Key Points This Week
- Coinbase aims to secure $2 billion through convertible notes to fuel potential acquisitions and for standard operational expenses, amidst analysts’ concerns about a 25% revenue decline in the second quarter.
- Two Seas Capital, a leading shareholder in Core Scientific with a 6.3% ownership stake, plans to vote against the proposed $9 billion acquisition by CoreWeave, citing an “underestimated valuation.”
- Block Inc. expanded its Bitcoin reserves by 108 BTC during the second quarter, bringing its total holdings to 8,692 BTC, valued at approximately $1 billion, with unrealized gains of 273%.
“Public Keys” delivers weekly insights into prominent, publicly traded crypto enterprises, brought to you by Decrypt.
Coinbase Seeks Funding Via Convertible Notes
Leading cryptocurrency exchange, Coinbase, is looking to bolster its financial position with a $2 billion raise through convertible notes.
While large crypto treasuries are commonplace, the San Francisco-based firm intends to use the funds for general operational needs and potential acquisitions of other companies, products, or innovative technologies.
This announcement follows some analysts’ (though not all), expressing concern over Coinbase’s reported 25% revenue decline in the second quarter.
Compass Point downgraded COIN’s rating to “Sell” from “Neutral,” asserting that the revenue shortfall highlights the increasing disruption of the company’s retail trading activities by decentralized exchanges and ETFs.
This competitive pressure may be driving Coinbase to introduce decentralized exchange trading functionality within its app for US-based users.
Furthermore, analysts have expressed reservations about the contributions from Coinbase’s subscription and services segment, which includes premium Coinbase One memberships, revenue from stablecoins, staking operations, and custody services.
With the stablecoin market poised for regulatory clarity following the GENIUS Act, Circle navigating its initial period as a public entity (supported by a revenue-sharing arrangement with Coinbase), and the growing trend of digital asset treasuries, analysts anticipated stronger performance from this revenue stream.
Core Scientific’s Proposed Acquisition Faces Opposition
A significant investor in Bitcoin mining firm, Core Scientific, is challenging the proposed merger with CoreWeave, aiming to halt the deal.
Two Seas Capital, holding a 6.3% stake and acting as Core Scientific’s largest active shareholder, plans to oppose the $9 billion all-stock acquisition by CoreWeave. A press release issued on Thursday contends that the offer undervalues Core Scientific.
The firm asserts that its significant investment in Core Scientific reflects its belief in the company’s potential to develop “critical, high-performance computing infrastructure at scale,” vital for supporting the burgeoning artificial intelligence sector.
Two Seas, also an investor in CoreWeave, argues that the proposed deal structure unfairly disadvantages CORZ shareholders, exposing them to increased volatility from CRWV.
In their statement, Two Seas criticized the Core Scientific board for not seeking alternative offers, stating, “In our view, the transaction decidedly and unfairly favors CoreWeave at the expense of Core Scientific shareholders.”
The shareholder vote is anticipated before the year’s end, though the specific date remains unconfirmed.
Concurrently, Core Scientific released its Q2 earnings report after market close on Friday. However, the company decided against holding an earnings call due to the ongoing merger considerations.
As stated by the company, “Due to the pending transaction with CoreWeave, Inc., which was previously announced on July 7, 2025, the Company will not be hosting a conference call or webcast to discuss its second quarter fiscal year 2025 results.”
Block Continues to Accumulate Bitcoin
Block Inc. increased its Bitcoin holdings by 108 BTC in Q2, bringing its total corporate Bitcoin reserve to 8,692 BTC, currently valued at approximately $1 billion.
Given Block CEO Jack Dorsey’s long-standing advocacy for Bitcoin, it’s not surprising that the company is reinforcing its BTC treasury.
With an average acquisition cost of $31,248 per BTC, Block currently holds unrealized gains of approximately 273.29%. Furthermore, the company processes bitcoin sales through its popular Cash App.
Of Block’s $6 billion in Q2 revenue, $2.14 billion came from Bitcoin sales conducted via Cash App.
This Bitcoin revenue is only slightly lower compared to Q1, when the company reported $2.3 billion in revenue from Bitcoin. For Block to surpass its 2024 Bitcoin revenue performance, the company will need a stronger second half of the year.
In 2024, Block announced $10.2 billion worth of Bitcoin revenue for the entire year—showing that the current year’s numbers are trailing behind.
During the earnings call, Dorsey hinted at upcoming announcements related to Proto, Block’s Bitcoin mining venture, stating: “We’re going to have some news very, very soon.”
As expected, Proto entered into an agreement to sell its Bitcoin mining chips to Core Scientific, marking one of the largest ASIC agreements to date.
Additional Highlights
Bullish Officially Registers IPO: Crypto exchange Bullish has officially filed for an initial public offering with the SEC to raise $629 million at a valuation between $3.8 and $4.2 billion. This marks the company’s second endeavor to go public, after it canceled a SPAC merger in 2022.
Solana Dip Bought Up: With the recent altcoin pullback, DeFi Dev Corp seized the opportunity to increase its Solana holdings, acquiring $18 million worth of Solana on Monday, now possessing 1.23 million SOL tokens in total.
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