What happens when the safest asset on a company’s balance sheet — cash — becomes its biggest liability?

This isn’t a hypothetical exercise. With bitcoin treasury companies, it has become the central question in corporate finance, forcing a not-so-quiet revolution — from Strategy (NASDAQ: MSTR) to Coinbase (NASDAQ: COIN), Strive (NASDAQ: ASST) and even miners like MARA Holdings (NASDAQ: MARA). The pain of cash melting in corporate hands has given rise to a new and strategic class of public company: a bitcoin treasury company. These aren’t just firms that accept cryptocurrency; they are corporations that have fundamentally reengineered their financial core. They have made the strategic decision to convert their primary treasury reserve asset from U.S. dollars into bitcoin.

This strategy was forged not in a niche online community, but in a corporate boardroom facing an urgent paradox. Look no further than Strategy. In the summer of 2020, the successful tech firm was staring down the barrel of a problem created by its own triumphs — half a billion dollars in cash. In a sane world, this would be a sign of stability. In ours, it was a ticking time bomb.

The financial landscape had become a trap. “Safe” investments like government bonds had become a joke, with interest rates so low Strategy was essentially paying for the privilege of losing money to inflation. The math wasn’t just stark; it was insulting. For the executive team, holding cash meant knowingly signing up for a predictable, perpetual decay of their hard-won capital.

The company’s CEO, Michael Saylor, conducted a systematic analysis of all available assets. His conclusion was audacious and shocking. Rather than chasing diminishing interest rates within the existing financial system, he opted for a different solution entirely: He began converting his company’s cash reserves into the one asset he determined was structurally immune to inflation: bitcoin.

With that move, Strategy established a new corporate playbook. It demonstrated that a company’s treasury could be used not just for operational liquidity, but as an active strategy for long-term value preservation. This created a new kind of public company — one whose stock offers investors direct exposure to a scarce digital asset, turning the firm’s balance sheet into an asset that protects you from inflation.

What might appear at first glance to be a speculative bet is, upon closer inspection, a calculated response to a global problem. While awareness of Bitcoin is at an all-time high, the vast majority of the world’s wealth — hundreds of trillions of dollars held on corporate balance sheets and in savings accounts — still resides in traditional currencies and assets. The migration of capital into assets designed for this new economic reality has only just begun.

This new playbook offers a compelling template for survival, especially for institutions like pension funds and endowments. These entities have long relied on a conservative mix of assets to protect capital. But in an era where cash and bonds are ill-suited for storing value over the long term, they face a critical challenge. Bitcoin, and the public companies aligning their treasuries with it, present a new option for exposure, one that serves the function of a store-of-value asset but with characteristics of scarcity and growth potential that traditional assets now lack.

The decision facing every fund manager, CFO and trustee has evolved. The question is no longer which low-yield bond fund to allocate to, but which monetary system to build a future upon.

Will you continue to anchor your value to a financial system that is demonstrating a clear tendency toward debasement and loss of purchasing power?

This is more than an asset allocation decision; it’s a fundamental choice between two paths to wealth. The era of seeking safety in assets that are someone else’s liability, printable at will in infinite quantities and at no cost, is giving way to a new paradigm: seeking stability in scarce digital property that no one can print. The bitcoin treasury company is the first vessel for this migration — a corporate structure built not merely to weather the storm, but to build the foundation of a new economy.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

This post The Origin Story of Bitcoin Treasury Companies: Cash Is a Liability first appeared on Bitcoin Magazine and is written by BtcCasey.

With his return to the presidency, Donald Trump has positioned himself as a key figure in the Bitcoin conversation. His keynote at Bitcoin 2024 laid out ambitious plans for integrating Bitcoin into the U.S. economy, making him the first U.S. president to openly champion the cryptocurrency in such a way. As his second term begins, the Bitcoin community is eager to see how his promises will evolve into concrete policies, with hopes of a friendlier regulatory environment and a more secure, innovative financial system.

The Promises

Trump’s speech at Bitcoin 2024 highlighted a series of initiatives aimed at embracing Bitcoin and blockchain technology:

• Ending the “anti-crypto stance” from previous administrations, with a commitment to revising the approach to regulation.
• Establishing a Presidential Crypto Advisory Council to shape the national strategy for Bitcoin and blockchain innovation.
• Rejecting the idea of a Central Bank Digital Currency (CBDC).
• Securing and holding government-owned bitcoin, with plans to create a strategic stockpile.
• Freeing Ross Ulbricht, the founder of the Silk Road online marketplace, who has been imprisoned since 2013.
• The removal of SEC Chairman Gary Gensler.

While Trump’s commitment to Bitcoin is undeniably encouraging for the community, translating ambitious promises into effective policy presents a challenging path forward. His call for removing SEC Chairman Gary Gensler resonated with Bitcoin advocates, many of whom blamed Gensler for restrictive policies. Although it’s unclear if Trump’s influence played a role, Gensler’s announcement of his November departure signals a changing regulatory tide. Trump’s proposal to establish a Crypto Advisory Council holds potential, but its success will depend on bipartisan cooperation and a clear, actionable mandate. Without these elements, it risks becoming a hollow political gesture. Additionally, his opposition to a Central Bank Digital Currency (CBDC) aligns well with privacy advocates and decentralization proponents, and there does seem to be support from within the Republican party for this policy. In regards to Ross Ulbricht, President Trump has many avenues to explore, from a commuted sentence to a presidential pardon. Whether it happens “day one” or within the early days of Trump’s second term, Ulbricht’s freedom is on the horizon.

As with any sweeping political vision, enthusiasm must be tempered with pragmatism. Turning promises into actionable policies takes time, especially within the labyrinth of established financial systems. Regulatory reforms move slowly, often hindered by entrenched interests and complex legislative processes. Nonetheless, Trump’s vocal advocacy of Bitcoin marks a cultural shift in American politics. Even if not every initiative reaches full fruition, his presidency could significantly alter public perceptions and policy discourse surrounding Bitcoin, embedding the cryptocurrency deeper into the national conversation.

Should political inertia or opposition delay progress, the Bitcoin community has tools to remain proactive and engaged. Active participation in shaping policy will be key—advocating for legislative clarity and innovation-friendly frameworks can help ensure Bitcoin’s potential is realized. Keeping a vigilant eye on regulatory shifts, including how Trump’s administration addresses existing SEC cases and cryptocurrency classifications, will also be crucial. Flexibility and readiness to accept incremental progress could yield meaningful wins, especially in resisting CBDCs and strengthening the government’s bitcoin holdings strategy.

Ultimately, Trump’s pro-Bitcoin stance represents a historic pivot toward integrating Bitcoin into U.S. governance. While challenges and delays are inevitable, the presence of a Bitcoin advocate in the White House offers unprecedented opportunities. The next few years will test whether America can truly become a beacon for Bitcoin innovation or whether political realities will slow the revolution. Either way, Bitcoin now has a powerful ally at the highest level of government—a hopeful signal for its future trajectory in the United States and beyond.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

This post President Trump Has Got A Bold Vision For Bitcoin In America first appeared on Bitcoin Magazine and is written by BtcCasey.

Binance, one of the world’s leading cryptocurrency exchanges, has successfully integrated Bitcoin (BTC) onto the Lightning Network, enabling faster and more efficient transactions. As of today, users can now deposit and withdraw Bitcoin (BTC) using the Lightning Network on the Binance platform.

The integration of Bitcoin on the Lightning Network marks a significant milestone for Binance, as it aims to enhance the speed and scalability of Bitcoin transactions. By leveraging the Lightning Network, Binance aims to address the scalability challenges associated with the Bitcoin network, allowing users to enjoy faster and cheaper transactions. Previously, Binance has experienced issues in high fee environments, most recently highlighted when Bitcoin inscriptions caused a surge in fees.

With the Lightning Network integration, Binance users can now take advantage of the Lightning Network’s off-chain payment channels to send and receive bitcoin transactions with reduced fees and faster settlement times. This development comes just as Lightning is being integrated into other exchange platforms, essentially becoming an expectation for quick and easy bitcoin transactions. Just last week, a European exchange named Coinfinity also integrated the Lightning Network, with plans for further integration down the road.

According to the official announcement by Binance, users can find their assigned bitcoin deposit addresses on the Lightning Network within the Deposit Crypto page on the platform. The exchange has also provided a FAQ section to guide users on how to deposit bitcoin using the Lightning Network.

The integration of the Lightning Network for bitcoin transactions is expected to bring tangible benefits to Binance users, offering them a faster and more cost-effective way to engage with the leading cryptocurrency.

This post Binance Implements Lightning Network Support For Bitcoin Transactions first appeared on Bitcoin Magazine and is written by BtcCasey.

Geyser, a leading Bitcoin grant organization, has announced the launch of its fifth Bitcoin grant, aimed at supporting educational initiatives and community-based programs focused on Bitcoin. The grant opens up opportunities for campaigns that promote and bolster Bitcoin schools and communities worldwide. 

Mick Morucci, CEO of Geyser, emphasized the importance of Bitcoin for underserved populations, stating, “These are the people that would most benefit from bitcoin, which can act as a shield. These are also those that are least aware of bitcoin.” The grant seeks to amplify the efforts of Bitcoin communities that are emerging across the globe, offering knowledge, education and tools to promote participation in the Bitcoin movement.

To fund the grant, Geyser has raised 1 BTC, thanks to generous donors and a partnership with Blink. The organization aims to distribute the proceeds to numerous projects that demonstrate impact, need and proof of work. Applications for the grant are currently open and will be accepted until mid-August. A board will evaluate the projects and select the most deserving recipients.

Geyser Grants stands apart from typical Bitcoin grants, which primarily focus on core developers. The organization aims to recognize and reward all Bitcoin creators for their contributions. Geyser Grants has already made a significant impact, contributing 2.2 BTC to over 100 projects centered around Bitcoin education, creative endeavors, and community building.

The grants serve multiple purposes, including promoting Bitcoin awareness, encouraging contributions to the Bitcoin ecosystem, recognizing important work in the space, empowering creators globally and fostering the growth of the Bitcoin creator ecosystem. To learn more about the grant or to apply, interested individuals can visit the Geyser Grants Round 5 page.

This post Geyser Launches 5th Bitcoin Grant To Empower Educational Bitcoin Communities first appeared on Bitcoin Magazine and is written by BtcCasey.

Europe is on the verge of witnessing the launch of its first spot bitcoin exchange-traded fund (ETF). The long-awaited debut of the European spot bitcoin ETF comes after a significant delay, which has only intensified the anticipation surrounding its arrival. Coinciding with this news, the United States is also experiencing a surge of interest in a similar product, kicking off with the filing by BlackRock for an American spot bitcoin ETF.

Jacobi Asset Management is responsible for the ETF listing, which was actually approved in 2021. Due to market conditions in 2022, the ETF was delayed — although there’s no official launch date yet, the development comes at an opportune time.

The ETF is designed to provide investors with an opportunity to gain exposure to bitcoin without directly owning the underlying asset, albeit at the costs of properties only offered by self-custody. By offering a regulated and easily accessible investment vehicle, the spot bitcoin ETF has the potential to attract a broader range of institutional investors.

The delay in launching the European spot bitcoin ETF had only heightened market expectations. Investors have been eagerly awaiting a regulatory green light that would enable them to tap into the Bitcoin market with the convenience and security of an ETF structure. Now, with the imminent arrival of Europe’s first spot Bitcoin ETF, many believe that it could herald a new era for bitcoin in the region.

Simultaneously, the United States has witnessed a surge of interest in a spot bitcoin ETF following BlackRock’s recent filing. As one of the world’s largest asset management firms, BlackRock’s entry signals a significant shift in sentiment towards bitcoin. Indeed, several other similarly large firms filed spot bitcoin ETFs afterwards.

The filing indicates that even established traditional financial institutions are recognizing the growing demand for regulated exposure to bitcoin. If approved, a spot Bitcoin ETF in the U.S. could potentially provide a significant boost to the market, attracting institutional investors and further bringing bitcoin mainstream.

This post Europe’s First Spot Bitcoin ETF Set To Debut Amidst Growing Interest In The U.S. first appeared on Bitcoin Magazine and is written by BtcCasey.

CleanSpark Inc. has announced the completion of phase two of its mining campus expansion in Washington, Georgia. The expansion is expected to increase CleanSpark’s bitcoin mining compute power by 1.8 exahashes per second (EH/s) to a total of 8.5 EH/s. The company has set lofty goals of reaching a target of 16 EH/s by the end of the year. The Washington campus has a power capacity of 50 megawatts (MW) and currently operates over 10,500 mining machines, with a total investment of over $100 million.

Zach Bradford, CEO of CleanSpark, expressed his appreciation for the successful execution of the expansion, highlighting the technical expertise and support from the local community. He stated, “This expansion has already helped us get more than halfway to our year-end guidance of 16 EH/s.”

CleanSpark has been actively pursuing growth opportunities, particularly during the recent bear cycle. Last month, the company acquired a turnkey bitcoin mining campus in Dalton, Georgia, consisting of two sites, for $9.3 million. In addition to that, in the same month the company announced the acquisition of more than 12,000 cutting edge mining machines.

The expansion in Washington, Georgia, has marked another milestone for CleanSpark as it continues to increase its bitcoin mining capacity. 

This post CleanSpark Announces Completion Of Georgia Expansion, Surpasses 8 EH/s first appeared on Bitcoin Magazine and is written by BtcCasey.

Mutiny Wallet, the first self-custodial Lightning wallet that operates on the web, has officially launched its open beta. According to the release announcement, the wallet aims to solve the onboarding challenge for Bitcoin users worldwide by providing accessibility regardless of location or device. The announcement described the wallet’s mission of catering to the five billion global internet users with web browser access by offering complete control of funds and eliminating the need for identity verification. Additionally, the wallet is aimed at introducing unique features that have been restricted by stringent App Store requirements in other Bitcoin wallets.

The first highlighted feature of Mutiny Wallet is its integration of Lightning, a Layer 2 scaling solution built on Bitcoin. The wallet leverages Block’s Lightning Development Kit (LDK) project, allowing developers to customize various aspects of the Lightning stack. To facilitate user liquidity management, Mutiny Wallet has partnered with Voltage and their Flow 2.0 product, enabling new users to receive their first Lightning payment within seconds of opening the application.

Furthermore, Mutiny Wallet has introduced separate balances for Lightning channel funds and on-chain spending, aiming for unified balances in the future. The wallet also emphasizes the importance of backups and introduces encrypted and remote storage for restoring Lightning-related data. Users are encouraged to provide feedback during the open beta phase, as the announcement said the team is dedicated to addressing bugs and swiftly implementing new features.

Mutiny Wallet also provides support for Nostr Wallet Connections, a tipping feature for Nostr, a protocol enabling decentralized social media. In addition, Mutiny also intends to introduce subscriptions, offering a pull-based subscription feature built on Nostr Wallet Connect. They offer an example of this in their own subscription, Mutiny+. While Mutiny+ currently provides limited perks according to the announcement, additional paid-only features are planned for the future.

Despite the wallet’s progress, some caution is advised due to potential issues, such as payment reliability and force-closes on Lightning channels. The team acknowledged the complexity of Lightning and urged users to avoid loading large sums of funds during the beta phase.

Mutiny Wallet extended its gratitude to the contributors who have aided in its development, including individuals who provided design, frontend and translation support, as well as the teams behind BDK and LDK for their core technology. Users are encouraged to test the wallet and provide feedback to help shape its future development and enhance its usability.

This post Web Accessible And Self-Custodial Mutiny Wallet Launches Open Beta first appeared on Bitcoin Magazine and is written by BtcCasey.

Lightning HTTP 402 Protocol, also known as L402, is a way to charge for services and authenticate users in distributed networks. It combines two powerful tools — Macaroons, and of course, the Lightning Network.

Macaroons are special tokens used for authentication. They include permissions and can be verified using a root key. The documentation states this is important for systems where we want to avoid or cannot go about looking up the validity of each token.

Lightning is a Layer 2 solution for making fast and secure bitcoin payments. L402 leverages the capabilities of Macaroons and Lightning to create a mechanism that allows users to authenticate and make payments without needing a central database.

In L402, a Macaroon includes a payment hash. To be valid, the user needs to present the Macaroon and the preimage corresponding to the payment hash in the Macaroon. The preimage is obtained by paying a Lightning Network invoice.

A newly introduced software called Aperture acts as a middleman between the user and the service’s API. It forwards requests with valid L402 to the relevant API endpoint and can issue new Macaroons and Lightning invoices to new users.

L402 allows for metered APIs, where services can charge for their usage without requiring logins or passwords. The Macaroon, together with the preimage, guarantees that the payer has made the payment.

The L402 specification includes different characteristics such as the version of the Macaroon, a unique user identifier and a payment hash that links the Macaroon to the Lightning invoice. The Macaroon can also include caveats that define access to specific services, service capabilities and service constraints.

When verifying the L402, the server uses the root key to check that the Macaroon was issued by the appropriate authority and that each caveat was properly amended. The preimage is also verified against the payment hash to ensure that all outstanding invoices have been paid.

In summary, L402 is a protocol that combines Macaroons and the Lightning Network to enable charging for services and authenticating users. It allows for secure payments and authentication without relying on a central database. Aperture is a software that helps handle the process and allows services to issue Macaroons and Lightning Network invoices.

This post What Is The Lightning HTTP 402 Protocol, And Why Is It Important? first appeared on Bitcoin Magazine and is written by BtcCasey.

The Blockchain Association, a nonprofit organization advocating for pro-innovation policies in relation to Bitcoin, has called for an investigation into the Securities and Exchange Commission (SEC) and its approval of Prometheum Ember Capital as a Special Purpose Broker Dealer (SPBD). In a letter to the Inspector General of the SEC, the association raises concerns about potential impropriety and ethical issues surrounding the approval process.

1/ Today, the @BlockchainAssn submitted a letter to the SEC’s Inspector General calling for an investigation into the circumstances surrounding Prometheum.

Although there may not be anything nefarious, suspicious circumstances beg someone to look under the hood…

Key Qs pic.twitter.com/Gp7bx7WD5X

— Marisa Tashman Coppel (@MTCoppel) July 12, 2023

The letter highlights the lack of regulatory clarity regarding how U.S. securities laws apply to digital assets and criticizes SEC Chair Gary Gensler, accusing the SEC of overt hostility towards the digital assets industry while citing enforcement actions and proposed rulemaking that have impacted the sector. The approval of Prometheum as an SPBD is seen as concerning, as other companies with what the letter describes as “legitimate business models” have faced denials or delays in obtaining similar licenses.

The letter states Prometheum’s license approval comes at a time when the company has no working product or assets, raising further questions. The association questions whether Prometheum received preferential treatment or leveraged personal connections to gain an unfair advantage. They express concern that SEC Chair Gensler is using Prometheum and the SPBD licensure process to impede congressional efforts towards legislation and promote what it views as a false narrative, that the law is clear regarding digital asset securities. “There’s no question Prometheum is hiding something on its SEC relationship,” said Dan Spuller, head of industry affairs at the Association.

The Blockchain Association has submitted a request to the SEC under the Freedom of Information Act, seeking documents and communications related to the matter. They urge the opening of an investigation to address these concerns and provide clarity. The outcome of the investigation will determine whether there was any impropriety or validate the inferences made by the association.

This post SEC Inspector General Urged To Investigate Prometheum SPBD Approval Amidst Crypto Regulatory Scrutiny first appeared on Bitcoin Magazine and is written by BtcCasey.

HIVE Digital Technologies Ltd., previously known as HIVE Blockchain, has announced that along with its renaming, the company will be focusing on revenue opportunities with its Nvidia graphics processing unit (GPU) cards in cloud compute technology.

HIVE plans to utilize a fleet of 38,000 Nvidia GPUs for computational tasks, expanding its revenue channels while seeking to drive advancements in artificial intelligence (AI) applications. According to a press release sent to Bitcoin Magazine, the company intends to enter the rental market for GPU server clusters and launch its new service, HIVE Cloud. “This cloud service will empower users with access to a virtual instance of a single GPU, a bare-metal server equipped with up to 10 GPUs, or even clusters of multiple servers to provide an array of computing power,” the press release said.

Aydin Kilic, president and CEO of HIVE, highlighted the importance of high-performance computing and GPU processing power in today’s AI-driven world. Kilic stated, “Training these tools, from ChatGPT to Midjourney, require high-end GPU compute. As businesses adapt to the new AI world, we believe they will seek companies like HIVE to develop their own AI tools.”

Executive Chairman Frank Holmes expressed optimism about the potential of GPU computing with Nvidia GPU cards, stating, “We believe the demand has a potential for a high-margin business with annual revenues in the range over $100,000,000.”

HIVE Digital Technologies stated that it remains “dedicated to driving innovation with sustainable, ethically-driven technological solutions,” and that its current bitcoin mining operations will continue. The company owns data centers in Canada, Sweden and Iceland.

This post HIVE Rebrands, Announces Expansion Into Cloud Computing Services first appeared on Bitcoin Magazine and is written by BtcCasey.