Blockchain & Digital Assets Weekly Briefing - Week 14
- danae317
- Apr 4
- 5 min read
Updated: Apr 14
Week ending 4th April 2025
As U.S. debt spirals, BlackRock’s CEO warns that Bitcoin could challenge the dollar’s dominance. Meanwhile, Eric Trump dives into Bitcoin mining, U.S. tariffs shake the crypto industry, and stablecoin giants make big moves. Let’s dive in.
BlackRock CEO warns U.S. deficits could make Bitcoin a global reserve currency.
Eric Trump launches American Bitcoin, a Bitcoin mining company.
U.S. Bitcoin miners impacted by president Trump's 54% tariffs on Chinese imports.
USDC issuer Circle files for U.S. IPO, reporting 16% growth in revenue in 2024.
Tether becomes 6th largest Bitcoin holder with $7.8B.
BlackRock CEO warns U.S. deficits could make Bitcoin a global reserve currency.
In his 2025 annual letter, BlackRock CEO Larry Fink warns that the U.S. dollar’s position as the world’s reserve currency is not guaranteed forever. He highlights that U.S. public debt has been growing at three times the pace of GDP since 1989, with interest payments set to exceed $952 billion this year—more than the country’s defense spending. By 2030, mandatory government spending and debt service could consume all federal revenue, creating a permanent deficit.
"Yet that same innovation could undermine America's economic advantage if investors begin seeing Bitcoin as a safer bet than the dollar."
Fink cautions that if the U.S. fails to control its debt, investors may increasingly see Bitcoin as a more reliable store of value. While he acknowledges the benefits of decentralized finance—such as increased speed, lower costs, and greater transparency—he also warns that these innovations could ultimately weaken America's economic advantage if confidence in the dollar erodes.
BlackRock’s U.S.-based Bitcoin exchange-traded product (ETP) became the largest ETP launch in history, surpassing $50 billion in assets under management within a year and ranking as the third-highest asset gatherer in the entire ETF industry, trailing only S&P 500 index funds. Notably, more than half of the demand for BlackRock’s Bitcoin ETP has come from retail investors, with three-quarters of those investors being entirely new to iShares products, signalling a growing mainstream appetite for Bitcoin as an investable asset.
As the world’s largest asset manager, BlackRock holds immense influence over global financial markets, shaping investment trends, institutional strategies and strong ties with the U.S. government. Meanwhile, U.S. public debt is reaching historic highs not seen since World War II, raising concerns about long-term economic stability. In an era of growing fiscal uncertainty and geopolitical turbulence, traditional safe-haven assets like the U.S. dollar face increasing challenges. Bitcoin, with its decentralized nature and fixed supply, is emerging as a potential alternative store of value, offering investors a hedge against inflation and monetary instability in an unpredictable global economy.
Eric Trump launches American Bitcoin, a Bitcoin mining company
Hut 8 announced on Monday that it has teamed up with Eric Trump, President Donald Trump' son, to launch a new bitcoin mining venture called American Bitcoin.
The Miami-based company has merged most of its mining operations in exchange for an 80% stake in American Bitcoin (formerly American Data Centers), an investment group that includes Eric Trump and Donald Trump Jr as investors. The move reflects the Trump family's increasing presence in the cryptocurrency industry as digital assets gain wider acceptance. In a Bloomberg interview, Eric Trump mentioned creating the company a year before the presidential election.
American Bitcoin will concentrate exclusively on "industrial-scale Bitcoin mining and strategic Bitcoin reserve development". The company will be headed by CEO Matt Prusak, with Eric Trump taking on the role of Chief Strategy Officer.
U.S. Bitcoin miners impacted by president Trump's 54% tariffs on Chinese imports
The latest tariffs announced by President Trump on 2nd of April are set to significantly impact the U.S. cryptocurrency mining industry, particularly firms reliant on Asian-manufactured mining equipment.
Bitcoin miners in the U.S., such as CleanSpark Inc., saw their stock prices plummet in after-hours trading following the announcement. The new measures impose a 34% reciprocal tariff on China, raising the levy on Chinese ASICs to 54%. Meanwhile, Thailand, Indonesia and Malaysia face tariffs of 36%, 32% and 24%, respectively, starting April 9.
Beijing-based Bitmain Technologies Ltd., the dominant manufacturer of Bitcoin mining hardware with a 90% market share, has attempted to bypass existing tariffs by setting up production in Indonesia, Malaysia, and Thailand. However, heightened Customs and Border Protection scrutiny since Trump's election has caused significant delays for U.S. miners awaiting shipments from Bitmain, exacerbating their costs and threatening their profitability.
The situation is further complicated by the U.S. Commerce Department’s blacklisting of Bitmain’s AI affiliate, Xiamen Sophgo Technologies Ltd. When mining rigs finally clear customs, the associated fees can exceed half a million dollars, adding to the already high capital expenditures of crypto mining operations.
Given that mining relies on specialized computers solving complex mathematical puzzles to verify transactions and earn Bitcoin rewards, access to efficient and cost-effective hardware is critical. These trade barriers and regulatory pressures place U.S. miners at a competitive disadvantage in the global market.
In response to these challenges, U.S.-based mining companies are exploring alternative strategies to mitigate supply chain disruptions. For instance, MARA Holdings is considering relocating a portion of its operations overseas to regions with more stable supply chains and favorable energy costs. Similarly, Riot Platforms has diversified its equipment suppliers, placing significant orders with manufacturers that have onshore production facilities within the U.S., aiming to reduce reliance on foreign-made hardware.
These developments underscore the broader impact of international trade policies on the cryptocurrency mining sector, highlighting the need for strategic adjustments to navigate the evolving economic landscape.
USDC issuer Circle files for U.S. IPO, reporting 16% growth in revenue in 2024.
Circle Internet Group, Inc., second largest stablecoin issuer after USDT, has announced the filing of an S-1 Form with the U.S. Securities and Exchange Commission (SEC) for a proposed initial public offering (IPO) of its Class A common stock. The company has applied to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol “CRCL.”
Circle reported a net income of $156 million on $1.68 billion in revenue for 2024. This compares to a higher net income of $268 million on $1.45 billion in revenue in 2023, according to its SEC filing on Tuesday.
The news comes one week after Circle, in partnership with SBI Holdings, launched its USD Coin (USDC) stablecoin in Japan. This initiative follows regulatory approval from Japan's Financial Services Agency (FSA), making USDC the first global dollar stablecoin authorized for use in the country.
Tether becomes 6th largest Bitcoin holder with $7.8B
Tether, the leading stablecoin issuer, acquired 8,888 BTC in Q1 2025 for approximately $735 million, reinforcing its long-term reserve strategy. This purchase brings Tether’s total bitcoin holdings to 92,646 BTC, valued at around $7.8 billion at current prices, making it the sixth-largest holder of bitcoin in a single wallet.
The acquisition, recorded on April 1, aligns with Tether’s practice of accumulating Bitcoin throughout each quarter and transferring it to its reserve wallet at quarter-end.
Tether began purchasing Bitcoin in September 2022 and, in May 2023, committed to allocating 15% of its quarterly net profits toward BTC acquisitions. Since then, the company has steadily increased its reserves as part of its diversification strategy.
At today’s prices, Tether holds approximately $3.86 billion in unrealized gains from its Bitcoin investments. The company remains one of the most profitable entities in the crypto sector, reporting $13 billion in net profit for 2024, driven primarily by interest income from U.S. Treasury holdings and unrealized gains on Bitcoin and gold.
