Geopolitical sensitivity eased this week as U.S.–Iran peace talks remained ongoing and the ceasefire was extended by a further three weeks, helping keep the VIX comfortably below 20 and supporting risk assets, including cryptocurrencies. However, tail risks remain, with the full impact on commodity infrastructure, shipping routes and supply chains still uncertain, while markets remain aware that the pause could prove tactical rather than a durable resolution. On the corporate side, data centre financing activity among bitcoin miners continued to expand, reinforcing the view that demand for AI and HPC infrastructure remains robust, a trend further supported by strong AI-related semiconductor earnings from SK Hynix and Intel. In crypto regulation, the CLARITY Act timeline appears to have slipped, with the expected hearing/markup pushed back, narrowing the window for passage before the midterm election cycle.
Week 17 Key Developments in Blockchain Equities:
- Index Performance: The Index appreciated by 0.3% this week, while Bitcoin rose 3.2%, as easing geopolitical risk and resilient U.S. macro data supported risk assets. Stronger-than-expected retail sales and manufacturing PMI, alongside lower jobless claims, reinforced the view that the economy remains robust. Meanwhile, Fed Chair nominee Kevin Warsh’s Congressional testimony was modestly constructive for digital assets, acknowledging their growing role in the U.S. financial system while opposing a Fed-issued CBDC. On monetary policy, he avoided endorsing near-term rate cuts and emphasised Fed independence, though his broader framework could still support risk assets if AI-led productivity gains help ease inflation without a sharper growth slowdown.
- Block Index Key Movers: 7-day top performers: Softbank (+24.7%), Kinsus Interconnect (+21.7%), Keel Infrastructure (+18.2) 7-day worst performers: SBI Holdings (-7.2%), Circle (-6.9%), Nu Holdings (-6.3%)
- Bitcoin miners continue to strengthen their balance sheets to fund AI infrastructure buildout – Index constituents saw three notable capital markets and portfolio actions this week. Core Scientific launched a US$3.3 billion senior secured notes offering due 2031 at a 7.750% coupon, with proceeds allocated to a debt service reserve, repayment of delayed-draw term loans, and expansion of high-density colocation capacity across Georgia, Texas, North Carolina and Oklahoma. HIVE Digital also raised capital, closing a US$115 million 0% exchangeable senior notes offering due 2031, with proceeds earmarked for GPU procurement and data centre development. Meanwhile, Keel Infrastructure, formerly part of Bitfarms, completed the sale of its 70 MW Paso Pe site in Paraguay for US$13 million, a smaller but directionally consistent step in shifting capital away from lower-priority mining assets and toward higher-value, US-centric AI and HPC opportunities. Taken together, these transactions suggest the market is increasingly willing to finance miners’ AI transition as infrastructure capex backed by tangible power, land and colocation demand, rather than as a purely speculative pivot.
Earnings Recap – Key Holdings:
- Nextera Energy – Positive
- CME Group – Mixed
- Other news – Index constituent Strategy Inc made its largest Bitcoin purchase since late 2024, adding 34,164 BTC for US$2.54bn, lifting total holdings to 815,061 BTC. The purchase was funded primarily through US$2.18bn of STRC which represented roughly 86% of the funding mix with 14% being MSTR common equity. The latest acquisition now has pushed Strategy ahead of BlackRock’s IBIT as the largest disclosed institutional Bitcoin holder. Metaplanet issued ¥8bn, or roughly US$50m, of zero-interest, unsecured and unguaranteed ordinary bonds to EVO Fund, with proceeds earmarked for further Bitcoin purchases and no near-term cash interest burden. Mizuho Financial Group, Nomura Holdings and Digital Asset Holdings launched a proof-of-concept on the Canton Network to test blockchain-based JGB collateral management, including rights transfers and book-entry updates, with the aim of enabling more seamless real-time and cross-border collateral transactions. DoorDash is working with Tempo, the Stripe- and Paradigm-backed payments blockchain, to explore stablecoin-powered payouts for merchants across its global marketplace.