Morgan Stanley to Launch Crypto Trading as Strategy Reports $4.2B Q1 Loss on Bitcoin Drop and Announces $21B Stock Offering
Fr8Tech Secures $20M for Trump Tokens, Kraken Hits $472M Q1 Revenue, Strategy Posts $4.2B Loss, and Morgan Stanley Expands Crypto Trading Amid Trump’s Deregulation Push.
Because Bitcoin
May 1, 2025
Fr8Tech Secures $20M Facility to Buy Official Trump Tokens, Becomes First Public Firm to Make $TRUMP Core to Crypto Strategy
Freight Technologies (Fr8Tech) has signed a $20 million convertible note agreement with an institutional investor, with initial funding of $1 million and potential drawdowns up to $19 million. The capital is exclusively dedicated to acquiring Official Trump Tokens ($TRUMP), positioning Fr8Tech as the first public company to make the token central to its digital asset treasury. This move follows Fr8Tech’s recent acquisition of FET tokens, now valued at $8 million, as part of its strategy to build a diversified crypto portfolio. CEO Javier Selgas emphasized the company’s commitment to U.S.–Mexico trade and framed the $TRUMP purchase as aligned with advocacy for balanced international commerce.
Kraken Posts $472M Q1 Revenue, Expands Derivatives & Prepares for IPO Amid Market Headwinds
Kraken reported $472 million in Q1 2025 revenue, up 19% year-over-year, driven by increased crypto volatility during the first 100 days of Trump’s second term. Adjusted EBITDA rose 17% to $187.4 million, and exchange trading volume jumped 29%. Despite a 7% sequential revenue decline due to post-election market cooling, Kraken’s EBITDA grew slightly, showing operational resilience. The firm launched derivatives trading in the UK and acquired NinjaTrader to expand in the U.S., while also entering stock and ETF trading via Alpaca. Kraken Pay and a new institutional API were introduced, funded accounts grew 26%, and Q1 volume surged 250% month over month. Co-CEO Arjun Sethi confirmed Kraken remains committed to a 2026 IPO despite uncertain macro conditions.
Strategy Reports $4.2B Q1 Loss on Unrealized Bitcoin Drop, Launches $21B Stock Offering Amid Rising BTC Targets
Strategy missed Q1 earnings expectations, reporting a $4.2 billion net loss ($16.49 per share) driven by $5.91 billion in unrealized losses on Bitcoin holdings, after purchasing 80,715 BTC for $7.66 billion. Total revenue fell 3.6% year-over-year to $111.1 million, missing estimates by 5%, though subscription revenue grew 61%. Operating expenses surged over 1,100% to $6 billion. Despite the loss, the company now holds 553,555 BTC valued at $52 billion and has launched a new $21 billion at-the-market offering. Strategy also raised its 2025 Bitcoin dollar gain target from $10 billion to $15 billion, affirming its long-term BTC-focused model.
Morgan Stanley to launch crypto trading via E*Trade amid Trump-led deregulation push
Morgan Stanley plans to enable crypto trading on its ETrade platform next year as regulatory barriers ease under President Trump. The bank is reportedly exploring partnerships with established crypto firms to support the rollout. ETrade’s 5 million users currently access Bitcoin and Ethereum through ETFs but cannot directly invest in cryptocurrencies. The move follows the Federal Reserve’s reversal of prior crypto restrictions and aligns with Trump’s push to make the US the global center for digital assets. Morgan Stanley joins a growing list of traditional financial institutions expanding into crypto.
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