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Tether reduced its fundraising target to $5 billion amid investor pushback, while Bitwise’s acquisition of Chorus One underscores accelerating consolidation around staking and yield products.
Hong Kong is preparing to issue its first stablecoin licenses by March 2026, signaling a cautious, tightly controlled approach to fiat-referenced digital assets.
Bitcoin ETFs recorded notable net outflows, even as El Salvador continued steady, rules-based BTC accumulation during market weakness.
The cryptocurrency saw major developments spanning capital raising, mergers and acquisitions, regulation, sovereign Bitcoin accumulation, ETF flows, and enforcement actions. From Tether rethinking its ambitious valuation goals to Hong Kong preparing its first stablecoin licenses.
Tether has reduced its fundraising plans after potential investors showed resistance to their fundraising efforts.
A Financial Times report states that Tether advisers are currently negotiating a $5 billion capital raise, representing a substantial decrease from previous talks that estimated between $15 billion and $20 billion, which were tied to a proposed $500 billion valuation.
The revised target reflects investor concerns despite Tether reporting approximately $10 billion in profit last year.
CEO Paolo Ardoino has since described the larger figures as a “misconception,” emphasizing that Tether is highly profitable and has little operational need for external capital.
Bitwise Asset Management is acquiring institutional staking provider Chorus One, according to Bloomberg.
Financial terms were not disclosed. The acquisition strengthens Bitwise’s push into yield-generating crypto products at a time when institutional demand for staking continues to rise.
Bitwise, which manages over $15 billion in assets globally, has recently broadened its offerings, including launching model crypto portfolios for financial advisers.
Chorus One currently oversees about $2.2 billion in staked assets and operates infrastructure across major proof-of-stake networks. More than 36 million ETH, or roughly 30% of the circulating supply, is now locked on the Beacon Chain.
Also Read: Ethereum Price Dip Mirrors Last Bull Run Setup: Here’s Why
The Hong Kong Monetary Authority confirmed it plans to issue its first batch of stablecoin licenses by March 2026.
Chief Executive Eddie Yue revealed that the regulator received 36 applications in the initial round but will approve only a small number to prioritize financial stability.
The assessment process requires applicants to demonstrate their capabilities through governance systems, reserve asset management practices, risk mitigation strategies, and their ability to comply with anti-money laundering regulations.
The HKMA has requested extra documentation from specific candidates to demonstrate its strategy, which Hong Kong uses to establish itself as a controlled digital asset center.
El Salvador continues to add to its Bitcoin reserves. On-chain data from Arkham shows that government-controlled wallets received 1 Bitcoin within the last 12 hours, aligning with their pattern of making small purchases.
El Salvador holds approximately 7,552 BTC, which currently has a market value of about $577 million
Over the past 7 days, reserves have increased by 8 BTC, and by 31 BTC over the last month, indicating a rules-based accumulation strategy rather than short-term market timing.
According to SoSoValue, Bitcoin spot ETFs recorded net outflows of $272.02 million on February 3.
BlackRock’s IBIT was the only one with inflows at $60.03 million, bringing its cumulative total to $62.16 billion.
In contrast, Fidelity’s FBTC saw the largest daily outflow at $148.7 million.
Total net assets across Bitcoin spot ETFs stand at $97.01 billion, representing 6.35% of Bitcoin’s market capitalization, with cumulative historical inflows of $55.3 billion.
Also Read: BTC Plunge Sparks Warning From Michael Burry on Market Fallout
Rui-Siang Lin, a Taiwanese national, received a 30-year prison sentence for operating the Incognito Market darknet marketplace.
Prosecutors said the platform processed over $105 million in illegal drug sales across 640,000 transactions between 2020 and 2024.
The investigators established Lin's connection to the operation through their work with blockchain analysis, undercover purchases and domain registration records that included his real identity.
The case stands as one of the biggest darknet drug prosecutions since the Silk Road, while showing how law enforcement has advanced its ability to investigate cryptocurrency-related crimes.
1. Why did Tether cut its fundraising target?
Tether scaled back plans after investor resistance to a proposed $500 billion valuation, despite posting around $10 billion in profit last year.
2. What does Bitwise’s acquisition of Chorus One indicate?
The deal reflects rising institutional interest in staking as a yield strategy and a broader trend toward consolidation in crypto infrastructure.
3. When will Hong Kong issue stablecoin licenses?
The Hong Kong Monetary Authority aims to grant its first stablecoin licenses by March 2026, approving only a limited number initially.
4. Why are Bitcoin ETFs seeing outflows?
Recent ETF outflows suggest cautious institutional sentiment amid market volatility, even as long-term cumulative inflows remain strong.
5. Why is El Salvador still buying Bitcoin during market weakness?
El Salvador appears to be following a rules-based accumulation strategy, making small, regular BTC purchases regardless of short-term price movements.
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