Digital asset investment products logged their fifth consecutive week of outflows, extending a selloff that has now erased $4 billion from the sector amid widespread investor disinterest and macro uncertainty. Crypto funds saw $288 million in net outflows last week, bringing the five-week total to approximately $4 billion, according to a CoinShares report published Monday. Trading volumes plunged to $17 billion—the lowest level since July 2025—underscoring waning interest even as prices stabilized followi ...

Core Viewpoint - The proposed business combination between ReserveOne, Inc. and M3-Brigade Acquisition V Corp. is progressing, with an amendment to the registration statement filed with the SEC, indicating steps towards completion and potential Nasdaq listing under the ticker "RONE" [1][2]. Group 1: Business Combination Details - The business combination was initially announced on July 8, 2025, and an amendment to the registration statement was filed on February 17, 2026 [1]. - The registration statement includes a preliminary proxy statement of M3-Brigade and a prospectus of Pubco related to the proposed business combination, which is still subject to SEC review [2][3]. - Upon completion of the transaction, Pubco is expected to be listed on Nasdaq, indicating a significant milestone for the involved parties [2]. Group 2: Company Profiles - ReserveOne is a digital asset company focused on investing in the cryptocurrency sector, aiming to manage a diversified portfolio of cryptocurrencies and generate yield through various blockchain activities [4]. - M3-Brigade Acquisition V Corp. is a special purpose acquisition company targeting transformational growth in innovative sectors, including digital and energy platforms, and is sponsored by MI7 Sponsor, LLC, an affiliate of CC Capital [5].

Core Viewpoint - Strategy Inc (NASDAQ:MSTR) is identified as one of the top meme stocks to consider for investment, despite recent price target adjustments by analysts [1][3]. Group 1: Analyst Ratings and Price Targets - Cantor Fitzgerald reduced its price target for MSTR from $213 to $192 while maintaining an Overweight rating [1]. - BTIG also lowered its price target significantly from $630 to $250, attributing this to a decline in bitcoin prices ahead of the company's Q4 earnings call, but still reiterated a Buy rating [2][3]. - The stock is noted to have a Strong Buy rating with an average share price upside of 192.54% as of February 12 [3]. Group 2: Financial Performance - Strategy Inc reported a net loss of $42.93 per share in Q4, a significant increase from a loss of $3.03 per share in the same period the previous year, primarily due to volatility in digital assets [4]. - The company is the largest corporate holder of Bitcoin globally, with 713,502 bitcoins held as of February 1, representing a total cost of $54.26 billion [4]. Group 3: Debt and Reserves - Analysts noted that MSTR's convertible debt is "extremely over-collateralized," and the company has approximately two and a half years of dollar reserves available for preferred equity dividend payments [3].

Core Insights - Bitcoin-buying firms are facing challenges in maintaining demand as the price of Bitcoin declines, with Strategy leading the market by acquiring 93% of Bitcoin purchased by publicly traded firms last month [1] - Digital asset treasuries added nearly 43,230 Bitcoin worth $3.5 billion last month, showing an increase from December but significantly lower than the acquisitions in November 2024 [2] - The sentiment around digital asset treasuries has shifted, with Strategy's stock price dropping 70%, leading to investor frustration [3] Company Performance - Strategy disclosed a $12.4 billion loss in the fourth quarter, raising concerns about the sustainability of its business model despite co-founder Michael Saylor's assertion that the company operates as a "digital fortress" [5] - Strategy's competitors have been making smaller Bitcoin purchases for four consecutive months, indicating a potential shift in market dynamics [4] - The company has introduced various types of preferred shares to support its operations, with the variable rate preferred share (STRC) growing to $3.4 billion [6][7] Market Dynamics - Analysts have previously warned that Bitcoin-buying firms might become forced sellers due to their corporate structures, with many having acquired Bitcoin at an average price of $90,000 [8]

Core Viewpoint - Strategy Inc's shares surged 22% following TD Cowen's maintenance of a $440 price target, asserting that there is "no reasonable scenario" that would compel the company to sell its Bitcoin holdings despite being underwater on them [1]. Group 1: Company Positioning and Performance - TD Cowen analysts believe Strategy is "better positioned than ever" for a potential recovery, despite a 13.4% decline in shares so far in 2026, adding to a 47.5% slump in the previous year [2]. - The volatility of Strategy's common stock is designed to be approximately 1.5 times more volatile than Bitcoin, leading to outperformance when Bitcoin prices rise and underperformance when they fall [3]. Group 2: Financial Resilience - TD Cowen highlighted that Strategy has the financial capacity to endure a significant downturn in Bitcoin prices, with a cash reserve of $2.25 billion that can cover $900 million in fixed charges for nearly 17 months and $1 billion in convertible notes due in 2027 [4]. - Concerns regarding solvency are mitigated by the company's capital structure, which is designed to withstand prolonged volatility, as stated by CEO Phong Le, who indicated that Bitcoin would need to drop to around $8,000 and remain there for five to six years before the company faces difficulties in servicing its convertible debt [6]. Group 3: Future Outlook and Innovations - TD Cowen maintained Bitcoin price targets at $177,000 by December 2026 and $226,000 by December 2027, indicating a bullish outlook on Bitcoin's future [5]. - The emergence of Strategy's "digital credit engine" is noted as a key component of its investment thesis, with the company raising over $7 billion in preferred equity in fiscal 2025, which represents 33% of all preferred equity sold in the U.S. [7]. - The firm's STRC preferred stock offers an 11.25% annualized dividend rate with daily liquidity exceeding $118 million, providing an alternative funding mechanism beyond convertible debt [8].

Group 1 - The company continued to buy Bitcoin as its price fell to a five-week low, spending $267 million and acquiring approximately 2,900 BTC, marking a slowdown compared to previous weeks where it spent $1.2 billion and $2.1 billion [1] - The largest corporate holder of Bitcoin now possesses 712,600 BTC, valued at $62.7 billion, with Bitcoin recently trading around $87,600 [2] - The company's stock price has decreased over 60% in the past six months but has stabilized, increasing by 1.5% over the last 30 days [3] Group 2 - The latest Bitcoin purchase was primarily funded through the issuance of common stock, which accounted for 97% of the $264 million raised [3] - The company has raised $421 million by offering its variable rate preferred stock, STRC, which pays an annualized cash rate of 11% [4] - When STRC trades above $100, the company plans to issue more preferred stock to maintain its price while using the proceeds to buy Bitcoin [5] Group 3 - The company's cash reserves are sufficient to cover 30 months of dividend payments, coinciding with a decline in its multiple-to-net asset value (mNAV) [6] - The company measures success by the increase in Bitcoin owned per share, known as BTC Yield, and considers issuing common stock positively effective when mNAV is above 1 [7]

Group 1 - Blockstream Capital Partners (BCP) has acquired a digital asset trading and investment business from Numeus Group to enhance its bitcoin trading and yield generation capabilities [2][3] - Numeus Group, founded in 2021, is a digital asset investment firm with a team of 33 professionals across multiple locations including Switzerland, New York, London, and Mauritius [3] - The acquisition includes the integration of bitcoin-focused trading strategies and a 10-person derivatives trading team led by Chief Investment Officer Deepak Gulati, who specializes in volatility and derivatives markets [4] Group 2 - The transaction aligns with BCP's strategy to develop a premier institutional platform for digital asset trading, yield generation, and structured solutions [4] - BCP aims to deliver yield-enhancing derivatives strategies for Bitcoin treasury, including services for corporate and Decentralized Autonomous Organization (DAO) treasuries [5] - Komainu, a provider of corporate support and custodial services, played an integral role in the transaction, and Numeus Group plans to collaborate with BCP in the future [5]

Core Viewpoint - Grayscale Investments has announced updated fund component weightings for its DeFi Fund, Smart Contract Fund, and Decentralized AI Fund as part of their fourth quarter 2025 reviews, reflecting adjustments in their portfolios based on respective index methodologies [1][2][3]. Fund Adjustments - The DEFG Fund's portfolio was adjusted by selling existing components in proportion to their weightings and using the proceeds to purchase components accordingly, with specific asset weightings detailed [2][6]. - The GSC Fund underwent a similar adjustment process, aligning its portfolio with the CoinDesk Smart Contract Platform Select Capped Index methodology [2][11]. - The AI Fund also adjusted its portfolio in accordance with its established methodology, selling and purchasing components based on their weightings [3][16]. Fund Characteristics - None of the DEFG, GSC, or AI Funds generate income, and they regularly distribute fund components to cover ongoing expenses, leading to a gradual decrease in the amount of fund components represented by shares over time [3][10]. - The DeFi Fund aims to provide exposure to leading decentralized finance platforms through a market cap-weighted portfolio designed to track the CoinDesk DeFi Select Index [9][10]. - The GSC Fund seeks to provide exposure to industry-leading smart contract platforms, also through a market cap-weighted portfolio, subject to a weightings cap [11]. Company Overview - Grayscale Investments is recognized as the largest digital asset-focused investment platform, with approximately $27.5 billion in assets under management as of September 30, 2025 [5][20]. - The company has a decade-long track record in the digital asset space, offering a range of investment products that provide single asset, diversified, and thematic exposure [20].

Group 1: Market Overview - Digital asset investment products have shown strong momentum entering 2026, indicating a shift in investor behavior from Bitcoin to select altcoins [1] - Global crypto fund inflows in 2025 reached $47.2 billion, just shy of the 2024 record of $48.7 billion, setting a positive tone for early-year market activity [1][2] Group 2: Regional Inflows - The US remains the largest source of investment, while Germany and Canada saw inflows of $2.5 billion and $1.1 billion, respectively, reversing previous outflows and reflecting broader global adoption [3] - Switzerland recorded a modest growth in inflows of $775 million, representing an 11.5% year-over-year increase [3] Group 3: Altcoin Performance - Altcoins are gaining significant investor attention, with Ethereum attracting $12.7 billion in inflows last year, marking a 138% year-over-year increase [4] - XRP surged 500% to $3.7 billion, and Solana skyrocketed 1,000% to $3.6 billion, indicating concentrated interest in top-performing tokens [4] Group 4: Bitcoin Trends - Bitcoin flows lagged, dropping 35% year-over-year to $26.9 billion, with short-Bitcoin investment products remaining niche at $105 million in total assets under management [6] - Despite the decline in flows, Bitcoin prices rebounded sharply from $89,000 to $93,300, influenced by leveraged short liquidations and geopolitical events [7] Group 5: Market Sentiment - Market sentiment is cautiously optimistic, with on-chain data indicating one of the largest whale accumulation phases in over a decade [8] - Momentum indicators for Bitcoin and Ethereum are rebounding from deeply oversold levels, suggesting potential for future growth [8]

Core Viewpoint - VivoPower International plans to originate up to $300 million worth of Ripple Labs shares for Lean Ventures, providing indirect exposure to approximately 450 million XRP tokens valued at around $900 million at current prices [1][2]. Group 1: Transaction Details - The share deal will be managed by VivoPower's digital asset unit, Vivo Federation, which will source Ripple equity for a dedicated investment vehicle managed by Lean Ventures [2]. - VivoPower does not intend to deploy significant balance sheet capital for this arrangement, acting instead as an originator and manager, generating revenue through fees and performance-based compensation [3]. - The company targets net economic returns of roughly $75 million over three years from the initial $300 million tranche, based on internal estimates [3]. Group 2: Exposure and Structure - VivoPower characterizes the Ripple Labs shareholdings as providing exposure to "underlying" XRP, based on Ripple's existing XRP holdings, without direct ownership of XRP tokens [4]. - Returns from this structure will depend on Ripple's corporate performance, balance sheet composition, and broader market dynamics [4]. Group 3: Market Context - The transaction follows earlier disclosures by VivoPower regarding other XRP-linked strategies, including a plan to acquire up to $100 million in Ripple Labs shares as part of an XRP-focused treasury strategy [6]. - VivoPower's stock, VVPR, closed at $2.83, down by 11.56% from the prior session, with trading volume at approximately 340,600 shares, indicating a sell-off on relatively light participation [6].