PA Daily | Strategy announces Q1 financial report and plans to raise another $21 billion to buy Bitcoin; crypto venture capital firm dao5 completes $222 million in second-phase fund raising

Today's news tips:

1. Meitu founder Cai Wensheng bought Tin Hau Commercial Building for about HK$650 million and will build an AI-Web3 startup center

2. Source: The U.S. House of Representatives will release a draft bill on cryptocurrency regulation before the hearing on May 6

3. Binance Alpha adds Housecoin (House) and XAI gork (gork)

4. Tether releases Q1 report: U.S. Treasury holdings approach $120 billion, traditional investment operating profit exceeds $1 billion

5.Strategy released its Q1 financial report, with both revenue and profit falling short of expectations

6. Movement: Rushi Manche has been suspended

7. The top 5 whales on the Trump dinner list transferred 126,000 Trumps to Bybit 11 hours ago. If they were sold, they would make a profit of $420,000.

8. Crypto venture capital firm dao5 completes $222 million in second-phase fund raising

Regulatory/Macro

Market News: Charles Schwab CEO says spot cryptocurrency trading will begin within 12 months

According to market news, Charles Schwab's CEO said that spot cryptocurrency trading will be launched within 12 months.

Trump-linked NexusOne already in operation, aims to influence US AI and artificial intelligence policy

NexusOne Consulting, a new government relations consulting firm formed by former government officials, has begun operations in Washington, D.C., aiming to help cryptocurrency and artificial intelligence companies shape U.S. policy. The company is led by white-collar defense attorney Jeff Ifrah, former government lawyer Jim Trusty who represented the Trump administration, and Ross Branson, who worked at the Commerce Department during Trump's first presidential term. Ifrah said in a press release that this is a rare opportunity to shape the future of technology policy, the company wants to ensure that innovators are not just reactive to policy, but can proactively influence it.

Trump has said he wants to make the United States the "cryptocurrency capital of the world" and has begun to build a strategic Bitcoin reserve. NexusOne Consulting, located directly across from the White House, bills itself as a bridge between the private industry and the government, and plans to lobby for companies at the forefront of artificial intelligence, cryptocurrency and social platforms.

Meitu founder Cai Wensheng bought Tin Hau Commercial Building for about HK$650 million and will build an AI-Web3 startup center

According to the Hong Kong Commercial Daily, Meitu founder Cai Wensheng bought the entire Tin Hau commercial building for approximately HK$650 million. The subject of this transaction is the Ginza-style commercial building "Henghuan Tin Hau" on Tin Hau Road. The property was completed in 2020. It has 25 floors (basement to 24th floor), a single floor area of approximately 2,041 square feet, and a total floor area of approximately 53,000 square feet.

Cai Wensheng posted on social media that he plans to turn the building into an AI-Web3 startup center: AI-themed cafes (similar to garage coffee models) will be set up on floors 1-2, with supporting AI technology lecture spaces. Some floors will be set up as AI-Space shared office areas, free for Hong Kong entrepreneurs to apply for use. The remaining floors are planned to be studios in the fields of AI and Web3.

Source: U.S. House of Representatives to release draft cryptocurrency regulation before May 6 hearing

According to people familiar with the matter, French Hill, chairman of the House Financial Services Committee, and others are expected to release a draft regulation on cryptocurrencies before a hearing on May 6 (local time). The hearing will be held at 10 am Eastern Time on the 6th, with the theme of "American Innovation and the Future of Cryptocurrency: A 21st Century Blueprint". It is expected to focus on the long-awaited legislation to define the structure of the crypto market in the United States. The draft is expected to be similar to the 21st Century Financial Innovation and Technology Act (FIT 21) passed by the House of Representatives last year. A staff member of the House Agriculture Committee also confirmed that the draft text will be released before the hearing.

Committees in the House and Senate have advanced stablecoin-focused bills, while legislation to regulate the entire cryptocurrency industry is seen as the next step. President Donald Trump has said he wants to see a stablecoin bill by August, but some say the bills could be linked.

Digital asset derivatives company Two Prime: No longer accepting ETH lending, focusing only on BTC

Two Prime, a digital asset derivatives company, announced that despite its success in ETH, it will focus on BTC asset management and lending in the future. ETH's statistical trading behavior, value proposition, and community culture have failed to the point where it is not worth participating. With BTC as an alternative, ETH's risk-return is simply not reasonable.

Two Prime claims that as an algorithmic trading company, it values data rather than narrative. The data shows that ETH has changed fundamentally. Its correlation with BTC has decreased, and the tail risk has increased significantly. Now, its trading style is more like a meme coin than a predictable asset. Even during the turbulent period in the first quarter of 2025, Bitcoin maintained its fundamental trend, while ETH experienced multiple multi-standard deviation fluctuations. This stems from the risk-averse environment and the widespread selling of long-term ETH holders. This is troublesome for both algorithmic trading and ETH-backed lending, because the performance of the asset is no longer predictable, even taking into account the high volatility expectations in the digital asset market.

Two Prime said that in the past 15 months, Two Prime Lending has become the world's second-largest BTC and ETH mortgage lender, having completed more than $1.5 billion in loans. The company has been trading and lending in these two assets because they are the only two assets with sufficient liquidity for institutions to participate.

Japanese listed company Metaplanet will issue approximately $24.69 million in zero-coupon ordinary bonds to increase its holdings of Bitcoin

According to an official announcement, Japanese listed company Metaplanet will issue 3.6 billion yen (about 24.69 million US dollars) of zero-interest ordinary bonds to purchase Bitcoin.

Project News

Binance Alpha adds Housecoin (House) and XAI gork (gork)

According to the official page, Binance Alpha has added Housecoin (House) and XAI gork (gork).

21Shares has submitted the S-1 registration form for the SUI ETF to the SEC

Swiss asset management company 21Shares has filed an S-1 registration form for the SUI ETF with the U.S. Securities and Exchange Commission (SEC). Duncan Moir, president of 21Shares, said at Sui's annual Basecamp conference: "Since we first started working on Sui, we believed it could become one of the most exciting blockchains in the industry, and we are seeing that thesis come true."

Canary Capital submits S-1 registration application for SEI spot ETF to SEC, including pledge element

According to The Block, late Wednesday, Canary Capital submitted an S-1 registration statement to the U.S. Securities and Exchange Commission, planning to manage what could become the first spot SEI ETF in the U.S., and the fund includes a pledge element. The proposed fund aims to provide investors with direct exposure to the price of the Sei network's native cryptocurrency SEI, and the assets will be managed by BitGo and Coinbase. The trust plans to pledge part of its assets through one or more infrastructure providers, which may bring additional returns to investors. In addition, the fund will handle the creation and redemption of shares in cash, similar to the existing spot Bitcoin and Ethereum ETF structures in the United States.

Publicly traded Classover signs $400 million equity purchase agreement, launching SOL-based financial strategy

Online learning provider Classover Holdings, Inc. (Nasdaq: KIDZ, KIDZW) announced that it has entered into an equity subscription agreement with Solana Strategies Holdings LLC. Pursuant to the agreement, the company will sell up to $400 million of Class B common stock. The proceeds from the equity subscription will be used to support the company's Solana-centric digital asset reserve strategy, as well as for working capital and strategic acquisitions. Under this move, Classover will allocate a significant portion of the proceeds from any stock sold through the agreement to purchase, hold for the long term, and stake SOL tokens, subject to certain restrictions - making it one of the first public companies to directly incorporate SOL into its core reserve business. In addition, the company plans to operate SOL validation nodes to help the network's decentralization and security while earning on-chain staking rewards.

Privacy-focused Layer-2 Rollup Protocol Aztec Announces Testnet Launch

According to CoinDesk, the privacy-focused Layer-2 Rollup protocol Aztec announced the launch of its testnet. The protocol uses protocol-level encryption technology to allow users to store private data in encrypted form on the blockchain. The project team said that they have been committed to developing the product for more than 8 years, pushing this cutting-edge technology one step further to the mainnet. Co-founder Zac Williamson said that unlike conventional ZK Rollup, Aztec prioritizes privacy rather than scalability, and a single transaction requires more on-chain resources.

Earlier in 2022, it was reported that Aztec Network completed a US$100 million Series B financing round, led by a16z .

New proposal from Sky community: Sky replaces MKR as the only governance token and implements staking and USDS rewards

Sky’s core governance design team, Atlas Axis, has submitted a proposal that, if approved, would complete the protocol’s upgrade from MKR to SKY. The shift would make SKY the exclusive governance token and enable staking, unlocking USDS rewards for SKY holders. Sky co-founder Rune Christensen called it a “huge milestone” and believes the proposal could help Sky achieve zero fixed cost transition by the end of 2025. If the proposal is approved, or activated within a few weeks, SKY will inherit MKR governance voting rights. Existing MKR holders can upgrade to SKY at a fixed exchange rate of 1:24,000, and will be able to vote on governance proposals or delegate to others. Starting September 18, MKR to SKY conversions will face a 1% penalty, which will increase by 1% every three months thereafter. Initially, the SKY staking vault will have liquidation disabled, which will be restored later. Governance rights will be migrated to the new contract, and the transition will be completed between May 15 and 19 (depending on on-chain voting).

Tether releases Q1 report: U.S. Treasury holdings approach $120 billion, traditional investment operating profit exceeds $1 billion

Tether today released a first quarter 2025 attestation report issued by BDO, confirming the accuracy of its financial data and reserve report (FFRR) and disclosing its assets as of March 31. The report shows that Tether holds a total exposure of nearly $120 billion in U.S. Treasury bonds (including indirect holdings), a record high. Traditional investment operating profit exceeded $1 billion this quarter, mainly benefiting from the performance of the U.S. Treasury portfolio, and gold gains partially offset the volatility of the cryptocurrency market. Excess reserves reached $5.6 billion, reflecting its liquidity management capabilities. In terms of operations, the circulating supply of USDT increased by approximately $7 billion, and the number of user wallets increased by 46 million, a month-on-month increase of 13%. In addition, Tether invested more than $2 billion in renewable energy, artificial intelligence and other fields through Tether Investments. Management emphasized that such investments are not included in the stablecoin reserves, but are intended to promote a sustainable digital economy. As of March 31, Tether Token Issuer had total assets of approximately $149.275 billion and total liabilities of approximately $143.683 billion, with assets exceeding comprehensive liabilities.

Tether's latest evidence shows it holds over $7.6 billion worth of Bitcoin

According to Bitcoin News, Tether’s latest proof shows that the company holds more than $7.6 billion worth of Bitcoin.

The market value of boop.fun platform coin BOOP briefly exceeded US$500 million

GMGN market data shows that the market value of BOOP, the Meme coin launch platform boop.fun on Solana, briefly exceeded US$500 million and is now reported at US$380 million. The transaction volume reached US$63.9 million in one and a half hours after going online. It is reported that boop.fun is a Meme coin launch platform founded by NFT giant Dingaling.

Coinbase to suspend MOVE trading on May 16

According to the official announcement, Coinbase will suspend the trading of Movement (MOVE) tokens at around 2 am on May 16 (UTC+8). The MOVE order book has been adjusted to limit price mode. Users can place and cancel orders, and orders may be matched and executed.

Strategy released its Q1 financial report, with both revenue and profit falling short of expectations

Strategy released its first quarter financial report, with both revenue and profit falling short of expectations. Operating expenses in the first quarter reached $6 billion, up more than 1,100% year-on-year. This was largely due to the unrealized losses on $5.91 billion worth of Bitcoin after it spent about $7.66 billion to purchase 80,715 Bitcoins in the first quarter.

The company reported a net loss of $4.2 billion in the first quarter, or $16.49 per diluted share. Analysts expected a loss of $0.11 per share. The company's total revenue was $111.1 million, about 5% below market consensus and down 3.6% from the same period last year. Subscription service revenue increased 61% to $37.1 million. Strategy holds $60.3 million in cash and cash equivalents, 553,555 bitcoins, with a market value of approximately $52 billion, and a year-to-date bitcoin return of 13.7%. In addition, Strategy announced a new round of $21 billion in common stock ATM financing plans. The company also raised its full-year BTC return target from 15% to 25%, and raised its BTC revenue forecast from $10 billion to $15 billion.

Kraken's Q1 revenue reached $472 million, a year-on-year increase of 19%

According to The block, Kraken's revenue in the first quarter of 2025 jumped to $472 million, up 19% from the same period last year, mainly due to a surge in market volatility in the first quarter (the first 100 days of President Trump's second term). The company's adjusted earnings before interest, taxes, depreciation and amortization (EBITA) increased 17% year-on-year to $187.4 million, and the total exchange trading volume increased 29% during the same period.

Movement: Rushi Manche has been suspended from his post

Movement tweeted that it has confirmed that co-founder Rushi Manche has been suspended from Movement Labs. This decision is based on current events and Groom Lake is still undergoing a third-party review of organizational governance and recent events involving market makers.

Earlier news , multiple sources revealed that Movement Labs co-founder Rushi Manche has temporarily left the company and his return date is yet to be determined.

Binance Futures to Launch Pre-Market Trading of SXTUSDT Perpetual Contracts

According to the official announcement, Binance Futures will launch pre-market trading of SXTUSDT perpetual contracts at 16:30 (ET8) on May 2, with a maximum leverage of 5 times.

Important data

Bitcoin spot ETFs had a net inflow of $422 million yesterday, with BlackRock ETF IBIT leading the way with a single-day net inflow of $351 million

Ethereum spot ETF had a net inflow of $6.4932 million yesterday, and only Grayscale Ethereum Trust ETF ETHE had a net outflow

The top 5 whales on the TRUMP dinner list transferred 126,000 TRUMP to Bybit 11 hours ago. If sold, they will make a profit of $420,000

According to the monitoring of on-chain analyst @ai_9684xtpa, the top 5 whales on the TRUMP dinner list recharged all 126,000 TRUMP into Bybit 11 hours ago, with a value of US$1.65 million; the proposed price was US$9.71 and the recharge price was US$13.02. If sold, the profit will be US$420,000.

A whale transferred 3,000 ETH to Kraken, and the wallet currently holds 2,000 ETH

According to The Data Nerd, 10 minutes ago, whale user 0xaDd recharged 3,000 ETH (worth $5.53 million) to Kraken. These ETH were purchased during the ICO and had been idle for 3 years before the recharge. Currently, the whale still has 2,000 ETH (about $3.69 million) in his wallet.

Financing

Blockchain financial company Dinari completes $12.7 million Series A financing, led by Hack VC and others

According to Fortune magazine, blockchain finance company Dinari announced the completion of a $12.7 million Series A financing, led by Hack VC and Blockchange Ventures, with participation from VanEck Ventures, F-Prime and Avalanche Fund. The company's total financing has reached $22.65 million, with a valuation of $40.15 million in 2024. According to Pitchbook data, Dinari's valuation in 2024 is $40.15 million. The current valuation is unclear, but the company said it has achieved profitability, but declined to disclose the specific amount.

Dinari focuses on providing U.S. stock investment services to overseas investors, and issues tokens representing U.S. stock ownership through blockchain technology. Its API service has been connected to many financial technology platforms, and users can purchase tokens corresponding to stocks of companies such as Apple. Dinari will directly purchase and hold the corresponding stocks in the U.S. stock market to ensure 100% asset endorsement.

Public logistics company Freight announced that it has received up to $20 million in financing to purchase TRUMP tokens

Freight Technologies, Inc. (Nasdaq: FRGT), an innovative logistics management company, announced that it has entered into a convertible note issuance agreement with an institutional investor signed on April 29, 2025, through which the company can obtain up to $20 million in funds. The proceeds from this financing will be used exclusively to purchase the official Trump official token TRUMP, making Fr8Tech one of the first public companies to make TRUMP one of the core of its digital asset strategy.

Under the financing arrangement, the company plans to issue notes with a total principal amount of US$1 million as the first tranche in the initial offering, with the option to draw up to an additional US$19 million in subsequent tranches subject to certain conditions. Following the recent acquisition of FET tokens (currently valued at approximately US$8 million as of April 29, 2025), the purchase of the official Trump token further advances Fr8Tech's strategy to build a diversified digital asset reserve.

Crypto venture capital firm dao5 completes $222 million second fund raising

According to Fortune, crypto venture capital firm dao5 announced the completion of fundraising for its second phase fund of $222 million, with family offices and high-net-worth individuals as the main investors. The firm was founded in 2022 by former Polychain investment partner and corporate lawyer Tekin Salimi. Its first phase of $125 million has been invested in projects such as Berachain and Bittensor, and its current DPI (return on paid-in capital) has reached 1 times. The new fund will focus on institutional applications such as stablecoins and asset tokenization, and plans to invest in 15-20 early projects. Salimi has participated in investments in major crypto projects such as Avalanche, and its first fund LP and angel investor George Lambeth will be promoted to general partner.

Publicly listed DeFi Development Corp will receive $24 million in private equity financing to purchase more SOL

Nasdaq-listed DeFi Development Corp (formerly real estate software company Janover) announced that it will receive $24 million in PIPE investment (private equity financing), which will be used to increase holdings of Solana (SOL) and daily operations. Investors in this round include Galaxy Digital, Amber International Holding Limited, Arrington Capital, Republic Digital, Borderless Capital, RK Capital and Great Point Capital. The company sold 310,000 common shares and 215,000 pre-financing warrants at $46 per share. As of May 1, the company held 317,273 SOL (worth approximately $46.2 million) and earned income through staking in cooperation with Kraken.