Bitcoin Recovers as Tech Futures Rebound; Bitmine Expands Ether Holdings
U.S. technology futures moved higher on Monday after last week’s 5.5% sell-off, as investors turned their attention to upcoming earnings reports that could test confidence in the artificial intelligence sector. Meanwhile, major crypto treasury companies continued adjusting their holdings despite recent market volatility.
Bitmine Adds $30.4 Million in ETH
Bitmine (BMNR), a company focused on building an Ethereum treasury, purchased another 12,535 ETH last week, extending its accumulation strategy. The latest acquisition was valued at approximately $30.4 million and was nearly the same size as its purchase during the previous week.
The company’s total holdings have reached 6.04 million ETH, putting it around 64,000 tokens away from its objective of controlling 5% of Ethereum’s supply. If its buying pace remains unchanged and supply stays near current levels, Bitmine could reach the milestone in approximately five weeks.
Chairman Tom Lee has previously stated that the company will stop purchasing ETH after reaching its 5% target.
Metaplanet Shareholders Approve Superplanet Transaction
Metaplanet is moving closer to expanding its Bitcoin treasury strategy into U.S. markets after Super League shareholders approved the proposed takeover, CEO Simon Gerovich said.
The transaction is expected to lead to a rebranding as Superplanet (SUPA), a U.S.-listed company focused on holding Bitcoin. At closing, Metaplanet plans to contribute 2,100 BTC from its 44,000-BTC treasury and provide $2.5 million in cash for an estimated 93.7% stake. Its shares will be locked up for five years.
Superplanet aims to increase its Bitcoin holdings per share primarily through non-convertible perpetual preferred stock, a strategy intended to broaden Metaplanet’s access to U.S. financing.
Strategy and Strive Continue Bitcoin Purchases
Strategy (MSTR), chaired by Michael Saylor, acquired 267 BTC last week, lifting its total Bitcoin reserve to 848,517 coins.
The company also repurchased $193 million in STRC preferred shares and raised its buyback program limit from $2 billion to $3 billion. STRC declined to $97.72 during last week’s market downturn, potentially making further repurchases more attractive than issuing shares to fund additional Bitcoin purchases.
Strive (ASST), meanwhile, added 1,223 BTC, bringing its total holdings to 36,818 coins. The company expects to receive approximately $600 million in proceeds from its SATA preferred-stock IPO later this week, providing additional funds for potential acquisitions.
SATA also weakened during the market sell-off, falling to $96.83 after trading around or above its $100 par value for several weeks. Previously, that premium had helped Strive use the preferred stock as a financing tool for its Bitcoin strategy.
VIX Retreats as Investors Reassess Risk
The Cboe Volatility Index fell 5% on Monday to just below 19, easing after jumping more than 20% on Friday to nearly 20 amid heavy selling in AI-related stocks.
The VIX measures expected volatility in the S&P 500 over the next 30 days. Historically, sharp increases late in the week have often eased by Monday, although a decline in the index does not necessarily mean market risks have disappeared.
French Markets Weaken After Weekend Riots
European equities and government bonds came under pressure even as U.S. markets prepared for a possible rebound.
The Euro Stoxx 50 dropped 1.3%, while France’s CAC 40 fell 1.65% following unrest over the weekend. French bond yields rose faster than German yields, widening the gap between their 10-year borrowing costs.
France’s 10-year OAT yield climbed 11 basis points to 4.89%, while Germany’s 10-year Bund yield increased 3.5 basis points to 3.44%. The spread reached 145 basis points, its highest level in two weeks.
FxPro Analyst Says Bitcoin’s Bounce Needs Confirmation
Bitcoin recovered 1.4% over the weekend to around $82,800 after buyers defended its 50-day moving average once again. However, FxPro chief market analyst Alex Kuptsikevich said the move should be treated as a rebound rather than evidence of renewed bullish momentum.
Bitcoin’s 50-day moving average is near $81,000 and has repeatedly provided support since last Tuesday. Holding above that level helps preserve the medium-term outlook, but a stronger breakout would be needed to establish that buyers are back in control.
Kuptsikevich compared the current environment with last summer, when Bitcoin traded sideways for more than a month before a sharp advance began on August 19. He also noted that traditional markets sometimes form local lows toward the end of October, a seasonal pattern crypto bulls hope will help reverse recent losses.
AI Infrastructure Stocks Recover From Sharp Losses
Shares of Galaxy Digital (GLXY) and other companies linked to AI data centers rose before Monday’s U.S. market open following significant declines last week.
StoneX analyst Mark Palmer argued that investors appeared to be pricing Galaxy as though CoreWeave (CRWV), a tenant at its Helios data center, had already failed and no replacement customers would emerge. Palmer maintained his buy rating and $57 price target on Galaxy. The stock rose 3% in premarket trading to $16.80 after losing 20% the previous week.
Goldman Sachs upgraded CoreWeave from neutral to buy. CoreWeave shares advanced 6% after a 23.5% weekly decline, while Hut 8 (HUT), TeraWulf (WULF) and IREN (IREN) each gained more than 5%.
Musk Announces Proposed SpaceX Share Giveaway
Elon Musk said he plans to give one SpaceX share to every child in the United States next year, adding that the proposed giveaway would be the first of several initiatives.
SpaceX is scheduled to release its third-quarter results after Thursday’s market close.
Oil Rebounds on Middle East Security Concerns
Crude oil recovered from its Asian-session lows as reports of U.S. security warnings across the Middle East raised concerns about further regional escalation.
West Texas Intermediate futures climbed back to $98.55 per barrel, down just 0.5% on the day after falling to $96.72 earlier. Bitcoin (BTC) and ether (ETH) also surrendered their initial gains as oil prices recovered.
The reported warnings covered 12 locations, including Saudi Arabia, the United Arab Emirates, Kuwait, Jordan, Bahrain, Oman, Iran, Qatar, Iraq, Lebanon, Yemen and Israel/Jerusalem. U.S. citizens were warned about potential flight disruptions and airspace closures.
The developments renewed concerns about possible U.S. strikes on Iran and further interruptions to energy shipments through the Strait of Hormuz.
Bitcoin Briefly Breaks $83,000 Before Sellers Return
Bitcoin climbed from an overnight low near $80,700 to briefly exceed $83,000 early Monday, but retreated to around $82,400 within roughly 30 minutes as sellers stepped in.
BTC remained up 0.3% over 24 hours, with resistance near $84,000 still in focus. That level rejected advances on October 13 and October 14, leaving it an important hurdle for bulls.
The recovery tracked gains in U.S. equity futures. Nasdaq 100 futures rose 1.1%, recovering after last week’s 5.5% decline, while S&P 500 futures gained 0.5%. A semiconductor-focused ETF advanced 3% before the opening bell, potentially ending a nine-session losing streak.
European markets remained weaker, with the Stoxx 600 down 0.8% following unrest in France. French government bonds led a decline in European debt, the euro weakened against other major currencies, the dollar was little changed, and Brent crude pulled back from a five-month high.
Bitcoin’s next key test is the $84,000 area. A sustained move above that resistance would provide an early indication that the recovery in technology stocks is translating into more durable upward momentum for the cryptocurrency.
