Changpeng Zhao, the billionaire founder of Binance, strongly denied a recent report suggesting he sought a pardon from the Trump administration. The Wall Street Journal (WSJ) published a story on Thursday, citing anonymous sources, that claimed Zhao was pushing for a pardon related to his legal troubles involving anti-money-laundering violations.
Zhao quickly addressed the report, clarifying his position in a post on X (formerly Twitter). “Sorry to disappoint. The WSJ article got the facts wrong,” he wrote, adding that over 20 individuals had been asked to confirm whether he was negotiating a pardon, suggesting a possible agenda behind the article. Zhao further stated that he had no discussions with anyone about a deal involving Binance or the US government. He also criticized the piece, stating, “It feels like the article is motivated as an attack on the President and crypto, and the residual forces of the ‘war on crypto’ from the last administration are still at work.”
Coinbase Expands into India
Coinbase (COIN) achieved a significant milestone this week by registering with India’s Financial Intelligence Unit (FIU). This step is part of Coinbase’s broader strategy to expand its international presence, with plans to roll out retail services in India later this year. The company’s Regional Managing Director for APAC, John O’Loghlen, expressed excitement about the opportunity, stating, “India represents one of the most exciting market opportunities in the world today.”
However, the company’s stock saw a dip following an analyst downgrade. Mizuho reduced its price target for Coinbase from $280 to $217, citing a 30% decline in the company’s stock and the fall in Bitcoin prices. Despite the downgrade, Mizuho remained neutral, suggesting that the stock could still see some upside, but caution remains due to competitive pressures in the crypto trading market.
Bit Digital Reports Positive Financial Results
Bit Digital (BTBT) announced strong results for FY24, reporting earnings per share of 19 cents and revenue of $108.1 million. This was a significant improvement from the previous year, where the company posted a loss per share of 16 cents on $44.9 million in revenue. Although Bit Digital’s Bitcoin production decreased by 37% year-over-year, the company has pivoted towards high-performance computing (HPC) services, with these operations now contributing nearly half of its revenue.
Bit Digital’s shift to infrastructure-driven revenue models marked a major transformation, aided by its acquisition of Enovum Data Centers, which bolstered its AI compute capabilities and diversified its business lines. The company expects continued growth in its HPC business while maintaining disciplined mining operations.
Analysts Adjust Bitcoin Miner Price Targets
In response to recent results and the fluctuating Bitcoin market, JPMorgan downgraded several Bitcoin mining stocks, including Cipher Mining (CIFR), Mara Holdings (MARA), and CleanSpark (CLSK). While Cipher Mining was downgraded to Neutral from Overweight, Mara and CleanSpark saw price target reductions. JPMorgan’s analysts cited changes in Bitcoin price and network hash rates as key factors influencing their updated models.
However, JPMorgan expressed optimism about IREN (IREN), upgrading its rating to Overweight with a price target of $12, citing strong mining operations and potential high-performance computing deals as catalysts for growth.
Hive Digital’s Price Target Lowered
Cantor Fitzgerald also lowered its price target for Hive Digital (HIVE) from $11 to $8, maintaining an Overweight rating. Despite a drop in Bitcoin mined in February and a slight decline in its share of the overall Bitcoin network, Cantor remains positive about Hive’s ability to meet its long-term goals. The firm expects Hive to significantly grow its hash rate and AI cloud business, projecting a 300% increase in hash rate and $100 million in annualized revenue by 2025.
Crypto Market Update
As of the latest data, Bitcoin has dropped about 6% this week, trading at $83,160 according to CoinDesk. The cryptocurrency market continues to experience volatility as traditional financial institutions adapt to the growing influence of digital assets.
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