Implications of Strategy’s $10B Q2 Profits, $4.2B STRC Offering, and mNAV Guidelines

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August 2, 2025

Strategy, formerly MicroStrategy, reported a record $10 billion net income in Q2 2025, driven by a $14 billion unrealized gain on its Bitcoin holdings, which grew 20% to 597,325 BTC at an average cost of $70,982 per coin. The profit, a 1,783,860% year-over-year surge, was fueled by Bitcoin’s price rising to $107,752 by June 30, 2025, under new fair-value accounting rules.

The company filed a $4.2 billion STRC preferred stock offering to fund further Bitcoin purchases, part of its “21/21 Plan” to raise $42 billion by 2027. Strategy also introduced modified net asset value (mNAV) guidelines, limiting common stock issuance when shares trade below a 2.5x premium to Bitcoin holdings, unless used for debt or dividend obligations.

This reflects Strategy’s aggressive Bitcoin treasury strategy, though critics highlight risks from leverage and Bitcoin’s volatility. Strategy’s $10 billion Q2 profit, driven by a $14 billion unrealized gain on its 597,325 BTC holdings, underscores the success of its Bitcoin-centric treasury strategy. The adoption of fair-value accounting (FAS 157) allowed Strategy to recognize Bitcoin’s price appreciation (to $107,752 by June 30, 2025).

The $4.2 billion STRC preferred stock offering signals Strategy’s continued commitment to increasing its Bitcoin reserves under the “21/21 Plan” ($42 billion by 2027). This move reinforces its position as the largest corporate Bitcoin holder, potentially increasing its influence in the crypto market. The modified net asset value (mNAV) guidelines, restricting common stock issuance unless shares trade at a 2.5x premium to Bitcoin holdings, aim to protect shareholder value.

Strategy’s aggressive Bitcoin accumulation could drive demand, potentially pushing Bitcoin prices higher, especially given its $64.4 billion Bitcoin portfolio (as of Q2 2025). However, this also ties Strategy’s financial health closely to Bitcoin’s volatility, posing risks if prices decline. The STRC offering, if successful, could set a precedent for other corporations to use capital markets to fund crypto investments, potentially increasing institutional demand for Bitcoin.

Strategy’s use of debt and preferred stock offerings to fund Bitcoin purchases introduces significant financial leverage. A sharp decline in Bitcoin’s price could strain its balance sheet, especially with $4.2 billion in new obligations. The mNAV guidelines may signal to investors that Strategy prioritizes Bitcoin holdings over traditional business operations, potentially alienating those skeptical of crypto’s long-term value.

Prospects for Institutional Adoption of Bitcoin

Strategy’s success—$10 billion in profits tied to Bitcoin—may encourage other corporations to allocate portions of their treasuries to Bitcoin, especially those with excess cash seeking inflation hedges or high-return assets. The STRC offering demonstrates how companies can use capital markets to fund crypto investments, potentially inspiring similar offerings. This could lead to broader institutional adoption as companies see a viable path to integrate Bitcoin into their balance sheets.

The adoption of fair-value accounting for digital assets (e.g., FAS 157) makes Bitcoin more attractive for institutions, as unrealized gains can be reflected in financial statements, improving reported earnings. Bitcoin’s price volatility (e.g., potential drops from $107,752) remains a significant deterrent for risk-averse institutions, particularly those with fiduciary duties to shareholders.

Companies like Tesla or Square (Block), which have previously dabbled in Bitcoin, may follow Strategy’s lead, especially tech firms with high cash reserves. Financial institutions, such as hedge funds or asset managers, could also increase Bitcoin allocations, viewing it as a portfolio diversifier. Sectors like manufacturing or retail, with lower risk tolerance, are less likely to adopt Bitcoin soon, preferring stable assets or traditional investments.

Strategy’s success could boost demand for Bitcoin ETFs and institutional-grade custody solutions, as seen with firms like Fidelity or Coinbase Institutional, making it easier for companies to enter the market. High-profile corporate adoption could normalize Bitcoin as a reserve asset, potentially reducing stigma and encouraging central banks or sovereign wealth funds to explore crypto holdings.

Strategy’s $10 billion profit and $4.2 billion STRC offering highlight its leadership in corporate Bitcoin adoption, potentially inspiring other institutions to follow suit. The mNAV guidelines reflect a cautious approach to balancing shareholder value with crypto exposure. While Strategy’s success could accelerate institutional adoption, particularly in tech and finance, barriers like volatility, regulation, and operational complexity may slow broader uptake.

Crypto Market Capitalization Drops 3% As Liquidation Exceeds $700M

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Paul Ugbede Godwin

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August 2, 2025

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The crypto market cap dropped by over 3%, with total liquidations exceeding $700 million, predominantly from long positions. According to CoinGlass, $737.36 million in leveraged positions were wiped out, with 85.3% being longs, reflecting overly bullish trader sentiment.

Major assets like Ethereum, XRP, and Solana saw significant losses, while meme coins faced steeper declines. The largest single liquidation was a $2.96 million BTCUSD position on Binance. This sell-off is attributed to profit-taking by retail traders or large investors and potential capital rotation ahead of an expected altcoin season.

Bitcoin remained range-bound between $116,000 and $120,000 after hitting a high of $123,218 on July 14. Traders are advised to monitor key support levels for signs of stabilization or further correction. The liquidations, primarily affecting long positions, signal heightened volatility, which can strain DeFi platforms.

With $737.36 million in leveraged positions wiped out, DeFi protocols reliant on collateralized lending (e.g., Aave, MakerDAO) may face increased liquidations of undercollateralized loans, reducing total value locked (TVL). DeFi TVL has already shown sensitivity to market downturns, with an 8% drop in active wallets reported earlier this year.

The sell-off, driven by profit-taking or capital rotation, could erode retail and institutional trust in DeFi. The Terra ecosystem’s 2022 collapse ($60 billion loss) highlights how DeFi can amplify market shocks. However, innovations like AI-driven DeFi platforms and stablecoin integrations (e.g., USDC) may stabilize liquidity by attracting institutional capital.

Despite short-term setbacks, DeFi’s long-term outlook remains robust. Projections estimate DeFi could grow into a $231 billion industry by 2030, driven by lending, borrowing, and staking innovations. The current dip may encourage platforms to enhance risk management and scalability through Layer 2 solutions.

Altcoins

Altcoins like Ethereum, XRP, and Solana experienced significant losses, with meme coins hit harder. This reflects their higher risk profile compared to Bitcoin, as altcoins often amplify market movements. Leverage buildup in altcoin derivatives ($40 billion open interest) suggests potential for further downside volatility if sentiment worsens.

The market cap drop aligns with capital rotation signals, potentially foreshadowing an altcoin season. Historical patterns (e.g., cup-and-handle in TOTAL3) indicate altcoins may outperform Bitcoin post-correction, especially with institutional interest in projects like Solana and Polkadot. Regulatory clarity and low interest rates could further boost altcoin adoption in 2025.

Altcoins tied to DeFi, AI, and tokenization (e.g., Solana, SEI, SUI) are poised for growth due to their utility in scalable ecosystems. Solana’s high transaction speeds and expanding DeFi/NFT ecosystems make it resilient despite a recent 11.52% weekly dip.

Non-Fungible Tokens (NFTs)

NFTs are highly sensitive to crypto market fluctuations, as their trading often relies on cryptocurrencies like Ethereum. The market cap drop mirrors a February 2025 NFT trading volume decline of 50% to $498 million, with a 90% capitalization loss since 2021. This suggests NFTs may struggle in the short term.

Despite the downturn, NFTs are evolving beyond digital art into gaming, music, and tokenized physical assets (e.g., Courtyard.io’s collectibles). Projects like the Trump Organization’s NFT-metaverse initiative could revive interest. NFTFi (NFT finance) is also gaining traction, enabling liquidity through NFT-collateralized loans and fractionalization.

The NFT market is projected to reach $247.41 billion by 2029, driven by rising digital art demand and new standards like ERC-1155, which reduce transaction costs. However, challenges like low liquidity and cyberattack risks persist. The interconnectedness of DeFi, altcoins, and NFTs means a market downturn can cascade across these sectors. However, NFTs offer diversification due to their lower correlation with other blockchain assets.

Global economic conditions, such as interest rate hikes or trade tariffs, exacerbate crypto volatility, impacting DeFi, altcoins, and NFTs alike. Institutional adoption (e.g., Goldman Sachs’ tokenized funds) and regulatory clarity could mitigate these risks. The crypto market’s projected growth to $10–12 trillion by 2030 suggests resilience. DeFi and altcoins will likely benefit from technological advancements, while NFTs may rebound through innovative applications and mainstream integration.

AI in Marketing 2025: Widespread Adoption, Growing Concerns, and Productivity Gains

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Paul Ugbede Godwin

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August 2, 2025

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As the wave of artificial intelligence is rising, affecting industry after industry, marketing is undoubtedly at the forefront of this transformation. To gain a comprehensive understanding of the integration of AI in marketing processes, Outcomes Rocket surveyed 1,229 marketers across various functions and company sizes. The results provide a clear image of a rapid development that sooner or later will become inseparable from the functioning of marketers, generation, and planning.

According to Outcomes Rocket research, AI implementation is transformational at scale, but it is not uniform. AI offers extraordinary opportunities; however, it also raises apprehension about accuracy, creative processes, and employment opportunities. Since the emergence of generative AI applications such as ChatGPT, the current embrace of agentic AI, the survey tracks the ways in which marketers are evolving into this new era.

The survey captures a diverse range of marketers, reflecting various professional levels and organization sizes. Around 28.4% of the participants were entry-level marketers, followed by medium-level professionals at 47.6%, senior professionals at 17.1%, C-level executives at 4.4% and at the last is 2.5% of other roles.

Regarding organization size, 43.6% of the respondents represent small businesses with 1-50 employees, 30.1% the size of medium-sized organizations with 51-250 staff, and 26.2% are the representation of large organizations with 251 and above employees.

AI adoption in marketing

The most impressive part is that 89.5% of marketers are already including AI into their processes, emphasizing how widespread this tool has become. This rate of adoption ranges across all levels and the size of organizations, especially the small ones that extensively use it to develop a competitive advantage.

Generative AI dominates the toolkit

Out of all AI technologies currently integrated into marketing, generative AI stands out as the most widely adopted, with 93.5% of marketers being active users of these tools. This is not a surprising figure, given the importance of content creation within marketing alone, and the rise of this specific method in the last few years due to the introduction of social media.

ChatGPT, Jasper, and Copy.ai are some examples that fall under this category. They allow marketers to compose their blog posts, create ad copy, brainstorm campaign ideas, and even create visuals, and in many cases, within a few minutes.

Coming in as the second is data analytics AI. Around 61.9% of the marketers have adopted platforms such as Google Analytics, Tableau, or Looker to help them obtain insights using information on customer behaviour, campaign effectiveness, and web traffic.

In the generative AI sector, ChatGPT is the dominant force since 94.8% of generative AI users say that it is their primary tool. Its user-friendly interface, a set of powerful features, and its cross-disciplinary potential have earned it a place as a ready-to-go resource among both low-level marketing personnel and senior strategists.

Generative AI is mainly applied to create content: 82.4% of marketers are utilizing it to write articles, create social media captions, develop creatives, and generate ideas like headlines or taglines. However, that is not their limit, with data analysis, research, and personalization coming very close behind.

Agentic AI: still early, but growing interest

Only 24.3% of marketers have used agentic AI, which is capable of executing marketing campaigns with minimal human input. However, the market has been seeing positive improvement with rising awareness and experimentation. One in every three (33%) respondents indicates that their organization has already implemented or tried agentic AI, meaning that this movement should be closely observed in the next 12 to 24 months.

Global Markets Rattle as Trump Announces New Wave of Tariffs

By

Samuel Nwite

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August 2, 2025

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U.S. President Donald Trump’s sweeping new wave of tariffs—described as the most aggressive trade intervention since the 1930s—has triggered global market turmoil and sent dozens of trading partners scrambling to negotiate exemptions or better terms.

The new policy, which imposes import duties as high as 50%, comes into effect August 7 and is already redrawing the map of global trade.

According to a presidential order released Thursday, 69 countries will face import duties ranging between 10% and 41%, pushing the U.S. effective tariff rate from 2.3% to nearly 18%, analysts at Capital Economics said.

The White House argues the tariffs are part of a broader effort to rebalance trade and protect national security. But for many nations—and investors—the move is an economic shock that is already reverberating across industries and global equity markets.

Market Reaction and Job Shock

The immediate fallout was sharp. U.S. stocks plunged, with the Dow Jones Industrial Average closing down 1.23%, the S&P 500 falling 1.6%, and the Nasdaq tumbling 2.24%. European stocks were hit even harder: the STOXX 600 sank 1.89%, reflecting fears of an escalating trade war.

Market anxiety was amplified by a disappointing U.S. jobs report. July employment numbers came in weaker than expected, and June’s figures were revised downward, signaling a possible slowdown in the labor market. Trump responded by ordering the firing of Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, and alleged—without offering evidence—that the job numbers were “rigged.”

Who’s Hit—and Who’s Relieved

Among the hardest-hit countries:

Switzerland, stunned by a 39% tariff, is pushing for emergency negotiations. “We are really stunned,” said Jean-Philippe Kohl of Swissmem, which represents Switzerland’s mechanical and electrical engineering sector.
Canada faces a 35% tariff on goods tied to fentanyl-linked restrictions, up from 25%. Trump accused Ottawa of failing to help stop illicit drug flows.
Brazil was slapped with a 50% tariff on select exports.
India, facing a 25% duty that could impact $40 billion in exports, has opened talks with Washington in a bid to de-escalate.
Taiwan, which got a 20% rate, said the tariff was “temporary” and expected a reduction after further discussions.
South Africa faces a 30% levy, prompting its Trade Minister, Parks Tau, to call for “real, practical interventions” to shield jobs.
Some Southeast Asian nations, however, saw unexpected relief. Thailand’s tariff was cut from a threatened 36% to 19%, a move praised by Finance Minister Pichai Chunhavajira as one that “boosts investor confidence and opens the door to economic growth.”
Australia was also spared deeper cuts, with its minimum 10% tariff maintained, giving its exporters a relative edge in U.S. markets, according to Trade Minister Don Farrell.

Still, most analysts were clear-eyed about the broader impact. “There are no real winners in trade conflicts,” said Thomas Rupf, CIO Asia at VP Bank in Singapore. “The tariffs hurt the Americans and they hurt us.”

Businesses Scramble to Cope

Some companies are already searching for ways to soften the blow. European firms in the fashion and cosmetics sector, including L’Oreal, are exploring an obscure U.S. customs loophole known as the “First Sale” rule. This allows import duties to be applied to a product’s factory price rather than its final retail price, significantly lowering costs in some cases.

Others are looking to restructure supply chains or seek trade diversification. Canadian Prime Minister Mark Carney called Trump’s decision “deeply disappointing” and promised to protect Canadian jobs and pivot to new markets.

“We’re not going to wait passively while punitive tariffs harm our industries,” he said.

Trump administration officials defended the tariffs as a calculated tool to extract better trade deals. “The uncertainty with respect to tariffs was critical to getting the leverage we needed,” said Stephen Miran, chair of the Council of Economic Advisers, during an interview on CNBC.

That leverage, Miran argued, had already produced “monumental” deals in recent weeks, though details remain sketchy. The European Union, for instance, is still awaiting further orders from Trump’s office to finalize carve-outs on cars and aircraft after reaching a framework agreement last Sunday.

There is also confusion about how the White House will define and enforce transshipment rules—a practice in which exporters route products through third countries to mask their origin. The new order includes provisions for 40% tariffs on shipments deemed to have violated these rules, particularly those hiding Chinese origins.

While full effects will take time to cascade through the economy, early signs show the tariffs are already inflating prices. The U.S. Commerce Department reported that prices for home furnishings and durable household goods rose 1.3% in June, the biggest monthly increase in over two years. That jump is widely attributed to rising import costs due to previous rounds of tariffs.

Outlook Shows A Redrawn Trade Map

Trump’s latest tariff offensive marks a dramatic shift in how the U.S. engages economically with the world. Though framed as an effort to restore fairness and economic sovereignty, the rollout has jolted markets, upset allies, and raised fears of supply chain disruptions.

With the tariffs set to take effect August 7 at 04:01 GMT, many countries are still in the dark on key implementation details. Meanwhile, businesses from winemakers in Germany’s Moselle Valley to tech exporters in Taiwan are bracing for the fallout.

While Trump’s team insists the approach will yield favorable deals, many question whether the cost—in higher prices, disrupted trade, and global uncertainty—will prove worth the gamble.

U.S. SEC Announces ‘Project Crypto’ To Move US Capital Markets On-chain

By

Paul Ugbede Godwin

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August 2, 2025

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SEC Chair Paul Atkins announced “Project Crypto,” a bold initiative to modernize U.S. securities regulations and integrate blockchain technology into capital markets. The initiative aims to position the U.S. as the global leader in blockchain finance by enabling on-chain trading, custody, and fundraising while aligning with President Trump’s vision to make America the “crypto capital of the world.”

Replace outdated, analog-era rules with clear, blockchain-native policies. This involves drafting new securities rules for tokenized assets like stocks and bonds, and providing exemptions and safe harbors for crypto fundraising methods such as ICOs and airdrops.

Move away from the vague Howey Test to establish “bright-line rules” distinguishing digital collectibles (NFTs), stablecoins, and investment contracts, with most crypto assets not classified as securities. Update regulations to support self-custody wallets and institutional providers, facilitating blockchain-based settlement and smart contract use.

Introduce “innovation exemptions” to allow startups to launch products with principles-based compliance, reducing legal uncertainty and encouraging crypto firms to operate in the U.S. rather than offshore. Authorize platforms combining securities and non-securities trading, staking, and lending under a single regulatory framework, fostering competition and growth in the digital asset ecosystem.

The initiative builds on the GENIUS Act for stablecoin oversight and recommendations from the President’s Working Group on Digital Asset Markets. Led by Commissioner Hester Peirce’s Crypto Task Force, Project Crypto aims to shift the SEC from regulation-by-enforcement to a clear, supportive framework, addressing past criticisms of stifling innovation.

Atkins emphasized that the SEC will not let U.S. markets stagnate while global innovation advances, with plans to modernize rules like Reg NMS and support tokenized securities to keep pace with global trends. This move has sparked interest from firms like BlackRock, Coinbase, and JPMorgan, who are already exploring tokenized assets and on-chain infrastructure.

Tokenizing securities (stocks, bonds, etc.) on blockchain could streamline trading, settlement, and custody, reducing costs and delays. Blockchain’s near-instant settlement (T+0) could replace the current T+2 system, boosting liquidity and reducing counterparty risk. Clear rules for tokenized assets and DeFi platforms could democratize access to investments, enabling retail investors to participate in markets previously dominated by institutions.

By legitimizing on-chain trading and fundraising (ICOs, airdrops), Project Crypto could attract billions in capital to U.S.-based crypto markets, reversing the trend of firms moving offshore to jurisdictions like Singapore or Dubai. Authorizing “super apps” that combine trading, staking, and lending could foster new financial products, spurring competition among platforms like Coinbase, Kraken, and traditional firms like JPMorgan entering the tokenized asset space.

Replacing the Howey Test with clear token classification rules (e.g., distinguishing NFTs, stablecoins, and securities) reduces legal ambiguity, potentially lowering compliance costs and litigation risks for crypto firms. Moving away from regulation-by-enforcement to principles-based compliance via “innovation exemptions” could encourage startups to operate in the U.S., fostering a more predictable regulatory environment.

Modernized custody rules for self-custody wallets and institutional providers could set a global standard, balancing decentralization with investor protection, but may face scrutiny over security and fraud risks. As the U.S. aims to be the “crypto capital,” Project Crypto could shape international standards, pressuring jurisdictions like the EU or Asia to align with U.S. blockchain regulations or risk losing market share.

While the initiative promises to foster innovation, the ambitious scope raises questions about implementation timelines, potential regulatory gaps, and whether the SEC can balance investor protection with decentralization. The success of Project Crypto will depend on the clarity and practicality of the new rules, as well as cooperation with industry stakeholders.

Implications of Strategy’s $10B Q2 Profits, $4.2B STRC Offering, and mNAV Guidelines

Prospects for Institutional Adoption of Bitcoin

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