Equities update | January 23th 2025

Week 4 was marked by a pickup in volatility across blockchain equities, driven initially by renewed geopolitical risk after Donald Trump threatened 10% tariffs on Europe, escalating to 25% in the absence of an agreement on Greenland, before sentiment improved as tensions eased later in the week. Despite this backdrop, US macroeconomic data remained resilient, while conditions in Japan deteriorated, with a sharp rise in bond yields and a weakening yen reigniting concerns around a potential carry-trade unwind and spillover selling of US assets. Against this mixed macro environment, digital-asset treasury strategies continued to accumulate Bitcoin, highlighting ongoing capital-markets flexibility, while signs of a re-opening IPO window and the prospect of the CLARITY Act ultimately passing provided a constructive tailwind for crypto-related equities.

Week 4 key developments in blockchain equities:

• Index Performance: This week, the Index declined (3.1%) while Bitcoin fell (6.4%). US macro data was broadly supportive, with Q4 GDP printing at a robust 4.4% QoQ and core PCE in line with expectations. Equity markets experienced heightened volatility during the week following renewed tariff threats toward the EU and uncertainty around Greenland-related geopolitical developments, though risk sentiment improved later as tensions eased. In Japan, the BoJ held policy rates at 0.75%, while the JGB curve bear-steepened, reflecting concerns over increased fiscal borrowing ahead of upcoming elections as Prime Minister Takaichi seeks to consolidate political support.

• Block Index Key Movers: 7-day top performers: Kinsus Interconnect (+17.3%), AMD (+11.3%), Nu Holdings (+8.4%) 7-day worst performers: Metaplanet (-16.7%), Defi Technologies (-14.7%), CoinShares (-10.8%)

• Index constituent Strategy Inc adds a further 22,305 BTC for US$2.13bn – Strategy Inc announced another large Bitcoin acquisition of 22,305 BTC (at US$95,284/BTC), following the 13,627 BTC bought last week. This takes year-to-date purchases to 37,215 BTC and total holdings to 709,715 BTC (acquired for US$53.9bn at an average cost of US$75,979/BTC). Once again, the majority of the purchase was funded via its at-the-market (ATM) issuance programs, primarily common equity, supplemented by US$294.3m raised through STRC (its variable-rate perpetual preferred). Using equity and preferred issuance helps preserve balance-sheet flexibility and can create additional headroom for future credit/preferred issuance, so long as Strategy maintains reliable market access to issuing its equity. Strategy’s pioneering “digital credit” playbook is also being replicated: Strive, Inc. (ASST) has launched its own Variable Rate Series A Perpetual Preferred (“SATA”), with issuance of up to 2.25m shares and an initial US$150m raise priced at US$90/share, to support bitcoin purchases and refinancing its acquisition of Semler Scientific.

• Crypto custodian BitGo IPO’s, raising US$213m whilst fintech prime broker Clear Street files for IPO – BitGo (BTGO) debuted on the NYSE on Jan 22 after pricing its IPO at US$18, raising US$213m and implying a US$2.1bn valuation on debut. As a regulated custody-and-infrastructure provider (rather than pure token beta), the listing is a useful read-through on institutional demand for “picks-and-shovels” crypto exposure including anticipated growth in tokenisation. In parallel, prime broker/clearing platform Clear Street filed for an IPO, reporting a 160% revenue uplift in the first nine months of 2025 as it expanded capital markets activity, including underwriting/advisory tied to digital-asset strategy issuers such as Strategy Inc and Trump Media; index constituent SBI Holdings also made a US$50m strategic investment alongside a strategic partnership that may include digital-asset services. Overall, early 2026 is shaping up as a stronger IPO year for crypto infrastructure, improving transparency and reinforcing the listed blockchain-equities investment case.

• Other news: Index constituent Galaxy Digital (GLXY US EQUITY) is reported to be launching a US$100m hedge fund in Q1 2026, aimed at monetising dispersion and volatility across crypto tokens and crypto-adjacent equities. Intercontinental Exchange/New York Stock Exchange (ICE US EQUITY) is developing a platform to enable trading and on-chain settlement of tokenised securities. Bitpanda announced plans to launch a stocks and ETFs trading suite, expanding beyond crypto and mirroring recent diversification moves by Coinbase and Kraken. Nomura-backed Laser Digital launched/upgraded a tokenised Bitcoin yield fund (“Laser Digital Bitcoin Diversified Yield Fund SP”), natively tokenised via KAIO and custodied by Komainu, targeting >5% excess net return over BTC through market-neutral arbitrage, lending and options.