Bitcoin Treasury Pressure Mounts as Stablecoins Gain Strength

After months of sliding digital asset prices, public companies that embraced Bitcoin (BTC) as a treasury strategy are facing renewed scrutiny. Activist investors are now challenging those balance-sheet bets, echoing broader concerns about the volatility and long-term viability of the corporate Bitcoin model.

Stablecoins, meanwhile, continue to anchor the market. Circle posted a stronger-than-expected fourth quarter, even as early signs of a so-called “crypto winter” began to surface. 

However, not every payments player is sharing in that momentum. PayPal’s push into digital assets, including the launch of its PayPal USD stablecoin, has yet to reverse its stock decline, with reports suggesting the company is drawing takeover interest.

This week’s Crypto Biz examines the pressure building around Bitcoin treasuries, the staying power of the stablecoin business and the challenges facing legacy payment giants navigating crypto’s next phase.

Empery Digital faces shareholder revolt over Bitcoin treasury

A nearly 10% shareholder of Empery Digital is calling for sweeping changes, including the sale of the company’s roughly 4,000 Bitcoin holdings and the resignation of its CEO and board.

In a letter to management, investor Tice P. Brown argued that the Bitcoin-heavy treasury strategy has failed to maximize shareholder value and demanded capital be returned to investors instead.

Empery pushed back against the claims, defending its strategy. The dispute highlights the growing tension between activist investors and public companies that have adopted Bitcoin as a core balance-sheet asset.

Empery, which transitioned its legacy business into a Bitcoin treasury last year, has amassed 4,081 BTC, making it one of the top 25 largest public holders of the digital asset. 

Circle’s earnings, USDC growth fuels stock rally

Stablecoin issuer Circle delivered a stronger-than-expected fourth quarter, even as broader crypto market conditions weakened, underscoring continued momentum in the dollar-backed stablecoin market.

Fourth-quarter revenue reached $770 million, up 77% from a year earlier. Net income totaled $133.4 million, or 43 cents per share. Both were ahead of analyst expectations. The more telling figure, however, was USDC’s (USDC) expansion. Supply rose 72% to $75.3 billion by year-end, reflecting sustained demand for onchain dollar liquidity.

For the entire year, Circle reported $2.7 billion in revenue and a net loss of $70 million that was largely due to stock-based compensation tied to its initial public offering.

Shares jumped more than 20% following the earnings release, as investors responded to the revenue growth and expanding stablecoin base. 

PayPal draws takeover interest after steep stock decline

PayPal is reportedly attracting early-stage takeover interest after a prolonged slide in its share price, as competitors weigh opportunities to consolidate parts of the digital payments market.

According to Bloomberg, some potential buyers are evaluating a full acquisition, while others may pursue specific business segments. Discussions remain preliminary, and no formal offer has been announced. Bitcoin-friendly payments company Stripe later emerged as one of the interested parties.

The development comes as PayPal continues restructuring efforts and expands further into digital assets, including its proprietary stablecoin.

$500M stablecoin mortgage deal bridges DeFi and housing

Mortgage lender Better and Framework Ventures are launching a $500 million initiative that channels stablecoin liquidity into US mortgage lending, potentially bringing real-world housing finance deeper into decentralized markets.

Under the structure, Better will continue underwriting and issuing home loans, while funding is sourced through a stablecoin ecosystem. The arrangement connects blockchain-based liquidity with traditional real estate finance, an area long discussed but rarely deployed at a meaningful scale.

The deal signals continued momentum behind tokenized real-world assets, even as broader crypto markets remain volatile.

Crypto Biz is your weekly pulse on the business behind blockchain and crypto, delivered directly to your inbox every Thursday.