Investment Rating - The report suggests a cautious outlook for the cryptocurrency market in Q1 2026, indicating a neutral to bearish sentiment due to expected market conditions and macroeconomic factors [4]. Core Insights - The cryptocurrency market experienced significant options expiration, with a total value of approximately $28.5 billion for BTC and ETH options expiring on December 26, 2025, which is double the value from the previous year [10][11]. - The total market capitalization of cryptocurrencies reached $2.93 trillion, reflecting a week-over-week increase of 1.7%. However, Bitcoin and Ethereum prices saw slight declines of 0.9% and 1.8%, respectively [10][11]. - The cryptocurrency fear and greed index remains at 28, indicating a state of fear in the market, with trading volumes continuing to decline for five consecutive weeks [11][17]. - The report highlights a potential "tax loss harvesting window" as Bitcoin has underperformed compared to the S&P 500, which may incentivize investors to sell losing positions [24]. Summary by Sections Market Review - The cryptocurrency market capitalization is $2.93 trillion, with Bitcoin closing at $87,301 and Ethereum at $2,926. The market is experiencing a significant options expiration event, which historically leads to accelerated market movements [10][11]. - The average holding price for Bitcoin is approximately $56,206, indicating that current prices are below the short-term investors' cost basis [11] - Trading volumes have decreased significantly, with a reported 11.8% drop in global cryptocurrency transaction volumes and a 29.4% decline in Coinbase's spot trading volume [17][18]. Global Policy and Industry News - The People's Bank of China has released new rules for the cross-border payment system, including digital currency research as a focus area [2]. - Russia is increasing support for the cryptocurrency market, allowing retail investors to participate in crypto trading and recognizing the stability of Bitcoin mining on the ruble exchange rate [2][23]. - Japan is planning to promote the digital securitization of local government bonds, while South Korea's BC Card has completed a pilot for cryptocurrency payments [24]. Company News - MSCI has proposed to exclude companies with over 50% of their assets in digital assets from its global investable market index, potentially forcing 39 companies to sell $10 to $15 billion in crypto assets [26][27]. - Tether is set to launch USAT, a stablecoin compliant with U.S. regulations, while Kraken plans to introduce a prediction market by 2026 [26][28]. - Coinbase has announced the acquisition of The Clearing Company, a startup focused on prediction markets, to enhance its trading platform [29]. Investment Recommendations - The report advises caution in the cryptocurrency market for Q1 2026, suggesting a focus on companies transitioning to AI data centers and those with significant power reserves [4][30]. - Companies with potential partnerships with Google in the crypto mining sector, such as Hut 8 and Cipher Mining, are highlighted as potential investment opportunities [30].

Core Insights - Bitmain is aggressively cutting prices on various generations of Bitcoin mining hardware to address pressures in the mining sector [1][3][9] Pricing Strategies - Discounts are being offered on both older and newer models, indicating a strategy to clear inventory amid strained mining economics [3][9] - Specific promotions include a bundle deal for four S19 XP+ Hydro units at an effective price of approximately $4 per terahash, with shipments starting in January 2026 [4][9] - An auction for the S19k Pro model began with a starting bid of $5.5 per terahash, with final prices determined post-bidding, and deliveries expected in December 2025 [5] Internal Pricing and Discounts - Internal price lists reveal that as of December 22, prices for S19e XP Hydro and 3U S19 XP Hydro units were as low as $3 per terahash, while S19 XP+ Hydro machines were around $4 per terahash [6][9] - Newer models like S21 Immersion miners were priced at approximately $7 per terahash, and S21+ Hydro machines near $8 per terahash before applying coupons [7] Bundled Sales and Hosting Services - Bitmain is combining hardware discounts with hosting services to stimulate demand and facilitate equipment sales [9] - Hosting rates range from 5.5 to 7 cents per kilowatt-hour across various jurisdictions, including the United States and several countries in South America and Africa [8]

Core Insights - Bitmain co-founder Micree "James" Zhan Ketuan is reportedly facing a billion-dollar fine and alleged detention, leading to a significant fallout with business partner Jihan Wu [1][5] - The situation has created uncertainty within the crypto community, as conflicting reports about Zhan's status and the financial implications circulate [1][5] Company Overview - Bitmain is a leading company in Bitcoin mining hardware, controlling over 74% of the global Bitcoin hash rate and producing chips for AI data centers [2] - The company is currently experiencing internal strife and external pressures, including legal scrutiny and geopolitical factors [2][6] Internal Conflict - The dual CEO structure of Bitmain, which allowed Zhan and Wu to co-lead, has collapsed due to their ongoing conflict [5] - Wu has reportedly leveraged political connections to challenge Zhan, who has focused on technical operations [5][6] Speculation and Rumors - Speculation regarding Zhan's situation includes potential fines ranging from $1 billion to $10 billion, with some reports claiming he has already paid a $1 billion penalty [5] - There are rumors that Zhan fled to Indonesia two months ago and remains unaccounted for [5] Industry Implications - The rift between Bitmain's co-founders highlights the risks associated with intertwining business operations with influential backers in the crypto industry [6] - Recent disruptions in mining operations in Xinjiang further complicate the company's position amid internal conflicts [7]

Core Insights - The Bitcoin network quickly recovered from alleged mining shutdowns in Xinjiang, with only a brief and modest impact on hashrate observed [1] - Initial reports suggested a significant disruption of 100 EH/s due to shutdowns, but data indicates a smaller, temporary effect [2] - The majority of the mining power dip occurred in North America, not primarily in China, with specific drops reported from Foundry USA and Luxor [3] Mining Power Dynamics - Chinese-origin mining pools experienced a combined decline of about 100 EH/s, but this does not confirm that all losses were from Xinjiang, as these pools operate across multiple regions [4] - The rapid recovery of mining power challenges the notion of a long-term drop of 100 EH/s, with most major mining groups returning to pre-peak levels shortly after the incident [5] Industry Resilience - The Bitcoin mining sector remains robust, with the 7-day simple moving average hashrate showing only a marginal decline, and 30-day averages near recent highs [6] - By 2025, Bitcoin's mining power increased from approximately 700 EH/s to over 1 ZH/s (1,000 EH/s), driven by upgrades from large mining companies and expansion into more locations [7]

Core Viewpoint - The company has positioned itself as a proxy for Bitcoin in public capital markets, allowing investors to gain exposure to Bitcoin through equities, especially during market volatility [1][3]. Company Strategy - The company initiated a Bitcoin treasury strategy in 2020, which has evolved with the introduction of ETFs in 2024, but it remains a significant player in the crypto ecosystem [3]. - Recently, the company raised $1.44 billion to address concerns about its ability to meet dividend obligations, demonstrating its capacity to raise capital even in a Bitcoin down cycle [5]. Market Dynamics - The company experiences higher volatility compared to Bitcoin, with a 70% volatility rate when Bitcoin has a 50% volatility rate, indicating that it moves more dramatically in both upward and downward trends [2]. - There is a prevailing narrative of fear, uncertainty, and doubt (FUD) surrounding the company's financial stability, which has led to increased short-selling of Bitcoin [4][5]. Long-term Outlook - The company believes that fears regarding the viability of cryptocurrencies are largely bubble-related and that the utility of cryptocurrencies has been established [6][7]. - Historical performance shows that Bitcoin has increased by 45% annually over the last five years, positioning it as one of the best-performing asset classes globally [8]. - The company anticipates that Bitcoin will continue to rise over the next 20 years, despite acknowledging challenges in predicting short-term price movements [10].

Jihan Wu: Early Open-Source Projects Often Evolve Into "Benevolent Dictatorships"On July 8, 2017, Jihan Wu — Co-founder of Bitmain and Co-founder & Chairman of Matrixport — said in an interview at The Future of Bitcoin Conference in Arnhem, the Netherlands, that open-source software governance often naturally evolves into a form of "benevolent dictatorship", as top contributors typically possess overwhelming technical capability and influence. He noted that Bitcoin was initially led by Satoshi Nakamoto, who ...

Catch the latest episode of 'THE MINING POD,’ in partnership with @blockspace!THE MINING POD: Operation Red Sunset, the White House’s Genesis Mission, Tether Buys BTDR, RAM Prices SoarWelcome back to The Mining Pod! Today, Colin and Charlie break down Operation Red Sunset—the US government's probe into Bitmain over national security concerns. We also cover brutal mining economics with hashprice at all-time lows, Trump's new executive order spurring AI and energy R&D, Hive's $300M at-the-market offering, and ...

Key Individuals in Cryptocurrency - Jihan Wu, co-founder of Bitmain and Matrixport, translated the Bitcoin Whitepaper into Chinese [1] - Jihan Wu's background in economics and computer science enabled him to recognize Bitcoin's viability [1] Bitcoin Adoption in China - Jihan Wu's translation aimed to counter media bias and promote objective understanding of Bitcoin in China [1] - The translation played a foundational role in Bitcoin's early awareness and adoption in China [1]

The Morning Minute (11.26)Powered by @yeet⏰Top News:-Crypto majors slightly red; BTC at $86,700-Polymarket cleared to operate in the US by CFTC-Kalshi blocked for sports markets in Nevada after injunction removed-Texas buys $5M of BTC via IBIT for state level BTC Reserve-MON token jumps another 24% to $4.8B FDV, leads all top movers🌎 Macro Crypto and Memes-Crypto majors are slightly red; BTC -1% at $86,600; ETH -1% at $2,910, BNB +1% at $856, SOL even at $136-MON (+24%), SPX (+13%), and IP (+7%) led top mov ...

U.S. Investigated Bitcoin Miner Manufacturer Bitmain as National Security Risk: Report► https://t.co/RBVIgIO6eV https://t.co/RBVIgIO6eV ...