Core Insights - Elemental Royalty has introduced a new dividend option for investors, allowing them to receive dividends in the form of Tether's XAUT, which represents tokenized gold, thereby providing direct ownership of physical gold through investments in gold royalties [1][2] - The company continues to offer traditional cash distributions, but the CEO emphasized that this innovative approach differentiates Elemental as a forward-thinking investment [2] - Elemental's stock price experienced a decline of 7.8% to $19.41 following the announcement, highlighting potential market reactions to the new dividend strategy [3] Financial Context - Tether's XAUT has seen significant growth, with its market capitalization increasing from $714 million to $2.5 billion, reflecting a 66% rise in gold prices over the past year [4] - Earlier this month, the total value of XAUT peaked at $3.5 billion, indicating strong market interest in tokenized gold as a financial asset [4] - Tether's gold holdings are estimated at 140 tons, valued at approximately $24 billion, which partially backs its USDT stablecoin [7] Industry Implications - The integration of tokenized gold into corporate finance, as demonstrated by Elemental, represents a significant advancement for the gold industry, suggesting new financial models that were previously unattainable [6] - Tether's efforts to promote tokenized gold as a medium of exchange, alongside traditional cryptocurrencies, indicate a broader trend towards the adoption of digital assets in various financial applications [5][6]

Financial Data and Key Metrics Changes - The company reported a record revenue of $93 million for the quarter, with a gross operating margin of $32 million, despite a net loss of $91 million primarily due to non-cash charges [44][45] - Adjusted EBITDA for the quarter was $5.7 million, with an annualized revenue run rate of $385 million [45] - The company ended the quarter with 481 Bitcoin in treasury, having mined 879 Bitcoin during the period [45] Business Line Data and Key Metrics Changes - The Bitcoin mining segment achieved approximately 10 Bitcoin mined per day, contributing to an annualized revenue of $350 million [51][60] - The HPC (High-Performance Computing) business reported a significant increase, with a target of $35 million ARR by the end of the current quarter, up from $20 million [48][49] - The Buzz cloud segment generated $5 million in revenue for the quarter, on track to reach a target of $20 million ARR [48] Market Data and Key Metrics Changes - The company operates with 440 MW of capacity globally, with an additional 100 MW expected to come online [46][61] - The company has seen a 70% increase in HPC ARR, driven by new contracts and market demand [48][49] Company Strategy and Development Direction - The company is focused on a conservative growth strategy, avoiding excessive debt while expanding its GPU cloud revenue to $140 million annually [27][28] - The company aims to build out Tier-I and Tier-III data centers in Paraguay, positioning itself as a major player in the region [34][60] - The strategy includes a dynamic HODL approach to Bitcoin management, allowing the company to realize value from its Bitcoin holdings without cash calls [52][63] Management's Comments on Operating Environment and Future Outlook - Management highlighted the volatility in the crypto market, referencing significant events that impacted Bitcoin prices and the overall ecosystem [3][10] - The company remains optimistic about future growth, particularly in the HPC and GPU cloud sectors, citing strong market demand and strategic partnerships [34][49] - Management emphasized the importance of geographic diversification, noting that operations in Paraguay benefited from favorable conditions during colder months in Canada [46] Other Important Information - The company has secured a two-year contract for NVIDIA GPUs, which will enhance its HPC capabilities and revenue potential [48][49] - The company is actively managing its energy consumption and operational efficiency, with a focus on reducing costs per terahash [63] Q&A Session Summary Question: What is the outlook for the company's growth in the HPC sector? - Management indicated a strong growth trajectory, with expectations to reach $225 million ARR in the HPC business by the end of the year, driven by new contracts and market demand [48][49] Question: How does the company manage its Bitcoin holdings? - The company employs a dynamic HODL strategy, allowing it to realize value from Bitcoin without cash obligations, effectively managing risk in a volatile market [52][63]

Core Insights - Payoneer is set to launch stablecoin capabilities within its platform, powered by Bridge, to facilitate secure and efficient cross-border transactions for businesses [1] - The integration aims to simplify the use of stablecoins for businesses, particularly in emerging markets, addressing challenges such as currency conversion and regulatory complexities [1] Group 1: Company Developments - Payoneer will enable businesses to receive, hold, and send stablecoins as part of their daily financial operations, enhancing their global transaction capabilities [1] - The new stablecoin features will be rolled out in select markets in Q2 2026, with broader availability planned throughout the year [1] - Payoneer has nearly 2 million customers globally and aims to leverage its compliance expertise to support stablecoin adoption [1] Group 2: Industry Context - The adoption of stablecoins is accelerating, with real-world applications emerging that offer faster settlement and programmable money movement [1] - Many cross-border businesses face challenges in integrating stablecoins due to fragmented workflows and evolving regulations, which Payoneer aims to address [1] - Bridge, the partner providing the stablecoin infrastructure, focuses on simplifying blockchain complexities for companies like Payoneer [1]

Core Viewpoint - The price of Bitcoin has decreased by 48% over the past four months, negatively impacting speculative altcoins like Solana, which is down 37% year-to-date and currently trades at $78, a 73% discount from its all-time high of $294 [1] Group 1: Solana's Current Situation - Solana recently reached a two-year low of $67, leading to a bearish outlook with a price target of $50 being more likely than a recovery to $250 due to significant downward momentum [3] - Market sentiment around Solana is overly negative, with some analysts suggesting it could potentially triple in value this year if conditions improve [1] Group 2: Contrarian Perspectives - A new investment thesis from Standard Chartered suggests that Solana is transitioning from a meme-coin centric blockchain to a stablecoin-centric network, which could drive significant growth [4] - Solana has recently surpassed Ethereum as the fastest-growing blockchain for stablecoins in terms of transaction volume and velocity, making it more attractive for micro-size stablecoin payments [5] Group 3: Future Projections - Standard Chartered forecasts that Solana could reach $200 this year, $400 next year, and potentially $2,000 by the end of 2030, indicating that current bearish sentiment may be exaggerated [6] - Prediction markets indicate a 44% chance of Solana hitting $150 this year, a 23% chance of reaching $200, a 14% chance of hitting $250, and a 10% chance of reaching $300 [7][8]

On Feb. 12, OKX Ventures announced a strategic investment in STBL, a stablecoin and yield infrastructure provider. At the same time, STBL said it is partnering with Hamilton Lane (Nasdaq: HLNE) and Securitize to launch a real-world-asset-backed stablecoin on X Layer, OKX’s EVM-compatible Layer 2 blockchain. Hamilton Lane is a global private markets investment firm. Securitize provides regulated digital securities issuance and tokenization services. Related: Explained: What is a stablecoin? The capital ...

Core Viewpoint - The rise of stablecoins, particularly Tether (USDT), is seen as a significant trend in the cryptocurrency market, potentially surpassing Bitcoin in market capitalization as risk assets weaken [1][4]. Group 1: Stablecoin Market Dynamics - Tether's USDT stablecoin has a market cap of $184.6 billion, making it the largest stablecoin, with the total stablecoin market cap at $307.1 billion [2]. - The second-largest stablecoin, Circle's USDC, has a market cap of $73.2 billion, indicating Tether's dominance in the market [2]. - The growth of stablecoin market caps, especially during periods of declining risk assets, suggests a shift towards defensive investment behavior [2]. Group 2: Market Implications for Ethereum and Bitcoin - Ethereum (ETH) has recently experienced a technical breakdown, losing a key support level of $2,500 and now targeting $1,500 as the next support [3]. - If ETH continues to decline while USDT supply expands, Tether could surpass Ethereum in market cap, highlighting a preference for capital preservation [3]. - Bitcoin has seen a significant decline of over 44% from its peak of $124,000, currently hovering around $68,741, which could lead to Tether surpassing Bitcoin if the trend continues [4]. Group 3: Market Sentiment and Future Outlook - The scenario presented indicates a deep bear market characterized by risk-off sentiment, with sustained demand for dollar-backed liquidity and a preference for stability over volatility among investors [5].

Core Viewpoint - The cryptocurrency exchange Coinbase reported a significant decline in revenue and a net loss in Q4, raising concerns about whether this is a cyclical downturn or the beginning of a prolonged "crypto winter" [1][3][4]. Financial Performance - Coinbase's Q4 revenue fell by 20% to $1.8 billion, exceeding market expectations for a decline [3][4]. - The company recorded a net loss of $667 million, compared to a net profit of $1.3 billion in the same period last year [3][4]. - Total trading volume for the year reached $5.2 trillion, a year-on-year increase of 156%, with market share in crypto trading doubling to 6.4% [4]. Revenue Breakdown - Trading revenue for Q4 was $983 million, a 6% decrease quarter-on-quarter, with consumer trading revenue dropping 13% to $734 million [8]. - Institutional trading revenue increased by 37% to $185 million, despite a 13% decline in institutional spot trading volume [12]. - Subscription and service revenue reached a record high of $2.8 billion, driven by USDC-related earnings and membership subscriptions [15]. Strategic Insights - The company is focusing on diversifying its revenue streams, with subscription services seen as a defensive measure against trading volume fluctuations [15][19]. - Coinbase's CFO expressed optimism about retail investors, noting that they are buying on dips and are in good financial health [11]. Cost Management - Operating expenses surged by 35% to $5.7 billion for the year, with Q4 expenses rising by 9% to $1.5 billion [22]. - The increase in expenses is attributed to higher user rewards due to increased USDC holdings, acquisition-related costs, and compliance investments [24]. Future Outlook - For Q1 2026, Coinbase provided cautious revenue guidance, expecting trading revenue to be around $420 million and subscription service revenue between $550 million and $630 million, lower than Q4 levels [27]. - The company has initiated a significant stock buyback program, repurchasing $895 million in stock early in 2026, with an additional $2 billion authorized for buybacks [27]. Market Context - The performance decline reflects broader challenges faced by the cryptocurrency exchange industry, with competitors like Gemini and Robinhood also reporting significant downturns [7]. - Analysts are divided on whether the current market conditions represent a mid-cycle correction or the onset of a new bear market [28][29].

Financial Data and Key Metrics Changes - In 2025, total revenue reached $7.2 billion, a 9% year-over-year increase [14] - Subscription and services revenue hit $2.8 billion, up 23% year-over-year, and more than 5.5 times higher than the peak in 2021 [14][16] - Q4 total revenue was $1.8 billion, down 5% quarter-over-quarter [17] - Q4 transaction revenue was $983 million, down 6% quarter-over-quarter, while subscription and services revenue was $727 million, down 3% quarter-over-quarter [18] - Adjusted EBITDA in Q4 was $566 million, and adjusted net income was $178 million [19] - The company ended the year with $11.3 billion in cash and cash equivalents, and total available resources of approximately $14.1 billion [20] Business Line Data and Key Metrics Changes - The company has 12 products generating over $100 million in annualized revenue, with half of those exceeding $250 million [17] - Subscription and services revenue reached all-time highs, up 5.5 times from the peak in 2021 [16] - Derivatives volume and revenue hit all-time highs in Q4, indicating strong growth in this segment [9] Market Data and Key Metrics Changes - Global trading volume and market share doubled year-over-year, reaching new all-time highs [3] - The crypto market cap was down 11% quarter-over-quarter, but the company outperformed the market on total trading volume [16] Company Strategy and Development Direction - The company aims to grow the Everything Exchange, which integrates various asset classes including crypto, equities, and commodities [8] - Focus on scaling stablecoins and payments, with USDC reaching an all-time high market cap of about $75 billion [10] - The strategy includes bringing the world on-chain, emphasizing DeFi and self-custodial wallets [12] - The company plans to continue investing in its product offerings and expanding its market presence internationally [4][10] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about regulatory clarity and the growth of crypto adoption [3] - The company is prepared for market volatility and has diversified its revenue streams [16] - Management believes that stablecoins will become the default payment method for AI agents [11] - The company is confident in its ability to drive growth through its diversified revenue base and strong balance sheet [23] Other Important Information - The company has repurchased $1.7 billion of its common stock to offset dilution from stock-based compensation [20] - The company is exploring a Base token and improving developer tools to incentivize builders on the Base platform [28] Q&A Session Summary Question: Are you making any headway on positive outcomes regarding the CLARITY Act? - Management is optimistic about progress on the CLARITY Act and believes there is a good path to a positive outcome [24] Question: What percentage of overall subscription and services revenue do you expect Layer 2 activity from Base to contribute in 2026? - Base revenue is monetized both directly and indirectly, but no specific forecast was provided [26] Question: What product or platform initiative are you most excited about that investors may be underestimating today? - Management highlighted the Everything Exchange and stablecoin payments as key initiatives with significant growth potential [29] Question: Could your economic relationship with Circle change depending upon language in a market structure bill? - Management does not foresee any changes to the economic relationship with Circle due to the market structure legislation [34] Question: How does Coinbase think about the opportunities in larger scale buybacks and M&A? - The company is focused on buybacks and opportunistic M&A, having completed 10 acquisitions in 2025 [37] Question: Can you talk about your 2026 spending plans? - The company plans to maintain flat expenses in Q1 2026 while being nimble in response to market conditions [44] Question: Was the Coinbase issue just a tech mishap and not a more severe issue? - A technical issue caused brief interruptions for some users, but trading remained unaffected [48] Question: How should we think about the strength of the casual crypto trader in this winter? - Retail consumers tend to hold through price declines and are currently net buyers [67]

Financial Data and Key Metrics Changes - Total revenue for 2025 was $7.2 billion, a 9% year-over-year increase [15] - Subscription and services revenue reached $2.8 billion, up 23% year-over-year, and more than 5.5 times higher than the peak in 2021 [15][19] - Q4 total revenue was $1.8 billion, down 5% quarter-over-quarter [18] - Q4 transaction revenue was $983 million, down 6% quarter-over-quarter, while subscription and services revenue was $727 million, down 3% quarter-over-quarter [19] - Adjusted EBITDA in Q4 was $566 million, and adjusted net income was $178 million [20] Business Line Data and Key Metrics Changes - The company has 12 products generating over $100 million in annualized revenue, with half of those exceeding $250 million [15][18] - Subscription and services revenue hit all-time highs, up 5.5 times from the peak in 2021 [7] - Derivatives volume and revenue reached all-time highs in Q4 [10] Market Data and Key Metrics Changes - Global trading volume and market share doubled year-over-year, reaching new all-time highs [4] - The crypto market cap was down 11% quarter-over-quarter [16] - USDC market cap reached an all-time high of about $75 billion [11] Company Strategy and Development Direction - The company aims to grow the Everything Exchange, which integrates various asset classes including crypto, equities, and commodities [8][10] - Focus on scaling stablecoins and payments, with plans to expand stablecoin utility and payment infrastructure [11][12] - Emphasis on bringing the world on-chain, promoting decentralized technology and self-custodial wallets [13] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about regulatory clarity and the growth of crypto adoption [4][25] - The company is prepared for market volatility and has diversified its revenue streams [17][23] - Management believes that stablecoins will become the default payment method for AI agents [12] Other Important Information - The company ended the year with $11.3 billion in cash and cash equivalents, and total available resources of approximately $14.1 billion [21] - The company has repurchased $1.7 billion of its common stock to offset dilution from stock-based compensation [21] Q&A Session Summary Question: Are you making any headway on positive outcomes regarding the CLARITY Act? - Management is optimistic about progress on the CLARITY Act and appreciates the efforts of the Senate and administration [24][25] Question: What percentage of overall subscription and services revenue do you expect Layer 2 activity from Base and partners to contribute in 2026? - Base revenue is monetized both directly and indirectly, but no specific forecast was provided [27] Question: What product or platform initiative are you most excited about that investors may be underestimating today? - Management highlighted the Everything Exchange and stablecoin payments as key initiatives [30][32] Question: Could your economic relationship with Circle change depending upon language in a market structure bill? - Management does not foresee changes in the economic relationship with Circle due to market structure legislation [36] Question: How does Coinbase think about the opportunities in larger scale buybacks and M&A? - The company is focused on buybacks and opportunistic M&A, having completed 10 acquisitions in 2025 [39] Question: Can you talk about your 2026 spending plans? - The company plans to maintain flat expenses in Q1 2026 while being nimble in response to market conditions [47] Question: Was the Coinbase issue just a tech mishap and not a more severe issue? - A technical issue caused brief interruptions for some users, but it was unrelated to trading volume or market conditions [49] Question: How should we think about the strength of the casual crypto trader in this winter? - Retail consumers tend to hold through price declines and are currently net buyers [68]

Core Insights - Coinbase reported a surprise quarterly loss of $666.7 million, or $2.49 per share, for the three months ended December 31, contrasting with analysts' expectations of a profit of 55 cents per share [2][3] - The cryptocurrency exchange experienced a significant decline in trading volumes, with transaction revenue dropping to $982.7 million from $1.56 billion a year earlier, primarily due to a more than 45% decrease in consumer transaction revenue [2][3] - The overall sentiment in the cryptocurrency sector remains downbeat, impacting trading activities and leading to a broader digital-asset selloff [1][2] Financial Performance - The loss marked Coinbase's first quarterly deficit since Q3 2023, attributed to weaker trading volumes amid a digital asset market downturn [1][2] - Bitcoin's value has nearly halved since its peak on October 6, contributing to the decline in trading activity [3] - Despite the losses, Coinbase's subscription and services revenue increased by 13.5% to $727.4 million, supported by growth in stablecoin operations [5][6] Market Dynamics - Investors withdrew significant amounts from spot bitcoin ETFs, with withdrawals totaling $7 billion in November, $2 billion in December, and over $3 billion in January, which negatively affected market sentiment [4] - The company's stock is down nearly 40% this year, although it saw a 1.2% increase in volatile extended trading following the earnings report [4] Stablecoin Operations - Stablecoin revenue rose to $364.1 million from $225.9 million, indicating a shift towards more stable revenue sources [5][6] - The diversification into stablecoins is seen as a strategy to mitigate revenue volatility, reducing reliance on cryptocurrency trading revenues [6][7] - Coinbase generates revenue from USDC held on and off its platform through a partnership with Circle, earning interest on the U.S. dollar reserves backing the stablecoin [7]