The Daily: Trump-backed American Bitcoin raises $220M for bitcoin and mining gear, Bitwise sticks to $200K BTC 2025 price prediction, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Tuesday! Despite sitting just 5% below all-time highs, bitcoin enters Q3 stuck in a rut, analysts say, warning that after June's leverage flush and fading spot demand, only a fresh macro catalyst may break the deadlock in what's historically its weakest quarter.

In today's newsletter, American Bitcoin raises $220 million, Bitwise reiterates its $200,000 bitcoin price forecast for 2025, Global Dollar Network expands to the EU, and more.

Meanwhile, we take a look at 20 key crypto hires, moves, and exits in June.

Let's get started.

Trump-backed American Bitcoin raises $220M for bitcoin and mining gear

American Bitcoin, the recently launched bitcoin mining firm backed by Eric Trump and Donald Trump Jr., has raised $220 million by selling over 11 million new shares in a private placement.

• The company plans to use the proceeds to buy bitcoin and mining equipment, according to a recent SEC filing from Hut 8, a majority owner of American Bitcoin.
• The raise netted around $215 million after fees and came after the company issued and sold over 11 million new shares to private investors last Friday, with about $10 million worth of shares sold for bitcoin instead of dollars at a rate of $104,000 per BTC already.
• American Bitcoin launched at the end of March after Hut 8 partnered with American Data Centers, a firm that the U.S. President's two eldest sons invested in.
• This further increased the Trump family's involvement with crypto and related businesses, aligning with Donald Trump's stated goal of positioning the U.S. as a bitcoin mining powerhouse.
• American Bitcoin aims to go public later this year via a SPAC merger and trade on Nasdaq as ABTC.

Bitwise sticks to $200K BTC forecast for 2025, cuts ETH and SOL outlook

Crypto asset manager Bitwise is sticking to its $200,000 BTC price prediction for 2025, citing strong ETF flows, bitcoin treasury company accumulation, and the creation of a U.S. Strategic Bitcoin Reserve.

• However, the firm cooled its expectations for ETH and SOL hitting new highs this year, pointing to weak year-to-date performance and macro risks keeping the broader crypto bull market from "kicking into overdrive."
• Nevertheless, the firm remains optimistic about the prospects for H2 as progress on crypto legislation, growing institutional demand, and stablecoin adoption still create a strong environment for substantial gains.
• "The Bottom Line: We're holding firm to our BTC $200k prediction, as there is simply too much institutional demand for BTC to keep prices flat for long," Bitwise CIO Matt Hougan and Head of Research Ryan Rasmussen wrote in a Tuesday note to clients.

Robinhood, Kraken-backed Global Dollar Network expands to EU

Paxos has introduced the multi-chain Global Dollar (USDG) stablecoin in the EU under MiCA through its regulated Finnish entity, offering 1:1 dollar redemptions and trading on several centralized crypto exchange platforms like Kraken.

• Launched in November, USDG is backed by the Global Dollar Network, a consortium that includes Kraken, Robinhood, Galaxy, and Anchorage, aiming to expand stablecoin access across Europe.
• The stablecoin circulates on Ethereum, Solana, and Ink, and Paxos will hold some of USDG's cash reserves in European banks to meet MiCA's strict backing and audit rules.
• Paxos is positioning USDG to challenge dominant players USDT and USDC to meet growing European demand for compliant dollar-pegged stablecoins.

Circle applies for US banking license

Stablecoin issuer Circle has applied for a U.S. national banking license that would let it custody USDC reserves and hold crypto for institutions, Reuters reported.

• The OCC-regulated entity would be called First National Digital Currency Bank, though it wouldn't take deposits or issue loans like a traditional bank.
• The move follows Circle's blockbuster IPO this month, which saw shares surge 167% on debut, with the company's valuation now over $40 billion.
• On Monday, Bernstein analysts argued Circle's USDC is likely to become the largest regulated stablecoin under the proposed GENIUS Act, thereby giving the firm a "regulatory headstart" in the U.S.

Bitcoin ETFs' inflow streak hits 15 days, pulling in nearly $5 billion

U.S. spot Bitcoin ETFs have notched 15 straight days of inflows totaling $4.7 billion, with BlackRock's IBIT accounting for over 80% of the value.

• However, Monday's $102.1 million in net inflows represent a slowing in pace following Friday's $501.2 million and $316 million average during the 15-day run.
• "Not $5 billion this year. That's $5 billion over the past 15 trading days," The ETF Store President Nate Geraci said — referencing when many pundits thought the top end for the U.S. spot Bitcoin ETFs per year would be $5 billion.

In the next 24 hours

• U.S. mortgage data are out at 7 a.m. ET on Wednesday.
• ECB President Christine Lagarde will speak at 10:15 a.m.
• Ethena is set for a token unlock.

Never miss a beat with The Block's daily digest of the most influential events happening across the digital asset ecosystem.

Disclaimer: This article was produced with the assistance of OpenAI’s ChatGPT 3.5/4 and reviewed and edited by our editorial team.

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