Crypto commerce: Artificial intelligence takes a back seat when Bitcoin begins to climb

Cryptocurrency rebound in August tests corporate confidence: the return of mining companies, increased holdings of giants and new trends in stablecoins

Bitcoin (BTC)'s strong rebound in August once again put companies 'strategic focus in the spotlight. Bitcoin miners who actively sought support from artificial intelligence (AI) investors during the downturn in the crypto market are now once again forming a highly linked leverage effect with Bitcoin; meanwhile, Strategy and Strive are increasing their holdings of thousands of bitcoins through balance sheets. This concentration of funds is also evident in other areas: Bitmine is approaching its goal of holding 5% of Ethereum's (ETH) circulation supply despite billions of dollars in unrealized losses; and 21 major financial institutions have adopted a different strategy and are committed to developing stablecoins for payments and settlements.

Bitcoin's rebound brings mining companies back into focus

Bitcoin's rally in August boosted mining stocks, which had previously been weak, to gain as much as 67%, reversing the previous trend towards transforming artificial intelligence and highlighting the sector's continued sensitivity to Bitcoin market conditions. BlocksBridge Consulting pointed out in a recent newsletter that Bitcoin outperformed most AI-related infrastructure stocks with a gain of about 23% in late August. Canaan, American Bitcoin and Cango saw gains ranging from 41% to 67%, compared with approximately 21% for CoreWeave, 17% for Nebius, and 15% for IREN. At the same time, shares of some mining companies with high exposure to artificial intelligence and high-performance computing remained flat or fell.

BlocksBridge pointed out that the rally was driven by three catalysts: a liquidity-backed repo expansion, a rebound in regulatory optimism after the White House cryptocurrency meeting, and a sharp short squeeze that led to the liquidation of more than $1.6 billion in positions. This overperformance suggests that investors may once again reward direct exposure to Bitcoin, although the sector still faces risks from the high cost of building AI data center capacity.

Strive and Strategy add positions during Bitcoin rally

In the last week of August, Strive and Strategy added billions of dollars worth of Bitcoin to the company's treasury. Among them, Strive purchased 1,800 BTC for approximately US$143 million, while Strategy acquired another 4,603 BTC.

Strive's purchases between August 24 and August 28 raised its position to 23,156 BTC, making it the fifth largest publicly traded public company Bitcoin holder. The company's average cost per BTC, including fees and expenses, was US$79,431, compared with 1,110 BTC purchased at an average price of US$73,409 the previous week. At the same time, Strategy resumed buying activity, acquiring 4,603 BTC units at an average price of $80,318, bringing its position above the 845,000 BTC mark, the latest increase in holdings after four sales since May.

These purchases coincide with the broader recovery of digital assets that began on August 19, when the U.S. Treasury Department announced plans to double the size of certain long-term bond buybacks.

21 financial institutions plan to launch G7 stablecoin projects in 2027

An alliance of 21 major financial institutions, including Bank of America, Goldman Sachs and Citigroup, plans to form a new company to develop and issue stablecoins, marking another sign for traditional finance to move further into the digital dollar as the regulatory framework is taking shape.

The group plans to launch a dollar-denominated stablecoin in the first half of 2027 and subsequently expand to other G7 currencies, with the euro being the next option. The stablecoin is designed to serve cross-border payments and digital asset settlement in wholesale, institutional and retail markets.

The move builds on an initiative announced in October last year, when 10 banks were exploring a 1:1 reserve support for digital currencies based on public blockchain-based. Currently, the alliance has members across North America, Europe, East Asia, the Middle East and Africa, and intends to comply with both the U.S. GENIUS Act and the European Union's MiCA regulations.

Bitmine approaches 5% of Ethereum's supply after 65 consecutive weeks of purchases

Bitmine has extended its Ethereum purchase record to 65 consecutive weeks, adding 53,501 ETH units last week. As the entire crypto market recovers, the value of its digital asset portfolio rises accordingly.

The latest purchase puts Bitmine's position in excess of 5.9 million ETH units. As of Sunday, Ethereum was trading at $2,511, valuing these positions at approximately $14.8 billion. Currently, the company owns 4.9% of Ethereum's 120.7 million circulating supply, just one step away from its target of 5%.

Bitmine Chairman Tom Lee said that since June 30, Ethereum, Bitcoin and Solana are the top three major assets performing best, with Ethereum leading the gains. "We believe that given its significant excess performance relative to other macro assets, this will lay the foundation for institutions to increase their cryptocurrency holdings." Lee said.

Despite the accumulation, Bitmine still faces unrealized losses of approximately US$5.1 billion on its Ethereum positions, according to DropsTab, reflecting its continued buying behavior during the market downturn that began in late 2022.