Bitcoin Magazine

Human Rights Foundation Grants 1 Billion Satoshis to 20 Freedom Tech Projects Worldwide

The Human Rights Foundation (HRF) has announced a new wave of funding through its Bitcoin Development Fund (BDF), distributing 1 billion satoshis — approximately $1.1 million USD — to 20 projects around the world. 

The grants, awarded to developers, educators, and activists spanning Asia, Africa, Latin America, and Europe, aim to strengthen Bitcoin’s role as a tool for human freedom and resistance to financial repression.

HRF has a mission to empower people living under authoritarian regimes through open-source technologies that enable private communication, censorship-resistant finance, and decentralized coordination. 

Since launching the Bitcoin Development Fund in 2020, HRF has provided more than $9.6 million in Bitcoin to 319 projects across 62 countries. 

The foundation’s approach merges human rights advocacy with technical development, supporting builders who are creating practical tools for dissidents, journalists, and ordinary citizens in repressive environments.

“Bitcoin is more than just a monetary innovation,” HRF said in a statement. “It’s a survival mechanism for billions of people living without political or economic freedom.”

This round of grants supports projects advancing everything from core Bitcoin development and mining decentralization to regional education and financial autonomy programs. Each reflects a piece of a larger puzzle: a global freedom technology ecosystem built on Bitcoin’s permissionless infrastructure.

Human Rights Foundation Grant Recipients

Nymius: Bitcoin’s transparent ledger is essential to its design, but it also exposes dissidents to surveillance from authoritarian states seeking to monitor transactions and networks. Silent Payments enables individuals to receive Bitcoin through unique, one-time addresses derived from a static public key, but its effectiveness depends on wallet adoption. Nymius, a Bitcoin Dev Kit (BDK) contributor, will integrate Silent Payments into the BDK. With this grant, dozens of wallets and applications built with the BDK will be able to offer users greater financial privacy.

Daniela Brozzoni: Bitcoin nodes (computers running the Bitcoin software) reveal user metadata when connecting with one another. This opens the door for regimes or hackers to track or isolate activists and dissidents running Bitcoin nodes. Daniela Brozzoni is a Bitcoin Core developer who has been researching this vulnerability and publishing mitigation proposals to counter the tactics. With this grant, she will gather community feedback and implement fixes to make the network safer.

Build on Bitcoin (BOB) Buidlers Residency: Every day, users often find freedom technologies difficult to use, which limits their accessibility and impact. BOB Buidlers Residency in Bangkok has supported three cohorts of free and open-source developers to advance Bitcoin’s privacy, decentralization, and mining. With HRF’s funding, a fourth cohort of four developers will improve usability across Bitcoin, Lightning, nostr, and ecash, making freedom tech more accessible to those who need it most.

2140 Foundation (Stichting 2140): Bitcoin developers, especially those in autocratic countries, often struggle with burnout, isolation, and a lack of incentives to complete long-term projects. The 2140 Foundation, founded by open-source developers Josie Baker and Ruben Somsen, is a co-working space in Amsterdam that provides mentorship, collaboration, and employment to global contributors advancing Bitcoin’s long-term security, resilience, and scalability. With HRF funding, the foundation will support the work of  developers from authoritarian states to strengthen Bitcoin as a human rights tool.

Cashu for Community Sovereignty: In many parts of Latin America, governments restrict financial flows by blocking payments, freezing accounts, and, at times, disrupting internet access. Cashu for Community Sovereignty, founded by Forte11, addresses this with ecash, which enables quick and private payments that even work offline. The initiative will train 10 communities in authoritarian environments to deploy Cashu mints and Lightning Network nodes. With this funding, communities facing repression will develop a stronger infrastructure for financial freedom.

Bhartiya Bitcoin: As India advances a central bank digital currency (CBDC) and financially represses political opposition, Bitcoin offers a path to financial freedom. However, education is often inaccessible to non-English speakers. Bhartiya Bitcoin produces free, culturally relevant Bitcoin content in Hindi, Marwari, Sindhi, and Assamese. With HRF support, Bhartiya Bitcoin will expand into Marathi, Bengali, Gujarati, Kannada, and Malayalam to make Bitcoin more accessible to the more than 1.4 billion people living under increasingly autocratic rule in India.

Bitcoin Education for Lebanon’s Liberty & Empowerment (BELLE): In Lebanon, a collapsing currency, banking restrictions, and asset confiscations have stripped people of financial stability. The Lebanese Institute for Market Studies is launching BELLE, a project to teach political activists and youth to use Bitcoin to preserve their purchasing power. With HRF support, BELLE will provide Arabic-language workshops, educational videos, and media outreach to strengthen individuals’ ability to resist financial repression and secure their financial futures.

Bitcoin Arusha: Tanzania’s government restricts the use of foreign currency and limits dissidents’ banking access, while the local currency depreciates, leaving many citizens trapped in a cycle of poverty. To alleviate this, Bitcoin Arusha provides culturally rooted, Swahili-language Bitcoin education in northern Tanzania through music, dance, and events. HRF support will strengthen Bitcoin Arusha’s resilience and empower communities through economic opportunities.

Bitcoin for Fairness: Human rights defenders and non-governmental organizations (NGOs) often lack the knowledge to use Bitcoin to bypass repressive financial restrictions. Bitcoin for Fairness (BFF) is an educational initiative that disseminates Bitcoin knowledge to the global majority. In 2026, BFF will focus its initiatives in Zimbabwe, Mozambique, and Zambia – countries scarred by currency crises and periods of one-party rule – and deliver workshops, micro-seed funding, mentorship, and educator training. With HRF funding, BFF will empower activists and civic organizations in Southern Africa with censorship-resistant, permissionless financial tools.

Exile Hub: Burma’s military junta uses financial repression, exile, and imprisonment to crush peaceful resistance. Exile Hub’s Bitcoin for Exiles initiative will pilot a Bitcoin-based financial autonomy program designed to meet the needs of Burma’s democratic movement. With HRF support, the program will offer training, privacy-focused toolkits, and workshops to equip dissidents within Burma and in exile with the tools to survive, organize, and resist the junta’s financial repression.

Alberto Gangarossa: Today, most Bitcoin mining hardware relies on closed-source software that can expose user data and create dependence on third parties. Pluto, built by developer Alberto “Derek” Gangarossa, is the first open-source mining fleet management platform that gives miners control over their operations without third-party dependence. With HRF support, Pluto will empower individuals in repressive environments to mine Bitcoin privately, independently, and securely, further decentralizing the Bitcoin network.

WantClue: Bitcoin mining is dominated by industrial operations that use proprietary hardware and software. Over time, this could put Bitcoin’s decentralization and accessibility at risk. Bitaxe counters this trend by providing an affordable and open-source miner for individuals. WantClue maintains the Bitaxe firmware and produces educational content that makes mining more accessible to dissidents and individuals in closed societies. With HRF support, WantClue will strengthen mining decentralization and expand access to self-sovereign financial infrastructure for those under repression.

Peter Tyonum: Developers in adverse political and economic environments need accessible and secure wallet software infrastructure to build freedom tools. Developer Peter Tyonum contributes to the BDK, which abstracts wallet software into usable plug-and-play components and makes it easier for developers to create censorship-resistant tools. With this grant, Tyonum will continue to help developers worldwide create accessible, permissionless Bitcoin applications.

BitScript: An inclusive developer base is essential to Bitcoin’s long-term decentralization. BitScript, a free, open-source Bitcoin developer education program, trains developers in authoritarian and inflationary environments across Latin America and Africa to build protocol-level freedom technologies. Global development helps ensure that Bitcoin serves as a lifeline for people facing repression. HRF’s grant will help BitScript democratize protocol knowledge to ensure the network reflects global needs.

Code Orange Dev School: Many regions lack the technical education to build, maintain, and use Bitcoin. To address this, the Code Orange Dev School in Indonesia teaches developers and individuals across Asia to contribute to open-source Bitcoin projects, run nodes, and use privacy-enhancing tools like ecash, fedimint, and nostr. HRF’s support will help equip communities with tools to resist authoritarianism.

Demo Lab: As authoritarian governments in Latin America tighten their grip on financial and political power, there is an urgent need for civic and financial education. Demo Lab’s Freedom Academy introduces Bitcoin as a tool for financial independence and teaches practical skills for saving and transacting securely. Through this grant, the Freedom Academy will prepare the next generation of Latin Americans to defend democracy and achieve economic sovereignty.

Nostr under Autocracy: In Venezuela, Nicolás Maduro’s brutal dictatorship restricts traditional communication channels, prevents journalists from exposing the regime’s brutality, and financially suppresses civil society. Nostr under Autocracy, led by democracy activist Jesús González, will train Venezuelan activists and human rights defenders to use the open-source nostr protocol for private, censorship-resistant communication and payments. With HRF support, this project will help Venezuelan dissidents speak freely online and build movements to resist Maduro’s digital and financial repression.

KernelKind: Dictators restrict communication, manipulate online content, and restrict dissidents’ financial access to silence dissent. Notedeck is a Nostr browser created by Damus that makes it easier to build censorship-resistant apps with integrated Bitcoin payments. Its first app, Columns, introduces modular feeds and a marketplace for user-controlled algorithms, while Dmail will enable private, decentralized messaging with email interoperability. With this grant, Notedeck will continue to merge censorship-resistant communication with financial freedom and foster an ecosystem of apps for dissident communications and transactions.

Eric Holguin: Many people living under authoritarian regimes face censorship, Internet shutdowns, and frozen bank accounts that cut them off from communication and commerce. Nostr developer Eric Holguin is working to build censorship-resistant apps with integrated Bitcoin payments by contributing to Damus and Nostr projects that empower individuals to communicate and transact without centralized control. With this grant, he will continue expanding free speech and financial freedom tools for people resisting repression worldwide.

Craig Warmke and Troy Cross: As authoritarian regimes expand financial surveillance and roll out central bank digital currencies (CBDCs), many people remain dangerously unaware of their risks to individual liberties. Transactional Freedom, a forthcoming book co-written by philosophers Craig Warmke and Troy Cross, makes the moral and legal case for recognizing a universal and constitutional right to transact. With HRF support, Warmke and Cross will examine financial repression in authoritarian regimes and its impact on human rights, activism, and financial freedom.

Together, these 20 grantees form a diverse coalition of builders, thinkers, and educators working to fortify Bitcoin’s role as a global freedom network. While their methods vary — from protocol research to street-level education — their shared mission is clear: to ensure that financial and informational freedom remain accessible to everyone, everywhere.

This post Human Rights Foundation Grants 1 Billion Satoshis to 20 Freedom Tech Projects Worldwide first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Bitcoin Price Jumps to $115,000 As Analyst Says It May Never Fall Below $100K Again

Bitcoin price surged to $115,000 on Monday, rising more than 1% in 24 hours, as optimism over easing U.S.–China trade tensions and renewed investor appetite for risk assets lifted global markets. 

According to Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered Bank, Bitcoin price may “never fall below $100,000 again” if this week’s macro tailwinds continue.

In a note to clients, Kendrick said that improving trade relations between Washington and Beijing have flipped last week’s market fear into “hope.” 

U.S. Treasury Secretary Scott Bessent’s weekend statement that restrictions on China’s rare earth exports could be postponed for a year, combined with reports that Beijing plans to buy large quantities of U.S. soybeans, sparked a relief rally across equities, commodities, and crypto.

China, U.S trade deals and FOMC rate cuts

The agreement, expected to be finalized after the upcoming Trump–Xi summit in South Korea, has renewed risk appetite and pushed the bitcoin-to-gold ratio back above pre-October 10 levels — the date when 100% tariff threats sent markets tumbling.

Kendrick pointed to fresh inflows into spot bitcoin ETFs as another key signal of strength. Over $2 billion exited U.S. gold ETFs late last week, and if even half of that re-enters bitcoin funds, he said, it would mark a major vote of confidence. 

The analyst also highlighted macro tailwinds, including expectations for a 25-basis-point rate cut at Wednesday’s Federal Open Market Committee (FOMC) meeting — a move widely seen as bullish for bitcoin. 

Meanwhile, investors are watching a packed earnings calendar from both tech and crypto heavyweights. Microsoft, Meta, and Google are set to report on Wednesday, followed by Apple, Amazon, Coinbase, and Strategy (formerly MicroStrategy) later in the week.

“If this week goes well — bitcoin may never fall below $100,000 again,” Kendrick said.

Bitcoin price outlook

While bulls have made modest progress with Bitcoin, stronger resistance remains overhead at $117,600 and $122,000, leaving bears largely in control. 

If Bitcoin manages to surpass $122,000, professionals note the next target could be the upper boundary of a broadening wedge pattern at $128,000.

Support levels remain critical for maintaining bullish momentum. The key short-term support at $106,900 held throughout last week, helping stabilize the market. 

Falling below this level could open the path toward the $105,000–$102,000 support zone, which has already been tested twice, with a third test raising the likelihood of a breakdown. 

Beyond that, $96,000 represents a crucial long-term support level for the broader bull market, acting as a do-or-die floor if prices decline further.

As of press time, bitcoin was trading at $115,041, up 1.22% over the past 24 hours.

This post Bitcoin Price Jumps to $115,000 As Analyst Says It May Never Fall Below $100K Again first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Strategy (MSTR) Earns S&P ‘B-’ Rating, Marking a Major Milestone for Bitcoin-Backed Credit

For the first time in financial history, a major credit rating agency has formally evaluated a company built on a bitcoin-backed credit model. In news covered by Bitcoin Magazine, the S&P Global Ratings has assigned Strategy Inc (MSTR) a ‘B-’ Issuer Credit Rating with a Stable outlook, recognizing not just the company, but the emergence of Bitcoin as collateral inside the credit system. This marks a watershed moment for corporate finance. Bitcoin-backed credit is no longer theoretical. It is now a rated financial reality.

Why This Moment Matters

Until now, Bitcoin had been accepted by equity markets, ETFs, and corporate treasury conversations — but credit markets remained untouched. Credit markets are where legitimacy is ultimately decided because they determine who can borrow, at what cost, and against which assets.

By rating Strategy Inc, S&P has implicitly acknowledged:

• Bitcoin can underpin structured debt and preferred equity.
• A bitcoin-backed credit strategy can be modeled, rated, and priced using traditional frameworks.
• Bitcoin is shifting from speculative asset to recognized collateral within corporate capital structures.

This is not a marketing milestone — it is a structural one. Bitcoin has entered the language of risk-adjusted return, yield, and covenants.

How S&P Interpreted Strategy’s Bitcoin-Backed Capital Model

The rating is speculative grade, but the Stable outlook is critical. It signals S&P’s belief that Strategy can continue to service obligations and access capital markets without selling its Bitcoin reserves — a foundational principle of bitcoin-backed credit.

S&P’s analysis mentions several possible weaknesses:

• High concentration of assets in Bitcoin
• Low U.S. dollar liquidity and negative risk-adjusted capital under S&P’s methodology
• Currency mismatch: long Bitcoin, short U.S. dollar debt obligations
• Limited operating cash flow outside software revenue

However, they also credited Strategy with unique structural strengths:

• No near-term debt maturities before 2027–2028
• Proven access to capital markets — both equity and debt
• A capital stack purpose-built to accumulate Bitcoin without diluting shareholders
• Active liability management via convertible debt and preferred stock instruments

In short, S&P is signaling that bitcoin-backed credit can function — if managed with discipline.

Implications for the S&P 500 and Institutional Legitimacy

Strategy Inc met the S&P 500 inclusion criteria in profitability and market capitalization but was passed over in 2024, widely believed to be due to its Bitcoin-heavy balance sheet. That decision now appears less defensible.

With a formal credit rating, the company shifts from “unrated anomaly” to “rated issuer.” For institutional capital, that distinction matters.

• Index committees can now reference a risk rating — not just a narrative.
• Treasury teams and insurers can benchmark exposure to bitcoin-backed credit against traditional corporate debt.
• This increases (not guarantees) the probability of future index inclusion and passive capital flows.

Bitcoin entering equity indices begins with Bitcoin entering the credit models behind them.

Bitcoin-Backed Credit: The Ideal State of Treasury Strategy

This rating does more than validate Strategy — it validates the architecture of bitcoin-backed credit as the superior evolution of corporate treasury management.

Phase 1 was equity-funded Bitcoin accumulation — high growth but shareholder dilution.
Phase 2 introduced convertible debt and preferred equity — allowing companies to acquire Bitcoin through capital markets rather than operating earnings.
Phase 3, now underway, is full institutional recognition of bitcoin-backed credit — rated, benchmarked, and capable of scaling.

This is the endgame:

• Use capital markets to borrow in fiat
• Use proceeds to acquire Bitcoin
• Service liabilities without selling reserves
• Increase Bitcoin-per-share over time, without issuing new common stock

With S&P formally rating Strategy’s issuer credit, this model moves from innovation to infrastructure.

Why Corporate Finance Leaders Need to Pay Attention

This rating does not compel companies to adopt Bitcoin. But it removes the claim that Bitcoin cannot be integrated into traditional credit systems.

From now on:

• Bitcoin can be factored into risk-weighted capital models and treasury policy.
• Credit and liquidity committees must understand how bitcoin-backed credit affects financing costs, refinancing risk, and balance sheet leverage.
• Investors can now compare Bitcoin-based capital structures against other high-yield or hybrid debt strategies.
• Boards can no longer dismiss Bitcoin as “unratable” or “unclassified.”

A New Chapter for Corporate Finance and Capital Markets

What makes this moment different isn’t that another institution “acknowledged” Bitcoin. That’s happened before with ETFs, GAAP accounting changes, and treasury allocations.

What’s different is where the recognition has now occurred: Not in equity markets. Not in payment networks. But in credit — the foundation of corporate finance and monetary systems.

When a credit rating agency like S&P evaluates a company built on Bitcoin, it does three things that have never happened before:

• It forces Bitcoin into risk models normally reserved for banks, sovereigns, and investment-grade corporations.
• It legitimizes bitcoin-backed credit as a structure that can be analyzed, refinanced, and scaled — not dismissed as speculative.
• It signals to other corporates and lenders that they must now understand Bitcoin not as an investment, but as collateral.

This rating does not mean the model is risk-free. It means the model is real enough to underwrite, stress test, and lend against.

That is the real inflection point — not that S&P approved of Bitcoin, but that they were forced to measure it.

Disclaimer: This content was written on behalf of Bitcoin For Corporations. This article is intended solely for informational purposes and should not be interpreted as an invitation or solicitation to acquire, purchase or subscribe for securities.

This post Strategy (MSTR) Earns S&P ‘B-’ Rating, Marking a Major Milestone for Bitcoin-Backed Credit first appeared on Bitcoin Magazine and is written by Nick Ward.

Bitcoin Magazine

Bitcoin Closes at $114,530 Amid FOMC Volatility: Bulls Eye $117,600 Resistance

Bitcoin Price Weekly Outlook

Bitcoin’s price action was rather subdued last week, keeping traders guessing whether or not we would see another large drop in price entering the weekend. Price held above the lows, however, slowly plodding a little bit higher to close out the week at $114,530. Bulls should not be overly disappointed with this price action, as they did reclaim the $112,200 resistance level, and are now closing in on conquering the next resistance level at $115,500. The bears are still sitting comfortably in control, though, with stronger resistance levels hanging overhead that the bulls have yet to challenge. This may be an interesting and volatile week ahead, with the FOMC meeting on Wednesday and a slough of large companies reporting third-quarter earnings.

Key Support and Resistance Levels Now

Nothing has materially changed from last week’s resistance levels as the bulls have made little progress. Heavy resistance is still sitting at $117,600 and $122,000 above there, so the bears aren’t feeling any real pressure yet. If by chance this week gets above $122,000, we will look to the upper boundary of our broadening wedge pattern at $128,000.

Holding above the prior week’s low is a positive sign for the bulls, while they managed to maintain price above the key short-term support of $106,900 last week as well. This level must hold going forward, as closing below $106,900 opens the door back down to the $105,000 to $102,000 support zone that has already been tested twice. A third test of this support zone would be more likely to break it than to hold it. $96,000 is the long-term bull market support below here, a do-or-die support level if the price were to slide down and test it.

Outlook For This Week

Expect significant volatility this week, especially on Wednesday, as we have the Federal Reserve’s interest rate decision and ensuing Powell speech, followed by major earnings reports from Microsoft, Meta, and Google after market close. Bulls will look to hold $109,000 as a floor into this week, as doing so would position them to maintain upward momentum. Looking at the Momentum Reversal Indicator, we are currently sitting on an 8-count entering Monday. This is a warning candle that we may see momentum begin to fade. Tuesday should bring the 9-count at which point we should expect at least a pause on upward momentum and a 1 to 4 day correction in price. So if bulls can push price up to the 0.618 Fibonacci Retracement at $117,600 by Monday night or Tuesday morning, we should expect to see a rejection ther,e and we can re-assess after Wednesday’s FOMC and earnings reports play out.

Market mood: Bearish – While the bulls gained some ground last week, the bears remain stoic and strong. The bulls must push the price past $122,000 to take back control.

The next few weeks
If bulls can manage to survive through this week, there are still some potential headwinds on the horizon. The US-China tariff dispute may or may not be resolved by the end of next week; a negative outcome will likely send all markets lower. Additionally, the US courts’ ruling on the legality of Trump’s tariffs is expected by November 5th. If these tariffs are reinstated, we should expect markets to head lower to price this impact in.

Terminology Guide:

Bulls/Bullish: Buyers or investors expecting the price to go higher.

Bears/Bearish: Sellers or investors expecting the price to go lower.

Support or support level: A level at which the price should hold for the asset, at least initially. The more touches on support, the weaker it gets and the more likely it is to fail to hold the price.

Resistance or resistance level: Opposite of support.  The level that is likely to reject the price, at least initially. The more touches at resistance, the weaker it gets and the more likely it is to fail to hold back the price.

Fibonacci Retracements and Extensions: Ratios based on what is known as the golden ratio, a universal ratio pertaining to growth and decay cycles in nature. The golden ratio is based on the constants Phi (1.618) and phi (0.618).

Broadening Wedge: A chart pattern consisting of an upper trend line acting as resistance and a lower trend line acting as support. These trend lines must diverge away from each other in order to validate the pattern. This pattern is a result of expanding price volatility, typically resulting in higher highs and lower lows.

Momentum Reversal Indicator (MRI): A proprietary indicator created by Tone Vays. The MRI indicator tracks buyer and seller momentum and exhaustion, providing signals to indicate when to expect momentum to fade and accelerate.

This post Bitcoin Closes at $114,530 Amid FOMC Volatility: Bulls Eye $117,600 Resistance first appeared on Bitcoin Magazine and is written by Ethan Greene - Feral Analysis and Juan Galt.

Bitcoin Magazine

S&P Assigns ‘B-’ Rating to Strategy (MSTR), Citing Bitcoin Exposure and Liquidity Risk

S&P Global Ratings assigned a ‘B-’ issuer credit rating to bitcoin-juggernaut Strategy, reflecting the company’s heavy concentration in bitcoin and limited dollar liquidity. The outlook is stable.

S&P said the rating reflects Strategy’s “high bitcoin concentration, narrow business focus, weak risk-adjusted capitalization, and low U.S. dollar liquidity.” The company reported $8.1 billion in pre-tax earnings in the first half of 2025, almost entirely from appreciation in the value of its bitcoin holdings.

The firm said in their release that while Strategy’s balance sheet is dominated by bitcoin, its management has prudently staggered debt maturities and maintained flexibility by financing primarily with equity.

In other words, this rating means Strategy can meet debt obligations for now but faces significant default risk if market conditions worsen.

Strategy — now effectively a bitcoin treasury company — raises capital through equity and debt issuances to purchase and hold bitcoin. Its securities give investors varying exposure to bitcoin across its capital structure. 

Just today, founder and former CEO Michael Saylor announced a purchase of 390 BTC between October 20 and October 26, spending approximately $43.4 million at an average price of $111,053 per Bitcoin. The firm still operates a small AI-powered analytics business, though it remains roughly breakeven.

JUST IN: S&P Global Ratings has rated a #Bitcoin treasury company for the first time — Michael Saylor’s Strategy pic.twitter.com/oP4j5UIJlj

— Bitcoin Magazine (@BitcoinMagazine) October 27, 2025

A Strategy first

This S&P rating is the first-ever rating of a Bitcoin Treasury Company by a major credit rating agency.

According to S&P, Strategy’s risk-adjusted capital ratio was significantly negative as of June 30, 2025, because the agency deducts bitcoin assets from equity in its calculation. 

Strategy reported $8.1 billion in pre-tax earnings in the first half of 2025. Operating cash flow during the period was negative $37 million.

The agency cited several key risks, including a currency mismatch between Strategy’s bitcoin-denominated assets and dollar-denominated obligations such as interest, debt principal, and preferred dividends. 

S&P also pointed to cybersecurity risks given the company’s reliance on custodians to safeguard its bitcoin.

Strategy holds bitcoin valued at roughly $70 billion, against $8 billion in convertible debt, much of which matures beginning in 2028. Annual preferred dividends total about $640 million, which the company plans to fund through additional stock and preferred equity issuance.

While Strategy’s access to capital markets remains a core strength, S&P warned that a sharp decline in bitcoin prices or loss of investor confidence could impede its ability to refinance debt or pay dividends, potentially leading to bitcoin sales “at severely depressed prices.”

S&P said the rating could be downgraded if access to markets weakens or debt management risks rise. An upgrade is unlikely unless the company improves its U.S. dollar liquidity or reduces reliance on convertible debt.

Strategy’s trillion-dollar endgame

Earlier this year, Michael Saylor laid out an ambitious plan to reshape global finance through Bitcoin.

In an interview with Bitcoin Magazine, Saylor described an “endgame” in which Strategy accumulates a trillion-dollar bitcoin balance sheet, growing 20–30% annually, and uses it as the foundation for a new global credit system.

At the core of his vision is scale: with enough BTC on corporate balance sheets, the long-term appreciation of Bitcoin — historically around 21% annually — would supercharge the capital base.

On top of that, Saylor sees an opportunity to issue bitcoin-backed credit at yields significantly higher than traditional fiat-based debt, potentially two to four percentage points above corporate or sovereign rates.

He argued that over-collateralization could make this system safer than even AAA-rated debt, while simultaneously fueling broader financial growth.

Saylor’s vision extends beyond credit markets. As Bitcoin becomes embedded in corporations, banks, insurers, and sovereign wealth funds, public equity indexes could gradually become indirect bitcoin vehicles.

This, he says, would benefit equity markets and corporate balance sheets while introducing higher yields and greater transparency into financial products.

The implications are broad: savings accounts could yield 8–10% instead of near-zero, money market funds could be denominated in bitcoin, and insurance products could be reimagined around bitcoin collateral.

This post S&P Assigns ‘B-’ Rating to Strategy (MSTR), Citing Bitcoin Exposure and Liquidity Risk first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

IBM Launches “Digital Asset Haven” to Help Banks and Governments Enter into Crypto 

IBM announced a platform designed to help financial institutions, governments, and large corporations securely manage their crypto and blockchain-based assets, like bitcoin. 

The platform, developed in collaboration with crypto wallet provider Dfns, combines IBM’s infrastructure and security expertise with Dfns’ institutional-grade custody and wallet technology.

At its core, Digital Asset Haven wants to simplify what has long been a tricky and complex landscape for institutions. 

Many banks and governments have been cautious about crypto because it involves multiple blockchains, regulatory hurdles, and security risks. IBM’s platform wants to change this and consolidate these moving parts, offering a single solution.

The partnership with Dfns is central to the platform. Dfns has built more than 15 million wallets for over 250 clients, focusing on secure and compliant operations. 

By combining this with IBM’s high-assurance infrastructure, Digital Asset Haven is meant to provide institutions with the same reliability and governance standards that traditional financial systems offer. 

That includes multi-party approvals, policy-driven governance, and support for cold storage, where crypto keys are kept offline for maximum security.

IBM’s support for 40 blockchains

The platform also supports more than 40 blockchains, both public and private, giving institutions flexibility to engage with a wide range of digital assets, from traditional cryptocurrencies to emerging stablecoins and tokenized assets.

It integrates third-party services for identity verification, anti-money laundering checks, and yield generation, and offers developer-friendly APIs to enable further customization and innovation.

“This is more than custody,” said Clarisse Hagège, CEO of Dfns. “We’ve built a platform that orchestrates the full digital asset ecosystem, moving digital assets from pilot programs to production at a global scale.” 

Tom McPherson, General Manager of IBM Z and LinuxONE, emphasized that the platform brings IBM’s signature resilience and data governance to the emerging digital asset space, helping institutions explore new products without compromising on security or compliance.

The launch comes at a time when regulated digital assets are gaining momentum. 

Stablecoins, for example, have become increasingly used in payments following the U.S. adoption of legislation earlier this year, and major banks are exploring blockchain-based money transfers. 

This post IBM Launches “Digital Asset Haven” to Help Banks and Governments Enter into Crypto  first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

One Bitcoin a Day: Prenetics Raises $48M to Accelerate Bitcoin Treasury Strategy

Does one bitcoin a day keep the doctor away?

Prenetics Global Limited (NASDAQ: PRE), a Hong Kong-based health sciences company, announced today the successful pricing of a public equity offering expected to generate approximately $48 million in gross proceeds, with the potential to raise up to $216 million if all accompanying warrants are exercised. 

The capital raise is intended to support the expansion of its supplement brand, IM8, while bolstering Prenetics’ Bitcoin treasury strategy.

The company has a disciplined Bitcoin accumulation plan, purchasing one bitcoin per day since August 1, 2025, and currently holds approximately 275 BTC, valued at $31 million as of October 27.

Prenetics said the offering attracted a distinguished group of institutional and individual investors, including major crypto platforms and financial firms such as Kraken, Exodus (NYSE: EXOD), GPTX by Bitcoin mining pioneer Jihan Wu, American Ventures LLC, XtalPi (2228.HK), DL Holdings (1709.HK), and Mythos Group, among others.

The offering, led by sole placement agent Dominari Securities LLC, consists of 2,992,596 Class A ordinary shares and/or pre-funded warrants, along with Class A and Class B warrants exercisable for up to 5,985,192 additional shares. 

The Class A warrants carry an exercise price of $24.12 — 50% above the offering price of $16.08 — while the Class B warrants are exercisable at $32.16, or a 100% premium. Both warrants are immediately exercisable upon issuance and have five-year terms.

High-profile strategic investors like Aryna Sabalenka, the world No. 1 tennis player, and Adrian Cheng, a prominent Asian entrepreneur, also increased their stakes in the company. David Beckham is also a prominent backer.

Prenetics’ supplement brand IM8 hit $100 million ARR in 11 months and aims for $180–$200 million in 2026 within the $704 billion global market, the company said. 

CEO Danny Yeung highlighted the company’s dual focus on health supplements and cryptocurrency. 

“IM8 has huge global potential, evidenced already by our extraordinary traction across multiple markets. We’re particularly honored to have the backing of a distinguished group of new and existing strategic investors who share our confidence in our dual-engine strategy,” Yeung said. 

Bitcoin accumulation: One bitcoin per day

As mentioned earlier, Prenetics has a Bitcoin accumulation plan, purchasing one bitcoin per day since August 1, 2025, and currently holds approximately 275 BTC, valued at $31 million as of October 27.

Financially, Prenetics will hold roughly $100 million in cash post-offering, bringing its total liquidity — including Bitcoin holdings — to around $131 million. 

The company also plans to review and divest non-core business units to focus resources on IM8 and Bitcoin initiatives.

The offering is expected to close on or around October 28, 2025, pending customary conditions. Prenetics positions itself as pursuing a bold long-term ambition: to reach $1 billion in annual revenue alongside $1 billion in Bitcoin holdings within the next five years, combining health supplement growth with cryptocurrency accumulation as a cornerstone of its corporate strategy.

IM8’s operational performance underscores the brand’s subscription-driven growth model, with more than 12 million servings shipped to over 420,000 customer orders across 31 countries. 

Average order values have risen from $110 to $145 following the launch of IM8’s Daily Ultimate Longevity product, reflecting strong consumer demand for premium offerings.

This post One Bitcoin a Day: Prenetics Raises $48M to Accelerate Bitcoin Treasury Strategy first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Trump-Backed American Bitcoin Adds 1,414 Bitcoin Amid U.S. Expansion

American Bitcoin Corp. (Nasdaq: ABTC), a Trump family–backed mining platform, has expanded its Bitcoin holdings to 3,865 bitcoin, adding 1,414 bitcoin since September through a combination of mining production and secondary market purchases.

The Miami-based firm, which describes itself as “America’s Bitcoin infrastructure backbone,” said the latest accumulation includes coins held in custody and those pledged for miner purchases under its ongoing procurement deal with Bitmain. 

The update continues a rapid expansion trajectory that began earlier this year when Hut 8 spun out its U.S. mining arm as a separate, publicly traded entity.

American Bitcoin initially held around 500 BTC at the time of the carve-out, then purchased another 1,726 BTC between July and August for approximately $205 million. 

Those holdings were pledged to Bitmain as collateral for a $314 million order of 16,299 Antminer U3S21EXPH units — nearly the full 15 EH/s option under the companies’ strategic supply agreement. Most of those machines will be hosted at Hut 8’s new Vega site in Texas, a 400-megawatt facility central to American Bitcoin’s push toward 25 EH/s of proprietary hashrate.

“We believe one of the most important measures of success for a Bitcoin accumulation platform is how much Bitcoin backs each share,” said Eric Trump, co-founder and chief strategy officer. “As part of that conviction, we are focused on providing transparent updates as we aim to increase our holdings.”

JUST IN: Trump Family-backed BTC miner American Bitcoin acquires 1,414 Bitcoin.

They now hold 3,865 Bitcoin pic.twitter.com/21dgPKboOG

— Bitcoin Magazine (@BitcoinMagazine) October 27, 2025

Executive Chairman Asher Genoot added that American Bitcoin’s integrated mining model allows it to lower its average cost per Bitcoin compared with treasury-style vehicles that buy on the open market. 

“That structural advantage allows us to compound Bitcoin value per share more efficiently for our investors,” he said.

Shares of ABTC have been volatile since their September debut, rising 11% on Friday to close at $5.62 after recovering from midweek lows below $5. 

The company, valued around $5.1 billion, remains one of the most closely watched plays in the sector — both for its aggressive expansion plans and its deep ties to the Trump family.

At the time of writing, the stock is trading at $5.83 and Bitcoin is trading at $115,000 after a couple of tumultuous weeks.  

Gryphon, American Bitcoin merger

Earlier this year, Gryphon Digital Mining merged with American Bitcoin Corp., the Trump family–backed subsidiary of Hut 8, to form what they claim could become the most efficient pure-play Bitcoin miner in the industry. 

The all-stock merger saw Gryphon shareholders own about 2% of the combined entity and American Bitcoin stakeholders hold 98%.

The merger, now finalized, provides American Bitcoin with a faster route to public markets and combines Gryphon’s mining technology with American Bitcoin’s capital strength and large-scale reserve strategy.

This post Trump-Backed American Bitcoin Adds 1,414 Bitcoin Amid U.S. Expansion first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Bitcoin Price Rebounds Above $115,000 As Strategy Buys 390 More Bitcoin

Bitcoin’s price surged above $115,000 on Monday as Strategy, the largest corporate holder of Bitcoin, announced another significant purchase of Bitcoin. The business intelligence firm acquired 390 BTC between October 20 and October 26, spending approximately $43.4 million at an average price of $111,053 per Bitcoin.

According to a Form 8-K filing released today, Strategy’s total Bitcoin holdings have now reached 640,808 BTC, with an aggregate purchase price of $47.44 billion. The company’s average purchase price stands at $74,032 per Bitcoin, including fees and expenses.

The latest acquisition was funded through proceeds from Strategy’s At-The-Market (ATM) equity programs, specifically through the issuance of preferred shares under its STRF, STRK, and STRD ATM programs. The company raised a combined total of $43.4 million during the period to finance these purchases.

The announcement comes amid a growing trend of companies adopting Bitcoin treasury strategies. Recent data indicates that publicly traded companies now hold over $110 billion worth of Bitcoin, with Strategy alone accounting for approximately $74 billion of that total.

BREAKING: STRATEGY BUYS ANOTHER 390 #BITCOIN FOR $43.4 MILLION pic.twitter.com/0pjWpC1Syh

— Bitcoin Magazine (@BitcoinMagazine) October 27, 2025

The emergence of Bitcoin treasury companies has accelerated notably in 2025, with Germany’s aifinyo AG recently announcing plans to accumulate 10,000 BTC by 2027. This follows similar moves by companies across Europe and Asia, signaling a broader institutional acceptance of Bitcoin as a treasury reserve asset.

The Bitcoin treasury model has moved from experimental to established corporate strategy. We’re seeing new companies enter this space almost weekly, recognizing Bitcoin as the ultimate treasury reserve asset.

Bitcoin’s price responded positively to Strategy’s announcement, trading above $115,000 as of press time. Bitcoin has shown strong momentum in recent days, supported by growing institutional adoption and the approaching 2026 halving.

Strategy’s stock (MSTR) has also shown positive movement, rising 3% in pre-market. Recent regulatory developments have further supported the Bitcoin treasury trend. Strategy recently received favorable guidance from the IRS and Treasury regarding the treatment of unrealized crypto gains in Corporate Alternative Minimum Tax (CAMT) calculations, eliminating concerns about potential tax liabilities for long-term Bitcoin holdings.

As more companies adopt Bitcoin treasury strategies and regulatory frameworks become clearer, the trend appears poised to continue. With Strategy leading the way and new entrants like aifinyo AG joining the space, corporate Bitcoin adoption is increasingly becoming a global phenomenon, spanning various industries and regions.

This post Bitcoin Price Rebounds Above $115,000 As Strategy Buys 390 More Bitcoin first appeared on Bitcoin Magazine and is written by Vivek Sen.

Bitcoin Magazine

Trump Picks SEC Crypto Counsel Michael Selig to Lead CFTC

President Donald Trump has selected Michael Selig, chief counsel for the Securities and Exchange Commission’s crypto task force, to chair the Commodity Futures Trading Commission (CFTC).

Selig’s nomination, first reported by Bloomberg, marks Trump’s second attempt to fill the CFTC’s top post, following the stalled nomination of Brian Quintenz, a16z crypto’s global policy chief, amid opposition from Gemini co-founder Tyler Winklevoss. 

Selig, who serves as an aide to SEC Chairman Paul Atkins, has been instrumental in coordinating regulatory approaches between the SEC and CFTC on financial and crypto market oversight.

The CFTC, which regulates futures, swaps, and prediction markets, is gaining greater prominence as Congress considers new crypto market structure legislation. 

Before joining the SEC, he was a partner at Willkie Farr & Gallagher, specializing in asset management.

Selig’s appointment will require Senate confirmation.

JUST IN: President Trump selects Michael Selig as CFTC chair amid crypto growth. pic.twitter.com/VeFZITp8U6

— Bitcoin Magazine (@BitcoinMagazine) October 24, 2025

President Trump’s growing support for crypto

President Donald Trump also recently granted a full pardon to Binance founder Changpeng Zhao, calling his prosecution part of the prior administration’s “war on cryptocurrency.” 

The move, confirmed by the White House, clears Zhao’s record and echoes a major shift in the government’s approach to the crypto industry.

Selig’s appointment comes as momentum behind U.S. crypto legislation accelerated this week as Coinbase CEO Brian Armstrong said the industry was “90%” of the way toward securing passage of the Digital Asset Market Clarity Act, or CLARITY Act. 

Despite a partial government shutdown, lawmakers from both parties reportedly made major progress on the long-awaited market structure bill.

Armstrong met with senators from both parties, including Majority Leader Chuck Schumer, Sens. Kirsten Gillibrand, Cynthia Lummis, and Tim Scott, describing the discussions as “very productive.” 

The bill, which passed the House in July with a bipartisan 294–137 vote, aimed to clarify which digital assets fall under the SEC versus the CFTC, while providing rules for decentralized finance (DeFi), stablecoins, and custody services.

The final sticking points centered on how to regulate DeFi and whether consumers could earn rewards on stablecoins. Crypto advocates urged lawmakers to target regulation at intermediaries rather than open-source code and warned that the banking lobby sought to limit yield on stablecoin holdings.

Despite procedural delays from the shutdown, optimism remained high. Lummis said she expected the bill to reach President Trump’s desk before year-end, calling it the most significant bipartisan step toward U.S. crypto clarity to date.

This post Trump Picks SEC Crypto Counsel Michael Selig to Lead CFTC first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Swiss Bitcoin-Only App Relai Secures MiCA License in France

Swiss Bitcoin app Relai has become one of the first Bitcoin-only companies to receive regulatory approval under Europe’s landmark Markets in Crypto-Assets (MiCA) framework. 

The Zurich-based firm announced today that it has been granted authorization as a Crypto-Asset Service Provider (CASP) by France’s Financial Markets Authority (AMF), according to a note shared with Bitcoin Magazine.

The approval marks a significant moment not just for Relai, but for the broader Bitcoin ecosystem in Europe. The MiCA regulation, which came into effect earlier this year, establishes uniform rules for crypto companies across the EU, aiming to increase investor protection and reduce regulatory fragmentation between member states. 

While large exchanges like Binance and Coinbase are still navigating the complex licensing process, Relai’s early authorization gives it a head start as one of the first Bitcoin-only firms to achieve compliance.

“We’re incredibly proud to be one of the first Bitcoin companies to get the MiCA license and are eager to expand to France first — and Europe in a second step,” said Julian Liniger, co-founder and CEO of Relai. “This is a big moment for Bitcoin adoption on the continent.”

Relai is expanding a bitcoin-only vision across Europe

Founded in Zurich in 2020, Relai has grown despite a rough regulatory environment for digital assets.

The company closed a Series A funding round last year and surpassed 500,000 app downloads, establishing itself as a user-friendly gateway for European retail investors seeking exposure to Bitcoin without intermediaries.

With the MiCA license secured, Relai can now “passport” its services across the EU — meaning it can operate in all 27 member states once formal notification procedures are complete. 

The company plans to introduce a suite of new features tailored to European users, including Instant SEPA payments, higher trading limits, fixed-price transparency, and enhanced security standards.

Relai also intends to invest in education and community-building, launching localized learning resources and sponsoring Bitcoin events across Europe. 

“Our goal is clear: bringing Bitcoin to as many people as possible — simple, secure, and regulated,” said Adem Bilican, co-founder and president of Relai EU.

The company is also strengthening its governance with a newly appointed advisory board, featuring industry veterans Jean Guillaume, Daniel Astraud, and Herve de Kerdrel, who will provide guidance on regulatory compliance and strategic growth. 

Relai plans to leverage its MiCA approval to expand across Europe, with marketing campaigns and app updates scheduled for 2026.

Yesterday, Blockchain.com announced it received a MiCA license as well, granted by the Maltese Financial Services Authority (MFSA),

This post Swiss Bitcoin-Only App Relai Secures MiCA License in France first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Alpha Arena Reveals AI Trading Flaws: Western Models Lose 80% Capital in One Week

Can AI trade crypto? Jay Azhang, a computer engineer and finance bro from New York, is putting this question to the test with Alpha Arena. The project pits the greatest large language models (LLM) against each other, each with 10 thousand dollars worth of capital, to see which can make more money trading crypto. The models include Grok 4, Claude Sonnet 4.5, Gemini 2.5 pro, ChatGPT 5, Deepseek v3.1, and Qwen3 Max. 

Now, you might be thinking “wow, that’s a great idea!” and you would be surprised, at the time of writing, three out of the five AIs are underwater, with Qwen3 and Deepseek — the two Chinese open source models — leading the charge. 

That’s right, the western world’s most powerful, closed source, proprietary artificial intelligences run by giants like Google and OpenAI, have lost over $8,000 dollars, 80% of their crypto trading capital in little over a week, while their eastern open source counterparts are in the green.

The most successful trade so far? Qwen3 — moisturised and in its lane — with a simple 20x bitcoin long position. Grok 4 — to no one’s surprise — has been long Doge with 10x leverage for most of the competition… having at one point been at the top of the charts along with Deepseek, now close to 20% underwater.  Maybe Elon Musk should tweet a doge meme or something to, you know, get Grok out of the dog house. 

Meanwhile, Google’s Gemini is relentlessly bearish, being short on all the crypto assets available to trade, a position that echoes their general crypto policy over the past 15 years. 

Last but not least is ChatGibitty, which has made every bad trade possible for a week straight, a remarkable achievement! It takes skill to be that bad, especially when Qwen3 just longed bitcoin and went fishing. If this is the best closed-source AI has to offer, then maybe OpenAI should just keep it closed source and spare us.

A new benchmark for AI

All joking aside, the idea of pitting off AI models against each other in a crypto trading arena has some very profound insights. For starters, AI can not be pre-trained on answers to knowledge tests with crypto trading since it is so unpredictable, an issue that other benchmarks suffer from. To put it another way, many AI models are being given the answers to some of these tests in their training, and so of course they perform well when tested. But some research has demonstrated that slight changes to some of these tests lead to radically different AI benchmark results.

This controversy begs the question: What is the ultimate test of intelligence? Well, according to Elon Musk, Iron Man enthusiast and creator of Grok 4, predicting the future is the ultimate measure of intelligence. 

The ability to predict the future is the best measure of intelligence https://t.co/W6WriRGt9N

— Elon Musk (@elonmusk) September 5, 2025

And let’s face it, there’s no future more uncertain than the short-term price of crypto. In the words of Azhang, “Our goal with Alpha Arena is to make benchmarks more like the real world, and markets are perfect for this. They’re dynamic, adversarial, open-ended, and endlessly unpredictable. They challenge AI in ways that static benchmarks cannot. — Markets are the ultimate test of intelligence.” 

This insight about markets is deeply embedded in the libertarian principles from which Bitcoin was born. Economists like Murray Rothbard and Milton Friedman made the case over a hundred years ago that markets were fundamentally unpredictable by central planners, that only individuals making real economic decisions with something to lose could make rational economic calculations.

In other words, the market is the most difficult thing to predict as it depends on the individual perspectives and decisions of intelligent individuals throughout the world, and thus, it is the best test of intelligence.

Azhang mentions in its project description that the AIs are instructed to trade not just for gains, but for risk-adjusted returns. This risk dimension is critical, as one bad trade can wipe out all previous returns, as seen, for example, in the downfall of Grok 4’s portfolio. 

There’s another question that remains, which is whether these models are learning from their experience trading crypto, a matter that is not technically easy to achieve, given that AI models are very expensive to pre-train in the first place. They could be fine-tuned with their own trading history or other people’s history, and they might even keep recent trades in their short-term memory or context window, but that can only take them so far. Ultimately, the right AI trading model might have to really learn from its own experiences, a technology that was recently announced among academic circles but has a long way to go before it becomes a product. MIT calls them self-adaptating AI models. 

How do we know it is not just luck? 

Another analysis of the project and its results so far is that it may be indistinguishable from a ‘random walk’. A random walk is akin to throwing dice for every decision. What would that look like on a chart? Well, there’s actually a simulator you can use to answer that question; it would not look too different, actually. 

This question of luck in markets has also been described quite carefully by intellectuals like Nassim Taleb in his book Antifragile. In it, he argues that from the perspective of statistics, it is perfectly normal and possible for one trader, say Qwen3 in this case, to be lucky for a whole week straight! Leading to the appearance of superior reasoning. Taleb goes a lot further than that, arguing that there are enough traders on Wall Street that one of them could easily be lucky for 20 years in a row, developing a god-like reputation, with everyone around them assuming this trader is just a genius, until, of course, luck runs out. 

Thus, for Alpha Arena to produce valuable data, it will actually have to run for a long time, and its patterns and results will need to be replicated independently as well, with real capital at stake, before they can be identified as different than a random walk.

Ultimately, it’s great to see the open-source, cost-efficient models like DeepSeek outperform their closed-source counterparts so far. Alpha Arena has so far been a great source of entertainment, as it has gone viral on X.com over the past week. Where it goes is anyone’s guess; we will have to see if the gamble its creator took, giving $50,000 to five chatbots to gamble on crypto with, pays off in the end. 

This post Alpha Arena Reveals AI Trading Flaws: Western Models Lose 80% Capital in One Week first appeared on Bitcoin Magazine and is written by Juan Galt.

Bitcoin Magazine

Bitcoin Price Jumps to $111,000 as Softer CPI Data Fuels Rate-Cut Bets

Bitcoin price surged past $111,000 today after new U.S. inflation data showed a milder-than-expected rise in consumer prices, strengthening expectations that the Federal Reserve will move ahead with additional rate cuts this year.

The Consumer Price Index (CPI) rose 0.3% month-over-month in September, below economists’ forecasts of 0.4%, while “core” CPI — excluding food and energy — rose just 0.2%, also softer than expected. 

On a year-over-year basis, both headline and core inflation registered 3.0%, slightly below estimates.

The release, delayed 10 days by the ongoing government shutdown, was one of the few major economic reports to make it out this month. An exception was made due to a legal requirement for the Social Security Administration to publish its annual cost-of-living adjustment.

The data reaffirmed market expectations for a 25 basis point rate cut at next week’s Federal Reserve meeting and another in December, which would bring the policy rate down to a 3.75–4.00% range. 

On Polymarket, there is a 97% that of a 25 basis point cut next week. 

BREAKING: US inflation rises to 3%, lower than expectations.

— Bitcoin Magazine (@BitcoinMagazine) October 24, 2025

That being said, White House press secretary Karoline Leavitt praised Friday’s CPI report for coming in below expectations but warned that the ongoing government shutdown could prevent the release of October’s inflation data next week

All other economic reports remain paused due to the shutdown that began October 1.

Treasury yields slipped and the dollar weakened following the release, while the Nasdaq 100 added nearly 1%. For Bitcoin, the softer CPI print provided fresh fuel for the rally that began earlier in the week, lifting the asset higher in early Friday trading. 

Bitcoin price this week

Bitcoin dipped around $107,000 earlier this week as analysts from VanEck and Standard Chartered maintained a bullish outlook despite recent volatility. 

Standard Chartered’s Geoffrey Kendrick predicted a brief dip below $100,000 soon amid U.S.–China tensions but saw it as a final buying opportunity before a rebound toward $200,000 by year-end. 

VanEck’s ChainCheck report described October’s 18% correction as a liquidity-driven mid-cycle reset, not a bear market. 

Analysts noted normalized leverage, strengthening macro demand, and growing institutional activity. VanEck said deleveraging cleared speculative excess, creating entry opportunities as Bitcoin’s role as an “anti–money printing” asset deepened.

Bitcoin’s current price is about 13% below its peak of roughly $126,000, reached earlier in October on October 6, 2025.

This post Bitcoin Price Jumps to $111,000 as Softer CPI Data Fuels Rate-Cut Bets first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Why the Bitcoin Price May Be Decoupling From Its Four-Year Cycle

Has the bitcoin price finally broken away from its four-year cycle pattern, or is this bull market already entering exhaustion? By studying historical growth rates, liquidity data, and macroeconomic correlations, we can better understand whether the current cycle has truly diverged, and what that means for investors in the months ahead.

Bitcoin Price Cycle Duration

Analyzing BTC Growth Since Cycle Lows, we can see that Bitcoin has now officially surpassed the elapsed time from cycle low to cycle high seen in previous bull markets. The 2018–2022 cycle peaked 1,059 days after its prior bear market low, and the current cycle has now moved beyond that duration. If we average the elapsed time across the last two full market cycles, Bitcoin has already exceeded the historical mean and is on the verge of surpassing even the 2017 cycle length in the coming days.

Diminishing Impact on Bitcoin Price

Historically, Bitcoin’s four-year cycle was rooted in its halving events, where the block reward, and thus the inflation rate, was cut in half. Each halving triggered a sharp supply shock, driving major bull markets. However, this cycle has behaved differently. Following the most recent halving, Bitcoin experienced five months of sideways consolidation rather than the explosive post-halving rallies seen previously. While price has since made notable gains, momentum has been weaker, leading many to ask whether the halving has lost its influence.

With the current Circulating Supply already exceeding 95% of the 21 million ultimate total supply of Bitcoin, the marginal supply reduction may no longer be as significant. Today, miners distribute roughly 450 newly created BTC per day, an amount easily absorbed by a handful of institutional buyers or ETFs. That means the halving alone may no longer be the dominant driver of Bitcoin’s market cycles. 

Global Liquidity Cycles Driving the Bitcoin Price

When we view Global M2 Money Supply versus BTC on a year-on-year basis, a clear pattern emerges. Each major Bitcoin bottom has aligned almost perfectly with the trough of Global M2 liquidity growth. 

If we map the Bitcoin halvings and the M2 troughs side by side, we see that halvings typically lag the liquidity cycle, suggesting that liquidity expansion, not halving events, may be the true catalyst for Bitcoin’s rallies. This isn’t unique to Bitcoin. Gold has shown the same behavior for decades, with its price performance closely mirroring the rate of Global M2 expansion or contraction.

Inverse Correlations Shaping Bitcoin Price Trends

A key part of this liquidity story lies in the U.S. Dollar Strength Index (DXY). Historically, BTC versus DXY on a year-on-year basis has been almost perfectly inversely correlated. When the dollar strengthens year-on-year, Bitcoin tends to enter bear market conditions. When the dollar weakens, Bitcoin begins a new bull market. This inverse relationship also holds true for Gold and equity markets, underscoring the broader debasement cycle thesis that as fiat currencies lose purchasing power, hard assets rapidly appreciate.

Currently, the DXY has been in a short-term uptrend, coinciding with Bitcoin’s recent consolidation. However, the index is now approaching a key historical resistance zone, one that has previously marked major turning points and preceded prolonged DXY declines. If this pattern holds, the next major drop in dollar strength could trigger a renewed upcycle for Bitcoin.

Quantitative Tightening and the Bitcoin Price

Comments from Federal Reserve Chair Jerome Powell recently hinted that the era of balance sheet contraction (quantitative tightening) may be nearing an end. Looking at the Fed Balance Sheet versus BTC, the start of balance sheet expansion and renewed quantitative easing has historically coincided with major upward moves in Bitcoin and equity markets alike.

During the two years following previous Fed balance sheet expansions, the S&P 500 averaged a 47% return, more than five times the average two-year performance during neutral periods. If we are indeed entering a new easing phase, it could not only prolong Bitcoin’s current cycle but also set the stage for a liquidity-driven melt-up across risk assets.

Conclusion: The Evolving Bitcoin Price Cycle

Bitcoin has now outlasted the timeframes of its previous two cycles, leading many to question whether the four-year rhythm still applies. But when we step back, a different narrative emerges, one driven not by programmed scarcity, but by Global liquidity, fiat debasement, and macro capital flow. The “four-year cycle” may not be broken, but it may have simply evolved.

If the U.S. Dollar weakens, the Fed pauses tightening, and Global M2 growth accelerates, then Bitcoin likely still has room to run.  For now, as always, the best approach remains the same: react, don’t predict. Stay data-driven, stay patient, and keep your eyes on liquidity.

For a more in-depth look into this topic, watch our most recent YouTube video here: Where Are We In This Bitcoin Cycle

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For deeper data, charts, and professional insights into bitcoin price trends, visit BitcoinMagazinePro.com.

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Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

This post Why the Bitcoin Price May Be Decoupling From Its Four-Year Cycle first appeared on Bitcoin Magazine and is written by Matt Crosby.

Bitcoin Magazine

JPMorgan to Accept Bitcoin as Loan Collateral by Year-End

JPMorgan Chase plans to let institutional clients use Bitcoin (BTC) and Ethereum (ETH) as collateral for loans by the end of 2025, according to a Bloomberg report. 

The new program, expected to roll out globally, will rely on a third-party custodian to safeguard pledged assets. The bank already allows crypto-linked exchange-traded funds (ETFs) as collateral, but this expansion would enable clients to borrow against their direct crypto holdings.

The shift could make it easier for institutions to access liquidity without selling long-term digital asset positions — a use case that has gained traction among hedge funds and family offices.

The development represents a broader acceptance of digital assets across the financial sector.  Other major banks, including Morgan Stanley, BNY Mellon, State Street, and Fidelity, have been expanding crypto custody and trading services amid increasing regulatory clarity in the U.S. and abroad.

JPMorgan first began exploring lending against Bitcoin in 2022 but the project was delayed, according to Bloomberg.

Jamie Dimon’s changing tone on crypto

JPMorgan CEO Jamie Dimon has long been one of crypto’s most vocal skeptics, previously calling Bitcoin a “fraud” and a “pet rock.” In 2023, he said he was “deeply opposed” to Bitcoin and claimed it was used mainly for illicit activity.

However, his tone has recently softened. “I don’t think we should smoke, but I defend your right to smoke,” Dimon said earlier this year. “I defend your right to buy Bitcoin, go at it.”

In 2023, JPMorgan CEO Jamie Dimon said he was "deeply opposed" to Bitcoin and that it was for criminals.

Today, JPMorgan plans to allow institutional clients to use Bitcoin as collateral. pic.twitter.com/WMPg8qy9UW

— Bitcoin Magazine (@BitcoinMagazine) October 24, 2025

Despite Dimon’s reservations, JPMorgan has steadily increased its crypto exposure. The bank has launched the J.P. Morgan Deposit Token (JPMD) — a blockchain-based alternative to stablecoins — and expanded its Kinexys blockchain network, which now processes more than $2 billion in daily transactions across carbon markets, supply chain finance, and cross-border payments.

Bitcoin and Ethereum prices rise

Following the news, Bitcoin rose in the past 24 hours to trade above $111,000, while Ethereum gained 2% to hover just below $4,000, according to Bitcoin Magazine Pro data.

Back in July, JPMorganChase and Coinbase announced a strategic partnership to make Bitcoin and crypto access easier for their customers. 

The deal included a direct bank-to-wallet connection, the ability to redeem Chase Ultimate Rewards points for crypto, and credit card funding for Coinbase accounts. Both the bank-to-wallet and rewards features were set to launch in 2026. 

This post JPMorgan to Accept Bitcoin as Loan Collateral by Year-End first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Spark and Ark: A Look At Our Newest Bitcoin Layer Twos

In my quest to find the best solution for Cake Wallet to offer user-friendly, non-custodial Lightning to our users, I’ve gone deep down the rabbit hole of both Spark and Ark. Both are quite novel approaches to Bitcoin layer two networks, and are designed at their core to be interoperable with the broader Bitcoin network for payments via the Lightning Network. While both can be used “just” for Lightning payments, both networks are positioned to rapidly expand and be used for far more than that over the coming months and years.

One thing to keep in mind is that while Spark and Ark on their face seem rather similar, in practice and in implementation they are quite distinct.

Why do we need new layer twos?

Bitcoin at its core is an incredible tool for freedom, but due to block size constraints, we know that the majority of the world will never be able to make transactions on-chain. Enter Lightning, a solution that allows one on-chain transaction to allow for essentially infinite off-chain transactions, expanding the usefulness of Bitcoin’s base layer and making it possible for more people to transact.

While Lightning provided a promising approach to scaling Bitcoin payments, ultimately the realization that its best role is as an interoperability layer and not as a tool for end-users to run themselves has become clear. On-chain requirements, liquidity management, liveness requirements, and other core hurdles make the implementation of user-friendly, self-custodial Lightning next to impossible. This has become apparent as most Lightning wallets and use-cases have opted to use custodial or federated models out of a need to simplify the user experience and the implementation difficulty.

The biggest win that Spark and Ark provide to the Bitcoin space out of the gate is providing a much simpler and easier way for the average developer to provide Lightning to their users, while allowing for greatly expanded functionality down the line beyond Lightning payments.

Ark, simplified

History

The concept of Ark was created in May of 2023 by Burak, a Lightning advocate and developer. The driving force behind its creation was the realization that the Lightning network as constructed was not effective as an onboarding tool for the average individual due to inbound liquidity requirements among many other things, and that privacy was often lacking. While Burak invented the protocol itself, two companies – Ark Labs and Second – have stepped in to build the Ark protocol into an end-to-end layer-two network for Bitcoin.

While both companies are building around the same open-source Ark protocol, their implementations and objectives are rather dissimilar. As a result, I’ll do my best to distill both below where possible.

Terminology

Ark: Ark is a protocol for moving Bitcoin transactions off-chain by leveraging multisig and pre-signed transactions between users and the Ark Operator. Anything you can do on Bitcoin, you can do on Ark but faster and with lower fees.

Ark Operator: The entity running the centralized Ark server infrastructure and responsible for providing liquidity for user’s VTXOs before expiry.

Lightning Gateway: The entity that provides the ability for Ark users to send or receive Lightning payments using trustless atomic swaps of Ark VTXOs. This function can be provided by the same entity as the Ark Operator, but is often distinct to spread out counter-party risk.

Virtual Transaction Outputs: Also called “VTXOs”, these are very similar to on-chain UTXOs in nature, but are virtual as they aren’t represented as unique UTXOs on-chain and live entirely off-chain. Users send and receive VTXOs within Ark.

Rounds: In order to gain true finality and/or refresh VTXOs, Ark users will need to join rounds, where they work together with other Ark users and the Ark Operator to get new VTXOs in exchange for a fee.

Making transactions

Ark functions very similarly to on-chain Bitcoin transactions, and inherits many of the same mannerisms while allowing transactions to be near-instant and trust-minimized between Ark participants. The sender works with the Ark Operator to sign the VTXO over to the recipient, or in the case of Ark Labs to create a new, chained VTXO for the recipient. This allows a user-experience similar in many ways to on-chain payments, but with far lower fees and far faster transaction times. When the user wants to send or receive Lightning payments, they can work with a Lightning Gateway to atomically swap VTXOs for Lightning payments as-needed. At the moment no offline receive for Lightning payments in Ark is possible, but it’s likely this will be solved in a similarly trust-minimized way within Ark as it is in Spark.

If the user desires finality (i.e. they’ve received a large payment), they can choose to join a round to finalize the payment and gain the same finality assumptions as on-chain Bitcoin. The frequency of this round process will vary by Ark Operator –  with estimates ranging from every 10min to every hour – and requires a relatively lengthy coordinated signing process between all users seeking to join the round with the Ark Operator. The round frequency can even vary based on demand, and is not something that has to be set in stone to a single frequency unlike Bitcoin block times.

As Ark inherits Bitcoin scripting and the UTXO model directly from on-chain Bitcoin, Ark will likely be extended to support token protocols like Taproot Assets in the future.

Trust tradeoffs

Ark targets a very trust-minimized approach to scaling Bitcoin, striking something of a middle-ground in terms of usability and tradeoffs between Lightning and Spark. Note that Ark as a protocol is rapidly developing, and some of these tradeoffs will hopefully be solved through the use of novel off-chain methods or after the implementation of covenants in Bitcoin.

Lack of out-of-round finality

While Spark lacks provable finality, Ark strikes something of a middle ground. For small payments, users can rely on the Ark Operator and previous senders to not collude for security, allowing for instant transfers with no need for collaborative signing rounds. Note that by default, payments within Ark will be “out-of-round” payments that lack true finality, a tradeoff that allows Ark to deliver a good user experience out of the box.

That being said, users who do need or want true finality can have it by joining a round and receiving a new VTXO from the Ark Operator. Receivers are essentially in control of their preferred trust model.

VTXO expiration

As a result of the liquidity requirements to operate an Ark instance, Ark Operators need a way to reclaim liquidity regularly. To allow this liquidity reclamation, Ark VTXOs will expire regularly (i.e. after 30d, with the VTXO expiry being set by each Ark Operator), requiring their owners to either join a round to refresh the VTXO or risk giving up control of their funds entirely to the Ark Operator. While the Ark Operator has strong incentives to merely issue a new VTXO to the owner of the expired one when they come back online, both the Ark Operator and the user will have the ability to spend funds until a new VTXO is issued to the user.

To avoid funds expiring, users will be required to refresh their VTXOs within that window either directly or by offloading refresh to a delegate. Alternatively, atomic swaps of an expiring VTXO for one with a longer lifecycle could be done with an entity like Boltz for a fee, but that is not yet implemented.

Complex round user experience

If you’ve ever used Coinjoin on Bitcoin, you know how tedious and unreliable collaboratively signing a transaction with other Bitcoiners can be. In Ark, those seeking true finality for their VTXOs will need to be available throughout a round signing process until its completion, something that will depend heavily on other participants properly completing the signing process. While this is quite trivial to accomplish for a wallet running on an always-online server, it’s rather complex to reliably perform on mobile platforms, especially iOS where no background execution (and thus no ability to be online at the right time for signing) can be guaranteed for any app.

As a result of this complex user experience, Ark Labs have come up with a system that leverages delegated third parties performing the refresh in a trust-minimized way for users, offloading the liveliness requirement to a third party. While this third party has no ability to steal funds, if they are offline for any reason or refuse to refresh a given VTXO, the user will be forced to join a round themselves before the expiry period. To mitigate this risk, users can designate multiple delegates, shifting the trust assumptions for expiry to a 1-of-N assumption, where if any delegate is honest their VTXO will be refreshed properly.

Second also have a similarly designed system that enables trustless, non-interactive rounds for users, allowing any number of parties to sign for a user during a round (i.e. the wallet provider and a third-party delegate) where if any of those parties signs properly, the users VTXO is properly refreshed.

Note that while these two solutions can refresh expiring VTXOs, they cannot give users true finality without the user actively participating in the round themselves.

Lastly, it’s important to call out that the vast majority of complexity with the round process can be entirely mitigated if a simple covenant is deployed in an upgrade to Bitcoin, something that would unlock a vastly improved user experience for Ark.

Privacy tradeoffs

At its core, Ark inherits Bitcoin’s poor privacy and doesn’t provide any notable privacy improvements as a protocol. That being said, its ability to offload execution off-chain and expand Bitcoin’s functionality allows existing and novel privacy protocols to be built on top of it in the future, with covenants fully unlocking things like private rounds within Ark.

In the short-term, Ark Labs have planned to use WabiSabi-like blinded credentials to improve privacy from the operator when users participate in rounds.

Transaction visibility

While all transactions within Ark don’t need to be published on-chain, providing some loose ephemerality, all transaction details are visible to the Ark Operator and shouldn’t be considered private in the truest sense. Instead, viewing the ephemeral privacy provided by Ark as analogous to the VPN model (offloading visibility into transactions from the Bitcoin blockchain to a trusted third-party) is a useful mental model.

It’s unclear at this time if Ark Labs and Second will keep transaction data private or publish it publicly, but as with a VPN users should not rely entirely on a promise to not log for their privacy.

Learn more

• Official docs (Ark Labs): https://docs.arkadeos.com/
• Official docs (Second): https://docs.second.tech/
• Excellent Ark explainer video from Second: https://www.youtube.com/watch?v=WvwmLv0SgAc
• “Ark and the train analogy”: https://pakovm.substack.com/p/ark-and-the-train-analogy-a-guide

Spark, simplified

History

The Spark network was launched earlier this year by the folks at Lightspark, a Bitcoin-adjacent company with an interesting history. From UMA (a username system with natively integrated compliance features for their banking partners) to connections with the failed Libra currency, they have an odd track record of building tools that aren’t quite up to par with Bitcoin’s more cypherpunk roots. But, when I put aside their odd track record and focused purely on what Spark the protocol actually is, it presents a rather useful, pragmatic, and powerful tool overall.

Spark at its core takes a lot of the useful features of statechains, a novel approach to layer twos on Bitcoin created by Ruben Somsen in 2018. Spark specifically extends statechains with the idea of “leaves”, allowing users to send any amount in a transaction instead of being solely able to transact with whole UTXOs, one of the biggest issues with statechains up to this point.

Terminology

Spark Entity: the entity running a given Spark instance, i.e. Lightspark, made up of a collection of Spark Operators. As Spark is an open-source protocol, anyone can start their own Spark Entity, but each Spark Entity controls which Spark Operators can join.

Spark Operator: each Spark Entity is composed of one or more Spark Operators, each of which are responsible for validating and signing operations of users within the Spark instance, including transfers of funds and tokens, issuance of new tokens, etc. These can be the same entity as the Spark Entity, or (hopefully) distinct in relationship and jurisdiction from the Spark Entity. Currently the two Operators for Spark are Lightspark themselves and Flashnet, but more are slated to be added in the near future.

Spark Service Provider: an entity that provides various services to Spark users, including using atomic swaps to trustlessly send and receive Lightning payments on the users behalf.

Spark leaves: Spark solves the issues around whole-coin transfer requirements in statechains with the introduction of leaves. These can be thought of similarly to UTXOs within Bitcoin, as they can be freely broken up into any size necessary.

Making transactions

At its core, Spark functions by allowing users to easily move Bitcoin around the Spark network near-instantly by working in a trust-minimized way with Spark Operators to transfer ownership of individual leaves to another person. There is no need for a blockchain, confirmations, or liveness between sender and receiver, making payments simple and very fast. When a user wants to make a payment on Lightning, they atomically swap a leaf or leaves from their wallet with a Spark Service Provider who then sends the payment trustlessly on their behalf for a fee.

To transfer a Spark leaf, the sender co-signs ownership of the leaf over from themselves + Spark Operators to the new owner + Spark Operators. This is done in such a way that if any of the Spark Operators or previous owner honestly deletes their keyshare used in the co-signing operation, the leaf is then solely owned by the recipient and no double-spend is possible. As this operation only requires collaboration between the Spark Operators and sender and not any other Spark users, these signing rounds are very fast and resistant to DoS attacks.

Spark also includes a similar 1-of-N trust model to do offline receive for Lightning payments, a key user-experience improvement over standard Lightning wallet usage. This is especially important when using Spark on a mobile wallet, as mobile platforms cannot guarantee background execution or perfect network access 24/7.

In addition to regular payments, Spark has extended the idea to include native token support, with the core focus being on stablecoins like USDT and USDC able to be issued and transferred seamlessly within the Spark network. Tokens transfers themselves share a similar trust model to standard transactions on Spark, and retain the ability to unilaterally exit on-chain.

Lastly, users in Spark can unilaterally exit on-chain at any time by publishing a pre-signed exit transaction on-chain. While the cost of exiting can vary widely due to variables like leaf depth and on-chain fee rates, likely pricing out smaller amounts, it’s a critical tool to ensure that funds can be retrieved in the event of a malicious or unavailable Spark Entity.

Trust tradeoffs

Spark makes a very pragmatic set of tradeoffs that compliment the current issues befalling Lightning and Bitcoin usage today. That being said, there are some major differences with Spark compared to on-chain Bitcoin or Lightning usage. I prefer to use the term “trust-minimized” when talking about Spark (and most other layer two networks) as only self-custody of Bitcoin on-chain can truly be viewed as “trustless”.

Lack of true finality

The core risk to self-sovereignty in Spark is the lack of true finality, where users can never know for sure that their funds cannot be double-spent through collusion between the Spark Operators and a previous spender. Within Spark, finality (knowing that your funds can only be moved with your keys) exists – but is not provable – on the condition that any single Spark Operator deletes their keyshare after signing off on a Spark transaction. On the flip side, if all Spark Operators are malicious and refuse to delete their keyshare and collude with a previous sender of a leaf you own they can double-spend that leaf and effectively steal funds.

While in practice I think this 1-of-N trust assumption is reasonable, it obviously falls far short of the regular, on-chain Bitcoin trust assumptions where true finality is a default. It’s also important to note that due to the pseudonymous nature of Spark transactions, the previous sender could be the same entity as the Spark Entity.

Potentially centralized token control

While transfers of tokens themselves share the 1-of-N trust assumption of regular Spark payments, the tokens themselves can be frozen at any time if the issuer decides to enable this functionality. While this is similar to many centrally controlled stablecoins like USDT (who freeze and confiscate Tether quite often for legal reasons), it’s important to callout and will likely be enabled in many regulated stablecoins like USDC and USDT.

1-of-N offline Lightning receive security

While offline Lightning receives are not trust-minimized in the same way standard Lightning payments are, theft of funds would require all Spark Operators to collude to steal a single Lightning payment, something that is disincentivized due to the small size of Lightning payments and the massive reputational risk if caught stealing from users, something that is easy to detect due to the inherent proof of payment in the Lightning network.

Privacy tradeoffs

Spark itself should not be viewed as a privacy tool, as it inherits core privacy problems from Bitcoin’s base layer and has made some poor design choices initially when it comes to privacy. That being said, Spark’s core technology could be extended to have fantastic privacy with the introduction of blind signing for all transactions, confidential amounts for token transfers, and other privacy technologies that aren’t normally possible within the Bitcoin ecosystem.

Transaction visibility

While transactions within Spark aren’t published for all time to a blockchain like on-chain transactions, all Spark Operators do get full visibility into transactions. In theory this could provide ephemerality if Spark Operators had a non-logging policy, but in practice all transaction data is currently being published to an explorer by Flashnet, one of the Spark Operators. This means that outside observers can trivially look up Spark addresses and see all transaction details, token balances, and even link Lightning payments to addresses using timing and amount analysis.

Note that Spark is working to add the ability for wallet developers to opt-out of this data publishing by marking transactions as private, which then falls back to the same VPN-like trust model as previously described for Ark. If a wallet developer opts to enable this (as I hope they all will!), the Spark Operators will promise not to publish this transaction data publicly, but of course still have the ability to store this data locally if they so choose.

Lack of address rotation

In its current form, Spark doesn’t support spending funds from multiple distinct Spark addresses in a single transaction. While this is slated to be fixed and already acknowledged as a key shortcoming of Spark, at present it means that most Spark implementations will rely on a single, static address for all transactions, making Spark’s privacy at the moment worse than even on-chain Bitcoin. Combining this address re-use with all amounts being visible means that it would be trivial for an attacker to perform timing + amount heuristics on payments to ascertain which Lightning payments pertain to which Spark addresses.

Spark address leaks

To complete the trifecta of current privacy problems in Spark, the core SDKs provided by Spark (and used by the most common implementation of Spark in Wallet of Satoshi) by default include the user’s Spark address unnecessarily in BOLT 11 Lightning invoices. This means that anyone can easily decode a provided BOLT 11 invoice and learn every transaction from that user in Spark, thanks to the use of static addresses and all details being published to an explorer as detailed above.

Note that this isn’t absolutely necessary, can easily be disabled by wallet developers, and is already removed in the Breez Nodeless SDK that utilizes Spark and is rapidly gaining adoption but is important to callout nonetheless.

Learn more

• Official docs: https://docs.spark.money/home/welcome
• Bitcoin Layer 2: Statechains: https://bitcoinmagazine.com/technical/bitcoin-layer-2-statechains

Conclusion

While both Spark and Ark present an exciting new time in the world of Bitcoin usability and scalability, as with all things they come with their own unique sets of tradeoffs. While neither is a perfect solution, it’s exciting that wallet developers finally have two competing and interesting options to solve the implementation of Lightning, native tokens, and other functionality into their wallets and software without the complexity traditionally associated with Lightning. Both Spark and Ark present a pragmatic outcome for scaling Bitcoin, representing a hard but sane path to do things in a way that balances trust-minimization with user-experience and scaling.

As both are rapidly evolving protocols, the hope is that the tradeoffs presented by both solutions will be rapidly improved upon and minimized in the coming months and years, providing an even better option that gets non-custodial Bitcoin into the hands of many more people while extending the things that we can build on top of Bitcoin.

A special thank you to the folks at Spark, Ark Labs, Second, Breez, Spiral, and Bitcoin QnA for taking the time to provide feedback on this article! It takes a tribe to work out all of the trust assumptions and tradeoffs of these novel systems, and I’m extremely grateful to each for taking out some of their valuable time to help here.

This is a guest post by Seth For Privacy Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

This post Spark and Ark: A Look At Our Newest Bitcoin Layer Twos first appeared on Bitcoin Magazine and is written by Seth For Privacy.

Bitcoin Magazine

Newly-Pardoned Changpeng Zhao and Peter Schiff Agree to Bitcoin vs. Gold Debate

Changpeng “CZ” Zhao and Peter Schiff are supposedly taking their long-running argument to the stage.

The Binance founder has agreed to debate the outspoken economist and gold advocate after Schiff publicly challenged him to a “Bitcoin versus tokenized gold” discussion. 

The exchange follows Schiff’s announcement that he’s launching his own blockchain-based gold product — and CZ’s sharp critique that such tokens are “not truly on-chain.”

“As much as you voice against Bitcoin, you are always professional and nonpersonal,” CZ told Schiff on X today. “I appreciate that. Can have a debate about it.”

Schiff replied later: “Absolutely. Several people have already reached out to me offering to moderate. Do you have a preference?”

All this debate talk arrives hours after President Donald Trump granted a full pardon to Changpeng Zhao. President Trump said CZ “wasn’t guilty” and was “persecuted by the Biden administration.”

JUST IN: Binance Founder CZ agrees to Bitcoin vs Gold debate with Peter Schiff. pic.twitter.com/oKtxii6YqH

— Bitcoin Magazine (@BitcoinMagazine) October 23, 2025

Schiff’s tokenized gold pitch vs. bitcoin

Schiff recently said that he’s building a tokenized gold platform and neobank, with a blockchain token called Tgold at its core. 

The product will reportedly allow users to purchase physical gold through a mobile app, store it in secure vaults, and transfer or redeem it digitally. 

Schiff describes it as “real money for the digital age” — physical gold represented on-chain.

All this comes amid a multiyear gold rally, with prices hitting a record $4,380 per ounce earlier this month before settling near $4,128, at time of writing. 

Schiff argues that tokenized gold could provide a stable, asset-backed alternative to Bitcoin’s volatility, serving as both a medium of exchange and store of value.

CZ pushes back: “It’s a ‘Trust Me Bro’ Token”

CZ wasted no time in firing back.

On X, he called tokenized gold “a ‘trust-me-bro’ token,” arguing that such assets rely on third-party custodians — precisely the kind of centralized trust structures Bitcoin was designed to eliminate.

“Tokenizing gold is NOT ‘on-chain’ gold,” CZ wrote. “It’s tokenizing that you trust some third party will give you gold at some later date — maybe decades later, during a war, after management changes, etc.”

His comments echo a common view among crypto purists: that true digital ownership requires self-custody and verifiable scarcity — traits Bitcoin has, but gold tokens do not.

As of writing, there is not an agreed-upon or specific time for Schiff and CZ to debate.

This post Newly-Pardoned Changpeng Zhao and Peter Schiff Agree to Bitcoin vs. Gold Debate first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Crypto Market Structure Bill Gains Bipartisan Momentum as Coinbase’s Armstrong Says “We’re 90% There”

Even as Washington remains hobbled by a partial government shutdown, momentum for U.S. crypto market structure legislation is quietly reaching new heights.

Coinbase CEO Brian Armstrong says the industry is “90%” of the way there, describing unprecedented bipartisan cooperation among senators working to finalize the long-awaited regulatory framework for digital assets.

Armstrong, who spent this week meeting with both Senate Democrats and Republicans, said the last few sticking points of the CLARITY Act — including rules for decentralized finance (DeFi) and stablecoin rewards — are close to being resolved. 

“Both sides are working hard to figure out the final 10%, and we’re getting close,” he said in a social media post. “We’re bullish on getting a bill passed by year-end, and hopeful it’s out of Committee by Thanksgiving.”

The Coinbase chief’s optimism comes amid a surge of engagement between lawmakers and crypto executives, marking one of the most serious bipartisan pushes to bring clarity to digital asset regulation since Congress first began debating the issue years ago.

JUST IN: Coinbase CEO Brian Armstrong says, “There is strong bipartisan support to get this market structure legislation done.” pic.twitter.com/Z8PI1OXDJc

— Bitcoin Magazine (@BitcoinMagazine) October 23, 2025

Bipartisan crypto breakthrough in July

The legislation at the center of these discussions — the Digital Asset Market Clarity Act (CLARITY Act) — passed the House of Representatives in July with a strong bipartisan majority of 294–137. 

The bill now sits before the Senate Banking Committee, chaired by Sen. Tim Scott (R-SC), with hopes it could advance to the Senate floor before the end of the year.

In a CNBC interview on Wednesday, Armstrong described “very productive” meetings with senators from both parties, calling the level of collaboration a positive sign for the U.S. crypto industry.

According to multiple people familiar with the meetings, senior lawmakers including Senate Majority Leader Chuck Schumer (D-NY), Sen. Kirsten Gillibrand (D-NY), and Sen. Cynthia Lummis (R-WY) attended or participated in discussions with Armstrong and other crypto leaders such as Kraken co-CEO David Ripley, Uniswap Labs founder Hayden Adams, and Chainlink Labs’ Sergey Nazarov.

The CLARITY Act seeks to end years of regulatory ambiguity by clearly distinguishing which digital assets qualify as securities under the Securities and Exchange Commission (SEC) and which fall under the Commodity Futures Trading Commission (CFTC).

Under the bill’s framework, sufficiently decentralized networks would fall under CFTC oversight, while tokens with more centralized control or that function as investment contracts would remain under SEC jurisdiction.

The legislation also introduces clearer rules for decentralized finance, secondary trading markets, and custody services — areas where the lack of uniform federal guidance has long frustrated both innovators and investors.

DeFi and stablecoin legislation

Still, the final 10% of negotiations may prove the toughest. One of the key unresolved questions is how to regulate decentralized finance platforms. 

Armstrong has urged lawmakers to focus oversight on decentralized intermediaries — such as interfaces or aggregators — rather than attempting to regulate open-source protocols themselves.

Another area of tension involves stablecoin rewards, which Armstrong says the banking lobby is working to eliminate. Coinbase and other industry advocates argue that consumers should be able to earn yield on regulated stablecoin holdings, similar to how traditional savings accounts pay interest.

These debates underscore the competing visions within Congress: Democrats remain focused on preventing illicit finance and ensuring consumer protection, while Republicans emphasize innovation and competitiveness.

Despite the bipartisan goodwill, the timing remains precarious. The ongoing government shutdown has slowed committee work and pushed back the formal markup of the bill. Some lawmakers, including Sen. John Kennedy (R-LA), have expressed skepticism that the committee is ready to move forward, citing unanswered questions about regulatory authority and industry influence.

Still, supporters say the momentum is undeniable. Sen. Lummis, who has long championed digital asset legislation, recently told attendees at the SALT Wyoming Blockchain Symposium that she expects the market structure bill to reach the president’s desk “before the end of the year — hopefully before Thanksgiving.”

This post Crypto Market Structure Bill Gains Bipartisan Momentum as Coinbase’s Armstrong Says “We’re 90% There” first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Save Our Wallets: Bitcoiners Must Act To Defend Their Right To Transact

Recent threats against the rights of bitcoiners to transact in the manner they deem fit led to the creation of Save Our Wallets. Done in collaboration with the Bitcoin Policy Institute, CoinCenter, the Bitcoin Design Foundation, and many regional Bitcoin hubs around the United States, the organization recently launched the “Satoshi Needs You!” campaign.

Satoshi needs all of you to rally together to ensure that the Blockchain Regulatory Certainty Act (BRCA) provisions are included in the coming version of the CLARITY Act, to ensure that self-custodial software tools in the Bitcoin ecosystem remain a protected thing, unencumbered by financial regulations designed to restrict businesses actually taking control of users’ funds.

The trials this summer prosecuted by the Department of Justice (DOJ) against the developers of Samourai Wallet and Tornado Cash have set dangerous precedents by prosecuting developers of open-source and self-custodial software, which at no time gave developers control over user funds in any way, and flies directly against standing guidance from both the DOJ as well as FinCEN, the regulator in charge of the application of the relevant regulations from both cases.

The “Satoshi Needs You!” campaign aims to raise awareness of the current threats to bitcoiners’ rights and rally people to get involved in the push to cement these rights in explicit regulation.

“This is a moment of both great danger and great opportunity for the bitcoin network” said Kyle Olney, co-founder of SaveOurWallets.org. “We can’t take anything for granted until our fundamental rights to economic liberty in the digital realm have been codified into law. We need EVERY bitcoiner to get involved, contact their representatives in Washington DC, and ensure this congress continues to execute on pro-Bitcoin policy. We have a responsibility to fight for our freedoms like the right to transact, and to pass those rights on for future generations.”

Visit SaveOurWallets.org to learn more about the CLARITY Act and how you can get involved in the fight to include the BRCA provisions.

This post Save Our Wallets: Bitcoiners Must Act To Defend Their Right To Transact first appeared on Bitcoin Magazine and is written by Shinobi.