In a week that saw Bitcoin's price fluctuate and major cryptocurrencies rebound, there are several key takeaways for legal and financial professionals in the Web3 space.
The Virginia-based firm Strategy's recent acquisition of 4,000 Bitcoin, valued at $450 million, is a significant move that revises its corporate playbook. The firm has modified a self-imposed constraint, allowing it to issue common shares when it deems advantageous, even when its stock trades at less than a 2.5x premium to its Bitcoin holdings. This move could signal a shift in corporate strategies around crypto assets, particularly in the face of fluctuating market values.
The phishing scam on the Binance Smart Chain, resulting in a loss of $13.5 million worth of tokens, serves as a stark reminder of the security risks inherent in the crypto space. The scam involved tricking the user into approving a malicious transaction by imitating a trusted platform. This highlights the importance of robust security measures and constant vigilance in the face of increasingly sophisticated scams.
Strategy's further solidification of its position in Bitcoin, with another substantial acquisition, and the adjustment to the dividend rate on its STRC preferred stock, indicates a confident stance in the face of market volatility. This could signal a trend among other firms to maintain or even increase their crypto holdings despite market fluctuations.
The sell-off of World Liberty Financial’s WLFI token by its largest holders, coupled with a rising phishing threat, underscores the need for vigilance and strategic decision-making in the face of potential risks.
Finally, the surge in Ethereum exchange-traded funds (ETFs) suggests a shift in institutional allocations in crypto exposure. If this trend continues, it could reshape the landscape of crypto investments and potentially intensify liquidity squeezes during periods of directional demand.
In summary, this week's developments highlight the importance of strategic decision-making, robust security measures, and an understanding of market trends in navigating the complex and rapidly evolving world of crypto assets.
The following article summaries have been sourced from Decrypt, CryptoSlate, NewsBTC, and Crypto Briefing. Each summary includes a direct link to the original source.
Virginia-based firm Strategy has recently acquired 4,000 Bitcoin worth $450 million, bringing its total Bitcoin holdings to approximately 636,500, valued at $70.6 billion. The funds for this latest acquisition were primarily raised by issuing common shares, a practice that has drawn attention as the firm has revised its corporate playbook. Strategy has modified a self-imposed constraint that previously prevented it from diluting common shareholders when its stock traded at less than a 2.5x premium to its Bitcoin holdings. Now, the firm can issue common shares when it deems advantageous.
Despite a recent slide in Strategy's stock price, Benchmark analysts have reiterated their 'Buy' rating and $705 price target for the firm. They dismissed concerns about mismanagement by Executive Chairman and co-founder Michael Saylor, stating that Strategy remains the industry standard among Bitcoin strategy companies. The analysts also noted that Strategy's inclusion in the S&P 500 could drive billions of dollars in passive demand for shares. The firm has met all the qualifications for inclusion in the index’s rebalancing this month, with a decision expected soon. However, the S&P Index Committee may view Strategy differently, as its income is primarily derived from the value fluctuations of its Bitcoin holdings.
Bitcoin and other major cryptocurrencies experienced a rebound on Tuesday, driven by expectations of a rate cut and a weakening U.S. dollar. This uptick is also attributed to Metaplanet’s acquisition of 1,009 BTC and a rise in open interest. Experts suggest that this rebound is an attempt to pivot from the sustained downtrend observed since mid-August. Among the top 10 cryptocurrencies, Bitcoin, XRP, and Solana posted gains of at least 2% each, bringing Bitcoin back above $111,000 for the first time since last Friday.
The depreciation of the U.S. dollar has encouraged capital flows into cryptocurrencies, according to Bitget chief analyst Ryan Lee. He added that macroeconomic factors are amplifying this trend, with markets increasingly pricing in Federal Reserve rate cuts expected in September 2025. The rise in open interest for Bitcoin indicates a liquidation of positions, which has historically been followed by positive reactions. However, Derek Lim, head of research at Caladan, warns that the market's expectation of a Federal Reserve rate cut reflects "reactive futures pricing" rather than a true understanding of the Fed's complex decision-making process. The upcoming Nonfarm Payrolls report will be the true test of this optimistic outlook.
A user of the Binance Smart Chain fell prey to a phishing scam, losing $13.5 million worth of tokens. Initial reports suggested that the BNB lending platform Venus Protocol had been compromised, but blockchain security firms Cyvers and PeckShield confirmed that the platform was not breached, indicating that the assets of other Venus users are safe. The security firms, along with Venus Protocol, are in contact with the victim and are making efforts to recover the funds, which currently remain in the attacker's wallet.
The phishing scam involved tricking the user into approving a malicious transaction by imitating a trusted platform. According to Cyvers, the attack likely originated from a website that appeared to be a trusted site, with minor changes in the domain. The victim approved a malicious transaction, resulting in their funds being drained from their wallet. Following the suspicious transfer, Venus Protocol's security mechanism was triggered, and the protocol was paused, which seems to have stopped the attacker from moving the Venus wrapped tokens from their wallet. Venus Protocol is collaborating with several security partners, including Binance Security, HexaGate, ChaosLabs, and ZeroShadow, to help recover the funds. However, the team is not completely certain that recovery will be possible at this stage.
The business intelligence firm Strategy, formerly known as MicroStrategy, has further solidified its position in Bitcoin with another substantial acquisition. As per a filing with the US Securities and Exchange Commission on September 2, the company reported the purchase of 4,048 BTC for $449.3 million, averaging $110,981 per coin. This acquisition brings Strategy's total Bitcoin holdings to 636,505 BTC, acquired at a total cost of $46.95 billion, or approximately $73,765 per coin. At current market rates, the value of this stash is estimated at $69.24 billion. According to Bitcoin Treasuries data, the company's holdings now account for just over 3% of Bitcoin's maximum supply, making Strategy one of the largest corporate holders of the asset.
Following this acquisition, Strategy announced an adjustment to the dividend rate on its STRC preferred stock, increasing the annual payout from 9% to 10%. The security, launched in July, is non-convertible and designed to provide variable-rate income. The latest deal was financed through a combination of common and preferred stock offerings. The company sold 1.24 million shares of its Class A common stock for $425.3 million and raised the remaining $46.5 million through its preferred share programs, including STRK, STRF, and STRD. Despite criticism from short seller James Chanos, who argued that the heavy reliance on common stock suggests investors remain wary of the preferred offerings, Strategy has already raised $5.6 billion in 2025 through the initial public offerings of these securities. Supporters of Strategy continue to argue that there is significant demand for these assets in the market.
World Liberty Financial’s WLFI token has seen a significant sell-off by its largest holders, with 80% of the top ten holders cashing out within a day of the asset's launch. According to blockchain analyst Aixpta, eight of the top ten WLFI holders have either partially or fully sold their positions, with only the second and fifth largest wallets yet to move their tokens. The largest active holder, moonmanifest.eth, unlocked 200 million WLFI, worth nearly $59.5 million, and sold 10 million tokens for $2.1 million at $0.21 each just five hours later. Other top holders also acted decisively, with the sixth-largest wallet selling $3.8 million worth of tokens to 36 separate buyers.
In addition to the rapid sell-offs, WLFI is also facing a rising phishing threat. Blockchain security specialists have warned of phishing attacks that exploit Ethereum’s new EIP-7702 standard and are targeted at WLFI token claimers. Yu Xian, founder of SlowMist, cited an example of a WLFI wallet that was drained across multiple addresses after attackers deployed a malicious contract tied to Ethereum’s 7702 delegate function. However, Xian noted that holders can still defend against the exploit by front-running it, which involves paying gas to override the malicious delegate contract, replacing it with a safe one, and moving tokens in the same block through flashbots.
Ethereum exchange-traded funds (ETFs) experienced a surge in August, taking in about $3.9 billion, while U.S. Bitcoin ETFs saw roughly $750 million in net redemptions. This trend extends a pattern observed since late July, where Ethereum funds have consistently drawn capital. The momentum accelerated into mid-August, with the first single day above $1 billion of net creations for spot ETH ETFs on Aug. 11, according to VettaFi. Despite uneven daily flows, Ethereum remained firmly positive and Bitcoin negative on a net basis by the end of August.
Supply absorption plays a role in this trend. U.S. spot Bitcoin ETFs now hold around 1.29 million BTC across issuers, roughly 6–7% of the circulating supply. In comparison, U.S. spot ETFs hold just over 6.3 million ETH, a little above 5% of the circulating supply. A growing ETF footprint can influence price discovery if creations outpace redemptions. The ETH/BTC pair pushed to a 2025 high toward the end of August, reflecting Ethereum’s relative outperformance since early summer.
Looking ahead, if Ethereum ETFs continue at August’s pace into the fourth quarter, cumulative net inflows could exceed $11 billion by year-end. This would nearly double current ETF holdings to more than 10% of circulating supply when measured against about 120.7 million ETH. This scale could bring Ethereum’s ETF penetration close to Bitcoin’s present share, reshaping institutional allocations in crypto exposure. This shift could also intensify liquidity squeezes during periods of directional demand, affecting not only price but also the pool of assets governed by the redemption and creation mechanics that dictate arbitrage, custody, and settlement flows.
XRP, a popular cryptocurrency, is currently trading below $3 after multiple unsuccessful attempts to break above $2.8 in the last 24 hours. Crypto analyst MadWhale's new chart analysis suggests that the coin may be under pressure within a descending channel that could potentially push the price down to $2.4. More intriguingly, MadWhale's analysis raises the question of whether XRP is beginning to behave like a meme coin, influenced by crowd psychology and whale activity.
MadWhale's analysis, posted on TradingView, outlines a psychological cycle common in meme coin markets, which XRP may not be immune to. This cycle starts with social media buzz creating excitement, followed by greed as traders rush in. Influencers then amplify the narrative of a golden opportunity, attracting new investors at peak prices. At this point, whales - large investors - begin to offload their positions, leading to a sharp correction and panic selling by smaller traders. This results in whales buying back at lower prices, restarting the cycle. MadWhale suggests that XRP's current trading behavior is showing signs of this cycle, with whales buying large amounts to pump the price, spreading optimism, and then selling into the frenzy.
According to MadWhale's chart, XRP is trading within a descending channel that has been shaping its price action since July 19. The repeated failures to break the $3 price zone have led to lower highs, making it increasingly difficult for bulls to sustain a breakout. The analyst's projection shows a potential 14% decline to a major support level around $2.40. Any rebound attempts would first need to overcome the $3 resistance. At the time of writing, XRP is trading at $2.80, up by 1.4% in the past 24 hours.
Bitcoin's recent dip below the $110,000 mark has stirred uncertainty in the market, with traders questioning whether this is a temporary pause in the broader uptrend or the start of a larger downtrend. Crypto analyst Darkfost, however, has provided data suggesting that Bitcoin's approximately 12% drop from its recent all-time high of $123,000 is well within the normal correction range when compared to historical pullbacks in previous bull cycles. These corrections are often seen as healthy, serving to reset leverage, cool overheated sentiment, and create fresh entry points for long-term investors.
Darkfost suggests that Bitcoin's current retracement should be viewed within the broader context of this cycle rather than as a sign of structural weakness. Since the first all-time high in March 2024, the largest recorded drawdown reached 28%, and Bitcoin has not corrected more deeply than that throughout the ongoing bull market. The most severe pullbacks in bullish phases have averaged between -20% and -25%, placing the current move well within the expected range. Such drawdowns are often healthy and necessary in long-term uptrends, serving to flush out excessive leverage in the derivatives market, cool down overheated sentiment, and shake out short-term speculators.
Bitcoin is currently attempting to recover after a sharp correction that took the price down to the $108K region. It recently bounced back above $110K but continues to struggle to sustain momentum. The 12-hour chart shows how Bitcoin dipped below its 200-day moving average but quickly rebounded, signaling that bulls are still defending this crucial support. However, the 50-day and 100-day moving averages are trending downward, suggesting that pressure remains in the short term. Bitcoin will need to reclaim the $112K–$115K zone to shift sentiment back toward bullish momentum. If it fails to hold current support, a deeper correction phase may be confirmed before any attempt at a new all-time high.
Crypto analyst VisionPulsed predicts that Dogecoin could see a significant upward turn around September 13. He suggests that the current downturn aligns with a post-halving pattern, where markets typically remain weak for approximately 510-511 days following Bitcoin's supply cut before staging a final run. The analyst sees the current weakness as part of a longer, slower cycle characterized by extended ranges rather than deep collapses. He cites historical periods of weakness in September as indicators that align with the post-halving rhythm he tracks.
VisionPulsed's prediction is supported by the liquidity gauge M2, which he argues continues to correlate with crypto leadership even as it rotates between assets. He believes that this rotation of leadership helps explain why some large-cap tokens lag. For Dogecoin specifically, VisionPulsed suggests that it remains down the market-cap leaderboard and has yet to benefit from the liquidity rotation that favored Bitcoin first, then Ethereum and BNB. He warns that a broader "altseason" is contingent on traditional risk appetite, pointing to the Russell 2000's inability to break to new highs. While he identifies September 13 as the earliest window for relief, he warns that the subsequent liquidity setup is uncertain.
Pineapple Financial has raised $100 million to establish the first Injective treasury by a publicly traded company, with an aim to achieve a 12% staking yield. The NYSE American-listed fintech firm secured the funding through a private placement and aims to generate a passive yield of approximately 12% through staking, making it one of the highest returns across major blockchain networks. The initiative has attracted investments from both traditional finance and crypto firms, including FalconX, Monarq, Abraxas, Kraken, Blockchain.com, Canary Capital, and the Injective Foundation.
This development comes as Injective gains increased attention, with the SEC initiating a comment period on Canary Capital’s proposed staked INJ ETF. The application, filed in July, is open for 21 days of feedback and up to 90 days of review. If approved, it would trade on Cboe BZX and track Injective’s token through a staking structure. The news led to a 6% jump in INJ's value to $13.30, although it later retraced to $12.80.
BitMine Immersion Technologies, chaired by Tom Lee, has increased its Ethereum holdings by 153,000 ETH, raising its total to 1.87 million ETH. This is in addition to 192 BTC and $635 million in cash reserves. The company, listed on the NYSE American, now holds crypto and cash assets worth nearly $9 billion. The firm adopted an Ethereum-focused treasury strategy in June, with a goal to acquire 5% of ETH's supply while also generating staking yields.
Lee, in a recent investor presentation, compared the current state of Ethereum to Wall Street's transformation following the end of the gold standard in 1971. He suggested that the SEC Project Crypto and GENIUS Act are paving the way for a multi-decade opportunity for Ethereum, similar to what Wall Street experienced post-1971. Lee remains confident that Ethereum will be one of the most significant macro trades over the next 10–15 years. Despite a recent drop in its stock price, BitMine's average daily dollar volume reached $2.3 billion as of August 24, making it one of the 25 most-traded US stocks.
Strategy, a leading Bitcoin treasury firm, has acquired an additional 4,048 Bitcoin, bringing its total holdings to 636,505 BTC. This acquisition, which cost $449 million, was made between August 26 and September 1, marking the seventh consecutive week of Bitcoin purchases by the firm. The funding for this latest acquisition came primarily from the proceeds of its at-the-market offerings. During the same period, Strategy raised a total of $471.8 million through sales of its class A common stock (MSTR) and sales of STRF, STRK, and STRD shares.
The firm's total Bitcoin holdings are now valued at nearly $70 billion, representing more than 3% of the total Bitcoin supply. Despite market-wide volatility and a 7% drop in Bitcoin's value in August, Strategy remains undeterred. The firm's Executive Chairman, Michael Saylor, hinted at an upcoming purchase announcement, stating that "Bitcoin is on sale." The firm recently avoided a lawsuit brought by investors over alleged misleading statements related to accounting standards. The investors claimed that Strategy failed to disclose potential unrealized losses under new rules in a timely manner.
