Daily Brief: November 5, 2025

💶 Strategy's Euro Stock Fuels Bitcoin Ambitions

Strategy, led by Michael Saylor, is launching an IPO for euro-denominated shares under the ticker STRE. The company plans to use the funds raised to buy more Bitcoin. These shares offer a 10% annual dividend and are available to qualified investors in the EU and UK.

Priced at 100 euros per share, the euro-based stock targets institutional investors with its attractive 10% dividend. This move highlights Strategy's focus on expanding its credit offerings internationally. If dividends are unpaid, they compound quarterly, with a cap at 18%.

By shifting to euro financing, Strategy aims to diversify its capital sources beyond US dollars. The company currently holds 641,205 BTC, valued at $68.52 billion. This strategic move reinforces its commitment to increasing its Bitcoin holdings amid strong financial performance.

Why it matters: This IPO highlights a trend of using innovative financing to boost cryptocurrency investments, potentially reshaping how institutional investors engage with Bitcoin.

🔄 Bitcoin Miners Shift Focus to AI Infrastructure

Bitcoin miners are increasingly turning to AI infrastructure to boost their profitability. Companies like IREN have secured massive deals, such as $9.7 billion from Microsoft and $5.8 billion from Dell, to transform their operations. This shift is partly driven by the U.S. restricting Nvidia chip exports to China, which gives domestic miners a competitive edge in AI computing.

This pivot to AI has significantly increased the stock value of mining companies. IREN, for instance, saw its stock rise by over 580% this year. These companies are using their existing power infrastructure to meet the growing demand for AI resources, marking a lasting change in their business model.

Wall Street analysts have responded positively to these developments. IREN's recent deal with Microsoft led to a price target increase to $142, indicating strong growth potential. Analysts highlight IREN's ownership of power assets as a key advantage, predicting substantial revenue growth from AI cloud services.

Why it matters: This transformation positions bitcoin miners as crucial players in the AI market, leveraging existing infrastructure to meet growing computational needs amid geopolitical tensions.

📈 Institutions Favor XRP and Solana Over Bitcoin

Institutional investors are shifting their focus from Bitcoin to XRP and Solana, as highlighted in a CoinShares report. XRP experienced inflows of $421 million, while Solana drew in $43.2 million. Meanwhile, Bitcoin ETFs saw a significant outflow of $946 million.

This change is partly driven by the introduction of new Solana ETFs and the market's response to Federal Reserve Chair Jerome Powell's remarks on interest rates. These developments have made XRP and Solana more attractive to institutions looking for alternatives.

There is growing anticipation for a spot XRP ETF expected to launch on November 13, which could boost investment in XRP even further. Experts predict that XRP funds could attract between $5 and $10 billion in their first month.

Why it matters: This shift in institutional investment highlights the evolving dynamics of the cryptocurrency market and the potential for altcoins to gain prominence over Bitcoin.

🔍 Binance CEO Pardon Sparks Political Debate

President Trump recently pardoned Changpeng Zhao, the former CEO of Binance, aiming to counter what he calls the Biden administration's 'war on crypto.' Trump denied any personal ties to Zhao, presenting the pardon as a strategy to keep the U.S. at the forefront of cryptocurrency. This decision, however, has sparked criticism from Democratic lawmakers who are concerned about potential conflicts of interest and the role of political figures in crypto regulation.

Binance CEO Richard Teng has rejected claims that the company influenced a $2 billion investment involving a stablecoin linked to the Trump family. His denial comes as scrutiny intensifies following Zhao's pardon, with lawmakers probing Binance's connections to political figures. Despite Teng's assurances, the situation underscores potential conflicts of interest in cryptocurrency investments tied to political families.

Some view Zhao's pardon as a strategic move to lure blockchain talent back to the U.S. and encourage innovation-friendly regulations. Critics, however, argue it could weaken regulatory efforts in the crypto sector. This development coincides with the longest government shutdown in U.S. history, adding to market volatility and economic uncertainty.

Why it matters: This pardon underscores the complex intersection of politics and cryptocurrency, potentially reshaping U.S. regulatory practices and influencing global perceptions of American leadership in digital innovation.

🚀 Ripple Expands with Prime Brokerage and RLUSD Stablecoin

Ripple has introduced Ripple Prime, a new service designed for U.S. institutions to trade digital assets like XRP and RLUSD over-the-counter. This launch comes on the heels of Ripple's acquisition of Hidden Road, boosting its ability to offer regulated services. Ripple Prime aims to bolster institutional trust in digital assets, especially with the expected introduction of spot XRP ETFs.

Ripple's RLUSD stablecoin has quickly reached a $1 billion market cap in less than a year, making it the 10th largest U.S. dollar-backed stablecoin. This swift growth is fueled by Ripple's established customer base and financial network, attracting both institutional and retail users. Ripple's strategy involves acquisitions to broaden its digital asset offerings and market presence.

Ripple Prime provides a robust platform for trading and settlement using XRP and RLUSD, enabling OTC spot transactions across various cryptocurrencies. This service helps institutions manage portfolios more efficiently, aligning with Ripple's goal to expand in institutional finance. The integration with Hidden Road's infrastructure enhances service delivery.

Why it matters: Ripple's expansion into institutional finance with Ripple Prime and RLUSD stablecoin could reshape how traditional finance interacts with digital assets, potentially increasing cryptocurrency adoption.