Blockchain & Digital Assets Weekly Briefing - Week 22

danae317
May 30
14 min read

Week ending 30th May 2025

Blockchain & Digital Assets Weekly Briefing

Governments and institutions worldwide are accelerating their embrace of Bitcoin, signaling a major shift in the financial landscape. From Pakistan’s new Strategic Bitcoin Reserve to U.S. companies deepening crypto holdings and retirement plans now allowing Bitcoin, digital assets are entering the mainstream. Even political leaders, like Nigel Farage, are pushing national crypto strategies, underscoring a global move toward a crypto-powered future.

Pakistan establishes Strategic Bitcoin Reserve, following U.S. lead in embracing digital assets.
Nigel Farage proposes UK Bitcoin reserve in bold bid to make Britain a global crypto hub.
Circle aims for $6.7 billion valuation in landmark crypto IPO.
Bitcoin on the books: U.S. public companies deepen cryptocurrency holdings.
Americans can now add Bitcoin to their 401(k) Plans: U.S. Labor Department withdraws crypto warning.

Pakistan establishes Strategic Bitcoin Reserve, following U.S. lead in embracing digital assets

In a significant policy shift, Pakistan has announced the establishment of a government-led Strategic Bitcoin Reserve. This move aligns Pakistan with a growing number of nations recognizing cryptocurrencies as strategic assets. The announcement was made by Bilal Bin Saqib, head of Pakistan's Crypto Council, at the Bitcoin 2025 conference in Las Vegas.

"Today is a very historic day," Saqib stated. "The Pakistani government is setting up its own government-led Bitcoin Strategic Reserve, inspired by the United States."

Policy Shift and Strategic Initiatives

Previously, Pakistan maintained a cautious stance toward cryptocurrencies. However, recent developments indicate a strategic pivot:

In February 2025, the government explored the formation of a National Crypto Council to develop a comprehensive regulatory framework.
By May 2025, Pakistan allocated 2,000 megawatts of excess energy to Bitcoin mining and high-performance computing data centers.
Changpeng Zhao, co-founder of Binance, was appointed as an advisor to the Council in April 2025.
The Ministry of Finance commissioned the establishment of a Digital Asset Authority to oversee crypto regulations and licensing.

These initiatives reflect Pakistan's commitment to integrating digital assets into its economic strategy.

Global Context: Countries with Strategic Bitcoin Reserves

Pakistan joins a cohort of nations that have recognized Bitcoin as a strategic reserve asset:

United States: In March 2025, President Donald Trump signed an executive order establishing the Strategic Bitcoin Reserve and the U.S. Digital Asset Stockpile. Funded by assets seized in legal cases, the reserves aim to integrate cryptocurrencies into the U.S. strategic asset portfolio.
Bhutan: Leveraging its hydroelectric resources, Bhutan has accumulated over $1 billion in Bitcoin holdings, representing a significant portion of its GDP.
El Salvador: In December 2024, El Salvador became the first country to establish a Strategic Bitcoin Reserve, reinforcing its commitment to Bitcoin as legal tender.
United Kingdom: Nigel Farage just announced that if he is elected Prime Minister in 2029, he will introduce a Bitcoin Digital Reserve in the Bank of England.

These developments underscore a global trend of integrating digital assets into national financial strategies.

Pakistan's decision to establish a Strategic Bitcoin Reserve marks a pivotal moment in its economic policy, aligning with global movements toward embracing digital assets. By following the lead of countries like the United States, Bhutan, and El Salvador, Pakistan positions itself at the forefront of the evolving digital economy.

From a game theory perspective, this move creates strategic pressure on other emerging economies with similar profiles to Pakistan—especially those with energy surpluses or volatile fiat systems—to consider adopting similar policies, lest they fall behind in the rapidly developing digital financial landscape.

Nigel Farage proposes UK Bitcoin reserve in bold bid to make Britain a global crypto hub

Nigel Farage, leader of Reform UK, used the global spotlight of the Bitcoin 2025 conference in Las Vegas to outline a bold crypto-forward vision for Britain. Echoing populist movements abroad, Farage made a series of major announcements that could position the UK at the forefront of the digital currency revolution—challenging traditional financial norms and shaking up the political establishment.

Another Country Moves Toward a Bitcoin Reserve

In one of the most striking moments of his address, Farage proposed that the Bank of England establish a Bitcoin digital reserve, joining a small but growing number of nations looking to integrate Bitcoin into their national monetary frameworks. The move, he argued, would give the UK a long-term strategic hedge against fiat currency volatility and align Britain with the future of global finance.

“This isn’t just about technology—it’s about national resilience and monetary independence,” Farage said.

Lower Capital Gains Tax to Encourage Innovation

To further attract crypto entrepreneurs and investors to the UK, Farage pledged to reduce the capital gains tax rate on crypto investments to 10%. He described the current tax environment as stifling innovation and driving talent abroad. “We want Britain to be the home of digital finance. Lowering the capital gains tax is a critical step in that direction,” he said. The proposal is part of a broader plan to make the UK globally competitive in fintech and digital assets.

Campaign Donations in Bitcoin

Farage also announced that Reform UK will begin accepting political donations in Bitcoin, making it the first major UK party to do so. The party has already updated its donation system to accept crypto, in accordance with Electoral Commission rules, including strict controls on anonymity.

Farage’s Firm Stance: “No CBDCs—Over My Dead Body”

The Reform UK leader made his opposition to central bank digital currencies (CBDCs) crystal clear: “There will be a CBDC over my dead body.”

He warned that CBDCs pose a serious threat to individual liberty, enabling surveillance and control by the state. His hard line drew applause from the pro-crypto audience, many of whom share deep concerns about digital authoritarianism.

Linking Bitcoin to Brexit: A Fight for Sovereignty

Farage positioned Bitcoin as a logical extension of his Brexit agenda—framing it as a new front in the battle for national and personal sovereignty. “The same arguments that won us Brexit apply here: control, freedom, and independence from centralized bureaucracies,” he argued.

A Political Message for Westminster

By making these announcements on an international stage, Farage said he hoped to spark a conversation back home in Britain:

“This will start a conversation. People will ask: why is our government doing nothing about Bitcoin?”

He added that this momentum could force policy shifts even before the general election, warning establishment parties not to ignore what he described as a “genuine political revolution.”

Protecting Citizens from “Debanking”

In a direct challenge to the power of financial institutions, Farage pledged that banks will no longer be allowed to 'debank' individuals without due process. The policy would require legal justification before accounts can be closed, ensuring fair treatment regardless of a person's views or affiliations.

Nigel Farage’s crypto-powered agenda signals a dramatic pivot for Reform UK—blending populism with fintech and positioning the UK for a digital future. With the call for a national Bitcoin reserve, Britain may be next in line to join the global movement toward decentralized, citizen-driven finance. Whether this vision resonates with voters remains to be seen, but one thing is certain: the political and financial conversation in the UK has just taken a sharp turn toward Bitcoin.

Circle aims for $6.7 billion valuation in landmark crypto IPO

Circle Internet Financial, the issuer of the USD Coin (USDC) stablecoin, is moving ahead with its initial public offering (IPO) on the New York Stock Exchange. The company and some of its shareholders plan to raise as much as $624 million in the listing, setting the stage for one of the most notable crypto-related IPOs in recent years.

Offering Structure and Key Backers

The IPO involves 24 million shares priced between $24 and $26 each. Circle itself will sell 9.6 million shares, while existing investors—including early backers like Accel and General Catalyst—will offer 14.4 million shares. Based on the midpoint of the price range, the offering would value Circle at approximately $6.67 billion.

One of the most notable participants in the offering is ARK Investment Management, headed by Cathie Wood, which has expressed interest in purchasing up to $150 million worth of shares. The stock will be listed under the ticker symbol "CRCL," with major underwriting support from JPMorgan Chase, Goldman Sachs, and Citigroup.

Revenue Growth Amid Profitability Pressures

In 2024, Circle generated $1.68 billion in revenue and reserve income, marking a 16% increase from the previous year. Nearly all of this income—99%—was derived from interest earned on USDC reserves, primarily invested in short-term U.S. Treasuries and overnight reverse repurchase agreements.

However, the company’s earnings are highly sensitive to interest rate fluctuations. According to its IPO filing, a 1% decline in interest rates could reduce income by as much as $441 million. In 2024, Circle’s net income from continuing operations fell to $157 million, down from $271.5 million the prior year. Distribution costs, particularly the $908 million paid to Coinbase for USDC-related services, continue to weigh on profitability.

A Central Player in the Stablecoin Ecosystem

Founded in 2013 by Jeremy Allaire and Sean Neville, Circle has become a critical infrastructure provider in the digital asset space. USDC, the company’s flagship product, is a stablecoin pegged to the U.S. dollar and is widely used in decentralized finance and crypto trading. As of May 2025, USDC has a market capitalization of more than $32 billion, ranking as the second-largest stablecoin globally.

Circle’s planned IPO is also symbolic of the increasing convergence between traditional finance and crypto. The company recently moved its headquarters to New York City, occupying offices at One World Trade Center, underscoring its intent to operate at the heart of the global financial system.

Regulatory Uncertainty Remains a Key Risk

Despite strong fundamentals, Circle faces significant regulatory headwinds. The company's S-1 filing highlights a range of legal and compliance risks, with the most prominent being the lack of regulatory clarity around stablecoins in the U.S.

One pending legislative threat is the proposed GENIUS Act, which could include restrictions on interest-bearing stablecoins. Such a provision would directly impact Circle’s core business model, given its reliance on interest from USDC reserves.

Efforts to Diversify Through Payments Innovation

In response to these challenges, Circle has taken steps to diversify its business. In May 2025, the company launched the Circle Payments Network (CPN), a platform designed to enable financial institutions to facilitate cross-border transactions using stablecoins. The CPN acts as both a network and coordination protocol, allowing payment instructions and settlement to occur on public blockchains—expanding USDC’s utility beyond crypto-native environments.

This strategic pivot highlights Circle’s ambition to evolve into a foundational layer for digital money infrastructure, serving not only crypto users but also traditional financial institutions seeking faster and more transparent payments.

IPO Timing and Broader Industry Implications

Circle's public debut comes at a time when market sentiment around cryptocurrencies has improved. Industry analysts point to a more constructive regulatory environment under the current U.S. administration as a potential tailwind for digital asset companies.

This is not the first time Circle has attempted to go public. A planned $9 billion merger with a special purpose acquisition company (SPAC) fell apart in 2022 due to regulatory and market uncertainties. The current IPO attempt appears more grounded, with detailed disclosures and stronger market interest.

Circle’s listing is poised to be a key milestone for the crypto industry. The success of the IPO could pave the way for other blockchain firms looking to access public capital markets. Yet, the company’s future hinges on its ability to navigate a shifting regulatory landscape, diversify revenue streams, and reduce reliance on interest rate-driven income.

If Circle can deliver on these fronts, it may solidify its role as a core infrastructure provider in the future of digital finance.

Bitcoin on the books: U.S. public companies deepen cryptocurrency holdings.

Over the past year, Bitcoin has solidified its role as more than just a speculative asset. A growing number of U.S. public companies are now holding the digital currency on their balance sheets, marking a notable shift in corporate treasury strategy and broader financial sentiment.

A Growing Trend Among Public Companies

According to a recent Financial Times report, the number of listed firms globally holding Bitcoin rose from 89 to 113 since early April 2025. While this figure includes international firms, a significant concentration is based in the United States.

Collectively, these companies own approximately 807, 874 BTC, valued at roughly $87.8 billion at current market prices. This represents about 4.1% of Bitcoin's circulating supply.

Notably, these holdings are not just symbolic. In several cases, Bitcoin now represents a significant portion of a company's liquid assets—up to 40% or more in select instances.

MicroStrategy (Now Strategy, Inc.): The Archetype

No company has embraced Bitcoin as boldly as MicroStrategy, recently rebranded as Strategy, Inc. The firm holds over 580,000 BTC, worth more than $48 billion—a staggering commitment that comprises over 95% of its corporate treasury.

What began in 2020 as a hedge against inflation has transformed into a full-scale Bitcoin strategy. CEO Michael Saylor has described Bitcoin as "a superior form of property," and the company’s stock price continues to track Bitcoin’s trajectory closely.

"There is one best asset, and there is no second best asset" "If Berkshire Hathway [...] were to buy $100 billion dollars worth of bitcoin tomorrow, they might have more Bitcoin than us, but they couldn't issue equity and credit instruments that have Bitcoin performance, because they would be diversified, commented Michael Saylor at the Bitcoin2025 conference in Las Vegas. He added: "the more aggressive you buy Bitcoin, the more you empower everybody else that disagree with you".

Trump Media & Technology Group's $2.5 Billion Bitcoin Investment

In a significant move mirroring MicroStrategy's strategy, Trump Media & Technology Group (TMTG), the company behind Truth Social, announced plans to raise $2.5 billion to establish a Bitcoin treasury. The capital will be raised through the sale of $1.5 billion in shares and $1 billion in zero-coupon convertible bonds to approximately 50 institutional investors.

CEO Devin Nunes emphasized Bitcoin as a key asset for financial freedom, stating that cryptocurrency will now be a significant part of TMTG's financial holdings. This initiative aligns with President Trump's broader goal to position the U.S. as the global leader in cryptocurrency. However, the announcement led to an 8% drop in TMTG's stock, reflecting investor skepticism about the company's fundamental business performance, which reported a $31.7 million loss and under $1 million in Q1 revenue.

GameStop Joins the Fold

The latest surprise entrant into the Bitcoin club is GameStop, the video game retailer known for its meme stock status and tumultuous turnaround story. GameStop just disclosed the acquisition of 4,710 Bitcoin worth approximately $513 million.

This move represents a strategic shift as the gaming retailer looks to diversify its portfolio and transform its business approach. The investment was financed through a $1.3 billion convertible bond issuance from March 2025, which provided the company with the necessary funds. This decision highlights GameStop’s belief in the potential long-term growth of digital currencies.

Strive Asset Management: Innovating Bitcoin Treasury Strategies

Strive Asset Management, a $2 billion institutional investment firm co-founded by Vivek Ramaswamy, recently announced a $750 million private investment to fund its initial wave of Bitcoin acquisitions. This investment follows a strategic merger with Asset Entities Inc. (NASDAQ: ASST), a digital content and social media technology company, creating the first publicly traded Bitcoin treasury company under the Strive brand. The combined entity remains listed on NASDAQ and plans to accumulate Bitcoin through innovative strategies, including acquiring underperforming biotech companies with significant cash reserves and distressed Bitcoin litigation claims. These approaches aim to maximize Bitcoin exposure per share while maintaining tax efficiency and minimizing shareholder dilution.

Paris Saint-Germain: Bitcoin as Strategy, Not Lifeline

Happening outside of the U.S., in a notable move that sets it apart from struggling companies hoping to replicate MicroStrategy’s success, the French club Paris Saint-Germain (PSG) announced that it became the first professional football club in the world to add Bitcoin to its treasury in 2024. Unlike small-cap firms with declining revenues pivoting to crypto as a last-ditch effort, PSG’s decision is rooted in strength—not desperation.

PSG is not only one of France’s largest sports organizations but also a European financial powerhouse. According to recent rankings, it is among the top three revenue-generating football clubs in Europe for the second consecutive season. Beyond matchday earnings, PSG has transformed into a global luxury brand, collaborating with high-end partners and cultivating a premium image that extends far beyond sport.

By adding Bitcoin to its reserves, PSG is signaling a forward-thinking financial strategy designed to align with its young, tech-native, globally distributed fan base and to diversify its assets without sacrificing financial discipline.

The initiative is also backed by PSG Labs, which aims to invest in the Bitcoin ecosystem and nurture innovation in digital assets.

This move is emblematic of a broader shift: well-capitalized, brand-driven institutions no longer view Bitcoin as a speculative gamble, but as a credible treasury asset with long-term upside.

Diversification, Not Speculation

While early adopters like MicroStrategy took aggressive positions, recent entrants are typically allocating between 2% and 10% of their liquid assets to Bitcoin. These moderate investments are less about speculative gains and more about diversification and inflation protection.

Institutional-grade custody solutions and regulatory clarity have also made it easier for corporate boards to approve digital asset strategies. The approval of spot Bitcoin ETFs earlier this year further validated the asset class in traditional finance circles.

A Shifting Corporate Landscape

The growing adoption of Bitcoin by public companies reflects a broader shift in capital management practices. In an environment of persistent inflation and low real yields, corporate treasurers are exploring alternative stores of value.

For investors, these holdings also represent a double-edged sword. While Bitcoin exposure can provide upside, it also introduces volatility. Companies must now navigate the challenge of balancing digital asset investments with fiduciary responsibility and shareholder expectations.

Bitcoin is no longer just a fringe asset held by tech outliers or crypto-native firms. From retail giants like GameStop to strategy-focused firms like MicroStrategy, and even global sports organizations like Paris Saint-Germain, entities are increasingly turning to Bitcoin as a core component of treasury management.

While the overall share of Bitcoin relative to total corporate treasuries remains small across the board, the trend is accelerating. As traditional finance continues to intersect with the crypto world, the line between innovation and prudence is being redrawn in real time.

Americans can now add Bitcoin to their 401(k) Plans: U.S. Labor Department withdraws crypto warning.

In a significant policy reversal, the U.S. Department of Labor (DOL) has rescinded its 2022 guidance that strongly cautioned retirement plan fiduciaries against offering cryptocurrency investments—especially Bitcoin—within 401(k) plans. This shift paves the way for Americans to potentially include Bitcoin in their retirement portfolios, provided fiduciaries meet their legal obligations under ERISA.

Why This Matters

The original 2022 guidance, issued by the Department’s Employee Benefits Security Administration (EBSA), urged fiduciaries to approach cryptocurrencies with "extreme care," citing concerns over volatility, valuation challenges, and the evolving regulatory landscape. That guidance effectively chilled employer interest in offering crypto options within 401(k) plans.

Now, the DOL has removed that warning. While the Department still emphasizes the fiduciary duty to act prudently and solely in the interest of plan participants, it will no longer single out cryptocurrency—particularly Bitcoin—for special scrutiny. This change gives employers and plan providers more flexibility in offering alternative investments, assuming they do so responsibly.

What This Means for Your Retirement (if you're a US citizen)

Fiduciaries still need to carefully evaluate any investment option—including Bitcoin—before adding it to a 401(k) lineup. However, the door is now open for more plan sponsors to consider including Bitcoin investment options, such as through brokerage windows or dedicated funds, as long as they can demonstrate that doing so is prudent and in the best interest of participants.

The Bigger Picture: A $9 Trillion Market

The decision arrives amid a rapidly expanding U.S. retirement savings market. According to the Investment Company Institute, 401(k) plans held approximately $8.9 trillion in assets as of Q3 2024, making them one of the largest investment vehicles in the country. With millions of Americans relying on these plans for retirement security, even small shifts in investment policy can have wide-reaching implications.

Bitcoin's inclusion in retirement plans could signal a new era of diversification—and risk—for individual savers, especially younger investors more comfortable with digital assets.

Bottom Line

While the Labor Department’s withdrawal of its crypto warning doesn’t endorse Bitcoin or any specific asset, it removes a major regulatory roadblock. Employers and fiduciaries now have more discretion, and Americans may soon find Bitcoin available alongside stocks and mutual funds in their 401(k) accounts.

Whether that's a smart long-term move will depend on market trends, individual risk tolerance, and fiduciary due diligence—but for now, the choice is finally back on the table.

Pakistan establishes Strategic Bitcoin Reserve, following U.S. lead in embracing digital assets.

Nigel Farage proposes UK Bitcoin reserve in bold bid to make Britain a global crypto hub.

Circle aims for $6.7 billion valuation in landmark crypto IPO.

Bitcoin on the books: U.S. public companies deepen cryptocurrency holdings.

Americans can now add Bitcoin to their 401(k) Plans: U.S. Labor Department withdraws crypto warning.

Pakistan establishes Strategic Bitcoin Reserve, following U.S. lead in embracing digital assets

Nigel Farage proposes UK Bitcoin reserve in bold bid to make Britain a global crypto hub

Circle aims for $6.7 billion valuation in landmark crypto IPO

Bitcoin on the books: U.S. public companies deepen cryptocurrency holdings.

Americans can now add Bitcoin to their 401(k) Plans: U.S. Labor Department withdraws crypto warning.

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