Bitcoin Whales (Including Trump Family) Accumulate While Dollar, Bonds And Stocks, Etc. Tank

Probably Nothing. Bitcoin Whales (Including Trump Family) Accumulate While Dollar, Bonds And Stocks, Etc. Tank

As Trump Sinks Dollar, Once-Unthinkable Worry Grips Markets

As US stock prices tumbled this month, John Sidawi, a fund manager at Federated Hermes, noticed something strange.

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The dollar, long a go-to hiding place during market selloffs, wasn’t rallying this time as investors rushed for safety. It was sinking, too, and fast as hot money poured into gold, the yen, European stocks — almost anywhere but the US.

“It’s unusual and very telling,” said Sidawi, who helps oversee bond investments at the firm. “The dollar, in an environment where it should be acting like a safe haven, is not.”

That, as with so much of the volatility that has whipsawed global markets recently, has a singular explanation: President Donald Trump.

Just two months into his second term, his escalating tariffs and bid to roll back decades of globalization is shaking confidence in the US currency — which has had a privileged place at the heart of the world financial system for eight decades.

The dollar has dropped against all but a handful of the 31 major currencies over the last three months, sending Bloomberg’s dollar index down nearly 3%, its worst start to a year since 2017. The price of gold — a rival haven — has surged to a record high of over $3,000 an ounce.

By mid-March, speculative traders started betting against the dollar for the first time since Trump’s election amid fear his policy shifts could drive the world’s largest economy into a recession.

“As opposed to being the usual bastion of stability and first choice haven for foreign-exchange market operators, the greenback instead now stands as quite the opposite,” said Michael Brown, a senior research strategist in London for Pepperstone, one of the largest currency brokerages. He said an increasing number of clients are asking “where should I be looking at as opposed to just switching on the autopilot and hiding in the dollar?”

The recent drop hasn’t significantly eroded the strength of the dollar, given how much it had previously risen on the back of the nation’s strong economy and elevated interest rates, and it could bounce back if worries about a global slowdown cause overseas investors to pile into US Treasuries.

It also remains solidly entrenched as the world’s key currency, used for the majority of central bank reserves and for the purchase of commodities like oil, in large part because no significant alternative has emerged.

“The rise and fall of currencies is not something that occurs because you get a wildcard president that is doing his best to kill globalization,” said Carmen Reinhart, a Harvard University professor and former World Bank chief economist. “The dollar did not overtake the British pound as a reserve currency overnight.”

But Trump’s actions are rekindling long-simmering discussions about whether overseas governments will accelerate efforts to lessen reliance on the dollar.

In Europe, leaders have seen it as an opportunity to strengthen the euro’s role by creating more integrated, liquid markets that would allow the common currency to better rival the dollar.

In the developing world, a handful of countries have also periodically floated the idea of banding together to challenge the dollar’s supremacy.

Trump has said he wants to maintain the dollar’s central role globally, once threatening to retaliate against any country that tries to decouple its trade from the US currency. At the same time, during his campaign he indicated he’d welcome a weaker dollar because it would make US products more competitive.

That’s spurred speculation that he could be using his trade war to strong-arm governments into cutting a grand bargain that would do just that, though the White House hasn’t publicly floated any such plans.

Yet those goals — of either maintaining the dollar’s standing, or persuading other governments to act in the interest of the US — seem out of sync with Trump’s isolationist agenda and approach that has alienated allies.

In a note to clients Thursday, Jane Foley, a strategist in London for Rabobank, said Trump’s trade policies, pullback from military alliances, and casual talk of taking over Canada or Greenland “could accelerate the trend to de-dollarise and undermine the value” of the US currency.

At Deutsche Bank AG, George Saravelos, the global head of FX strategy, warned clients this month that the chance of the dollar losing its safe-haven status as markets adjust to a new geopolitical order “needs to be acknowledged as a possibility.”

In financial markets, such long-term considerations are taking a back seat to more immediate repercussions.

US stocks slid again this week, with the S&P 500 Index falling another 2% Friday, after he slapped tariffs on imported cars. Traders are now hanging on his plans to announce what may be his biggest ones yet — a slate of broad increases — on April 2, which he has taken to calling “Liberation Day,” based on his belief that raising barriers to imports will create jobs as companies produce more domestically.

In theory, tariff increases should strengthen the currency by reducing demand for imports and bolstering domestic factory output. But it has depreciated instead because the scale of Trump’s hikes risks both reigniting inflation and slowing growth.

Administration officials have downplayed such worries, saying there may be temporary side effects from a program — which includes slashing government payrolls and cutting spending — that will eventually rejuvenate the economy.

Still, that short-term pain is what’s worrying Wall Street. After staging one the strongest two-year advances since the dot-com bubble of the 1990s, the S&P 500 Index has slumped 9% since mid-February, weighed down by concerns about the economy and the heady valuation of tech stocks after the artificial-intelligence boom.

At the same time, Trump’s clashes with European allies over the cost of defense has unleashed plans for a surge of spending by Germany that could stoke the region’s economy.

That has fueled a European stock rally that has delivered double-digit gains this year, which may cause investors to shift cash there from the US.

“If that money flees as people begin to doubt the geopolitical and economic fundamentals of the US, you could get the dislocations that would force the US stock market lower and the dollar as well,” said Thierry Wizman, a macro strategist at Macquarie Group in New York.

Barry Eichengreen, an economist at the University of California, Berkeley, who has written extensively on the dollar, has been focused on the longer-term risks.

The US currency’s central role — which has allowed the country to avoid the sort of debt crises seen elsewhere by propping up demand for Treasury bonds — won’t easily be displaced because the size of the US debt market makes it the most liquid in the world, allowing investors to trade large blocks of securities without affecting the price.

And yet, he said, it can’t be ruled out. “The dollar has not lost its safe-haven status,” he said. “But we must seriously contemplate the possibility.”

Updated: 3-30-2025

MARA Holdings Plans Huge $2B Stock Offering To Buy More Bitcoin

Bitcoin miner MARA Holdings will offer up to $2 billion worth of its stock, the proceeds of which will partly be used to purchase more Bitcoin.

Bitcoin miner MARA Holdings Inc (MARA) is looking to sell up to $2 billion in stock to buy more Bitcoin as part of a plan that bears a resemblance to Michael Saylor’s Strategy.

MARA Holdings, formerly Marathon Digital, said in a March 28 Form 8-K and prospectus filed with the Securities and Exchange Commission that it entered into an at-the-market agreement with investment giants, including Cantor Fitzgerald and Barclays, for them to sell up to $2 billion worth of its stock “from time to time.”

“We currently intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” MARA added.

MARA’s move copies a tactic made famous by Bitcoin bull Saylor, the executive chair of the largest corporate Bitcoin holder Strategy, formerly MicroStrategy, which has used a variety of market offerings, including stock sales, to amass 506,137 BTC worth $42.4 billion.

MARA Holdings falls just behind Strategy with the second largest holdings by a public company, with 46,374 BTC worth around $3.9 billion in its coffers, according to Bitbo data.

In July, the company’s CEO, Fred Thiel, said it was going “full HODL” and wouldn’t sell any of the Bitcoin it mined to fund its operations, as is typical for crypto miners, and would purchase more of the cryptocurrency to keep in reserve.

The Bitcoin miner’s planned stock sale follows a similar offering it made early last year that offered up to $1.5 billion worth of its shares. It also issued $1 billion of zero-coupon convertible senior notes in November with plans to use most of the proceeds to buy Bitcoin.

Google Finance shows that MARA closed the March 28 trading day down 8.58% at $12.47, following on from crypto mining stocks being rattled a day earlier with reports that Microsoft abandoned plans to invest in new data centers in the US and Europe.

MARA shares have fallen another 4.6% to $11.89 in overnight trading on March 30, according to Robinhood.

Bitcoin is trading just above $82,000, down 1.2% over the past 24 hours after falling from a local high of around $83,500, according to CoinGecko.

Updated: 3-31-2025

Michael Saylor’s Strategy Buys Bitcoin Dip With $1.9B Purchase

Michael Saylor’s Strategy bought 22,000 BTC for nearly $2 billion despite concerns over Trump’s April 2 tariff announcement and rising market uncertainty.

Michael Saylor’s Strategy bought nearly $2 billion of Bitcoin, taking advantage of a recent price dip despite growing market concerns tied to US President Donald Trump’s upcoming tariff announcement.

Strategy, formerly MicroStrategy, acquired 22,048 Bitcoin for $1.92 billion at an average price of $86,969 per Bitcoin.

The company now holds over 528,000 Bitcoin acquired for $35.63 billion at an average price of $67,458 per BTC, announced Saylor, the co-founder of Strategy, in a March 31 X post.

Strategy is the world’s largest corporate Bitcoin holder and surpassed the 500,000 Bitcoin holdings milestone on March 24, days after Saylor hinted at an upcoming Bitcoin buy as the company announced the pricing of its latest tranche of preferred stock on March 21.

The firm is currently up over 21% on its Bitcoin holdings with an unrealized profit of over $7.7 billion, according to Saylortracker data.

Strategy’s near $2 billion dip buy comes despite investor concerns related to Trump’s upcoming tariff announcement on April 2, which may set the tone for Bitcoin’s price trajectory throughout the month.

The April 2 announcement is expected to detail reciprocal trade tariffs targeting top US trading partners, a development that may increase inflation-related concerns and limit demand for risk assets like Bitcoin.

“This sell-off isn’t the end of the bull run — it’s a healthy reset,” Andrei Grachev, managing partner of DWF Labs, told Cointelegraph. “Markets overreact to tariffs and macro headlines, but long-term fundamentals haven’t changed.”

MicroStrategy May Owe Taxes On Unrealized Bitcoin Gains

Despite never selling any Bitcoin, Strategy may have to pay taxes on its unrealized gains of over $7.7 billion, which had previously soared to $19 billion at the end of January, Cointelegraph reported.

The firm may have to pay federal income taxes on its unrealized gains, according to the Inflation Reduction Act of 2022.

The act established a “corporate alternative minimum tax” under which Strategy would qualify for a 15% tax rate based on the adjusted version of the company’s earnings, according to a Jan. 24 report in The Wall Street Journal.

Still, the US Internal Revenue Service (IRS) may create an exemption for BTC under Trump’s more crypto-friendly administration.

Trump Sons Back New Bitcoin Mining Venture With Hut 8

US President Donald Trump’s sons partner with Hut 8 to launch American Bitcoin, aiming to build the world’s largest Bitcoin mining firm with strategic reserves.

Several members of US President Donald Trump’s family are backing a new venture to launch what aims to become the world’s largest Bitcoin mining firm.

Hut 8, a digital asset mining and infrastructure company, announced on March 31 that it is acquiring a majority stake in American Bitcoin, formerly known as American Data Center. The firm was founded by a group of investors, including Trump’s sons, Donald Trump Jr. and Eric Trump.

As part of the deal, American Bitcoin will take ownership of Hut 8’s Bitcoin mining hardware. Donald Trump Jr. said that the entrepreneurs behind American Data Centers have backed their conviction in Bitcoin personally and through their businesses.

The new venture “aims to become the world’s largest, most efficient pure-play Bitcoin miner while building a robust strategic Bitcoin reserve,” the announcement said.

Mining operations will remain under Hut 8’s compute segment but will operate through the American Bitcoin brand. Donald Trump Jr. added:

“Mining it on favorable economics opens an even bigger opportunity. We’re excited to bring investors into that equation through a platform engineered to execute on this thesis and deliver real, tangible participation in Bitcoin’s growth.”

Trump Family Deepens Involvement In Bitcoin

President Trump continues to promote pro-crypto policy as his family and affiliated companies expand their presence in the digital asset space.

On March 28, he pardoned three co-founders of crypto exchange BitMEX who previously pleaded guilty to federal money laundering charges, according to a CNBC report.

On March 21, the US Treasury dropped the decentralized crypto mixer Tornado Cash from its sanction lists, invalidating related legal proceedings.

Additionally, the Securities and Exchange Commission’s Division of Corporation Finance recently stated that memecoins do not qualify as securities under US law. Progress is underway on the creation of a national Bitcoin strategic reserve.

On the commercial front, Trump launched his Official Trump (TRUMP) memecoin. His Trump Technology Group also announced a partnership with Crypto.com, which is expected to support a new suite of crypto exchange-traded funds.

The Trump family has been involved in launching a decentralized finance protocol on Aave called World Liberty Financial (WLFI), as well as introducing a new stablecoin named USD1.

Strategic Shift For Hut 8

Hut 8 CEO Asher Genoot recognized the launch of American Bitcoin as a “pivotal evolution” in the firm‘s strategy. He said that separating the mining business from the rest of the corporate activities would allow it to raise its own capital and “align each segment of the business with its respective cost of capital.” He added:

“It evolves Hut 8 toward more predictable, financeable, lower-cost-of-capital segments and establishes American Bitcoin as a pure-play mining platform built for exahash growth, Bitcoin production, and operating leverage.”

The report follows Hut 8 surpassing $1 billion worth of Bitcoin holdings after acquiring 990 BTC for $100 million at the end of 2024. At the time, the company’s total Bitcoin mining stood at 10,096 BTC acquired at an average price of $24,484 per Bitcoin.

Bitcoin mining revenue approached $3.6 billion in Q1 2025 as industry income stabilized after the last halving. Recent data also shows that miners’ daily revenue per unit of hash power remained constant at around $48 per petahash per second, despite the mining difficulty increasing.

Japanese Firm Metaplanet Issues $13.3M In Bonds To Buy More Bitcoin

Metaplanet issued 2 billion yen ($13.3 million) in zero-interest bonds to capitalize on Bitcoin’s recent price dip and increase its BTC holdings.

Metaplanet — a Japanese firm following in Strategy’s footsteps by focusing on accumulating Bitcoin — issued 2 billion Japanese yen ($13.3 million) of bonds to buy more BTC.

According to a March 31 filing, Metaplanet issued the zero-interest bonds by allocating them via its Evo Fund to fuel its Bitcoin purchases. Investors will be allowed to redeem the newly-issued securities at full face value by Sept. 30.

The firm’s CEO, Simon Gerovich, wrote in an X post that the company was taking advantage of the recent downturn in Bitcoin prices. The announcement comes as Bitcoin changed hands for about $82,000 at the time of writing, down 25% from its all-time high of over $109,000.

Metaplanet is Asia’s top corporate Bitcoin holder and the 10th in the world, according to BitcoinTrasuries data. Currently, the firm owns about 3,200 Bitcoin worth about $1.23 billion.

Following In The Footsteps Of Giants

Metaplanet is often called “Asia’s MicroStrategy,” as its corporate plan closely mirrors that of Strategy (formerly MicroStrategy), the US-based market intelligence firm that shifted its primary focus to accumulating Bitcoin.

Metaplanet’s US-based older brother is the top corporate Bitcoin holder with over 500,000 BTC in its coffers, worth nearly $82 billion, more than 2% of the 21 million Bitcoin supply limit.

Earlier this month, Metaplanet purchased 150 Bitcoin, chipping away at its objective of accumulating 21,000 BTC by 2026. At the beginning of March, the firm’s stock jumped 19% in less than a day after it splurged $44 million to add Bitcoin to its coffers.

Also, this month, Metaplanet started exploring a potential US listing as the company acquired another 156 BTC. Gerovich said at the time:

“We are considering the best way to make Metaplanet shares more accessible to investors around the world.”

An Increasingly Influential Company

Metaplanet is making powerful friends in the US political landscape. Earlier in March, the company appointed US President Donald Trump’s son Eric to its newly established strategic board of advisers to further Metaplanet’s mission to become a “global leader in the Bitcoin economy.”

Company Representatives Said At The Time:

“Eric Trump brings a wealth of experience in real estate, finance, brand development, and strategic business growth and has become a leading voice and advocate of digital asset adoption worldwide.“

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