on 1 planet/moon(s) done and counting.” To date, he boasts over 1153 different flights around the world, averaging 36 a year, including many recent visits to Antarctica and polar regions. 

Wang was not always such an avid traveler, however. Born in 1982 in Tianjin, China, Wang was five years old when his grandfather brought home a world map that sparked a lifelong obsession with exploration, but it wasn’t well into his adulthood that he began traveling the world, after building a legendary career as an early Bitcoin miner and pool operator. Computers entered his life early: he heard about them at age seven and owned his first 486 SX running MS-DOS by 13. He learned to code games and planetary gravity simulations. University followed through programming contests, but he dropped out without a degree and moved between software jobs across China.

Bitcoin entered his world in May 2011. Wang saw two articles on the Chinese tech site Solidot and spent the night reading the Bitcoin wiki. “Driven by curiosity, I opened the wiki link on en.bitcoin.it and studied it for one night. I finally understood everything, and it was like the discovery of the New World,” he wrote in his 2015 memoirs. He borrowed $40,000 from his father, mined on a MacBook at 800 khash/s, then scaled up with GPUs bought in Zhongguancun. Over the first two years, he personally mined 7,700 BTC, netting roughly 2,700 after power costs. He sold most in January 2013 at $11 to repay the loan.

The Amazing Life of Chun Wang: From OG Bitcoin Miner to Astronaut

Early GPU mining rigs in China, the kind of setup Chun Wang used before founding f2pool. (Credit: f2pool official history)

In April 2013 Wang co-founded f2pool with Mao Shihang, known online as Discus Fish. They set up in Wenzhou. Wang coded the backend; Discus Fish handled operations. The pool launched on May 5 and quickly grew to command roughly one-third of Bitcoin’s hashrate at its peak. 

To this day, f2pool mined over 1.3 million BTC, more than 9 percent of all blocks ever produced. It remains one of the largest and longest-running mining pools in Bitcoin’s history. During the 2017 block-size wars, the pool played a quiet but decisive role supporting Bitcoin’s Nakamoto consensus. Wang later stated: “Proof-of-work is the constitution of Bitcoin. Please respect mining and respect the miners. Without miners’ support, we wouldn’t have had SegWit activated, and we wouldn’t have made the Lightning Network possible.”

From 2014 through the early 2020s, Wang kept f2pool operating while navigating industry shifts, including China’s 2021 mining crackdown that pushed operations offshore. In 2017, he discussed the coming proof-of-stake era with Vitalik Buterin. That conversation led him to launch stake.fish in 2018, a non-custodial staking service that became one of the largest validators across Ethereum, Polkadot, Solana, and other networks. The move diversified his infrastructure business across the broader crypto industry, bringing his experience as a large operator to the rapidly transforming crypto market.

To The Moon

The Amazing Life of Chun Wang: From OG Bitcoin Miner to Astronaut

Chun Wang (far right) inside the Crew Dragon capsule with the Fram2 crew, strapped in for launch. (Credit: SpaceX via Space.com)

The next frontier was space. Wang had pitched a private polar-orbit mission to SpaceX since 2023. He funded the entire Fram2 flight himself by selling Bitcoin. No sponsors or government backing. The team trained for eight months in California simulators, doing high-G spins, zero-G flights, emergency drills, and polar survival prep.

Launch came on April 1, 2025, from Kennedy Space Center. Wang commanded from the commander’s seat. “The ride to orbit was much smoother than I had anticipated. Apart from the final minute before SECO, I barely felt any G-forces—it honestly felt like just another flight,” he posted. Zero-g was only noticed when he loosened a small stuffed polar bear by accident, and it started floating. Day one brought space motion sickness for the entire crew. “It felt different from motion sickness in a car or at sea. You could still read on your iPad without making it worse. But even a small sip of water could upset your stomach.”