Strategy (NASDAQ: MSTR/STRC), the largest corporate holder of Bitcoin (BTC), has released its financial results for the second quarter of 2025, which ended on June 30. During the second quarter, Strategy raised more than $10 billion through ATM programs and IPOs.
As a result, Strategy increased its Bitcoin holdings to 628,791 coins, which is nearly 3 percent of BTCs total circulating supply. The company’s operating income for the second quarter was about $14.03 billion, which represents a 7,106 percent surge year-over-year (YoY).
The company achieved a gross profit of $78.7 million, which mostly came from the subscription services and product licenses.
“STRC expands our capital markets platform with an instrument engineered to balance stability and yield, and it reflects our commitment to developing innovative financial products that extend the reach of the Bitcoin economy,” Michael Saylor, Executive Chairman at Strategy, noted.
Strategy Remains Committed to Bitcoin’s Long-term Success
According to a Securities and Exchange Commission (SEC) filing dated July 31, Strategy entered into a sales agreement with several financial institutions to sell its shares and raise up to $4.2 billion. The company plans to pay a commission of 2 percent of the total raised funds to the financial institutions selling its shares, and use the rest of the capital to purchase more Bitcoins.
Earlier this week, Strategy closed a $2.52 billion IPO for STRC, thus purchasing 21,021 BTCs. As a result, Strategy achieved a BTC Yield of 25 percent YTD.
Market Impact
The palpable success rate recorded by Strategy with its Bitcoin plan has convinced other corporations to follow the same path. According to aggregate market data analysis from BitcoinTreasuries, 285 entities hold about 3.64 Bitcoins in the respective treasuries.
As a result, Bitcoin price is well-positioned to rally exponentially in the coming months and years, fueled by the supply vs demand shock. Moreover, the U.S. has led other nations in implementing clear crypto regulations.
Binance:- Crypto exchanges around the world are rolling out smart and innovative marketing campaigns to drive crypto adoption. From Gemini’s ongoing Tesla Cybertruck strategy to Kraken’s Layer-2 Ink initiative to crowdsource a mascot name, Web3 brands are continuing to rewrite the marketing playbook. In a fresh example, Binance CIS Marketing Head Dilara Tagaeva unveiled a
The recent depeg incident involving sUSD from Synthetix has highlighted that this sector remains fraught with risks despite the immense potential of algorithmic stablecoins.
The sUSD incident is not the first to expose the vulnerabilities of algorithmic stablecoins. From technical challenges and regulatory pressures to dwindling community trust, projects in this space must navigate numerous obstacles to survive and thrive.
The Landscape of the Algorithmic Stablecoin Market
Algorithmic stablecoins, which maintain their value without direct asset backing, were once hailed as a breakthrough in decentralized finance (DeFi). However, according to CoinMarketCap data from April 2025, the total stablecoin market capitalization stands at $234 billion, while algorithmic stablecoins account for about $458 million, equivalent to just 0.2%.
This stark disparity reflects the reality that algorithmic stablecoins have yet to gain widespread trust from the community. High-profile failures like the collapse of UST/LUNA in 2022, coupled with regulatory uncertainties such as the EU’s MiCA framework, have fueled skepticism.
More recently, the depeg of Synthetix’s sUSD is a typical example of this model’s inherent risks.
A Deep Dive into Synthetix’s sUSD Depeg
Synthetix is a well-known DeFi protocol celebrated for its synthetic asset system. Within this ecosystem, sUSD is an algorithmic stablecoin designed to peg its value at 1 USD, backed by the SNX token and price data from Chainlink.
However, sUSD has faced significant challenges with a prolonged depeg recently. At the time of BeInCrypto’s report, sUSD was trading at 0.77 USD, which has persisted since late March 2025. The primary cause was a major liquidity provider withdrawing from the sBTC/wBTC pool on Curve, which triggered intense selling pressure on sUSD. This forced users to convert other synthetic assets like sETH or sBTC into sUSD, exacerbating the price decline.
On April 21, 2025, Kain Warwick, the founder of Synthetix, announced on X that the team had implemented an sUSD staking mechanism to address the issue. However, he noted that the mechanism remains manual and lacks a fully functional user interface (UI), which is expected to launch in a few days.
“Update on the sUSD depeg. We have implemented an sUSD staking mechanism but it’s very manual until the UI goes live in a few days. Here was my hot take from discord though,” shared Kain Warwick, founder of Synthetix.
Warwick further stated that if the incentive mechanism (carrot) proves ineffective, Synthetix would adopt stricter measures (stick) to compel stakers in the 420 pool to participate more actively. He emphasized that, with the collective net worth of SNX stakers reaching billions of USD, Synthetix has the financial resources to stabilize sUSD and resume development of derivative products on Layer 1.
No Successfully Algorithmic Stablecoin Project
Before the sUSD depeg incident, the market witnessed the dramatic collapse of UST/LUNA in 2022. UST, Terra’s algorithmic stablecoin, suffered a severe depeg, dragging LUNA’s value down from $120 to near zero. This event caused billions of USD in losses and significantly eroded trust in the algorithmic stablecoin model.
More recently, the ‘Godfather of DeFi’, Andre Cronje, behind Sonic (formerly Fantom), also shifted direction. Sonic initially developed a USD-based algorithmic stablecoin but later pivoted to a stablecoin pegged to the UAE dirham.
“Pretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement,” Cronje stated.
Beyond technical risks, algorithmic stablecoins face mounting regulatory pressures. The EU’s MiCA regulation, effective since June 2024, imposes strict standards on stablecoin issuers to ensure consumer protection and financial stability. Under MiCA, algorithmic stablecoins are classified as ART (Asset-Referenced Token) or EMT (E-Money Token), requiring projects to meet complex compliance demands.
This intensifies the pressure on developers, especially as other jurisdictions also tighten crypto regulations.
These examples show the vulnerability of algorithmic stablecoins to liquidity shocks and market sentiment, particularly due to their lack of direct asset backing.
The Potential of Algorithmic Stablecoins
Despite the challenges, algorithmic stablecoins still hold developmental potential. A March 2025 post on X by CampbellJAustin suggested that a next-generation decentralized algorithmic stablecoin is feasible if lessons are learned from past failures.
“I actually think a next-gen decentralized algorithmic stablecoin is possible. I also think it will not be done correctly by the crypto community because the primary constraints are economic and risk management, not technological,” CampbellJAustin shared.
However, projects must focus on building more price stability mechanisms, combining algorithms with liquidity safeguards to succeed. Additionally, they should prepare for regulatory requirements, particularly in regions with stringent rules like the EU. Transparency in operations, regular audits, and clear communication with users are crucial to rebuilding community trust.
By addressing these factors, projects in this space can seize the opportunity to regain confidence and drive innovation.
Bitcoin, the leading cryptocurrency, has recently shown signs of recovery after a period of consolidation. Over the past few weeks, BTC’s price action has begun to push higher, suggesting the possibility of a rally that could propel the cryptocurrency toward the much-anticipated $100,000 mark.
This movement has sparked renewed optimism among investors, as a significant price surge could bring considerable profits to those holding Bitcoin.
Bitcoin Investors Are Eager For Profits
The MVRV (Market Value to Realized Value) ratio has recently bounced off the mean line of 1.74, which is historically a strong point of confidence for Bitcoin. When this ratio rebounds from the 1.74 level, it often signals the early stages of a bull market. This market structure closely mirrors the one seen during the previous consolidation phase in 2024, which culminated in a peak during the yen-carry-trade unwind in August.
Following this, Bitcoin experienced a sharp price jump in September 2024, validating the bullish signal provided by the MVRV ratio. As Bitcoin’s price approaches this key level once again, there is potential for similar price action.
Bitcoin’s overall macro momentum is also supported by strong demand from investors. According to the IOMAP (In/Out of the Money Around Price) data, approximately 649,600 BTC, valued at over $61.6 billion, were purchased between $95,193 and $97,437. This large accumulation by investors establishes a solid support level for Bitcoin, should BTC holders refrain from selling immediately to break even. BTC could rise further if greed drives these investors to hold instead of selling immediately.
Combined with the early signs of a bull market with demand for gains, Bitcoin could reach the $98,000 resistance, validating the profitability of the $61.6 billion worth of BTC bought at these levels and securing the range as support. The increasing number of buyers in this range creates a strong foundation for Bitcoin’s price to surge further.
Bitcoin’s price has shown a short-term uptrend over the past three weeks, currently trading at $94,748. Although Bitcoin has been consolidating below the $95,761 level for the past week, it is poised for a possible surge. The positive momentum indicates that Bitcoin may break through the current resistance and continue its upward trajectory.
If Bitcoin manages to secure $95,761 as support, it could begin its climb toward $98,000. Breaking this resistance would open the path for Bitcoin to target the next key level of $100,000, which remains a major psychological barrier for investors. With strong support levels and positive market sentiment, Bitcoin could reach these milestones sooner than expected.
However, if Bitcoin fails to breach $95,761 and falls through the support at $93,625, it could face a decline to $91,521. This drop would invalidate the short-term bullish outlook, signaling potential market weakness. A reversal at these levels would require close monitoring of market conditions to determine the next potential price movements.
