In brief Circle’s stock experienced another surge on Friday, fueled by increasing interest and adoption of stablecoins. Meanwhile, GameStop’s share prices took a significant hit after announcing a $1.75 billion (now increased to $2.25 billion) convertible bond offering. SharpLink Gaming’s shares also plummeted, but the company announced it now possesses a substantial $463 million in Ethereum assets. Public Keys serves as a weekly summary from Decrypt, highlighting key developments in publicly traded crypto firms. This week, Circle’s stock rose impressively while GameStop’s shares fell following its bond offering, but SharpLink Gaming’s decline stands out the most.
### Circle’s Stock Sees Renewed Interest
After a brief pause in excitement, Circle continues to draw attention with new developments. Following last week’s significant launch, the issuer of the USDC stablecoin, Circle, has seen its stock climb to new heights before stabilizing throughout the week as USDC was integrated into Sam Altman’s World Chain. By late Thursday, it appeared that Circle’s stock (CRCL) might slip below the $100 mark for the first time this week. However, in an unexpected turn on Friday, the stock soared by 25%, closing at $133.56—just shy of its all-time high reached earlier in the week. This surge occurred against a backdrop of rising tensions in the Middle East, which typically affects many assets, with the notable exceptions of oil and gold. In after-hours trading, CRCL moved even closer to its peak price. The Friday uptick followed a report from the Wall Street Journal suggesting that retail giants like Amazon and Walmart are contemplating launching their own stablecoins, contingent upon the passage of the GENIUS Act stablecoin bill. Senator Elizabeth Warren and consumer advocacy groups expressed their disapproval of these retailers’ reported plans.
If Circle’s public offering marked a significant milestone for stablecoins, several other firms and projects are eager to establish their presence alongside it. Notable mentions include Shopify, which has begun accepting USDC payments on its Base platform, and RippleX, which has integrated USDC into the XRP Ledger to promote decentralized finance (DeFi) and institutional adoption. Additionally, Brazilian fintech firm Matera announced it will utilize stablecoins to facilitate multi-currency operations among traditional banks, as reported by Bloomberg. It can be concluded that Circle’s public offering has revitalized interest in cryptocurrency—at least from the perspective of businesses looking to capitalize on the positive momentum.
### GameStop’s Bitcoin Strategy Under Scrutiny
Does GameStop need a prominent figure like Michael Saylor to advocate for its Bitcoin endeavors? Saylor, co-founder and Executive Chairman of a leading Bitcoin investment firm, is frequently in the spotlight, communicating the company’s prospects—despite some veteran investors dismissing his insights as “financial gibberish.” This week, GameStop revealed plans to issue $1.75 billion in convertible senior notes, a figure that has now been raised to $2.25 billion, following a previous fundraising of $1.5 billion. However, CEO Ryan Cohen did not elaborate on how the company plans to utilize this new cash influx; instead, he highlighted a humorous post on social media poking fun at himself. Following the announcement, GameStop’s stock tumbled by 22%, closing at $22.12, which is a drop compared to the price of around $25.40 when GameStop approved Bitcoin as a treasury asset in March. By Friday, shares remained relatively unchanged at $22.14, according to Yahoo Finance.
Are investors in GameStop seeking a vocal champion to clarify the firm’s recent pivot towards Bitcoin? Matt Cole, CEO of Strive Asset Management, emphasized the importance of transparency and authenticity for a company holding Bitcoin as a treasury asset, labeling GameStop’s current operations as a “black box.” While GameStop acquired 4,710 Bitcoin last month, the company has not publicly communicated its future purchasing intentions, as Cohen indicated during a brief appearance at a Bitcoin conference last month. The recent announcement stated that the funds raised could be allocated toward acquisitions, operational expenses, and investments, potentially including Bitcoin. Nevertheless, GameStop has a history of owning and subsequently selling off other digital assets.
### SharpLink Gaming Faces Market Volatility
In yet another example of the unpredictable nature of the cryptocurrency market, SharpLink Gaming’s recent SEC filing raised eyebrows and prompted speculation regarding the status of investors who participated in a prior $425 million private placement. Following the filing, the company’s stock price plunged by over 70%. In response to the speculation and subsequent drop, Joe Lubin, co-founder of Ethereum and SharpLink’s board chair, described the filing as “standard” for traditional finance companies, clarifying that it was being misrepresented. However, the drastic fluctuations in stock price drew comparisons to the erratic behavior of meme coins, with sharp rises and falls.
Udi Wertheimer, co-founder of Taproot Wizards, commented on the situation, explaining that the stock’s volatility can be attributed to a limited supply during the transition period before all necessary filings are completed. He suggested that this often leads to a speculative frenzy in the market. Despite the tumultuous trading, SharpLink Gaming announced on Friday that it had amassed an Ethereum treasury valued at $462 million following a recent fundraising round and stock issuance. The majority of these funds have already been utilized for on-chain operations, generating returns through staking. However, the stock failed to recover on Friday, remaining nearly 72% down from its previous closing price of $9.21 per share.
### Developments in ETF Issuances and Advisory Roles
In a flurry of activity, Solana ETF issuers adjusted their SEC filings late Friday to include plans for staking their assets, a strategy that could enhance their investment appeal. This contrasts with Ethereum ETF issuers, who were required to remove similar language from their filings before last summer’s approvals. The current SEC, under President Trump’s administration, appears to be more receptive to the cryptocurrency sector. Additionally, Coinbase announced the addition of David Plouffe, who played a crucial role in former President Barack Obama’s 2008 campaign and has served as an adviser to Kamala Harris, to its Global Advisory Council. His appointment comes at a time of increasing bipartisan support for cryptocurrency legislation in Congress, which has recently faced obstacles from some Democrats due to the prevalence of ventures associated with former President Trump.
Furthermore, Ethereum token platform Zora has initiated legal action against Deloitte, aiming to prevent the consulting giant from labeling one of its products as “Zora AI.” Despite Deloitte launching the platform last March, Zora has been a client of Deloitte since 2022. Lastly, Bitcoin miners, who faced challenges earlier in the year, reported a rebound, with Bitdeer disclosing that it generated 196 BTC in May, an 18% increase from April. Data from Farside Investors indicates that leading Bitcoin miners—CleanSpark, MARA, Riot Platforms, and HIVE—minted more Bitcoin in May compared to the previous month.
