Today in crypto: ECB tests blockchain as Bitcoin rises

Strategy’s $2 billion Bitcoin push

Strategy, formerly known as MicroStrategy, plans to raise $2 billion to buy more Bitcoin by selling zero-coupon convertible bonds—financial products investors can later exchange for company shares. The bonds will mature in 2030 and are part of the company’s $42 billion fundraising plan, split between $21 billion in shares and $21 billion in bonds.

With 478,740 Bitcoin worth around $47 billion, Strategy is the world’s second-largest Bitcoin holder after its creator, Satoshi Nakamoto. While the company’s Bitcoin purchases have helped its stock surge from $14.44 in 2020 to $323 today, investor Jason Calacanis has criticized its debt reliance and noted that shareholders lack direct control over the Bitcoin holdings.

ECB moves closer to a digital euro

The European Central Bank (ECB) is advancing its digital euro project with a two-phase plan. First, it will develop a blockchain-based payment system integrated with Target, the eurozone’s main money transfer platform. The second phase will explore using blockchain to settle payments directly in central bank money.

ECB executive board member Piero Cipollone said the initiative aims to modernize Europe’s financial system, reduce reliance on non-European payment services, and provide faster, more secure transactions. More details on the project’s timeline are expected soon.

SEC targets crypto fraud with new task force

In the United States, the Securities and Exchange Commission (SEC) has launched the Cyber and Emerging Technologies Unit to combat cryptocurrency fraud. Replacing the former Crypto Assets and Cyber Unit, the new division includes 30 specialists investigating scams involving AI, social media, hacking, and unauthorized brokerage account takeovers.

Led by Acting Chairman Mark Uyeda, the SEC’s restructuring signals a fresh approach to crypto regulation, aiming to support innovation while strengthening oversight.

Quantum computing sparks Bitcoin security concerns

Microsoft’s new quantum chip, Majorana One, capable of hosting up to a million qubits, has raised concerns about Bitcoin’s future security. Investment firm River warned that such a computer could potentially break Bitcoin’s encryption within weeks, putting up to 5.9 million Bitcoin at risk. While most experts believe this threat is still years away, advancements in quantum technology are renewing discussions about Bitcoin’s long-term security.

Crypto markets see mixed performance

Bitcoin traded at $98,228, up 1.28% in the past 24 hours. Story IP led daily gains, jumping 54.8% to $5.06, while Maker rose 18.3% to $1,426.08 and Sonic climbed 18.2% to $0.86. AI-related tokens also performed well, with the Artificial Superintelligence Alliance token rising 7% to $0.78.

Layer-one blockchains saw growth, with Near Protocol up 10% to $3.52 and Celestia increasing 10.1% to $3.62. However, Telcoin dropped 10.6% to just over $0.01, and XRP fell 1.3% to $2.66. In blockchain gaming, Gala rose 6.1% to just over $0.02, and Fita Network gained 6% to $1.36.

With companies expanding their Bitcoin holdings, regulators tightening oversight, and quantum technology advancing, the crypto market continues to evolve, offering both opportunities and challenges for investors.