Crypto Finance & Earnings M&A & Corporate Payments, KYC & AML

Bitcoin Treasury Firms Face Pressure as Stablecoins Expand

Marcel Fuhrmann
/ 5 min read
Digital vault holding stacked Bitcoin coins, nearby server stack with floating discs, and contract under magnifying glass

Bitcoin Treasury Companies Face Shareholder Revolt While Stablecoin Firms Report Strong Earnings – Market Tensions Reshape Corporate Crypto Strategies

Key Takeaways

  • A nearly 10% shareholder of Empery Digital is calling for the sale of its approximately 4,000 Bitcoin holdings and leadership changes.
  • Empery Digital holds 4,081 BTC, ranking it among the top 25 public Bitcoin holders.
  • Circle reported fourth-quarter revenue of $770 million, up 77% year over year, with USDC supply rising 72% to $75.3 billion.
  • PayPal is reportedly drawing preliminary takeover interest after its stock declined 37% over the past 12 months.
  • Mortgage lender Better and Framework Ventures are launching a $500 million initiative to channel stablecoin liquidity into US home loans.

Empery Digital Faces Shareholder Pressure Over Bitcoin Treasury Strategy

Empery Digital is facing a public challenge from one of its largest shareholders over its Bitcoin focused treasury model. A nearly 10% shareholder, Tice P. Brown, has called for sweeping changes, including the sale of the company’s roughly 4,000 Bitcoin holdings and the resignation of its chief executive officer and board.

In a letter to management, Brown argued that the company’s strategy of holding Bitcoin on its balance sheet has failed to maximize shareholder value. He demanded that capital be returned to investors instead of being tied up in digital assets.

Empery rejected these claims and defended its approach. The company transitioned its legacy business into a Bitcoin treasury model last year and has since accumulated 4,081 BTC. According to BitcoinTreasuries.NET data cited in the report, this places Empery among the top 25 largest public holders of Bitcoin.

The dispute highlights growing tension between activist investors and publicly listed firms that have adopted Bitcoin as a core balance sheet asset. After months of declining digital asset prices, companies with significant crypto exposure are facing renewed scrutiny from shareholders focused on capital allocation and volatility risks.

For investors evaluating companies with crypto treasury exposure, this case underscores how balance sheet strategies tied to digital assets can become central governance issues during market downturns.

Circle Reports Revenue Growth and Expanding USDC Supply

While Bitcoin treasury firms face pressure, stablecoin issuer Circle reported stronger than expected financial results for the fourth quarter. The company generated $770 million in revenue, marking a 77% increase compared to the same period a year earlier. Net income reached $133.4 million, or 43 cents per share, exceeding analyst expectations.

A key driver was the continued growth of USDC. By year end, the dollar backed stablecoin’s supply had risen 72% to $75.3 billion. The expansion reflects sustained demand for onchain dollar liquidity, even as broader crypto market conditions weakened.

For the full year, Circle reported $2.7 billion in revenue and a net loss of $70 million. The annual loss was largely attributed to stock based compensation tied to its initial public offering.

Following the earnings release, Circle’s shares rose more than 20%. The stock reaction reflected investor focus on revenue growth and the expanding stablecoin base.

The figures indicate that stablecoins continue to play a central role in digital asset markets. For users of crypto platforms, including those involved in trading or online betting, stablecoin liquidity remains a core component of transaction flows and onchain settlement.

PayPal Draws Takeover Interest Amid Ongoing Restructuring

Legacy payments company PayPal is reportedly attracting early stage takeover interest after a prolonged decline in its share price. According to Bloomberg, some potential buyers are evaluating a full acquisition, while others may seek specific business segments.

Discussions remain preliminary, and no formal offer has been announced. Stripe, described as a Bitcoin friendly payments company, later emerged as one of the interested parties.

PayPal’s stock rallied following the takeover reports, yet it remains down 37% over the past 12 months. The development comes as PayPal continues restructuring efforts and expands further into digital assets, including its proprietary stablecoin, PayPal USD.

For market participants, the situation reflects the competitive pressure facing established payment providers as they integrate digital asset services. Strategic interest in PayPal suggests that crypto related initiatives are increasingly intertwined with broader consolidation trends in digital payments.

$500 Million Stablecoin Initiative Connects DeFi Liquidity With Mortgage Lending

In a separate development, mortgage lender Better and Framework Ventures are launching a $500 million initiative designed to channel stablecoin liquidity into US mortgage lending.

Under the structure outlined in the report, Better will continue underwriting and issuing home loans, while funding is sourced through a stablecoin ecosystem. The arrangement aims to connect blockchain based liquidity with traditional real estate finance.

Tokenized real world assets have long been discussed within crypto markets. This initiative represents a large scale attempt to deploy stablecoin capital into housing finance, even as broader digital asset prices remain volatile.

For crypto users, the structure illustrates how stablecoins are being positioned not only as trading instruments but also as funding tools for conventional financial products.

Our Assessment

The developments show diverging dynamics within the crypto related corporate landscape. Empery Digital’s shareholder dispute highlights governance risks for companies that rely heavily on Bitcoin as a treasury asset during periods of price weakness. At the same time, Circle’s revenue growth and expanding USDC supply point to sustained demand for stablecoin based liquidity. PayPal’s reported takeover interest and the $500 million mortgage initiative further demonstrate how digital asset strategies are influencing both traditional payment firms and real world finance structures. Together, these events reflect how corporate crypto exposure is increasingly scrutinized by investors while stablecoin infrastructure continues to expand into new use cases.