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Street creates a framework where startups can tokenise equity without it being a security and without giving up control over the company.
Trump-linked crypto company AI Financial to acquire Block Street for up to $43 million
Odaily AI Financial (formerly Alt5 Sigma), a publicly listed crypto company linked to the family of U.S. President Donald Trump, has announced it will acquire crypto infrastructure startup Block Street for up to $43 million. Block Street was founded by Matthew Morgan, who currently serves as an advisor to AI Financial and is also its CEO and largest shareholder.According to a filing with the U.S. Securities and Exchange Commission (SEC), the deal was reached last Monday. Block Street was registered in October 2025, but Morgan stated that its business operations had started about 16 months prior.The acquisition has raised market concerns about potential conflicts of interest, as Morgan is both an advisor to AI Financial and the founder of the acquired company. He was briefly nominated for the position of Chief Investment Officer in a previous cooperation deal between AI Financial and World Liberty Financial, but the role was later adjusted to an unpaid advisor position.In August, AI Financial reached an agreement with World Liberty Financial to include approximately $1.5 billion in crypto assets on its balance sheet, in exchange for equity and a board seat. This collaboration also positioned the company as part of the "Trump family crypto ecosystem."In interviews, Morgan has denied that the transaction constitutes self-dealing, stating that Block Street focuses on tokenization and ICO infrastructure capabilities, areas AI Financial is looking to enter. He claimed to have pitched the asset to several other public companies and turned down acquisition offers with higher valuations.However, since establishing ties with the Trump family crypto project, AI Financial's stock price has fallen by over 90%, reflecting ongoing market skepticism toward the "crypto reserve public company" model.This transaction has also reignited controversy over insider transactions and governance structures within public companies. Similar cases have frequently emerged in the crypto industry recently, with multiple listed companies criticized for mixing assets with related-party transactions, raising investor concerns about the risks of conflicts of interest. (Fortune)
Caixin: SpaceX IPO First Day Free Float Market Cap Could Be Between $440 Billion and $530 Billion
Caixin published an article titled "SpaceX's $1.75 Trillion IPO Approaches: Who Can Buy and Is It Worth It?", which points out: Wall Street has never encountered a listed company with such a massive IPO scale while simultaneously having such a complex relationship with the U.S. government. Nasdaq has previously passed a new "Fast Entry" rule, allowing newly listed companies with a market capitalization ranking among the top 40 of the Nasdaq 100 Index to be quickly included in the Nasdaq 100 within 15 trading days after listing. This rule will officially take effect on May 1, 2026, and is also considered to be designed for the upcoming SpaceX IPO, while potentially paving the way for the listings of OpenAI and Anthropic, which may occur in 2026 or 2027.Assuming SpaceX lists with a $1.75 trillion valuation and a free float ratio of 25% to 30%, the free float market cap on the first day of the IPO would be approximately between $440 billion and $530 billion. Based on the weight calculation of the Nasdaq 100, SpaceX would directly enter the top ten weighted stocks. According to market sources, the S&P 500 is also evaluating some form of "fast inclusion" plan, though details have not yet been disclosed. (Caixin)
Former Twitter CEO Launches AI Startup Parallel Web Systems, Raises $100M in Series B Funding with $2B Valuation
According to The Wall Street Journal, Parallel Web Systems—an AI startup founded by former Twitter CEO Parag Agrawal—has raised $100 million in its Series B funding round, led by Sequoia Capital, with participation from Kleiner Perkins, Index Ventures, and Khosla Ventures. The company’s valuation has risen to $2 billion, bringing its total funding to $230 million. Parallel focuses on building web search infrastructure for AI agents, supporting in-depth research use cases such as investment research, insurance claims processing, and government contract analysis. Over 100,000 developers are already using its platform, with customers including legal AI company Harvey. Proceeds from this round will be used to expand the sales team and strengthen R&D efforts.
SpaceX Initiates Pre-IPO Wall Street Closed-Door Meetings, Plans to Reserve Approximately 30% of Shares for Retail Investors
Odaily News SpaceX will hold a three-day closed-door analyst meeting in the United States this week to present its business and strategy to Wall Street institutions in preparation for a potential IPO. Informed sources stated that the company aims to raise approximately $75 billion, with a valuation potentially reaching $1.75 trillion, and plans to go public as early as June.The meeting will cover SpaceX's Starbase launch site in Texas and its data center project in Tennessee. Participating analysts are required to surrender electronic devices to ensure information confidentiality. This roadshow is a key part of the IPO process, and subsequent model explanation meetings will be held to further disclose financial and growth expectations.Furthermore, the company plans to reserve approximately 30% of its shares for retail investors and expand into global markets. Several Wall Street investment banks have already participated in underwriting arrangements. (Reuters)
KieDex, a cryptocurrency futures exchange, has raised $3.5 million in funding, led by Marqel Capital.
According to an official announcement, cryptocurrency futures exchange KieDex has raised $3.5 million in funding, led by Marqel Capital. The company stated that the funds will be used to build the KieDex platform and develop a next-generation cryptocurrency futures exchange focused on fast, secure, and incentive-driven trading experiences. Supporting partners include Hidden Street Capital, Caviar, CSP DAO, Solulu Club, Rocket, TPC, Devmons, and TATATU.
Crypto Hedge Funds Shift to Traditional Assets; Crude Oil, Copper, and Nasdaq-100 Appear on All-Weather Trading Platforms
According to Bloomberg, cryptocurrency hedge funds are extending their trading activities into traditional commodities and stock indices. Previously, these funds operated in the cryptocurrency markets—long overlooked by Wall Street—trading tokens on 24/7, clearinghouse-free, and unregulated platforms. Now, traditional assets such as crude oil, copper, and the Nasdaq-100 Index are increasingly appearing on these platforms, signaling that cryptocurrency trading infrastructure is penetrating mainstream financial assets.
CFTC Sues New York State to Seize Regulatory Dominance over Prediction Markets
According to The Wall Street Journal, on April 27, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against New York State in the U.S. District Court for the Southern District of New York, seeking a court ruling that the CFTC holds exclusive regulatory authority over prediction markets—aiming to halt New York State’s enforcement actions. Previously, New York State had filed lawsuits against cryptocurrency exchanges Coinbase and Gemini over their prediction market operations. Earlier this month, the CFTC also initiated similar lawsuits against Arizona, Illinois, and Connecticut, intensifying jurisdictional disputes between federal and state regulatory agencies.
Senator Tillis Ends Months-Long Obstruction, Clearing the Way for Waller’s Fed Chairmanship
According to The Wall Street Journal, North Carolina Republican Senator Thom Tillis said Sunday local time that he would support the confirmation of Kevin Warsh as Federal Reserve Chair, thereby clearing the final major hurdle for Trump’s chosen successor to Powell. Tillis had refused for months to vote in favor of Warsh, stating he would not advance any Fed nominee’s confirmation while the Justice Department’s criminal investigation into Powell remained ongoing—calling the probe an attack on the central bank’s independence. However, that investigation appears to have concluded last Friday. (Jin10)
Jane Street seeks dismissal of Terraform lawsuit, claiming attempt to shift blame
: Quantitative trading firm Jane Street has filed a motion with the court to dismiss the insider trading and market manipulation lawsuit filed by Terraform Labs, which accuses the firm of causing the collapse of the UST/LUNA algorithmic stablecoin.In its filing submitted to the U.S. District Court for the Southern District of New York, Jane Street stated that the lawsuit is "baseless" and represents an attempt by Terraform's bankruptcy estate to shift responsibility for the collapse of a multi-billion dollar ecosystem onto a third party.The firm has requested the court to dismiss the entire case "with prejudice," meaning the plaintiff cannot refile the same claims.Jane Street further pointed out that the fraudulent conduct associated with Terraform has already been prosecuted, adjudicated, and penalized, and that it was not involved. Do Kwon has previously pleaded guilty to conspiracy and wire fraud charges and is currently serving a 15-year sentence. A jury has also found Terraform and Kwon liable for securities fraud.
Bitcoin financial services company Fold launches a Bitcoin bonus program for employers
According to The Wall Street Journal, Bitcoin financial services company Fold has announced the launch of its Bitcoin Bonus Program, enabling employers to issue recurring Bitcoin bonuses to employees—including vesting schedules—without modifying their existing payroll systems and without assuming custody or compliance responsibilities. This program is Fold Business’s first offering. Fold disclosed that Steak ’n Shake has joined as the flagship partner, extending the program to thousands of hourly employees.
Jefferies: KelpDAO Security Incident May Slow Down Wall Street's Blockchain Deployment
Odaily News Wall Street investment bank Jefferies' analysis indicates that the approximately $293 million attack on Kelp DAO on April 18 exposed critical infrastructure risks, which may prompt traditional financial institutions to reassess the pace of blockchain and tokenization advancement.Jefferies believes the attacker triggered market sell-offs and liquidity stress by minting unbacked tokens and borrowing across platforms. The incident is suspected to be potentially linked to the Lazarus Group and also highlights the single point of failure in the validation mechanisms of cross-chain bridges. As institutions accelerate the tokenization of assets (such as funds, bonds, and deposits), related risks may cause some banks and asset management firms to temporarily pause deployments, prioritizing a review of system security. Especially in scenarios reliant on cross-chain infrastructure, security vulnerabilities could lead to market fragmentation, undermining the practical utility of tokenized assets.Despite short-term confidence being shaken, Jefferies still emphasizes that the long-term trend remains unchanged. Against the backdrop of regulatory progress and continuous infrastructure improvement, use cases like stablecoins still hold growth potential. However, the industry as a whole is still in its early development stage and requires time to enhance system robustness. (CoinDesk)
Polymarket and Kalshi simultaneously announced the launch of perpetual futures covering crypto, U.S. equities, and commodities.
According to The Wall Street Journal, prediction market platforms Polymarket and Kalshi have both announced plans to launch perpetual futures contracts. Polymarket posted a video on X on Tuesday stating it will list perpetual futures products tied to crypto tokens, U.S. equities, and commodities; Kalshi has a similar plan. Perpetual futures are crypto-native derivatives with no fixed expiration date. It remains unclear whether Polymarket will offer these products in the U.S. market, as such products face relatively strict regulatory restrictions in the United States.
Galaxy Digital Reports $216 Million Net Loss for Q1 2026, Stock Rises 5% Against Market Trend
Galaxy Digital released its first-quarter 2026 financial results, reporting a net loss of $216 million and a diluted loss per share of $0.49. The primary driver was the broad downturn in cryptocurrency markets during the quarter, with total crypto market capitalization shrinking by approximately 20%. Its crypto asset holdings declined from $1.67 billion in Q4 2025 to $1.36 billion. As of the end of March, its largest crypto holding was 6,894 BTC (approximately $431 million), followed by $61 million worth of SOL and $42 million worth of ETH. Despite the pressure on earnings, Galaxy Digital’s AI infrastructure business is progressing smoothly: the company confirmed delivery of its first data center facility to CoreWeave and expects to fulfill its full commitment of 133 megawatts of AI/IT infrastructure by the end of Q2. Boosted by this news, the company’s stock (NASDAQ: GLXY) rose 5% intraday—a move that diverged from Bitcoin’s concurrent decline. Wall Street analysts currently assign GLXY an aggregate rating of “Moderate Buy,” with a consensus target price of $39.40—implying roughly 50% upside from its share price of $26.30 at the time of writing.
Suspected Block Street team address transfers 5 million BSB to Bybit, valued at approximately $3.65 million
According to Arkham data, a suspected Block Street team address has transferred tokens to a Bybit deposit address (0xEcB8...0D51) over the past two hours, with a cumulative transfer of 5 million BSB tokens, valued at approximately $3,653,400. The tokens in this sending address previously originated from the BSB team's multi-signature address.Currently, the circulating supply of BSB is 207.75 million tokens, and the total amount received by this address accounts for approximately 2.41% of the circulating supply. BSB is currently trading at $0.7595, down 9.11% in the past 24 hours, with a circulating market cap of approximately $157.8 million.
Jefferies: KelpDAO Security Incident May Slow Down Wall Street's Blockchain Deployment
Odaily News Wall Street investment bank Jefferies' analysis indicates that the approximately $293 million attack on Kelp DAO on April 18 exposed critical infrastructure risks, which may prompt traditional financial institutions to reassess the pace of blockchain and tokenization advancement.Jefferies believes the attacker triggered market sell-offs and liquidity stress by minting unbacked tokens and borrowing across platforms. The incident is suspected to be potentially linked to the Lazarus Group and also highlights the single point of failure in the validation mechanisms of cross-chain bridges. As institutions accelerate the tokenization of assets (such as funds, bonds, and deposits), related risks may cause some banks and asset management firms to temporarily pause deployments, prioritizing a review of system security. Especially in scenarios reliant on cross-chain infrastructure, security vulnerabilities could lead to market fragmentation, undermining the practical utility of tokenized assets.Despite short-term confidence being shaken, Jefferies still emphasizes that the long-term trend remains unchanged. Against the backdrop of regulatory progress and continuous infrastructure improvement, use cases like stablecoins still hold growth potential. However, the industry as a whole is still in its early development stage and requires time to enhance system robustness. (CoinDesk)
SpaceX Initiates Pre-IPO Wall Street Closed-Door Meetings, Plans to Reserve Approximately 30% of Shares for Retail Investors
Odaily News SpaceX will hold a three-day closed-door analyst meeting in the United States this week to present its business and strategy to Wall Street institutions in preparation for a potential IPO. Informed sources stated that the company aims to raise approximately $75 billion, with a valuation potentially reaching $1.75 trillion, and plans to go public as early as June.The meeting will cover SpaceX's Starbase launch site in Texas and its data center project in Tennessee. Participating analysts are required to surrender electronic devices to ensure information confidentiality. This roadshow is a key part of the IPO process, and subsequent model explanation meetings will be held to further disclose financial and growth expectations.Furthermore, the company plans to reserve approximately 30% of its shares for retail investors and expand into global markets. Several Wall Street investment banks have already participated in underwriting arrangements. (Reuters)
US Media: Iran Eases Conditions for Resuming Talks with the US
: Iran has submitted a new proposal to Washington aimed at ending the war, which shows signs of compromise and is intended to restart negotiations to resolve the deadlock that is exacting a heavy toll on its economy. According to sources, Iran's new proposal moves a step closer to the US: it suggests discussing Tehran's conditions for reopening the Strait of Hormuz simultaneously with the US commitment to cease attacks and lift the blockade on Iranian ports. Previously, Iran had demanded that the US lift the blockade as a prerequisite for starting negotiations and required the US to agree on terms for ending the war before discussing the future management of the strait and nuclear program. The sources also noted that the new proposal then suggests discussing issues related to Iran's nuclear program in exchange for the US implementing sanctions relief. Iran has informed mediators that if Washington is open to this new proposal, Iran is prepared to travel to Pakistan for talks early next week. (The Wall Street Journal)
White House Opposes Anthropic’s Expansion of Access to Mythos Model
According to The Wall Street Journal, the White House has signaled its opposition to Anthropic’s plan to expand the usage scope of its AI model, Mythos. Anthropic recently proposed granting access to Mythos for approximately 70 additional companies and institutions, which would bring the total number of authorized entities to around 120. In response, government officials explicitly objected on security grounds. Sources familiar with the matter said some White House officials are concerned that Mythos possesses the capability to launch cyberattacks and cause large-scale disruption online, viewing the expansion of access as a security risk. Additionally, some officials have questioned Anthropic’s computational resources, expressing doubts about whether the company can simultaneously support a significantly increased number of users while ensuring effective government access to and use of the system. Currently, although both sides aim to ease tensions, the disagreement over Mythos access remains unresolved.
Senator Tillis Ends Months-Long Obstruction, Clearing the Way for Waller’s Fed Chairmanship
According to The Wall Street Journal, North Carolina Republican Senator Thom Tillis said Sunday local time that he would support the confirmation of Kevin Warsh as Federal Reserve Chair, thereby clearing the final major hurdle for Trump’s chosen successor to Powell. Tillis had refused for months to vote in favor of Warsh, stating he would not advance any Fed nominee’s confirmation while the Justice Department’s criminal investigation into Powell remained ongoing—calling the probe an attack on the central bank’s independence. However, that investigation appears to have concluded last Friday. (Jin10)
Jefferies Report: KelpDAO Hacking Incident May Slow Wall Street’s Blockchain Business Rollout
TechFlow News, April 22: According to a Jefferies report cited by Bloomberg, a hacker attack over the weekend resulted in nearly $300 million in losses for a small crypto project and triggered an outflow of approximately $10 billion from the largest decentralized lending platform—potentially dampening Wall Street’s interest in blockchain technology. Andrew Moss, a member of Jefferies’ digital assets research team, noted that banks, asset management firms, and payment companies have spent the past year developing products based on similar technological systems. However, this attack—allegedly carried out by North Korean hackers—may prompt traditional financial institutions to pause their related initiatives and reassess associated risks.
Jefferies: KelpDAO Security Incident May Slow Down Wall Street's Blockchain Deployment
Odaily News Wall Street investment bank Jefferies' analysis indicates that the approximately $293 million attack on Kelp DAO on April 18 exposed critical infrastructure risks, which may prompt traditional financial institutions to reassess the pace of blockchain and tokenization advancement.Jefferies believes the attacker triggered market sell-offs and liquidity stress by minting unbacked tokens and borrowing across platforms. The incident is suspected to be potentially linked to the Lazarus Group and also highlights the single point of failure in the validation mechanisms of cross-chain bridges. As institutions accelerate the tokenization of assets (such as funds, bonds, and deposits), related risks may cause some banks and asset management firms to temporarily pause deployments, prioritizing a review of system security. Especially in scenarios reliant on cross-chain infrastructure, security vulnerabilities could lead to market fragmentation, undermining the practical utility of tokenized assets.Despite short-term confidence being shaken, Jefferies still emphasizes that the long-term trend remains unchanged. Against the backdrop of regulatory progress and continuous infrastructure improvement, use cases like stablecoins still hold growth potential. However, the industry as a whole is still in its early development stage and requires time to enhance system robustness. (CoinDesk)
Galaxy Digital Reports $216 Million Net Loss for Q1 2026, Stock Rises 5% Against Market Trend
Galaxy Digital released its first-quarter 2026 financial results, reporting a net loss of $216 million and a diluted loss per share of $0.49. The primary driver was the broad downturn in cryptocurrency markets during the quarter, with total crypto market capitalization shrinking by approximately 20%. Its crypto asset holdings declined from $1.67 billion in Q4 2025 to $1.36 billion. As of the end of March, its largest crypto holding was 6,894 BTC (approximately $431 million), followed by $61 million worth of SOL and $42 million worth of ETH. Despite the pressure on earnings, Galaxy Digital’s AI infrastructure business is progressing smoothly: the company confirmed delivery of its first data center facility to CoreWeave and expects to fulfill its full commitment of 133 megawatts of AI/IT infrastructure by the end of Q2. Boosted by this news, the company’s stock (NASDAQ: GLXY) rose 5% intraday—a move that diverged from Bitcoin’s concurrent decline. Wall Street analysts currently assign GLXY an aggregate rating of “Moderate Buy,” with a consensus target price of $39.40—implying roughly 50% upside from its share price of $26.30 at the time of writing.
Former Twitter CEO Launches AI Startup Parallel Web Systems, Raises $100M in Series B Funding with $2B Valuation
According to The Wall Street Journal, Parallel Web Systems—an AI startup founded by former Twitter CEO Parag Agrawal—has raised $100 million in its Series B funding round, led by Sequoia Capital, with participation from Kleiner Perkins, Index Ventures, and Khosla Ventures. The company’s valuation has risen to $2 billion, bringing its total funding to $230 million. Parallel focuses on building web search infrastructure for AI agents, supporting in-depth research use cases such as investment research, insurance claims processing, and government contract analysis. Over 100,000 developers are already using its platform, with customers including legal AI company Harvey. Proceeds from this round will be used to expand the sales team and strengthen R&D efforts.
Kalshi CEO: The Potential Market Size for Institutional Risk Transfer Block Trades Could Reach $10-15 Trillion
In response to the first customized commodity trade completed on the Kalshi platform, Kalshi CEO Tarek Mansour posted on X platform, "Historically, the bottleneck for institutional risk transfer has been liquidity. The bottleneck for liquidity is the lack of price benchmarks for each type of relevant risk (e.g., WTI for oil). Kalshi has built a large community of top global superforecasters who rank among the world's best at pricing risk. This allows us to create price benchmarks for a broader range of issues faced by people and institutions. Institutions have already begun adopting these price benchmarks by integrating them into traditional asset pricing models. Although work remains, we are seeing rapid expansion in data use cases and integration.""The next phase is utilizing these price benchmarks to transfer risk via block trades and requests for quote (RFQ). This phase is still in its early stages but is beginning to take shape. The market size for risk transfer of non-traditional financial instruments is difficult to estimate. The closest references are the reinsurance market and the derivatives desks of banks: reinsurance is approximately $700 billion; insurance-linked securities and parametric insurance (such as catastrophe bonds) are around $120-135 billion; bank derivatives (structured products, dealer-to-dealer, exotics, etc.) are about $200-400 billion. The current market is roughly $1-1.5 trillion, but most of it is illiquid and traded over-the-counter (OTC, i.e., with a single counterparty). Whenever a major OTC market moves to exchange trading, the market grows significantly due to the establishment of price benchmarks, narrowing bid-ask spreads, the end of Wall Street elite's monopoly on access, and the entry of new participants. For example, interest rate swaps grew 10-15 times, stock options grew 20-30 times, and energy derivatives grew 5-8 times. The institutional use case for prediction markets could form a $10-15 trillion market, with even greater upside potential, depending on the extent to which it democratizes products currently exclusive to Wall Street."
Kalshi completes first customized block trade, with Jump providing liquidity
Kalshi CEO Tarek Mansour said on X, citing Bloomberg, that Kalshi has completed its first customized block trade, with Jump Trading providing liquidity support for the transaction. The trade was brokered by Greenlight Commodities this month and executed on behalf of an environmental hedge fund based in Houston, which sought exposure to a contract tracking "whether a specific price will be realized in California's May carbon emissions allowance auction."Mansour commented on this, stating that the institutional application of prediction markets could be a $10-15 trillion market, with growth potential potentially even larger, depending on how extensively they popularize products currently exclusive to Wall Street.
Senator Tillis Ends Months-Long Obstruction, Clearing the Way for Waller’s Fed Chairmanship
According to The Wall Street Journal, North Carolina Republican Senator Thom Tillis said Sunday local time that he would support the confirmation of Kevin Warsh as Federal Reserve Chair, thereby clearing the final major hurdle for Trump’s chosen successor to Powell. Tillis had refused for months to vote in favor of Warsh, stating he would not advance any Fed nominee’s confirmation while the Justice Department’s criminal investigation into Powell remained ongoing—calling the probe an attack on the central bank’s independence. However, that investigation appears to have concluded last Friday. (Jin10)
Google plans to launch its eighth-generation TPU this week.
According to The Wall Street Journal, Google plans to launch its eighth-generation TPU this week. According to insiders, Google has been developing chips dedicated to inference for years and has recently invited a small group of AI companies to test the chip’s performance.
Related news
US Media: Iran Eases Conditions for Resuming Talks with the US
: Iran has submitted a new proposal to Washington aimed at ending the war, which shows signs of compromise and is intended to restart negotiations to resolve the deadlock that is exacting a heavy toll on its economy. According to sources, Iran's new proposal moves a step closer to the US: it suggests discussing Tehran's conditions for reopening the Strait of Hormuz simultaneously with the US commitment to cease attacks and lift the blockade on Iranian ports. Previously, Iran had demanded that the US lift the blockade as a prerequisite for starting negotiations and required the US to agree on terms for ending the war before discussing the future management of the strait and nuclear program. The sources also noted that the new proposal then suggests discussing issues related to Iran's nuclear program in exchange for the US implementing sanctions relief. Iran has informed mediators that if Washington is open to this new proposal, Iran is prepared to travel to Pakistan for talks early next week. (The Wall Street Journal)
Trump told the U.S. Congress that the conflict with Iran has ended, circumventing the war authorization process
U.S. President Donald Trump informed Congress on Friday that hostile actions against Iran ended in April, a move aimed at bypassing congressional authorization. Under the 1973 War Powers Act, the U.S. president can deploy military force overseas for up to 60 days without congressional approval. Trump's 60-day war authority expired on May 1. Trump's letter claims that the U.S. ceased combat operations against Iran on April 7, when the two countries reached a temporary ceasefire agreement, which has since been extended. If hostilities resume, the 60-day clock would reset and restart—a legal interpretation likely to be challenged by Senate Democrats. "Since April 7, 2026, there have been no exchanges of fire between U.S. forces and Iran. The hostile actions that began on February 28, 2026, have now ended," Trump wrote in the letter. (Wall Street Journal)
Trump-linked crypto company AI Financial to acquire Block Street for up to $43 million
Odaily AI Financial (formerly Alt5 Sigma), a publicly listed crypto company linked to the family of U.S. President Donald Trump, has announced it will acquire crypto infrastructure startup Block Street for up to $43 million. Block Street was founded by Matthew Morgan, who currently serves as an advisor to AI Financial and is also its CEO and largest shareholder.According to a filing with the U.S. Securities and Exchange Commission (SEC), the deal was reached last Monday. Block Street was registered in October 2025, but Morgan stated that its business operations had started about 16 months prior.The acquisition has raised market concerns about potential conflicts of interest, as Morgan is both an advisor to AI Financial and the founder of the acquired company. He was briefly nominated for the position of Chief Investment Officer in a previous cooperation deal between AI Financial and World Liberty Financial, but the role was later adjusted to an unpaid advisor position.In August, AI Financial reached an agreement with World Liberty Financial to include approximately $1.5 billion in crypto assets on its balance sheet, in exchange for equity and a board seat. This collaboration also positioned the company as part of the "Trump family crypto ecosystem."In interviews, Morgan has denied that the transaction constitutes self-dealing, stating that Block Street focuses on tokenization and ICO infrastructure capabilities, areas AI Financial is looking to enter. He claimed to have pitched the asset to several other public companies and turned down acquisition offers with higher valuations.However, since establishing ties with the Trump family crypto project, AI Financial's stock price has fallen by over 90%, reflecting ongoing market skepticism toward the "crypto reserve public company" model.This transaction has also reignited controversy over insider transactions and governance structures within public companies. Similar cases have frequently emerged in the crypto industry recently, with multiple listed companies criticized for mixing assets with related-party transactions, raising investor concerns about the risks of conflicts of interest. (Fortune)
Galaxy Digital Reports $216 Million Net Loss for Q1 2026, Stock Rises 5% Against Market Trend
Galaxy Digital released its first-quarter 2026 financial results, reporting a net loss of $216 million and a diluted loss per share of $0.49. The primary driver was the broad downturn in cryptocurrency markets during the quarter, with total crypto market capitalization shrinking by approximately 20%. Its crypto asset holdings declined from $1.67 billion in Q4 2025 to $1.36 billion. As of the end of March, its largest crypto holding was 6,894 BTC (approximately $431 million), followed by $61 million worth of SOL and $42 million worth of ETH. Despite the pressure on earnings, Galaxy Digital’s AI infrastructure business is progressing smoothly: the company confirmed delivery of its first data center facility to CoreWeave and expects to fulfill its full commitment of 133 megawatts of AI/IT infrastructure by the end of Q2. Boosted by this news, the company’s stock (NASDAQ: GLXY) rose 5% intraday—a move that diverged from Bitcoin’s concurrent decline. Wall Street analysts currently assign GLXY an aggregate rating of “Moderate Buy,” with a consensus target price of $39.40—implying roughly 50% upside from its share price of $26.30 at the time of writing.
White House Opposes Anthropic’s Expansion of Access to Mythos Model
According to The Wall Street Journal, the White House has signaled its opposition to Anthropic’s plan to expand the usage scope of its AI model, Mythos. Anthropic recently proposed granting access to Mythos for approximately 70 additional companies and institutions, which would bring the total number of authorized entities to around 120. In response, government officials explicitly objected on security grounds. Sources familiar with the matter said some White House officials are concerned that Mythos possesses the capability to launch cyberattacks and cause large-scale disruption online, viewing the expansion of access as a security risk. Additionally, some officials have questioned Anthropic’s computational resources, expressing doubts about whether the company can simultaneously support a significantly increased number of users while ensuring effective government access to and use of the system. Currently, although both sides aim to ease tensions, the disagreement over Mythos access remains unresolved.
Hyperliquid to Launch Prediction Markets Feature
According to Bloomberg, decentralized cryptocurrency exchange Hyperliquid is proposing to add prediction market functionality to its platform, directly competing with Kalshi and Polymarket. The proposal, designated HIP-4, is currently in public testing and will allow users to place bets on real-world event outcomes directly on the Hyperliquid platform. Hyperliquid is one of the most actively traded venues in the digital asset space, and the speed and scale of its product expansion have drawn significant attention from Wall Street.