Core Scientific’s stock (CORZ) surged over 12% on August 6, following the expansion of a billion-dollar deal with artificial intelligence cloud provider CoreWeave. CoreWeave is expanding its hosting agreement with Core Scientific to secure additional resources for its Nvidia graphics processing units (GPUs). According to an announcement on August 6, Bitcoin miner Core Scientific will modify its infrastructure to supply approximately 112 incremental megawatts to CoreWeave’s GPUs.
Core Scientific’s shares rose 12.1% to $9.22 on the Nasdaq following the news. The company anticipates generating about $2 billion in additional revenue from the 12-year hosting agreement with CoreWeave.
The expansion comes nearly 60 days after Core Scientific declined a buyout offer from CoreWeave. On June 3, the firms announced a $3.5-billion deal for Core Scientific to provide 200 MW of infrastructure to host CoreWeave’s high-performance computing (HPC) operations. Shortly after, on June 6, Core Scientific revealed an unexpected and unsolicited buyout offer from CoreWeave of $5.75 per share, which the board members rejected, citing a low valuation.
In March, the companies had signed a leasing agreement with potential revenue exceeding $100 million for a Tier 3 data center in Austin, Texas. The site, previously used by Hewlett Packard, was expected to deliver up to 16 MW of capacity for CoreWeave.
“We have now contracted with CoreWeave for a total of 382 megawatts of HPC infrastructure, reflecting the strong demand for high-power data center infrastructure,” said Core Scientific CEO Adam Sullivan.
The total revenue from all contracts between the companies is now projected at $6.7 billion.
Modifications to Core Scientific’s infrastructure to meet the additional demand are expected to commence in the coming months, with operational status scheduled for the first half of 2026. CoreWeave will fund all capital investments required to convert the existing infrastructure into data centers tailored for dense HPC. The new agreement also includes provisions for two five-year renewal terms, and CoreWeave retains the option to further expand the deal with up to 118 MW of infrastructure at another Core Scientific site.
Buying a “strategic reserve” of Bitcoin would be another “Louisiana Purchase moment” for the United States, according to Michael Saylor, the outspoken co-founder of business intelligence company MicroStrategy. Speaking on CNBC on August 6, Saylor endorsed Wyoming Senator Cynthia Lummis’ proposed BITCOIN Act, which aims to compel the US Treasury to gradually accumulate 1 million BTC, almost 5% of the total supply.
“Thomas Jefferson purchased the Louisiana Territory for $15 million in 1803 and nearly doubled the size of the United States,” Saylor remarked. “Bitcoin is scarce, desirable digital property. It’s a great idea to trade a little bit of currency or paper for someplace that billions of people are gonna want to be in 100 years.”
Saylor’s company, MicroStrategy, owns approximately $8 billion worth of BTC. He has consistently been bullish on Bitcoin and recently predicted that its price could reach approximately $13 million per coin by 2045. This forecast was made during his keynote speech at the Bitcoin 2024 conference on July 26.
The Bitcoin 2024 conference, which Saylor described as “very catalytic and marked an inflection point for Bitcoin,” attracted significant attention from political figures, including US presidential candidates, governors, senators, and house members who voiced their support for the digital asset. “Now, it’s possible to discuss nation-states holding Bitcoin on the balance sheet. And if nation-states are going to buy it, then it’s reasonable for institutions, corporations, and individuals to buy it as well,” Saylor told CNBC.
Saylor has urged investors to become “triple maxi” BTC bulls, advocating for pouring all available resources into BTC with the goal of achieving a nine-figure net worth in the coming decades.
His comments came just one day after the entire crypto market experienced a $510-billion drop in total market capitalization during a market crash. Despite Bitcoin’s approximate 18% price decline, it has shown partial recovery. Notably, long-term investors have remained resilient, with BlackRock’s iShares Bitcoin Trust (IBIT) experiencing zero net outflows on August 5, despite the market turbulence.
Bitcoin (BTC) attempted to stabilize at the Wall Street open on August 5 as the crypto markets recovered from a significant sell-off.
Data from Cointelegraph Markets Pro and TradingView showed a $4,000 rebound in BTC’s price after the U.S. trading session began, bringing it near $55,000. This recovery followed a dip below $50,000, the first time since February, causing concern among traders who feared further declines as traditional financial markets reopened.
Risk assets experienced relatively mild losses, with the S&P 500 down 3% and the Nasdaq Composite Index 3.7% lower at the time of writing. U.S. markets thus avoided the severe losses seen in Asia, where Japan’s Nikkei 225 suffered its worst two-day combined losses in history.
Mass selling by trading firm Jump Trading was reported to have significantly impacted the crypto market’s sharp reaction. The Kobeissi Letter attributed the market turmoil to the unprofitable Japanese yen carry trade, exacerbating existing market pain. “The solution to this problem is not as simple as it may seem and may require a separate thread,” it explained on X. “This is a vastly different situation than previous market downturns.”
The VIX volatility index reached levels seen only during the 2008 global financial crisis and the March 2020 COVID-19 market crash. Charles Edwards, founder of Capriole Investments, noted the similarities to early 2020: “Some eerie similarities to early 2020. Stocks overvalued, growing risk of recession, rising unemployment, sharp correlated global market moves down,” he told X followers.
Edwards suggested that the Federal Reserve would likely intervene with early rate cuts and liquidity measures, but the timing remains uncertain. “At some point, the Fed will step in, likely with early rate cuts and probably liquidity too. But when? Until then, expect ALL markets to correlate.”
An emergency meeting by the Federal Reserve was reportedly under consideration, with varying predictions on the outcome. Jeremy Siegel, a professor at the Wharton School of Business, predicted, “I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,” in an interview with CNBC. The Federal Open Market Committee (FOMC) meeting next month is now expected to trigger a 0.5% rate cut, according to CME Group’s FedWatch Tool.
Trading volumes for Bitcoin (BTC) exchange-traded funds (ETFs) soared past $1 billion as trading commenced on August 5, driven by plummeting markets that led to “extremely elevated” trading activity in the crypto sector, according to Alex Thorn, head of research at Galaxy Digital. In a post on the X platform, Thorn highlighted that within just 20 minutes, Bitcoin ETFs recorded over $1.3 billion in trading volume, with iShares Bitcoin Trust leading the pack at over $875 million.
Thorn anticipates net inflows for BTC ETFs due to “dip buying” as investors rush to capitalize on an approximate 8% drop in spot BTC prices since August 4. This decline followed a significant downturn in Ether (ETH) prices, which plunged by over 21%. The sharp drop was attributed to substantial sales by funds such as Jump Trading and Paradigm VC, who offloaded hundreds of millions of dollars worth of Ether, as reported by QCP Group on August 5.
Bitcoin prices have fallen around 8% in the past day, according to CoinMarketCap. Related reports indicate that the crypto market crash was triggered by “aggressive” selling by Jump Trading, with analysts noting that Jump has already sold over $377 million in ETH and may plan to liquidate up to $481 million in total.
The overnight sell-off exacerbated a deteriorating macroeconomic environment affecting all asset classes. The S&P 500 index has dropped more than 5% since August 1. The report further stated, “Macro sentiment has also worsened following poor US unemployment data last Friday. Additionally, huge unwinds across all assets [have] caused volatility to spike sharply.”
Japan’s central bank raised interest rates on July 30, prompting traders to rapidly unwind positions that had taken advantage of the country’s low borrowing costs.
Markus Thielen, founder of 10x Research, expressed to Cointelegraph his expectation of a slowdown in new crypto investments until the market stabilizes: “The market structure, including fiat-to-crypto on-ramps, has been weak for months […] It’s unlikely that significant players will invest amid high volatility and unpredictable prices. Many still need to exit positions and deleverage their portfolios.”
Bitcoin (BTC) attempted to stabilize at the Wall Street open on August 5 as the crypto markets recovered from a significant sell-off.
Data from Cointelegraph Markets Pro and TradingView showed a $4,000 rebound in BTC’s price after the U.S. trading session began, bringing it near $55,000. This recovery followed a dip below $50,000, the first time since February, causing concern among traders who feared further declines as traditional financial markets reopened.
Risk assets experienced relatively mild losses, with the S&P 500 down 3% and the Nasdaq Composite Index 3.7% lower at the time of writing. U.S. markets thus avoided the severe losses seen in Asia, where Japan’s Nikkei 225 suffered its worst two-day combined losses in history.
Mass selling by trading firm Jump Trading was reported to have significantly impacted the crypto market’s sharp reaction. The Kobeissi Letter attributed the market turmoil to the unprofitable Japanese yen carry trade, exacerbating existing market pain. “The solution to this problem is not as simple as it may seem and may require a separate thread,” it explained on X. “This is a vastly different situation than previous market downturns.”
The VIX volatility index reached levels seen only during the 2008 global financial crisis and the March 2020 COVID-19 market crash. Charles Edwards, founder of Capriole Investments, noted the similarities to early 2020: “Some eerie similarities to early 2020. Stocks overvalued, growing risk of recession, rising unemployment, sharp correlated global market moves down,” he told X followers.
Edwards suggested that the Federal Reserve would likely intervene with early rate cuts and liquidity measures, but the timing remains uncertain. “At some point, the Fed will step in, likely with early rate cuts and probably liquidity too. But when? Until then, expect ALL markets to correlate.”
An emergency meeting by the Federal Reserve was reportedly under consideration, with varying predictions on the outcome. Jeremy Siegel, a professor at the Wharton School of Business, predicted, “I’m calling for a 75 basis point emergency cut in the Fed funds rate, with another 75 basis point cut indicated for next month at the September meeting – and that’s minimum,” in an interview with CNBC. The Federal Open Market Committee (FOMC) meeting next month is now expected to trigger a 0.5% rate cut, according to CME Group’s FedWatch Tool.
Trading volumes for Bitcoin (BTC) exchange-traded funds (ETFs) soared past $1 billion as trading commenced on August 5, driven by plummeting markets that led to “extremely elevated” trading activity in the crypto sector, according to Alex Thorn, head of research at Galaxy Digital. In a post on the X platform, Thorn highlighted that within just 20 minutes, Bitcoin ETFs recorded over $1.3 billion in trading volume, with iShares Bitcoin Trust leading the pack at over $875 million.
Thorn anticipates net inflows for BTC ETFs due to “dip buying” as investors rush to capitalize on an approximate 8% drop in spot BTC prices since August 4. This decline followed a significant downturn in Ether (ETH) prices, which plunged by over 21%. The sharp drop was attributed to substantial sales by funds such as Jump Trading and Paradigm VC, who offloaded hundreds of millions of dollars worth of Ether, as reported by QCP Group on August 5.
Bitcoin prices have fallen around 8% in the past day, according to CoinMarketCap. Related reports indicate that the crypto market crash was triggered by “aggressive” selling by Jump Trading, with analysts noting that Jump has already sold over $377 million in ETH and may plan to liquidate up to $481 million in total.
The overnight sell-off exacerbated a deteriorating macroeconomic environment affecting all asset classes. The S&P 500 index has dropped more than 5% since August 1. The report further stated, “Macro sentiment has also worsened following poor US unemployment data last Friday. Additionally, huge unwinds across all assets [have] caused volatility to spike sharply.”
Japan’s central bank raised interest rates on July 30, prompting traders to rapidly unwind positions that had taken advantage of the country’s low borrowing costs.
Markus Thielen, founder of 10x Research, expressed to Cointelegraph his expectation of a slowdown in new crypto investments until the market stabilizes: “The market structure, including fiat-to-crypto on-ramps, has been weak for months […] It’s unlikely that significant players will invest amid high volatility and unpredictable prices. Many still need to exit positions and deleverage their portfolios.”
Shares of MicroStrategy could see a 30% increase if Bitcoin reaches $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph. Benchmark fintech analyst Mark Palmer suggests that the stock could climb to $2,150 per share, given that MicroStrategy continues the Bitcoin purchasing spree initiated by founder Michael Saylor in 2020. Currently, the stock trades at approximately $1,450.
“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000 by the end of 2025,” Palmer told Cointelegraph via email.
On its Aug. 1 earnings call, MicroStrategy reaffirmed its commitment to Bitcoin by introducing a unique performance metric: Bitcoin yield. This metric measures the ratio of BTC holdings to outstanding shares, effectively setting BTC-per-share as a key performance indicator. The goal is to “demonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,” Palmer explained.
“While [MicroStrategy’s] approach has had plenty of detractors, […] management has responded to criticism by pointing to the scoreboard: since the company adopted its bitcoin acquisition strategy on August 10, 2020, the company’s stock has appreciated by 1,206%,” the report noted, adding that MicroStrategy has significantly outperformed both Bitcoin and other stocks during this period.
Benchmark’s “buy” rating is “based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s Bitcoin holdings and (2) our estimate of the year-end 2025 value of its enterprise software business,” Palmer stated.
MicroStrategy’s stock has declined by about 10% since its investor call, following losses of $5.74 per share, attributed to declining revenue in its core enterprise software business. Despite this weak quarter, the company acquired 12,222 BTC for $805 million—approximately $65,800 per coin—financed through “cash flows, as well as proceeds from equity and debt financings,” CEO Phong Q. Le mentioned during the call.
MicroStrategy now holds a substantial stockpile of 226,500 BTC, valued at around $14.7 billion at current prices.
Shares of MicroStrategy could see a 30% increase if Bitcoin reaches $150,000 by the end of 2025, according to an Aug. 2 analyst report shared with Cointelegraph. Benchmark fintech analyst Mark Palmer suggests that the stock could climb to $2,150 per share, given that MicroStrategy continues the Bitcoin purchasing spree initiated by founder Michael Saylor in 2020. Currently, the stock trades at approximately $1,450.
“Our valuation assumes that [MicroStrategy] will continue to aggressively accumulate Bitcoin during the next 1.5 years and that Bitcoin’s price will reach $150,000 by the end of 2025,” Palmer told Cointelegraph via email.
On its Aug. 1 earnings call, MicroStrategy reaffirmed its commitment to Bitcoin by introducing a unique performance metric: Bitcoin yield. This metric measures the ratio of BTC holdings to outstanding shares, effectively setting BTC-per-share as a key performance indicator. The goal is to “demonstrate the efficacy of its bitcoin acquisition strategy and its use of intelligent leverage,” Palmer explained.
“While [MicroStrategy’s] approach has had plenty of detractors, […] management has responded to criticism by pointing to the scoreboard: since the company adopted its bitcoin acquisition strategy on August 10, 2020, the company’s stock has appreciated by 1,206%,” the report noted, adding that MicroStrategy has significantly outperformed both Bitcoin and other stocks during this period.
Benchmark’s “buy” rating is “based on a sum-of-the-parts analysis that combines (1) our estimate of the year-end 2025 value of the company’s Bitcoin holdings and (2) our estimate of the year-end 2025 value of its enterprise software business,” Palmer stated.
MicroStrategy’s stock has declined by about 10% since its investor call, following losses of $5.74 per share, attributed to declining revenue in its core enterprise software business. Despite this weak quarter, the company acquired 12,222 BTC for $805 million—approximately $65,800 per coin—financed through “cash flows, as well as proceeds from equity and debt financings,” CEO Phong Q. Le mentioned during the call.
MicroStrategy now holds a substantial stockpile of 226,500 BTC, valued at around $14.7 billion at current prices.
The U.S. government has transferred $2 billion worth of Bitcoin, despite former President Donald Trump’s recent statement that the U.S. would never sell its Bitcoin holdings.
This transfer, consisting of 29,800 Bitcoin, was moved from a government wallet, which held assets seized from the Silk Road marketplace in 2022, to an unknown address on July 29.
The funds have since been transferred to another unknown wallet.
This move comes just days after Trump, speaking at the Bitcoin 2024 conference in Nashville, Tennessee, made several pro-crypto promises.
He vowed that the U.S. government would retain its Bitcoin holdings and aimed to establish the U.S. as the “crypto capital of the world” through supportive policies, including the dismissal of Securities and Exchange Commission Chair Gary Gensler.
Additionally, Senator Cynthia Lummis announced legislation to designate Bitcoin as a strategic reserve asset for the U.S. She proposed acquiring 5% of Bitcoin’s total supply to hold as a Treasury asset, likening it to a modern “Louisiana Purchase.”
Catherine Chen, Binance’s head of VIP and institutional, commented to Cointelegraph that the attention on Bitcoin from high-profile U.S. figures is a “positive sign” for the digital asset sector.
READ MORE: Bitcoin Stabilizes Ahead of Critical Weekly Close Amid Presidential Candidates’ Crypto Plans
“What is clearly meaningful is that politicians and prominent industry leaders are explicitly stating their positions, recognizing the value of Bitcoin in the monetary system, and making it clear that crypto is important on their agenda,” Chen noted.
She highlighted Binance’s Capital, People, Technology (CPT) Framework, which aims to advance the crypto market under these strategic reserves.
Galaxy Digital CEO Mike Novogratz criticized the government’s Bitcoin transfer, calling it “tone deaf.” Some speculate this transfer might relate to a July 1 agreement between Coinbase and the U.S. Marshals Service to manage government-held crypto assets.
The U.S. government currently holds $12 billion in Bitcoin, primarily from seizures. However, not everyone believes Bitcoin will become a strategic reserve asset.
BlockTower Capital’s Ari Paul estimated a 10% chance of this happening within the next four years, suggesting skepticism about this direction for Bitcoin in the U.S. policy landscape.
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Bitcoin (BTC) aimed to reclaim $62,000 on August 3, as markets showed signs of recovery after a significant liquidation event.
Data from Cointelegraph Markets Pro and TradingView indicated a 3% rebound in BTC price following multi-week lows of $60,435 on Bitstamp.
This came on a day of heavy losses for global stocks, with Japan’s Nikkei dropping 6%, setting a pessimistic tone for Wall Street. Disappointing U.S. employment data added to the panic.
Bitcoin itself lost nearly $5,000, breaching several key support levels, including the short-term holder cost basis.
Liquidations surged as a result, with monitoring resource CoinGlass reporting a total crypto longs wipeout of $230 million on August 1 and 2.
“The yields are falling off a cliff in the U.S. markets as the job reports came in astonishingly bad,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, commented on X.
“Slight panic across the board, as the markets are pricing in a substantial recession for the U.S.”
Van de Poppe suggested that the recent events likely increased the chances of the Federal Reserve cutting interest rates at its next meeting in September, a move seen as bullish for crypto and risk assets.
“One thing is for certain: Rate cuts for September are confirmed,” he concluded.