Powell Warns of Prolonged High Interest Rates + Coinbase Blocks $20M Extortion Attempt

Jim Chanos Bets Against MicroStrategy While Going Long on Bitcoin, Calling Company Valuation “Ridiculous”

Investor Jim Chanos has revealed a contrarian trade: shorting MicroStrategy stock while going long on bitcoin. Speaking at the Sohn Investment Conference, Chanos criticized MicroStrategy’s leveraged bitcoin strategy and the high premium at which it trades compared to its BTC holdings. He views the company, and its imitators, as exploiting retail enthusiasm for crypto without justification. Despite MicroStrategy’s 220% stock surge over the past year—outpacing bitcoin’s 70% rise—Chanos sees the valuation gap as an arbitrage opportunity. He equates his trade to “buying something for $1 and selling it for $2.50,” viewing it as a barometer of retail speculation.

eToro CEO Reflects on Crypto Journey and Nasdaq Debut, Credits Buffett for Shift Toward Stocks

Four years after considering a SPAC route, trading platform eToro officially debuted on the Nasdaq, with its stock jumping nearly 30% on the first day. CEO Yoni Assia discussed eToro’s early involvement in crypto—buying bitcoin at $5—and revealed the firm’s crypto treasury once grew from $50,000 to $50 million before the board urged a sell-off. Despite settling SEC charges last year and limiting U.S. crypto trading, eToro reported $192 million in 2024 net income, with 25% of its trading volume coming from crypto. Assia said a dinner with Warren Buffett influenced his pivot toward traditional equities, though he maintains enthusiasm for both markets. eToro now offers over 130 crypto assets globally and trades stocks across 20+ markets.

Coinbase Thwarts $20M Extortion Plot After Insider Data Leak, Pledges Full Reimbursement to Affected Customers

Coinbase revealed a failed $20 million extortion attempt following an insider data breach involving a small group of overseas customer support agents bribed to steal user information. The attackers gained access to partial personal and financial data of under 1% of monthly users, but not to login credentials, private keys, or funds. Coinbase refused to pay the ransom and instead launched a $20 million reward fund to help identify the perpetrators. Affected users were notified and will be reimbursed if they lost funds due to scams linked to the breach. In response, Coinbase is boosting security protocols, opening a new U.S.-based support center, and enhancing protections against insider threats and social engineering attacks.

Powell Signals Higher Long-Term Rates Amid Economic Shifts and Supply Shock Risks

Federal Reserve Chair Jerome Powell said Thursday that interest rates are likely to remain elevated as the economy adjusts to ongoing supply shocks and shifting inflation dynamics. Speaking at the Thomas Laubach Research Conference, Powell emphasized that the near-zero rate environment of the 2010s is unlikely to return, noting a new era of potentially more volatile inflation. The Fed is conducting a comprehensive review of its policy framework, revisiting its 2020 strategy which included a flexible average inflation target—an approach later overwhelmed by post-pandemic price surges. Powell also highlighted the need to improve Fed communications during periods of economic uncertainty. While no completion date was given, the review’s findings are expected in the coming months.

Resources:

CNBC

CNBC

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