Sacks' divestment highlights potential conflicts of interest and raises questions about transparency in government crypto initiatives. The post Trump’s crypto czar David Sacks confirms divesting from Solana backer Multicoin appeared first on Crypto Briefing .
In the fast-paced world of cryptocurrency and global finance, understanding the movements of traditional currencies like the US Dollar is crucial. Recent analysis from Citi suggests a compelling narrative: the risk/reward balance still leans favorably towards holding long dollar positions . But what does this mean for you, especially in the context of crypto investments? Let’s dive deep into Citi’s perspective and unpack the factors driving this outlook, and how it could impact your financial strategies. Why Does Citi Believe Risk/Reward Favors Long Dollar Positions? Citi’s stance isn’t arbitrary; it’s rooted in a comprehensive assessment of the current global economic landscape. Several factors contribute to their conviction that the US Dollar remains a strong and attractive asset. Let’s explore some of the key reasons: Global Economic Uncertainty: In times of global economic turbulence, the US Dollar often acts as a safe-haven currency. When investors become risk-averse due to uncertainties like geopolitical tensions, economic slowdowns, or market volatility, they tend to flock to the perceived safety and stability of the US Dollar. This increased demand naturally bolsters the dollar’s value. Interest Rate Differentials: The interest rate policies set by central banks play a significant role in currency valuations. If the US Federal Reserve maintains higher interest rates compared to other major central banks, it can attract foreign investment into dollar-denominated assets, further strengthening the US Dollar . This ‘carry trade’ effect makes holding dollar assets more appealing for investors seeking yield. Resilient US Economy: Despite global headwinds, the US economy has shown remarkable resilience in certain sectors. While not immune to global slowdowns, relative economic strength in the US compared to other major economies can support the dollar. Factors like robust consumer spending, a strong labor market (though this is subject to change), and innovation in sectors like technology contribute to this resilience. Dollar’s Reserve Currency Status: The US Dollar’s status as the world’s primary reserve currency is a fundamental advantage. A significant portion of global trade and financial transactions are conducted in dollars. This inherent demand provides a structural underpinning to the dollar’s strength, making long dollar positions a potentially sound strategy. Understanding the Risk/Reward Dynamics in the Forex Market The concept of risk/reward is central to any investment decision, and currency trading is no exception. Citi’s analysis suggests that the potential rewards of holding long dollar positions outweigh the risks, at least for now. To understand this better, let’s break down the risk and reward components: Factor Potential Reward (Long Dollar) Potential Risk (Long Dollar) Global Slowdown Increased safe-haven demand for USD, strengthening its value. If slowdown is US-centric, dollar could weaken. Interest Rate Hikes Higher US rates attract capital, boosting USD. Aggressive hikes could trigger recession, weakening USD medium-term. Inflation If US inflation remains higher than peers, USD can benefit as Fed tightens policy. If inflation is perceived as temporary and Fed pivots, USD could weaken. Geopolitical Risks USD strengthens as safe haven in times of crisis. Resolution of geopolitical risks could reduce safe-haven demand. As you can see, the ‘reward’ side of the equation for long dollar positions is heavily tied to global uncertainty and the US Dollar’s safe-haven appeal, combined with potential interest rate advantages. The ‘risk’ side primarily involves scenarios where the global economic picture improves significantly, reducing the need for safe havens, or if the US economic outlook deteriorates sharply relative to other regions. How Does Forex Market Sentiment Impact the Dollar? The Forex market is a complex ecosystem driven by a multitude of factors, including economic data, political events, and market sentiment. Sentiment, in particular, can play a significant role in short-term currency movements. If market participants broadly believe that the US Dollar will continue to strengthen, this collective expectation can become a self-fulfilling prophecy. Increased buying pressure pushes the dollar higher, reinforcing the bullish sentiment. Citi’s analysis likely reflects a degree of prevailing positive sentiment towards the dollar. This sentiment could be fueled by: Strong Economic Data Releases: Positive surprises in US economic data, such as jobs reports or inflation figures, can boost confidence in the dollar. Central Bank Communication: Hawkish signals from the Federal Reserve, indicating a commitment to controlling inflation through interest rate hikes, can strengthen dollar sentiment. Geopolitical Developments: Escalating geopolitical tensions or unexpected global events can trigger a flight to safety, benefiting the US Dollar. Technical Analysis: Technical indicators and chart patterns in the Forex market can also influence sentiment. If the dollar is breaking through key resistance levels, it can signal further potential upside. Actionable Insights: Navigating Currency Strength in Your Crypto Strategy So, what are the actionable takeaways for crypto enthusiasts and investors from Citi’s analysis that risk/reward favors long dollar positions ? Here are a few points to consider: USD as a Benchmark: Understand that the US Dollar often serves as a benchmark currency in the crypto world. Many cryptocurrencies are priced and traded against the dollar. A strengthening dollar can influence crypto prices, sometimes creating downward pressure, particularly for Bitcoin and other major cryptocurrencies when paired against USD. Portfolio Diversification: Currency exposure is a form of diversification. If you primarily hold crypto assets, understanding and potentially incorporating exposure to the US Dollar (or other currencies) can be a strategic move. This doesn’t necessarily mean converting all your crypto to USD, but being aware of currency dynamics is crucial. Risk Management: If you are trading crypto pairs against the US Dollar, a strong dollar environment might require adjustments to your risk management strategies. Consider hedging strategies or adjusting position sizes based on your outlook for the dollar. Macroeconomic Awareness: Stay informed about macroeconomic trends and factors that influence currency valuations. Monitor economic data releases, central bank policies, and geopolitical events. These factors can indirectly impact the crypto market through their influence on currencies like the US Dollar . Consider Dollar-Cost Averaging (DCA) into USD (or USD-pegged stablecoins): In times of USD strength, strategically accumulating USD or stablecoins pegged to USD via DCA might be a prudent approach, allowing you to have dry powder available for future crypto market opportunities. The Enduring Appeal of Currency Strength Citi’s assessment that risk/reward still favors long dollar positions underscores the enduring appeal of the US Dollar in the global financial system. While the cryptocurrency market operates with its own unique dynamics, it is not isolated from the broader macroeconomic environment. Understanding the forces that drive currency valuations, particularly for the dominant US Dollar, is essential for navigating the complexities of both traditional and digital asset markets. By staying informed and considering these insights, you can make more strategic decisions in your crypto journey. To learn more about the latest Forex market trends, explore our article on key developments shaping currency strength and global economic outlook.
Bitcoin ( BTC ) is trading in bear territory, but from a broader perspective, the asset remains in a bull market after reaching a record high of $108,000 in late January. Now, technical indicators hint at when the bull market for the maiden digital currency might end. Specifically, Bitcoin’s 50-week moving average ( MA ) is serving as a crucial support level, and a weekly close below it could signal the end of the ongoing bull market, according to crypto analyst Mikybull Crypto . Bitcoin price analysis chart. Source: TradingView In a March 4 X post , the analyst pointed out that a similar breakdown in 2021 marked the end of that bull run. Bitcoin peaked at $69,000 before closing below the 50-week MA at $42,500, triggering a prolonged bear market. Today, BTC is testing this key level again, now at around $75,000. Bitcoin price analysis chart. Source: TradingView The MA50 acts as a foundation during bull cycles, smoothing out price trends. Historically, losing this level has led to deeper corrections or the start of bear markets. Bitcoin potential rebound zone Meanwhile, analyst CipherX believes Bitcoin’s real move is yet to come, but investors should anticipate further losses before any upside push. In this case, the expert predicted a potential dip toward $78,000 before a strong bounce. Bitcoin price analysis chart. Source: TradingView His outlook indicated that BTC recently faced a double-top rejection near $110,000, breaking below the $94,000 support range. The next key level sits around $78,000, a strong historical resistance-turned-support area. Therefore, if Bitcoin holds this level, it could trigger a rebound to new highs. Bitcoin’s latest slump follows the hype around President Donald Trump’s strategic crypto reserves announcement, which briefly pushed the cryptocurrency above $90,000 before it tumbled. The move sparked backlash, with critics like economist and Bitcoin skeptic Peter Schiff accusing Trump of a “ crypto rug pull ” for including multiple cryptocurrencies rather than focusing solely on Bitcoin as he promised on the campaign trail. Adding to market jitters, Trump’s latest tariff plans are moving forward, fueling over $1 billion in liquidations across exchanges. Bitcoin’s losses could also extend further as institutional demand weakens. In this line, on March 3, spot Bitcoin exchange-traded funds ( ETFs ) recorded a $74.2 million outflow, following $2.39 billion in net outflows last week. If outflows persist, Bitcoin could test $80,000, a key level to watch. A deeper drop could invalidate hopes of a March rebound. Bitcoin price analysis Bitcoin was trading at $83,262 at press time, down 10% in 24 hours. On the weekly chart, losses stand at 6% as the bearish sentiments remain sustainable. Bitcoin seven-day price chart. Source: Finbold As things stand, Bitcoin’s price action hinges on the $78,000 and $80,000 support zone, where a breakdown could deepen losses, while a rebound may reignite bullish momentum toward $94,000 and beyond. Featured image via Shutterstock The post Bitcoin bull market will be over if this happens, according to expert appeared first on Finbold .
The cryptocurrency market is currently experiencing significant fluctuations, with Bitcoin’s value seeing a notable decline amidst broader market volatility. As investors react to shifting economic conditions, the urgency for regulatory
WHITE HOUSE BACKS EFFORT TO REPEAL BROKER DEFI RULE, DEEMED AS THREAT TO CRYPTO COMMUNITY
We’re thrilled to announce that ANON and AAVAAI are now available for trading on Kraken! Funding and trading ANON and AVAAI trading will be live as of 15:00 UTC today, Mar 4, 2025. To add an asset to your Kraken account, navigate to Funding, select the asset you’re after, and hit ‘Deposit’. Make sure to deposit your tokens into networks supported by Kraken. Deposits made using other networks will be lost. Trade on Kraken Please note: Trading via Kraken App and Instant Buy will be available once the liquidity conditions are met (when a sufficient number of buyers and sellers have entered the market for their orders to be efficiently matched). Geographic restrictions may apply. Here’s some more information about these assets: Hey Anon (ANON) Hey Anon (ANON) is a privacy-focused cryptocurrency designed for truly anonymous transactions. Built with zero-knowledge proofs, it enables untraceable payments while ensuring security and decentralization. Ideal for users who value financial privacy, ANON allows seamless peer-to-peer transfers without exposing personal data or transaction history. Ava AI (AVAAI) Ava AI (AVAAI) is a decentralized artificial intelligence token powering next-gen AI applications. Designed for machine learning, automated trading, and AI-driven smart contracts, AVAAI enables developers to build intelligent, self-learning financial and data models on-chain. Users can stake AVAAI to access premium AI services and governance features. Ready to trade but don’t have a Kraken account yet? Sign up today ! Get Started with Kraken Will Kraken make more assets available? Yes! But our policy is to never reveal any details until shortly before launch – including which assets we are considering. All of Kraken’s available tokens can be found here , and all future tokens will be announced on our Listings Roadmap and social media profiles . Our client engagement specialists cannot answer any questions about which assets we may be making available in the future. These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell, stake or hold any cryptoasset or to engage in any specific trading strategy. Kraken does not and will not work to increase or decrease the price of any particular cryptoasset it makes available. Some crypto products and markets are regulated and others are unregulated; regardless, Kraken may or may not be required to be registered or otherwise authorized to provide specific products and services in each market, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the cryptoasset markets can lead to loss of funds. Tax may be payable on any return and/or on any increase in the value of your cryptoassets and you should seek independent advice on your taxation position. Geographic restrictions may apply. See Legal Disclosures for each jurisdiction here . The post ANON and AVAAI are available for trading! appeared first on Kraken Blog .
The Federal Reserve Banks Atlanta branch indicates that the first quarter under Donald Trump has contracted by as much as 2.8%.
In a bold move that could redefine the future of the European tech landscape, Mistral AI CEO Arthur Mensch has challenged telecom giants ( telcos ) to step into the realm of hyperscaler infrastructure. Speaking at the Mobile World Congress in Barcelona, Mensch passionately advocated for telcos to invest in building robust data centers , positioning themselves as key players in the burgeoning regional AI ecosystem . But what does this mean for the cryptocurrency and tech-savvy audience? Let’s dive deep into this potentially transformative shift. Why Should Telcos Become Hyperscalers in the AI Ecosystem? Mensch’s core argument revolves around the immense opportunity that the AI revolution presents for decentralizing the cloud. Currently, the cloud market is heavily dominated by US giants like Amazon, Google, and Microsoft. Mistral AI, a European foundational model maker, believes it’s time for Europe to carve out its own space. Here’s why Mensch’s call to action is significant: Boosting Regional AI Ecosystems : More domestic data centers mean more localized infrastructure to support the growth of European AI companies. This reduces reliance on foreign tech and fosters innovation within the region. Decentralizing the Cloud : By having more players, especially telcos , become hyperscalers , the cloud market becomes less concentrated, offering more options and potentially better pricing for businesses and consumers. Strategic Autonomy : Mensch explicitly called for reducing reliance on US tech, advocating for homegrown solutions. While acknowledging the current lack of non-US alternatives in some areas, he emphasized a pragmatic approach of prioritizing European tech where possible. Mistral AI Leading by Example: Building its Own Data Center Mistral AI isn’t just talking the talk; they are walking the walk. Mensch revealed that the company is investing in building its own data center in France. This move demonstrates their commitment to the vision of a more decentralized and European-centric AI ecosystem . Furthermore, Mistral is moving “slightly down the stack” to better serve data centers , indicating a strategic shift towards providing infrastructure solutions as well. Consolidation in Telecoms: A Necessary Step? Interestingly, Mensch also voiced support for consolidation within the telcos sector. He argued that fewer, larger telcos in each EU market would streamline partnerships and accelerate the adoption of AI-ready infrastructure. This perspective suggests that strategic mergers and acquisitions could be on the horizon in the European telecoms landscape. What’s in it for Telcos? AI Opportunities Abound Mensch outlined several compelling business opportunities for telcos in the age of AI: Network Upgrades for Personalized Data Streams : AI will drive increasingly personalized data streams, requiring significant network upgrades. Telcos are perfectly positioned to lead these infrastructure developments, working hand-in-hand with AI companies like Mistral. Distribution Partnerships for AI Consumer Products : Telcos have vast consumer reach. Partnering with AI companies for distribution can ensure broader access to powerful AI systems for the general public. Mistral’s partnership with Free in France, offering Le Chat AI assistant to subscribers, serves as a prime example. Operating Expense Reduction through AI : AI itself can be a powerful tool for telcos to optimize their operations and reduce costs, further enhancing their bottom line. Navigating the EU AI Act: Fragmentation is the Real Challenge While Mensch acknowledged the EU AI Act, he downplayed concerns about over-regulation for startups like Mistral. Instead, he highlighted market fragmentation across the 27 EU member states as the more significant hurdle. He suggested that dealing with diverse regulations and market conditions in each country poses a greater challenge than the overarching AI Act itself. The Future is Specialized AI Looking ahead, Mensch predicts a future where AI models become increasingly specialized. Mistral AI is focusing on capturing data from every interaction between models and humans to develop these specialized AI systems – “ to make specialized AI system that will be your own ,” as he stated. This vision points towards a future of highly customized and efficient AI solutions tailored to specific needs and applications within the AI ecosystem . Key Takeaways for the Crypto and Tech Community For those in the cryptocurrency and broader tech space, Mistral CEO’s message is clear and compelling: Investment in Data Centers is Crucial : The growth of AI hinges on robust data center infrastructure. This presents investment opportunities and underscores the importance of supporting data center development. European Tech Independence is Gaining Momentum : The push for a stronger European AI ecosystem and reduced reliance on US tech is a significant trend to watch. It could lead to new partnerships and investment flows within Europe. Telcos are Emerging as Key AI Infrastructure Players : Telcos are not just traditional communication providers anymore. They are poised to become vital infrastructure partners in the AI revolution, offering diverse opportunities for collaboration and innovation. Focus on Decentralization : The call for decentralizing the cloud resonates with the core principles of the crypto community. A more distributed and diverse cloud landscape is beneficial for innovation, resilience, and competition. Mistral AI’s bold vision and strategic moves are setting the stage for a potentially transformative shift in the European tech landscape. The call for telcos to embrace the hyperscaler game is not just a sales pitch; it’s a strategic imperative for building a stronger, more independent, and innovative AI ecosystem in Europe. To learn more about the latest AI ecosystem trends, explore our article on key developments shaping AI features.
Summary I believe the lack of clarity on Core42’s power extension before March 31, 2025 creates significant downside risk, despite management's confidence in finding other customers. While HPC hosting could offer high EBITDA margins, I'm skeptical about near term improvements due to the lack of FY 2025 financial guidance. Furthermore, management's goal of adding 100-150MW of HPC hosting annually lacks concrete expansion plans beyond the Cayuga site integration, making me question their ability to scale as projected. If economic uncertainty and Bitcoin price weakness persist, I anticipate downward pressure on TeraWulf’s stock, making it unattractive within my short investment timeframe. Since DeepSeek took everyone by surprise in January, TeraWulf Inc. ( WULF ) has seen its share price lose the positive upward trend it had been building since May 2024. TradingView Volume broke records last Friday following Q4 and FY 2024 earnings, with more than 127.5 million shares changing hands. Even though the company missed revenue and EPS guidance, shares went up by 16%. In this article, I explain why I believe a long position in this stock does not offer an asymmetric risk/reward profile within a 6- to 12-month investment timeframe. Why Going Short Doesn't Make Sense The company is expanding into HPC (high power computing) hosting, targeting a power increase of 100–150 MW/year planned over the next three years. While this figure might seem relatively small compared to the total infrastructure capacity of 750MW at Lake Mariner (although only 245 MW are expected to be active once Miner Building 5 goes live in 2025), it is quite significant when compared to the company's current Bitcoin mining capacity of 195 MW. Strike where the iron is hot, baby! - Author. Following the heuristic above, expanding into HPC hosting is the right decision, in my view. Fred Thiel (MARA’s CEO) might not share the same vision, as noted by one of his answers during last year's Q3 Q&A earnings call : I think anybody else trying to go into this business today is looking at a race to the bottom from a cost perspective and a very challenging capital market, once people wake up to the fact of how difficult it really is to run an AI HPC hosting business when you're not a hyperscaler yourself. Aside from TeraWulf, there is only one big miner expanding into HPC hosting: Core Scientific ( CORZ ). Their strategy is not focused on buying GPUs. In fact, during this interview , TeraWulf's CFO clarified that they are not planning to compete in GPUs with any of their customers. Their main goal is to provide data center infrastructure. Instead of leasing GPUs, they lease everything needed to keep GPUs running at top speed, such as power, racks, and cooling systems. Is this profitable? Yes. During the interview, the CFO guided a 70% EBITDA margin for HPC hosting. In fact, he considered this as a conservative estimate, as Core Scientific is guiding an 80% EBITDA margin for the same service. As a side note, TeraWulf's estimation includes maintenance capex (3% - 5% of revenue). In my view, regardless if the economics of HPC hosting makes sense or not in the long run, investors want to see a change in the company’s strategy. Mining Bitcoin became too old, too soon, and now this activity is not something that excites shareholders anymore. From an economic perspective, an additional 100–150 MW of HPC hosting each year could translate (according to the CEO) to $1.4–2.1 billion in potential revenue over a 10-year term. ...an incremental 100 to 150 megawatts of HPC revenue will generate $1.4 billion to $2.1 billion over 10 years or an incremental $140 million to $210 million of revenue per year. Since they are looking at a 10-year timeframe, they seem to be promoting a long-term narrative. This is something I like, considering the speculative nature (and therefore, shorter investment timeframes) that surrounds stocks in crypto mining. However, my investment timeframe is short, too short when compared to many long-term investors. So, is there anything else that can move the share price upward in the next 6–12 months? Yes. TeraWulf has secured in December their first-ever data center lease with Core42. It includes a 10-year lease for a 72.5 MW data center, expected to generate $1 billion in revenue over that period. There are two extension windows, 5 years apart, including a 3% annual escalator. There is more. This large deal includes an option for Core42 to increase the contracted power, with the option expiring on March 31, 2025. If they choose to extend, an announcement like this could boost the share price for at least a few quarters. What if it doesn’t happen? (this was actually one of the analyst's questions during the Q&A): Q: And then hypothetically, if there wasn't an exercise with Core42 on the additional capacity, I assume you guys have a plan B. And if you do, can you indulge us on what that potential customer might look like in any kind of time frame? Thanks. - Darren Aftahi Q4 earnings call A: To the extent we had available power , I can assure you that we are in multiple dialogues and with potential counterparties . They all meet the same quality that Core42 and the guarantor G42 have met for us, which is they're great credits. They are long-term contracts. Other positive announcements for the company include the Lake Mariner expansion in Upstate New York. Unsurprisingly enough, management mentioned HPC computing among the reasons for the expansion. …to accelerate the build out of our HPC hosting business at Lake Mariner. The proceeds were strategically allocated to developing the 20-megawatt Colocation Building 1, which we refer to as CB1 and upgrading our miner fleet. The expansion includes 50 more acreages with a 35-year initial lease and a 45-year extension option. Additionally, the company is planning to integrate the Cayuga site, a satellite site in Upstate New York. We are prioritizing Cayuga in 2025 and expect this site will add 150 megawatts of capacity in 2026, which can be scaled to 400 megawatts by 2028 . Last but not least, the company is aiming for a 35% increase in hash rate for its Bitcoin mining fleet. They are targeting this improvement once the S21 Pro miners have been fully deployed. As of Q4 2024, over 90% of these efficient miners have been deployed. The Bear Case One of the things that caught my attention during the latest earnings call was the lack of financial guidance for FY 2025. As I noted in the previous section, management's tone seemed quite confident in finding other customers to take on the additional power capacity if the 135MW extension option is not exercised by Core42. Well, here is why it’s important to be street-smart and have your own independent opinion when listening to these earnings calls. Call me crazy, but I'm not convinced by their confidence. Why? Let me put it this way: if management was completely sure about adding more power capacity in case Core42 doesn't extend, they would have given some guidance. Even a conservative revenue estimate that they could easily surpass. The lack of guidance makes me wonder if other customers would actually step in to take the extra power capacity in H1 2025, if Core42 decides not to extend their needs. Moving on, from a profitability perspective, I don’t expect the company to be GAAP net profitable any time soon. In FY 2024, the company reported a net operating loss of $76.2 million. That’s a big jump from the $29.4 million in FY 2023. However, it's not nearly as close as Core Scientific's net loss of $1.32 billion in FY 2024. Now, most of this operating loss is due to the depreciation of their assets and stock-based compensation. When discounting for these, and other items (see below), the company has a positive adj. EBITDA. TeraWulf | Investor Presentation | FY 2024 Adjusted EBITDA is not a metric I like. I want GAAP values, baby! I need to see a positive GAAP EBITDA timeline before I reconsider my bear stance on TeraWulf. Another factor I discussed in the previous section was the focus on integrating the Cayuga site in 2025. Beyond this integration, I noticed some uncertainty over additional site integrations. This was one of the CEO’s replies during the Q&A to a question related to their expansion beyond Cayuga: So I would tell you that beyond New York, we're very interested in Montana. We're very interested in Maryland and Virginia. And we continue to look for opportunities elsewhere. There are a lot of sites available in Texas. We're looking at them, but we're not there yet. I’ll be direct, at this stage, I was expecting something more concrete, beyond just a few vague geographic preferences. I would expect more certainty considering that the company is shooting for 100 to 150 megawatts of HPC hosting annually for the next three years. Other factors to consider for the bear case are the volatility of Bitcoin prices, especially during times of economic turmoil. Economic turmoil... did the author see a chart of the S&P500 recently? (some may say) Look, there is no doubt we are still in a bull run. There are no signs of a correction so far. However, I am not optimistic about its continuation anymore. Why? Since December last year, the S&P500 has been trying to break all-time highs without much success. Inflation seems to be one of the reasons that keep investors on the sidelines. This fear may be driven by the new administration's tariff policy. Trump himself said that he expects short-term pain coming from these tariffs. TradingView From a price action perspective, if the S&P500 breaks the ascending triangle pattern above, I foresee a sharp sell-off lasting a good part of 2025 before we see any all-time highs. Considering Bitcoin's performance in 2022 (high inflation, high interest rates), I am concerned about a similar pattern between H1 2025 and H1 2026. TradingView Conclusion To wrap up, TeraWulf’s expansion into HPC hosting looks good on paper, but uncertainties still remain. Management's confidence in securing additional customers is not backed by financial guidance yet. I'd keep a close eye on Q1 2025 earnings, as there is a good chance they will reveal full-year guidance. Analysts expect 80% YoY revenue growth and a positive EPS of 0.24 in FY 2025. Any guidance below that could lead to a sell-off post earnings. I believe the company might have a hard time surprising the market with its guidance if Core42 doesn’t extend the initial agreement before the end of March. From a profitability perspective, the GAAP net loss is not particularly attractive, and the Bitcoin price volatility could add more pressure to their loss. While the Core42 deal and Cayuga site expansion offer potential upside, I am not seeing a clear execution on expansion plans beyond the Cayuga site expansion. For now, I rate TeraWulf as a strong sell.
El Salvador, which broke new ground by accepting Bitcoin as a legal currency, continues to backpedal on the issue. The Congress of El Salvador has approved the Bitcoin reform bill presented by President Nayib Bukele in order to comply with the requirements of the $1.4 billion loan agreement reached with the International Monetary Fund (IMF) at the end of January. The IMF, under the agreement, asked the El Salvadoran government to reduce its involvement in Bitcoin and make Bitcoin voluntary and optional for private sector traders. With this approved Bitcoin reform bill, BTC has been made voluntary and optional for private sector traders. Previously, it was a legal requirement for businesses to accept Bitcoin as payment. Related News: IMF Requested, El Salvador Took the First Step Back on Bitcoin! Is BTC's Official Currency Status Changing? New Bitcoin Requests Came From IMF! The IMF, which has imposed restrictions on Bitcoin, has made new demands aimed at further restricting BTC purchases as part of the $1.4 billion agreement it made with El Salvador. Accordingly, the IMF is trying to tighten restrictions on Bitcoin purchases by the public sector in El Salvador, after the private sector. The new demands aim to prevent the public sector from voluntarily purchasing Bitcoin and issuing related debt. IMF El Salvador Managing Director Méndez Bertolo said that with the new demands, the risks associated with Bitcoin have decreased. “The authorities have made amendments to the Bitcoin Law that clarify the legal nature of Bitcoin and remove the basic features of legal tender from the law. “Bitcoin adoption will be voluntary, tax payments will be made in US dollars, and the role of the public sector in the Bitcoin project will be limited.” The IMF is also demanding that El Salvador phase out public participation in state-backed Bitcoin wallet Chivo, liquidate the Fidebitcoin trust set up to support Bitcoin adoption, and publish audited financial statements of both Fidebitcoin and Chivo. The government is required to disclose all Bitcoin holdings held by public institutions, as requested by the IMF, which is seeking to increase transparency. This means providing the IMF with a comprehensive list of cold and hot wallet addresses and the exact amounts held. The IMF plans to conduct regular reviews to ensure necessary compliance in March, June, July and December 2025. *This is not investment advice. Continue Reading: Bitcoin (BTC) Pressure on El Salvador Continues! IMF Makes New Demands!