Blockonomi

TLDR

Senate Democrats urged the Justice Department and Treasury to investigate Binance over alleged Iran sanctions violations.

Lawmakers cited reports that $1.7 billion in digital assets moved to Iranian entities through Binance.

The senators raised concerns that Binance may have breached its 2023 federal settlement obligations.

The letter referenced Binance’s ties to a Trump family-backed stablecoin project.

Binance denied the allegations and said it remains committed to its compliance agreements.

Senate Democrats have urged the Justice Department and Treasury to investigate Binance over Iran sanctions concerns and Trump-linked ties. Lawmakers sent a formal letter requesting a prompt federal review of the crypto exchange’s compliance controls. They cited reports that billions in digital assets flowed to sanctioned Iranian entities through the platform.

Binance Faces Scrutiny Over Iran Sanctions Compliance

Sen. Mark Warner led the letter and secured signatures from Sen. Elizabeth Warren and nine other Democrats. The senators asked Attorney General Pam Bondi and Treasury Secretary Scott Bessent to open a comprehensive review. They referenced media reports that linked Binance to illicit finance activity tied to Iran.

According to the letter, compliance staff identified $1.7 billion routed to Iranian entities last year. Those entities included the Iran-backed Houthis and the Islamic Revolutionary Guard Corps. The senators also claimed that a Binance vendor moved $1.2 billion connected to Iran-linked actors.

The lawmakers stated that Iranian users accessed more than 1,500 Binance accounts. They also raised concerns about the possible use of the platform by Russian actors to evade sanctions. They warned that such activity could breach Binance’s 2023 federal settlement obligations.

The letter alleged that Binance dismissed employees who flagged the transactions. It also claimed the exchange became less responsive to law enforcement requests. The senators argued that those actions would conflict with the company’s plea agreement terms.

In 2023, Binance pleaded guilty to violating U.S. sanctions laws and anti-money laundering rules. The company agreed to pay more than $4 billion in penalties. It also committed to enhanced know-your-customer procedures and sanctions screening under U.S. supervision.

Trump Ties and Russia Concerns Add Pressure

The senators also pointed to business links involving President Donald Trump and his family’s crypto ventures. They referenced Binance’s promotion of USD1, a stablecoin issued by World Liberty Financial. Lawmakers stated that the project has ties to the Trump family.

According to the letter, Binance offered interest incentives to users holding USD1. The exchange also assisted with technology related to the token. Lawmakers further cited a $2 billion investment tied to the stablecoin.

The senators referenced Trump’s pardon of Binance founder Changpeng Zhao last fall. Zhao had pleaded guilty to failing to implement an effective anti-money laundering program. He served a four-month prison sentence before receiving the pardon.

Beyond Iran, the lawmakers cited Binance’s launch of crypto-linked payment cards in parts of the former Soviet Union. They warned that similar products have helped users bypass restrictions on Russia’s financial system. They also noted Binance’s partnership with Kyrgyzstan on a stablecoin and digital currency initiative.

“These allegations raise grave concerns that poor illicit finance controls at Binance remain a threat to national security,” the senators wrote. They urged federal agencies to conduct what they described as a “thorough, impartial” probe.

The post Senate Democrats Urge DOJ to Investigate Binance appeared first on Blockonomi.

TLDR

Engie received full commercial approval for the Assu Sol solar complex in Brazil on February 13, 2026.

The project has a peak capacity of 895 MWp and includes 16 plants with over 1.5 million panels.

Brazil has faced recurring curtailment since 2023 due to grid bottlenecks and excess renewable generation.

Engie is studying Bitcoin mining as a flexible offtaker to monetize surplus electricity.

The company estimates it would need about two years to deploy any mining or storage solution.

Engie has secured full approval for its Assu Sol solar complex in Brazil and has begun studying Bitcoin mining to monetize surplus electricity. The project reached commercial clearance on February 13, 2026, and now operates as the company’s largest solar asset worldwide. Engie plans to evaluate mining and battery storage to capture value from recurring grid curtailment.

Brazil Grid Bottlenecks Drive Search for Flexible Demand

Brazil has expanded wind and solar generation faster than its transmission infrastructure has developed, and that gap has led to recurring curtailment since 2023. Grid operators have forced plants to shut down during oversupply periods, and producers have lost revenue on unused megawatt-hours. Engie now seeks a flexible demand solution that can consume excess electricity behind the meter and reduce financial losses.

JUST IN: French government owned energy company Engie is considering installing bitcoin miners at its new solar plant in Brazil "to make the facility more profitable" — Reuters

They said BTC mining could monetize its wasted energy and 'would not be a short-term solution'

— Bitcoin Magazine (@BitcoinMagazine) February 23, 2026

The Assu Sol complex carries 895 MWp of peak capacity and 753 MW of installed capacity across 16 plants. The BRL 3.3 billion project spans more than 1.5 million photovoltaic panels in northeastern Brazil. Brazilian authorities granted full commercial approval on February 13, 2026, and Engie confirmed operational status.

Bitcoin Mining and Storage Under Review

Engie is assessing whether Bitcoin mining facilities can operate as a flexible offtaker for surplus power. Mining rigs can switch on and off quickly, and operators can match activity with excess generation periods. The company has stated that it does not seek speculative crypto exposure but aims to protect plant revenues.

Eduardo Sattamini, Engie’s country manager in Brazil, addressed the timeline for any deployment. He said, “We would need around two years to develop and implement a mining or storage solution.” He also confirmed that Engie continues to evaluate utility-scale battery systems as an alternative option.

Brazil’s foreign trade council has reduced import duties to zero on high-efficiency mining equipment through January 2028. That temporary measure lowers capital expenditure requirements for energy-linked mining operations. Engie is reviewing both mining and storage models before making a final investment decision.

The company has framed the initiative as a revenue management strategy tied to curtailed output. Engie plans to operate any mining capacity only during periods of excess supply. Company officials have confirmed that studies remain ongoing and that no final commitment has been announced.

Assu Sol now stands as Engie’s largest solar asset globally, and the company continues to monitor grid conditions in Brazil. Executives have stated that the project must align with regulatory requirements and operational standards.

The post Brazil Solar Mega-Project Studies Bitcoin Mining Plan appeared first on Blockonomi.

TLDR:

USDCx is a Cardano-native stablecoin backed 1:1 by USDC held in Circle’s xReserve smart contract.

IOG will subsidize USDCx bridge fees for the first 10 days to reduce onboarding costs for new users.

Minswap, Liqwid, and SundaeSwap are live integrations at launch, enabling real DeFi utility from day one.

Users with USDC on Base can deposit and withdraw USDCx without interacting with Ethereum at all.

USDCx on Cardano is now live, marking a key step in the blockchain network’s push toward real-world financial utility.

Input Output Global (IOG), in collaboration with Circle, has deployed the technical infrastructure for the stablecoin.

The asset is backed 1:1 by USDC held in Circle’s xReserve smart contract. To ease onboarding, IOG will subsidize bridge fees for the first 10 days. Pentad and Midgard Labs supported the build, operation, and security of the infrastructure.

How USDCx Works on Cardano

USDCx is a Cardano-native token linked directly to USDC held in Circle’s xReserve smart contract. Users can deposit USDC on Ethereum and mint USDCx on Cardano at a 1:1 ratio.

They can also burn USDCx to release USDC back on Ethereum. This removes the need for third-party bridges, keeping the process straightforward.

A dedicated USDCx Bridge web application supports these transfers. Through the app, users can also swap USDC directly into Cardano-native assets via Minswap.

Centralized exchange users with USDC on Base can deposit and withdraw without touching Ethereum at all. This removes extra steps for a wider group of users.

IOG shared the news directly, noting the role of community funding:

“This integration was delivered through the Cardano ecosystem’s Critical Integrations program, funded by the community. Your support has helped bring tier one stablecoin infrastructure to Cardano.”

USDCx on Cardano is now available via @Circle xReserve!
For the first 10 days, IOG will subsidize bridge fees for USDCx transfers to Cardano to help you get started with lower costs. All other network and DEX fees remain the responsibility of the user. See the FAQs for… pic.twitter.com/FFIdx3Adl4

— Input Output Group (@IOGroup) February 27, 2026

At launch, Minswap, Liqwid, and SundaeSwap are already integrated with USDCx. This means the stablecoin is usable from day one across major Cardano DeFi platforms.

Early on-chain activity is observable, which adds credibility to the rollout. The integration is built on real usage, not just a technical deployment.

Use Cases and Ecosystem Growth

USDCx on Cardano targets several key financial use cases across the ecosystem. Lending, borrowing, and liquidity provisioning all benefit from a dollar-backed stablecoin.

Stable yields become more viable when dollar-denominated assets are readily available. DeFi markets also function more efficiently with a trusted stablecoin in circulation.

Beyond DeFi, USDCx supports cross-border payments and remittances. Users in regions with unstable local currencies gain access to dollar-denominated value on-chain.

Real-world asset settlement also becomes more practical with a reliable dollar rail. Tokenized securities and credit instruments require this kind of stable backing to function properly.

For institutional participants, USDC carries established compliance standards across global markets. Bringing that infrastructure to Cardano lowers the barriers for enterprise adoption.

Treasury management and dollar-priced applications also become more accessible as a result. This aligns Cardano with existing financial flows rather than operating outside them.

The rollout is designed for long-term reliability, not a short-term initiative. Progress will remain measurable through on-chain activity as more platforms integrate USDCx.

The post USDCx Launches on Cardano Backed 1:1 by USDC Through Circle’s xReserve Infrastructure appeared first on Blockonomi.

TLDR

XRP surged 647% from $0.49 to $3.66 after its late 2024 breakout.

The token now trades near $1.38 following a 70% pullback from its peak.

Analyst Javon Marks said the $15 measured move target remains unchanged.

A move to $15 would represent more than 900% upside from current levels.

XForceGlobal said the current price action reflects compression rather than weakness.

XRP price has returned to focus after its late 2024 breakout triggered a 647% rally to $3.66 by mid 2025. The asset now trades near $1.38 following a 70% pullback from its peak. Analysts state that the original breakout structure still supports a larger upside move.

XRP Price Structure Keeps $15 Measured Move in Play

Javon Marks stated on X that the “$15 measured move target goes unchanged” despite recent volatility. He based his view on the multi-year triangle breakout that occurred in November 2024.

$XRP's measured move target above $15 goes unchanged!

The breakout that took place in late 2024 hints at another 10X (>900% Increase) being possible to those price levels… pic.twitter.com/dbuZFcVCvj

— JAVONMARKS (@JavonTM1) February 25, 2026

The XRP price surged from $0.49 to $3.66 after the breakout was confirmed. Marks calculated the target by extending the triangle height from the breakout point. He said the structure still supports a 10x move from current levels. From $1.38, a rise to $15 would mark a gain above 1,000%.

Meanwhile, the XRP price has declined by over 38% on a yearly basis. The token also slipped 4.3% in the past 24 hours. However, Marks maintained that price swings do not invalidate the broader breakout setup.

Measured move analysis uses the full height of consolidation patterns. Analysts apply this method after confirmed breakouts. In this case, the late 2024 move remains the reference point.

Analysts Cite Compression Phase After 70% Pullback

Korean Elliott Wave analyst XForceGlobal said, “it’s all coming together” for XRP from a structural view. He pointed to the rally that revisited the prior all-time high zone near $3.66.

He also referenced the retracement back toward the $1 region. According to him, this reset completed two major milestones within the broader wave count. He described the current sideways movement as “compression, not weakness.”

XForceGlobal earlier projected $6 as a conservative Fibonacci extension level. He later referenced $5 and $10 as possible targets within the same wave structure. He stated that short-term volatility does not disrupt the impulsive expansion outlook.

At the same time, XRP has printed five consecutive red monthly candles. This pattern last appeared during the 2016 to 2017 consolidation period.

That earlier stretch preceded a sharp rally in 2017. Current market data also showed over $900 million in realized losses within one week.

Community commentator Archie projected a long-term chart target near $83. He based this outlook on historical breakout extensions and long cycle projections.

An $83 price would imply a multi-trillion-dollar market capitalization. Meanwhile, XRP continues to trade around $1.38 at the time of reporting.

The post XRP Price Structure Keeps 900% Upside Target Active appeared first on Blockonomi.

TLDR

South Korea’s National Tax Service exposed a crypto wallet seed phrase in an official press release.

Unknown actors used the leaked mnemonic to transfer 4 million PRTG tokens worth about $4.8 million.

Blockchain data showed three inbound transfers followed by a single outbound transfer of the full balance.

Professor Jaewoo Cho confirmed the theft and said the tokens were difficult to cash out.

In a separate case, police found that 22 Bitcoin seized in 2021 had disappeared from a cold wallet.

South Korea’s National Tax Service exposed a crypto wallet seed phrase in an official press release and lost $4.8 million in seized tokens. The disclosure allowed unknown actors to access 4 million PRTG tokens and transfer the full balance. Authorities confirmed the incident after blockchain researchers traced the movements onchain.

South Korea National Tax Service Leak Exposes 4 Million PRTG tokens

South Korea’s National Tax Service published a press release about enforcement actions against tax delinquents, and it included an unmasked wallet mnemonic. The release showed an image of a Ledger cold wallet and a sheet displaying the full seed phrase. Local media outlets, including Naver and Chosun, reported that officials failed to blur the sensitive information.

Soon after publication, blockchain analysts linked the exposed phrase to an Ether address holding 4 million PRTG tokens. Onchain records show three inbound transfers totaling 4 million PRTG into the address. The data then shows one outbound transfer sending exactly 4 million PRTG to another wallet.

Associate professor Jaewoo Cho of Hansung University’s Blockchain Research Center reviewed the flows and confirmed the loss. He wrote on X, “We have confirmed that 4 million PRTG tokens, worth approximately $4.8 million, were stolen from the mnemonic that was leaked.” He also stated that “fortunately, the other exposed mnemonics do not seem likely to cause any major issues.”

Cho added that the stolen tokens were difficult to cash out, and he said “the actual damage is at a negligible level.” However, he confirmed that unknown parties controlled the wallet after the disclosure. The National Tax Service has not publicly detailed recovery efforts.

Bitcoin Custody Case in South Korea Deepens Scrutiny

In a separate case, South Korean police discovered that 22 Bitcoin seized in a 2021 hacking probe had disappeared. Investigators found the loss in February 2026 after reviewing cold wallet holdings stored in a Gangnam police vault. The missing Bitcoin had a market value of about $65,567 per coin at the time of reporting.

Authorities arrested two suspects on Thursday after tracing the wallet movements. Investigators determined that the coins were moved using a mnemonic phrase that police had never controlled. Officials confirmed that internal procedures failed to secure exclusive access to the seed phrase.

The incidents follow scrutiny over custody practices within public agencies. Regulators also continue a probe into Bithumb after a 620,000 BTC fat finger promotion error. The exchange briefly credited users with about $43 billion in non-existent Bitcoin before correcting the balances.

The Financial Services Commission extended its investigation after criticism over system oversight. Officials have not released final findings on the Bithumb case. Police continue to investigate the missing 22 Bitcoin and the circumstances surrounding the wallet control.

The post South Korea Tax Office Leak Triggers $4.8M Crypto Loss appeared first on Blockonomi.

TLDR:

Minnesota HF3642 would make it illegal for anyone to place or operate a crypto ATM in the state.

The bill repeals Sections 53B.70–53B.75, erasing all existing kiosk licensing and compliance rules.

New customers currently get full fraud refunds within 72 hours — a protection the ban would eliminate.

Minnesota could become one of the first U.S. states to outright ban virtual currency kiosks entirely.

Virtual currency kiosks in Minnesota face a complete ban under proposed legislation introduced in the 2025–2026 session.

House File 3642 targets all crypto ATM operations in the state. The bill would prohibit any person from placing or operating a virtual currency kiosk in Minnesota.

It also seeks to repeal existing statutes that currently govern kiosk licensing, disclosures, transaction limits, refunds, and compliance requirements. This move marks a dramatic policy shift for the state.

What the Bill Proposes

Minnesota HF3642 introduces a straightforward and sweeping prohibition. Under the proposed Section 53B.691, no person may place or operate a virtual currency kiosk anywhere in Minnesota. The language of the bill leaves no room for exceptions or conditional approvals.

The bill also adds a new subdivision to Section 53B.69 to define terms specifically for the prohibition. This addition provides the legal framework needed to enforce the new ban effectively. It connects existing definitions in state law to the incoming restriction.

Beyond the ban itself, the legislation proposes a full repealer of Sections 53B.70 through 53B.75. These sections currently regulate kiosk operators through licensing, consumer disclosures, and transaction limits.

Their removal would erase the entire regulatory structure that governs crypto ATMs in the state today.

What Current Law Requires of Kiosk Operators

Under existing Minnesota statutes, virtual currency kiosk operators must follow strict disclosure rules. Before any transaction, operators must display all material risks on the kiosk screen for the customer to acknowledge.

These include warnings about price volatility, irreversible transactions, and potential fraud schemes.

Current law also requires operators to display a bold warning about scams. The warning specifically addresses fraudsters impersonating loved ones or government officials. It advises consumers that losses from fraudulent transactions cannot be recovered.

Transaction limits are also part of the existing framework. New customers face a maximum daily transaction limit of $2,000.

Existing customers, defined as those who have transacted for more than 72 hours, are subject to limits set by individual operators in line with federal law.

Refund Rules and Consumer Protections at Stake

Minnesota’s current law offers a refund pathway for new customers who fall victim to fraud. Under Section 53B.75, operators must refund the full transaction amount if a new customer was fraudulently induced.

The customer must contact the operator and a government or law enforcement agency within 14 days.

This protection applies strictly within the 72-hour new customer window. After that period, a customer transitions to “existing customer” status under Section 53B.69. At that point, the full refund obligation no longer applies.

If HF3642 passes, all of these consumer protections would be repealed along with the ban. There would be no licensed operators left to hold accountable, and no regulatory structure to enforce compliance.

Consumers who previously relied on these protections would lose that safety net entirely.

Industry and Regulatory Outlook

The bill’s passage would make Minnesota one of the few states to outright ban crypto ATM operations. Most states have moved toward regulation rather than prohibition. The trend across the country has been to tighten oversight, not eliminate it entirely.

For operators currently licensed in Minnesota, the bill represents a direct threat to existing business models. Many operators have invested in compliance infrastructure to meet the state’s existing requirements. A full ban would render that investment worthless.

The bill is now in the legislative process and has not yet been signed into law. Stakeholders across the crypto industry are expected to monitor its progress closely.

Its outcome could influence how other states approach virtual currency kiosk legislation going forward.

 

The post Minnesota Moves to Fully Ban Crypto ATMs With New 2025 House Bill appeared first on Blockonomi.

TLDR

The UK Gambling Commission is reviewing whether licensed casinos can accept cryptocurrency payments.

Tim Miller said the regulator will examine a clear path for crypto use in online betting.

Companies offering regulated crypto services must obtain FCA authorization under the Financial Services and Markets Act 2000.

The commission asked its Industry Forum to study how crypto payments could work within current gambling rules.

Research shows crypto searches often direct British gamblers to illegal gambling websites.

The United Kingdom’s Gambling Commission has started formal talks on allowing cryptocurrency payments at licensed online casinos. The regulator confirmed it will assess how digital assets could fit within existing gambling rules. Officials said the review aligns with the country’s incoming crypto regulatory framework led by the Financial Conduct Authority.

UK Gambling Commission Studies Crypto Payment Framework

Tim Miller addressed the Betting and Gaming Council’s annual meeting in London on Thursday. He said the commission wants to examine “the potential path forward” for cryptoasset payments. He explained that the regulator aims to allow crypto as a consumer payment option for licensed gambling in Great Britain. He linked this move to rising consumer interest and regulatory changes. He also confirmed that companies conducting regulated crypto activities must secure FCA authorization under the Financial Services and Markets Act 2000.

He stated that growing appetite from punters prompted the review. He said, “We do now want to start looking at what the potential path forward would be.” He added that crypto could become a consumer payment option for licensed operators. However, he clarified that accepting crypto would not change casino licensing standards. He noted that operators must still pass customer suitability checks under existing rules.

FCA Sets Timeline as UK Gambling Sector Reviews Digital Assets

Miller said he asked the Industry Forum to explore the best route for crypto payments. The advisory group represents workers across the gambling sector. He did not provide a deadline for the review. He said illegal markets research shows crypto searches often lead British gamblers to unlawful websites. He added, “Crypto is one of the two biggest searches that lead British gamblers to illegal sites.”

He explained that allowing regulated crypto payments could help protect consumers. He stated that the commission wants to reduce exposure to illegal platforms. Meanwhile, the Financial Conduct Authority released a final consultation outlining ten proposals for crypto markets. The FCA plans to complete the process in March. It targets full implementation of the new regime by October 2027.

The FCA confirmed that companies must obtain full authorization before October 25, 2027. It stated that the application window will open in September 2026. Crypto asset service providers that miss the deadline will enter transitional rules. Those rules will allow existing products but restrict new offerings. The regulator published the timeline in a document dated January 8.

The post UK Gambling Regulator Weighs Crypto Payments for Casinos appeared first on Blockonomi.

TLDR

Bank of America, Fidelity, and Morgan Stanley recommend allocating 1% to 5% of portfolios to Bitcoin.

River reported that major institutions now treat Bitcoin as a portfolio diversifier.

BlackRock advises limiting Bitcoin exposure to between 1% and 2% of total assets.

JPMorgan analysts project Bitcoin could reach $266,000 if it rivals private gold investment.

Bitcoin traded at $67,441 after falling 47% from its October peak of $126,080.

Major Wall Street firms now advise clients to hold small Bitcoin stakes within diversified portfolios. Fidelity Investments, Bank of America, and Morgan Stanley recommend allocations between 1% and 5%. These recommendations formalize Bitcoin’s role as a portfolio diversifier rather than a speculative trade.

River reported that several large institutions issued formal guidance on crypto exposure. The firms outlined allocation ranges that limit risk while allowing participation in price gains. Their guidance reflects structured portfolio models used in wealth management divisions.

Fidelity Investments advises clients to allocate between 2% and 5% to crypto assets, including Bitcoin. Bank of America recommends a 1% to 4% allocation range for diversified portfolios. Morgan Stanley suggests clients hold up to 4% in Bitcoin exposure.

Bank of America and Peers Outline Bitcoin Stakes Strategy

Bank of America placed Bitcoin within its alternative asset framework for private clients. The bank set allocation guidance between 1% and 4% of total portfolio value. The firm structured the guidance around volatility controls and diversification targets.

Fidelity Investments provided a higher allocation band of 2% to 5% for wealth clients. Morgan Stanley capped its recommended exposure level at 4%. BlackRock advised a narrower 1% to 2% range for Bitcoin holdings.

WisdomTree and JPMorgan Chase limited their recommendations to allocations of up to 1%. River compiled these figures in its institutional allocation report. The report described Bitcoin as a diversifier within multi-asset portfolios.

The firms structured their models to balance upside exposure with portfolio stability. They kept allocations limited to preserve overall asset mix targets. The guidance reflects internal research and asset allocation committees.

Price Levels and Long-Term Projections

Bitcoin reached a record high of $126,080 in October last year. The price later declined by 47% from that peak. CoinGecko data showed Bitcoin trading at $67,441 at the time of reporting.

Despite the price decline, several institutions published long-term projections. BlackRock CEO Larry Fink said Bitcoin could reach $700,000 per coin. He cited concerns about currency debasement and global financial instability.

Fidelity issued an earlier projection in September 2021. The firm estimated Bitcoin could reach $1 billion per coin by 2038. Jurrien Timmer supported that estimate using stock-to-flow and demand models.

JPMorgan analysts projected Bitcoin could reach $266,000 over time. They based the estimate on Bitcoin competing with gold as a store of value. Analysts compared private-sector gold investment totals with Bitcoin’s market capitalization.

JPMorgan stated that gold outperformed Bitcoin since last October. Analysts reported that the Bitcoin-to-gold volatility ratio fell to about 1.5. They described that level as a record low in their research note.

The bank said Bitcoin would need an $8 trillion market capitalization to reach $266,000. Analysts excluded central bank gold holdings from that comparison.

The post Bank of America, Morgan Stanley Support Bitcoin Stakes appeared first on Blockonomi.

TLDR:

Over 1.17 million US job cuts were announced in the past year, the highest total recorded since the COVID-19 pandemic era.

The US government led all sectors with 317,000 cuts, followed by UPS at 78,000 and Amazon with 30,000 job reductions.

Companies openly state that AI tools allow smaller teams to handle the same workload, replacing $150K–$200K salary roles.

Analysts warn of a ghost economy where corporate output grows but household income and consumer participation steadily decline.

US job cuts have reached alarming levels not seen since the COVID-19 pandemic. Over 1.17 million job cuts were announced across the country in the past year.

Around 600,000 of those cuts came in the first two months of 2026 alone. Companies across multiple sectors openly cite artificial intelligence as a driving force.

This trend is unfolding against the weakest white-collar hiring market since 2008, raising concerns about broader economic stability.

Major Companies Lead a Wave of Workforce Reductions

The scale of recent layoffs spans both public and private sectors. The US government alone accounted for 317,000 cuts, the largest single contributor to the total. UPS followed with 78,000 job reductions, while Amazon announced cuts of 30,000 workers.

Other major corporations have also trimmed their workforces considerably. Intel cut 25,000 jobs, and Citigroup reduced staff by 20,000. Nissan matched that figure, while Microsoft announced 15,000 cuts.

Market analyst account Bull Theory posted about the situation on social media platform X. The post noted that Verizon cut 13,000 jobs, Accenture removed 11,000, and Salesforce and Block each reduced headcount by 4,000. The figures paint a broad picture of workforce contraction across industries.

THIS IS CONCERNING.

Over 1.17 million US job cuts were announced in the last year, the highest since the pandemic.

600,000 were cut in just the first two months of 2026.

Major layoffs include:

• US Government: 317,000
• UPS: 78,000
• Amazon: 30,000
• Intel: 25,000
•… https://t.co/1I1EdPGpSE pic.twitter.com/FnlVzWDKY1

— Bull Theory (@BullTheoryio) February 27, 2026

Companies are now openly stating that smaller teams can perform the same volume of work. This shift reflects how AI tools are replacing roles previously held by high-earning professionals. The pattern suggests a structural change rather than a temporary economic adjustment.

The Ghost Economy Risk and Long-Term Consumer Demand

The concern goes beyond job numbers alone. Higher-income workers earning between $150,000 and $200,000 annually drive a large portion of US consumer spending. When software replaces those roles, corporate margins rise but household income falls.

There is also a secondary effect worth noting. The same companies cutting staff sell products and services to that same income group.

If AI-driven layoffs reduce household income at scale, demand across retail, fintech, travel, and enterprise services weakens over time.

Bull Theory’s post warned of what it called a “ghost economy,” where output grows but broad participation in that growth declines.

Short-term profitability may improve, yet the customer base supporting those profits gradually shrinks. This creates a tension between rising productivity and weakening consumer demand.

Housing, autos, travel, subscriptions, and credit quality all become sensitive under these conditions. The labor market must absorb this transition before demand weakens at the economic core.

Without that absorption, the gap between corporate earnings and household financial health will continue to widen.

The post US Job Cuts Surge to Highest Level Since Pandemic as AI Reshapes the Workforce appeared first on Blockonomi.

TLDR

Block reported fourth-quarter operating income of $485 million and raised its 2026 gross profit forecast to $12.2 billion.

Block reduced its workforce to under 6,000 employees as it shifts to a smaller and flatter structure.

Jack Dorsey said the company aims to reach more than 2 million dollars in gross profit per employee.

Block purchased 103 additional bitcoin and now holds 8,883 BTC valued at about $577 million.

Analysts said Square stands to benefit most from Block’s move toward AI-driven tools and automation.

Block reported strong fourth-quarter earnings and raised its 2026 gross profit forecast. The company also announced deep workforce cuts as it restructures operations. Analysts said Square stands to gain most from the company’s shift toward artificial intelligence tools.

Block posted an operating income of $485 million for the fourth quarter, while adjusted operating income reached $588 million. Net income attributable to common stockholders totaled $116 million, and adjusted EBITDA rose to $930 million. The company lifted its 2026 gross profit guidance to $12.2 billion, which reflects 18% annual growth.

Shares of Block surged more than 22% in after-hours trading following the results. The stock traded near $62.34 at publication, reflecting a 14% gain. However, the shares remain over 70% below their pandemic-era peak.

Block Restructures Workforce and Expands Bitcoin Holdings

Block reduced its workforce from more than 10,000 employees to just under 6,000. Chief Executive Officer Jack Dorsey said the company aims to become “smaller” and “flatter” while operating as AI-first. He stated on X, “Yes, we over-hired during COVID because I incorrectly built two separate company structures.”

Dorsey added that the company corrected its structure in mid-2024. He also said Block now targets more than $2 million in gross profit per employee. He wrote that this goal represents four times its pre-pandemic efficiency, which stayed near $500,000 until 2024.

Block also purchased 103 additional Bitcoins during the quarter. The company now holds 8,883 BTC valued at about $577 million at current prices. This position ranks Block fourteenth among corporate bitcoin treasuries.

Square Expected to Lead Growth Under AI Strategy

Analysts at William Blair maintained an “outperform” rating and set a $67 price target on Block shares. Andrew Jeffrey and Adib Choudhury wrote that the workforce reduction reflects a reassessment of how Block will compete and drive returns. They stated that Square could benefit most from the company’s AI-centered model.

They wrote, “We anticipate that Square will increasingly automate customer functionality.” They added that merchants may build bespoke AI solutions through Square’s tools. The analysts said they believe Square leads competitors in this capability.

Square’s year-to-date gross payment volume growth reached 7.5%, which exceeded the fourth quarter pace by 50 basis points. Management reported that payment volume rose 12% year to date, marking a two-point acceleration. New restaurant-focused products helped drive a 29% increase in new volume, delivering the strongest quarter in nearly five years.

Cash App generated $865 million in financial services gross profit during the quarter. This result exceeded William Blair’s $770 million estimate. Analysts said short-term consumer liquidity products continue to support Cash App’s growth.

The post Block Earnings Jump as Square Eyes AI-Driven Growth appeared first on Blockonomi.

TLDR

Russia plans to launch regulated cryptocurrency trading once lawmakers approve the new digital asset framework.

Moscow Exchange will offer Bitcoin and Ethereum trading to non-professional investors under a centralized model.

Qualified investors will gain access to Solana, selected stablecoins, and crypto-related derivatives.

Draft legislation sets an annual crypto purchase cap of less than four thousand dollars for ordinary investors.

Authorities will require all investors to pass mandatory tests before buying digital assets.

Russia is preparing to open its regulated cryptocurrency market this summer, yet strict limits will shape the rollout. Financial firms plan to offer access to digital assets once lawmakers approve a new framework. However, draft rules show caps, filters, and blacklists will restrict how citizens use cryptocurrencies.

MOEX plans Bitcoin and Ethereum Launch as Russia Tightens Framework

Moscow Exchange confirmed it will begin cryptocurrency trading once the new law takes effect. The platform expects lawmakers to adopt the framework by July 1. It plans to list Bitcoin and Ethereum for non-professional investors, while qualified investors will access Solana, selected stablecoins, and ETF-based derivatives.

MOEX will operate a centralized model and act as an intermediary for registered users. The exchange will provide custody and settlement services under its existing license. Earlier, it launched four futures tied to ETFs tracking Bitcoin and Ethereum after the central bank approved such products in May 2025.

The exchange also introduced its own Bitcoin and Ethereum indices. In February, the operator announced plans to add indices tracking Solana, XRP, and Tron. Forbes Russia reported the expansion plans, and MOEX confirmed the intention without disclosing dates.

Banking Filter and Caps Outline Limits for Russian Crypto Users

The Central Bank outlined the regulatory concept in December and expanded investor access beyond highly qualified participants. Draft legislation now sets an annual purchase cap of under $4,000 for ordinary investors. Authorities will also require all investors to pass tests before buying digital assets.

Officials plan to introduce a “banking filter” for cryptocurrency transactions. RBC reported that the central bank and finance ministry proposed the mechanism this week. Regulators intend to track every crypto-related fund movement under the new regime.

Russian residents will face limits on domestic and cross-border crypto transfers. The law will continue to prohibit cryptocurrency payments within Russia. Non-residents, qualified investors, and foreign trade entities will receive broader permissions for cross-border settlements.

Traditional financial institutions, including exchanges and brokers, will process crypto transactions under current licenses. Dedicated crypto platforms will operate under separate and stricter requirements. Kommersant reported that operators cannot provide services that help residents bypass restrictions.

Regulators will prohibit platforms from facilitating purchases of anonymous coins. The Central Bank will publish a list of prohibited cryptocurrencies. Authorities will also blacklist crypto businesses that violate the rules and block client transfers to those platforms.

The post Russia Crypto Rollout Faces Tight Curbs Before Launch appeared first on Blockonomi.

TLDR

Trump Media announced plans to spin off Truth Social into a separate public entity called SpinCo.

The company said SpinCo would merge with Texas Ventures III under the proposed transaction.

Trump Media plans to distribute shares of the new entity to DJT shareholders before its pending merger with TAE Technologies.

The firm stated that the transaction aims to create shareholder value through focused public companies.

DJT shares fell about 2.10% following the announcement and have declined around 40% in six months.

Trump Media and Technology Group announced plans to separate Truth Social into a standalone public company. The company said it would create a new entity called SpinCo before merging it with Texas Ventures III. However, shares fell 2.10% as markets declined, and the stock has dropped about 40% in six months.

Trump Media Details Planned SpinCo Structure

Trump Media confirmed it is evaluating a transaction that would separate Truth Social and certain businesses. The company said SpinCo would merge with Texas Ventures III under the proposal. However, Trump Media did not specify which assets would remain with the parent company.

The company said it would distribute shares of the new entity to DJT shareholders. It plans to complete that step before its pending merger with TAE Technologies. TAE Technologies continues to pursue fusion power development while the merger remains pending.

Trump Media stated that the structure aims to create focused public companies. The company said, “The contemplated transaction is intended to create shareholder value through the creation of pure play companies, each with distinct strategies.” However, the market reaction remained muted following the announcement.

Shares of DJT traded near $10.73 after the disclosure. The stock declined about 2.10% during the trading session. It has fallen roughly 40% over the past six months.

Trump Media Expands Bitcoin and Crypto ETF Strategy

Trump Media increased its exposure to Bitcoin and related assets last year. The company allocated $2 billion to Bitcoin and Bitcoin-linked securities. It said the move would “protect itself from discrimination from financial institutions.”

The company filed for a Bitcoin ETF in June last year. It later filed for a crypto blue-chip ETF that includes Ethereum, Solana, and XRP. However, regulators have not finalized decisions on those filings.

Earlier this year, Trump Media filed for a joint Truth Social-branded Bitcoin and Ethereum ETF. It also filed for an ETF centered on Crypto.com’s CRO token. The filings signaled continued expansion of its crypto investment strategy.

Trump Media is working with Crypto.com on a digital token project. The company plans to airdrop the token to its shareholders. It seeks to integrate crypto rails across its businesses.

The post Trump Media Eyes Truth Social Split After Bitcoin Moves appeared first on Blockonomi.

TLDR

Barclays is exploring blockchain technology for core banking services, including payments and deposits.

The bank has requested information from several technology providers for a potential blockchain platform.

Sources said Barclays could select a technology vendor as early as April.

The proposed platform may support stablecoins and tokenized deposit applications.

Barclays recently invested in Ubyx, a US-based stablecoin clearing platform.

Barclays has started exploring blockchain technology for core banking services, according to a Bloomberg report. The bank has approached technology providers about building a platform for payments and deposits. Sources said Barclays could select a vendor as early as April, marking a clear step toward digital ledger integration.

Barclays Explores Blockchain for Payments and Deposits

Bloomberg cited people familiar with the matter who confirmed the internal review. The report said Barclays issued requests for information to several technology suppliers. However, the bank has not disclosed the names of those companies.

The proposed platform would support payments and deposits on blockchain infrastructure. It would also handle crypto-related services, including stablecoins and tokenized deposits. Therefore, Barclays aims to assess whether distributed ledgers can support core banking functions.

Sources told Bloomberg that the bank continues to evaluate technical and regulatory requirements. They said vendor selection may occur by April if reviews proceed on schedule. However, Barclays has not publicly confirmed the timeline or scope.

The report linked this initiative to recent digital asset activity by the lender. Last month, Barclays invested in Ubyx, a US-based stablecoin clearing platform.

Stablecoins Gain Traction as Institutions Test Tokenized Deposits

Banks and technology firms continue to test stablecoins for faster settlements. Stablecoins allow round-the-clock transactions and lower processing costs compared to traditional systems. Therefore, institutions have increased efforts to assess tokenized payment models.

Bloomberg placed Barclays’ review within this broader industry activity. The report said banks are studying tokenized deposits and onchain payment systems. These tools could streamline cross-border transfers and reduce reliance on intermediaries.

Separate reports have suggested that Barclays may assist a potential initial public offering by Ledger. However, neither Barclays nor Ledger has confirmed that involvement. Ledger operates as a crypto hardware wallet provider serving digital asset users.

Interest in stablecoins has also expanded beyond traditional lenders. Meta Platforms is revisiting stablecoin plans years after shelving its Diem project. Bloomberg reported that Meta has renewed internal discussions about blockchain-based payments.

Lawmakers in the United States continue to debate stablecoin legislation. Policymakers are discussing market structure and rules for issuers. Some proposals address whether issuers may offer rewards to stablecoin holders.

The post Barclays Reviews Blockchain for Payments and Deposits appeared first on Blockonomi.

Key Highlights

Globalstar achieves $71.96M in quarterly revenue, exceeding analyst projections even with reported losses.

Shares jump 4% as the company outlines ambitious growth plans through 2026.

Fourth-quarter results demonstrate robust performance in satellite communications and IoT sectors.

Revenue expansion continues despite per-share losses, indicating sustainable growth trajectory.

Wall Street analysts maintain bullish stance with $66.50 average price target for GSAT.

Globalstar, Inc. (GSAT) delivered noteworthy fourth-quarter performance metrics, recording a loss of $0.07 per share while simultaneously demonstrating remarkable revenue expansion. The satellite communications firm witnessed its share price surge 4.00% to reach $60.19 in midday market activity. Although the quarterly losses exceeded analyst forecasts, the company’s robust revenue trajectory suggests a promising outlook for its operational future.

Revenue Performance Exceeds Market Predictions

The satellite operator delivered quarterly revenue totaling $71.96 million, beating the Zacks Consensus Estimate by 0.23%. This represents substantial progress compared to the prior year’s figure of $61.18 million achieved by the company. While per-share losses were recorded, the firm’s capacity to generate above-forecast revenue demonstrates its sustained competitive advantage within the satellite communications marketplace. These results emerge as the organization continues enhancing its service revenue streams and Internet of Things functionalities.

Service revenue experienced a 17% year-over-year increase, primarily driven by enhanced wholesale capacity offerings and performance-based incentives. Furthermore, the introduction of advanced two-way satellite IoT technologies and the deployment of the RM200M module have significantly broadened Globalstar’s commercial footprint. This service revenue expansion corresponds with the company’s strategic initiatives to scale operations through cutting-edge satellite infrastructure and diversified IoT applications.

Strong Forward-Looking Growth Trajectory

Management forecasts 2026 revenue ranging from $280 million to $305 million, accompanied by an adjusted EBITDA margin hovering around 50%. The company’s sustained emphasis on broadening satellite IoT capabilities, combined with strategic partnerships across government and defense industries, establishes a foundation for substantial expansion. Globalstar intends to fortify its competitive standing while scaling operations with advanced-generation satellite infrastructure.

The organization’s forward guidance remains encouraging, bolstered by its diversifying portfolio of service solutions. Market success will largely depend on maintaining momentum within the satellite communications arena, especially through continued government and defense sector partnerships. Wall Street maintains an optimistic perspective, with consensus 12-month projections reaching $66.50, implying approximately 15% appreciation potential from current trading levels.

Wall Street Perspective and Growth Potential

The company’s latest financial disclosure has not diminished analyst confidence in the equity. Average analyst sentiment remains at “buy” level, with consensus price objectives set at $66.50. This bullish perspective persists despite current losses and competitive headwinds within the intensely contested satellite communications sector.

Globalstar’s 2026 success will depend on maintaining expansion momentum while navigating industry challenges. Moving forward, strategic priorities include scaling IoT capabilities and delivering consistent operational excellence across government and defense verticals. Through these initiatives, Globalstar appears well-positioned to strengthen its satellite communications market presence and sustain its upward growth path.

 

The post Globalstar (GSAT) Delivers Impressive Q4 Revenue Growth Amid Operational Losses appeared first on Blockonomi.

Key Takeaways

Shares of Sunrun plummeted 28% to $14.74 following the release of conservative 2026 guidance

Fourth quarter earnings delivered 38 cents per share, significantly surpassing analyst expectations of 3 cents; revenue jumped 124% to reach $1.16 billion

Company forecasts 2026 cash generation between $250M and $450M, representing a potential decrease from 2025’s $377M

Investment firm Jefferies cut its rating on RUN to Hold from Buy while maintaining a $22 price target

Management’s silence on potential dividends or share repurchases left investors disappointed

The solar company delivered impressive fourth quarter results, posting earnings of 38 cents per share—substantially exceeding the analyst consensus of just 3 cents. Revenue reached $1.16 billion, representing a remarkable 124% increase compared to the previous year. Much of this revenue surge stemmed from a strategic decision to sell newly created lease agreements to external parties—marking a fresh approach for the organization.

$RUN @Sunrun just delivered the most overlooked earnings beat of the season.

EPS: $0.76 vs -$0.07 expected → Beat by 1,186%
Revenue: $1.16B — UP 124% YoY
Storage attachment: 71% — record high
1M+ customers — America's largest home battery network
Cash up $248M… pic.twitter.com/cetSouKnOj

— robot2trade (@robot2trade1) February 27, 2026

However, it was the forward-looking guidance that spooked market participants.

Management provided 2026 cash generation estimates ranging from $250 million to $450 million. The midpoint of this forecast—$350 million—falls short of the $377 million achieved in 2025. This apparent regression caught Wall Street’s attention immediately.

Shares declined 28% to close at $14.74 on Friday. The drop is particularly painful considering the stock had rallied 182% over the preceding twelve months and gained 11% year-to-date before the earnings announcement.

Investment bank Jefferies revised its stance, downgrading the stock from Buy to Hold while keeping its $22 price objective intact. Research analyst Julien Dumoulin-Smith characterized the company’s approach as adopting a “defensive posture” heading into fiscal 2026.

Analyst Highlights Conservative Stance

Dumoulin-Smith observed a notable contrast: while competing residential solar firms have expressed increasing optimism about market recovery, Sunrun’s management painted a more sobering picture during its earnings conference call—emphasizing extended market weakness and heightened focus on balance sheet discipline.

The company also revealed plans to reduce its affiliate partner network by approximately 40%. Jefferies interprets this restructuring as an indicator that total installations and new customer acquisitions will decelerate.

Market participants had anticipated announcements regarding dividends or stock buyback programs, particularly given the robust cash generation in 2025 and meaningful progress toward the company’s 2x leverage ratio objective. Management declined to commit to either option. Executives clarified that returning capital to shareholders remains under consideration, but current priorities center on safe-harbor investments and reducing outstanding debt.

Jefferies identified challenging conditions in tax equity markets and quality issues among Sunrun’s partner ecosystem as further obstacles ahead.

The firm maintained its constructive long-term view on Sunrun but anticipates limited share price appreciation through 2026 until capital market conditions normalize.

Contrarian Voice Emerges

Not all analysts share this pessimistic outlook. Clear Street analyst Tim Moore reaffirmed his Buy recommendation and increased his price objective to $24 from $23.

Moore expressed confidence despite anticipated volume reductions, highlighting Sunrun’s strategic pivot toward channels with superior profit margins. He believes the monetization strategy for newly created subscription agreements will drive improved profitability even if installation volumes decline.

Jefferies also acknowledged that third-party originators such as Sunrun stand to benefit from approximately 25% growth this year following the conclusion of the 25D tax credit—though this potential upside hasn’t yet materialized in official guidance.

Sunrun’s measured outlook contrasts sharply with industry peers like Enphase Energy, which has aggressively pursued prepaid lease and loan products as the sector undergoes transformation.

The stock concluded Friday’s trading session at $14.74, down 28% for the day.

The post Sunrun Shares Plunge 28% Following Disappointing 2026 Cash Flow Forecast appeared first on Blockonomi.

Key Takeaways

Q4 net profit reached $894.8 million for Nu Holdings (NU), marking a 50% year-over-year increase

Revenue climbed 45% to $4.86 billion while customer count expanded to 131 million throughout Brazil, Mexico, and Colombia

Shares declined 9.55% on Feb. 26, finishing at $15.06 even after surpassing revenue projections

Market participants expressed concern about rising operational costs and unclear margin outlook

The company secured conditional OCC approval in January 2026 to operate a U.S. national bank

On Feb. 25, 2026, Nu Holdings (NU) unveiled impressive fourth-quarter results for 2025, yet shares tumbled 9.55% the next trading session to settle at $15.06.

Nu Holdings, $NU, Q4-25.

Record scale. Record profits.

Adj. EPS: $0.18
Revenue: $4.9B
Net Income: $894.8M

Net income surged 50% YoY with ROE at 33% and ARPAC up 27% YoY to $15.00.
131M customers and accelerating monetization. pic.twitter.com/zo0QkuzFuH

— EarningsTime (@Earnings_Time) February 25, 2026

The market reaction surprised many observers, given the company’s robust performance metrics.

Quarterly net profit reached $894.8 million, representing a 50% jump from the $552.6 million recorded in Q4 2024. Total revenue climbed to $4.86 billion, reflecting 45% annual growth and exceeding Wall Street expectations of approximately $4.55 billion.

The financial services company achieved a 33% return on equity while its efficiency ratio improved to 20%.

Customer acquisition remained strong with 17 million new users joining during the quarter. By year-end 2025, Nubank served 131 million customers throughout its three operating markets—Brazil, Mexico, and Colombia. This represented 15% annual growth and penetration of 62% among Brazilian adults.

Revenue per active customer (ARPAC) increased 27% year-over-year to $15, boosted by growth in credit products, float revenue, and fee-based services.

The company’s total loan book grew 40% to $32.7 billion. Delinquency rates for loans past 90 days improved slightly, declining 0.1 percentage points to 6.6%.

Market Concerns That Drove the Selloff

JPMorgan analysts observed that the profit beat stemmed primarily from a lower tax rate rather than core operational strength. This observation provided ammunition for skeptical investors.

Citi described the results as a “strong quarter on top-line” but highlighted concerns around cost of risk and operating expense trends that complicated the overall narrative.

The market also reacted negatively to management’s lack of specific forward-looking guidance on profitability margins, creating uncertainty about future performance.

Shares initially spiked 4% immediately following the earnings release, but momentum reversed sharply. By the Feb. 26 close, NU had fallen as much as 9.55%. After-hours trading showed continued weakness with shares hovering around $15.07.

CFO Guilherme Lago attributed the profit gains to expanding customer numbers, improved revenue per user, and controlled servicing costs. CEO David Vélez characterized 2025 as a “fantastic year” for the company.

Building a Presence in the United States

January 2026 brought significant news when Nubank obtained conditional OCC approval for a U.S. national bank charter—the first of three required regulatory clearances. The firm has a 12-month window to satisfy capitalization requirements.

Vélez recognized the challenging competitive landscape in U.S. banking but emphasized opportunities within targeted customer segments.

Looking ahead to 2026, leadership highlighted key strategic priorities: securing Mexico’s banking license, expanding services for small businesses and affluent customers, and integrating artificial intelligence throughout operations.

Wall Street sentiment remains largely positive. Analyst price targets for the next 12 months span from $18.05 to $22.00, suggesting potential gains of 20% to 46% from current trading levels. The majority of ratings are in Buy territory.

Shares have traded between $9.01 and $18.98 over the past 52 weeks, with the recent peak near $18.98 occurring in late January 2026. Current market capitalization stands between $78 billion and $80 billion.

The company’s next quarterly report is scheduled for May 14, 2026, covering first-quarter 2026 performance.

The post Nu Holdings (NU) Shares Plunge 9% Following Strong Q4 Results appeared first on Blockonomi.

Key Takeaways

Shares of Duolingo plummeted more than 20% following management’s decision to emphasize expanding its user base rather than maximizing immediate revenue.

JPMorgan and BofA Securities both moved DUOL to Neutral ratings, with price targets falling sharply to $95 and $100 respectively.

Management set an ambitious goal of reaching 100 million daily active users by 2028, acknowledging this will create near-term pressure on bookings and profitability.

A $400 million share repurchase program was approved to provide support for the stock throughout this strategic transition period.

Additional downgrades came from Morgan Stanley and Evercore ISI, with analysts expressing concern about growth deceleration and strategic direction.

Duolingo (DUOL) experienced a brutal trading session on Friday. Shares plunged over 20% during early market hours, dropping to $90.76, as Wall Street reacted negatively to a significant change in the company’s strategic direction.

Company leadership revealed plans to dial back aggressive monetization tactics in order to prioritize expanding daily active users. Management is targeting 100 million daily active users by 2028, a substantial increase from today’s figures.

This strategic announcement was paired with disappointing 2026 financial projections, creating the perfect storm for a massive selloff.

Duolingo actually exceeded fourth quarter 2025 expectations, delivering $0.84 in earnings per share compared to the anticipated $0.83. Revenue reached $282.9 million, surpassing the $275.74 million estimate. However, investors were more concerned about future prospects than past performance.

Over the previous two years, the language-learning platform had aggressively promoted subscription upgrades and increased ad impressions. While this strategy boosted profitability, it simultaneously degraded the experience for free users. Consequently, user acquisition began decelerating in the latter half of 2025.

The company’s solution involves reducing monetization intensity. The application will focus on enhancing the free user experience, betting that satisfied users will organically promote the platform through word-of-mouth recommendations.

Artificial intelligence capabilities such as “Video Call with Lily,” which were previously exclusive to paying subscribers, will become accessible to all users. However, this democratization carries higher operational costs that will compress profit margins temporarily.

Wall Street Turns Bearish

JPMorgan analyst Bryan Smilek downgraded DUOL from Overweight to Neutral while slashing his price target from $200 down to $95. He pointed to the user-first approach as a catalyst for reduced bookings and margin compression, emphasizing that the investment payoff will require considerable time.

BofA Securities analyst Omar Dessouky similarly downgraded shares from Buy to Neutral, reducing his target price from $250 to $100. His primary concern centered on Duolingo’s minimal advancement in performance marketing capabilities, with management indicating they’re unlikely to build this expertise internally.

BofA characterized this as a strategic miscalculation, particularly considering the sophisticated ad targeting capabilities now available through platforms like AppLovin and Google. The investment bank stated that its original bullish investment thesis had been invalidated.

Morgan Stanley dropped its rating from Overweight to Equalweight. Evercore ISI shifted from Outperform to In Line. KeyBanc maintained its Sector Weight stance.

D.A. Davidson analyst Wyatt Swanson offered a more understanding perspective, noting that previous aggressive monetization approaches had created “disgruntled users and a meaningful negative impact to ‘word-of-mouth’ marketing.”

Company Unveils Buyback Program

To provide price support during this strategic transformation, Duolingo announced authorization for a $400 million share repurchase program. This signals that management believes current share prices significantly undervalue the company.

DUOL has declined approximately 69% over the trailing twelve months. The stock is now trading close to its 52-week low.

According to TipRanks, the consensus analyst rating stands at Hold, comprised of five Buy ratings, 10 Hold ratings, and one Sell rating. The average twelve-month price target of $139.64 suggests approximately 49% potential upside from current trading levels.

The $400 million buyback program remains in effect as Duolingo pursues its ambitious 2028 user base expansion objectives.

The post DUOL Stock Plunges 20% Following Multiple Analyst Downgrades and Strategy Shift appeared first on Blockonomi.

Key Takeaways

IonQ shares climbed 21.7% Thursday following stronger-than-expected Q4 results and optimistic 2026 projections

The company reported $130 million in total 2025 revenue with 2026 targets ranging from $225 to $245 million

Leadership drew parallels between IonQ’s current position and Nvidia’s early-stage expansion

A 256-qubit quantum system is slated for Q4 2026 release, while SkyWater Technology acquisition moves forward

Street opinion remains divided: Rosenblatt maintains $100 price target while DA Davidson lowered theirs to $35

 

IonQ delivered $61.9 million in fourth-quarter revenue, bringing its complete 2025 fiscal year total to $130 million. These numbers exceeded analyst consensus estimates, propelling shares to close at $40.88 Thursday — representing a 21.7% single-day gain.

Session volume reached 66.4 million shares, substantially higher than the three-month daily average. Such elevated activity typically indicates meaningful institutional participation rather than retail-driven volatility.

Looking ahead to 2026, management issued revenue guidance between $225 million and $245 million. Chief Executive Niccolo de Masi characterized 2025 as “a strategic and financial inflection point” for the organization.

Chief Financial Officer Inder Singh highlighted that commercial clients represented over 60% of 2025 sales, while international markets contributed more than 30%. The balance sheet closed the year with $3.3 billion in cash and investment holdings.

During post-earnings commentary, de Masi revisited comparisons to Nvidia‘s early development. He noted that Nvidia previously reported $60 million in quarterly revenue — similar to IonQ’s current scale. “There’s room for us to go a long way,” he stated.

He also recognized IBM as the primary competitive force. “There’s two ecosystems — there’s IBM and there’s the rest of us,” de Masi commented. Gartner identified IBM last year as “the quantum computing company to beat.”

Advanced Qubit Platform and SkyWater Acquisition

IonQ aims to deliver a 256-qubit production system during Q4 2026. Additionally, the firm announced deployment of quantum-secured communication links throughout Romania’s National Quantum Communication Infrastructure — consisting of 36 connections spanning more than 1,500 kilometers.

The organization has pursued multiple acquisitions recently, adding capabilities in atomic clock technology, quantum sensing equipment, and semiconductor production. The pending SkyWater Technology acquisition would enable vertical integration of chip manufacturing — a strategic shift several analysts view favorably.

Skepticism persists among some observers who question whether rapid expansion ahead of profitability introduces unnecessary execution risk. IonQ has not yet posted positive annual earnings.

Analyst Perspectives

Wall Street responses following the earnings release varied considerably. Rosenblatt’s John McPeake maintained his buy recommendation with a $100 price objective. DA Davidson’s Alexander Platt held a neutral stance while reducing his target to $35. Needham’s Quinn Bolton adjusted his estimate downward to $65.

This divergence highlights the ongoing tension: growth-oriented investors remain enthusiastic about the company’s trajectory, while concerns about cash consumption and integration challenges surrounding transactions like SkyWater keep others cautious.

Over the trailing twelve months, IonQ shares have appreciated 66%, significantly outperforming the Nasdaq Composite’s 23% advance. Competitor D-Wave has surged nearly 270% during the same period, while Rigetti has posted approximately 120% gains.

Following his company’s recent earnings, D-Wave CEO Alan Baratz warned investors to anticipate “unpredictable revenue patterns” in coming quarters. Rosenblatt characterized his firm’s latest quarter as “uneventful,” though bookings remained robust despite a 27% year-over-year decline.

IonQ management is set to participate in the Morgan Stanley Technology, Media & Telecom Conference on March 4, with a subsequent appearance at the Cantor Global Technology & Industrial Growth Conference scheduled for March 11.

The post IonQ Shares Soar Over 20% Following Strong Q4 Results and Ambitious 2026 Outlook appeared first on Blockonomi.

TLDR

Warner Bros Discovery’s board has labeled Paramount Skydance’s $111bn proposal as “superior” compared to Netflix’s competing offer

Netflix has withdrawn from the bidding, stating the $31 per share valuation makes the acquisition “no longer financially attractive”

The Paramount proposal encompasses WBD’s complete portfolio, including HBO, CNN, and iconic franchises like Harry Potter and Batman

Significant regulatory scrutiny lies ahead, with California’s Attorney General and federal/European authorities still reviewing the transaction

Employees at both CBS News and WBD have expressed serious concerns regarding potential layoffs and editorial direction under Ellison leadership

Paramount Skydance has overcome a significant obstacle in its pursuit of Warner Bros Discovery following Netflix’s decision to exit the competition, propelling Paramount shares 6% higher in extended trading.

Paramount has won the bidding war for Warner Bros. after Netflix withdrew, saying that the deal was no longer financially attractive.

Paramount will now own the following:

— HBO / HBO Max
— CNN
— CBS
— DC Studios
— Cartoon Network
— Adult Swim
— Paramount+
— Nickelodeon… pic.twitter.com/utXHZ33Hdn

— FearBuck (@FearedBuck) February 26, 2026

On Thursday, Netflix announced it would decline to counter Paramount’s $31-per-share proposal after WBD’s board designated it as the “superior” bid. Netflix’s co-CEOs Ted Sarandos and Greg Peters explained that the elevated price point rendered the transaction “no longer financially attractive.”

This decision concludes several months of competitive bidding that commenced when Paramount initially contacted WBD in September.

The $111bn Paramount proposal encompasses WBD’s entire operations — including HBO, CNN, and valuable intellectual property like Harry Potter and Batman franchises. By contrast, Netflix’s initial $83bn December agreement covered exclusively WBD’s studio operations and streaming platforms.

The Ellison family, which merged Skydance with Paramount in the previous year, stands to acquire oversight of CBS News, 60 Minutes, and CNN through this proposed consolidation.

David Zaslav, WBD’s CEO, praised the transaction, stating it “will create tremendous value for our shareholders.”

Netflix shares surged 8.5% in after-market trading, with investors seemingly pleased the streaming giant avoided a transaction carrying substantial antitrust exposure.

Regulatory Road Ahead

The transaction remains far from finalized. Approval from the US Department of Justice and European regulatory bodies is still required.

California’s Attorney General Rob Bonta confirmed his office maintains an active investigation and plans to conduct a “vigorous” review. “Paramount/Warner Bros is not a done deal,” he stated via social media.

Paramount enhanced its proposal by increasing the per-share price by $1 from its December offer, introduced a $0.25-per-share quarterly payment should the deal extend beyond September, and included a $7bn breakup fee if regulatory authorities reject it.

Additionally, Paramount committed to assuming the $2.8bn termination payment WBD would owe Netflix upon exiting their original agreement.

Staff Concerns

Personnel at CBS News and WBD have responded to the announcement with considerable apprehension. Workers anticipate that combining two major news operations will result in workforce reductions as duplicate positions are consolidated.

Several staff members have voiced unease about Bari Weiss, who was named CBS News editor-in-chief last October, potentially assuming expanded responsibilities. Weiss lacks previous television news background, and her leadership has received mixed reviews.

A CBS News producer cautioned the consolidation would be “a disaster for the people who work at both companies.”

Seth Stern from the Freedom of the Press Foundation issued sharp criticism, cautioning that Ellison would favor corporate priorities above journalistic independence.

Political considerations have also emerged as factors. Trump, who maintains ties to Larry Ellison, has commented publicly on the bidding process on multiple occasions. David Ellison was present at Trump’s State of the Union address Tuesday as Senator Lindsey Graham’s guest.

WBD has scheduled an employee town hall meeting for Friday morning. In a Thursday memorandum, CNN leader Mark Thompson encouraged staff to avoid premature conclusions.

Paramount shares gained 6% in after-hours trading when the news broke.

The post Paramount (PSKY) Shares Surge as Netflix Abandons Warner Bros Discovery Pursuit appeared first on Blockonomi.

Quick Overview

Q4 2025 earnings release scheduled for March 2, following market close

Analysts project EPS of -$0.11 alongside revenue expectations of $217.3M

Jose Crespo assumes CEO position March 1, making this his inaugural earnings presentation

Shares have declined over 7% in 2025, with Hold ratings from Seeking Alpha and Wall Street

Management maintains $700M FY25 revenue objective, noting EBITDA profitability is within reach

Meta Description: Plug Power (PLUG) prepares for Q4 2025 earnings Monday with new CEO leadership, analyst expectations of -$0.11 EPS, and $217.3M revenue projections.

The hydrogen infrastructure company Plug Power is scheduled to unveil its Q4 2025 financial results this Monday, March 2, following the market close. This particular earnings announcement carries additional significance due to concurrent leadership changes.

Wall Street analysts have established a consensus EPS projection of -$0.11, accompanied by revenue expectations reaching $217.3M. The past quarter has witnessed an even split in analyst adjustments, with three upward and three downward revenue revisions—indicating divided opinion among market watchers.

During the previous quarter, PLUG exceeded earnings expectations by a penny, posting -$0.12 against the anticipated -$0.13. However, investor response proved muted, with shares declining 1.17% in the subsequent trading session.

This subdued reaction fits an established pattern. The Q2 2025 report saw Plug Power miss projections by $0.04, triggering a 2.53% share price decline. Q1 2025 proved even more challenging, with post-earnings trading showing losses exceeding 10%. The market has demonstrated consistent skepticism toward the company’s progress.

As of February 26, shares were changing hands at $1.91. The year-to-date performance shows a decline exceeding 7%, contrasting with broader market stability during the same period.

Looking at the full 52-week period tells a more nuanced story—PLUG has gained 22.33%, providing some relief for long-term shareholders.

Leadership Transition at Critical Moment

The upcoming quarterly report marks a significant milestone as Jose Crespo’s first earnings disclosure as chief executive. His official start date of March 1 positions him to lead the earnings presentation just 24 hours into his tenure.

Market participants are eager to hear Crespo articulate any shifts in company strategy or major initiatives he plans to implement.

The company’s CFO has previously emphasized the latter half of 2026 as a pivotal timeframe for operational improvements, referencing enhanced sales patterns, increased volume, and expense optimization. Regarding EBITDA profitability, management characterized it as “definitely in the art of the possible to go sooner.”

Management has also acknowledged certain historical challenges that have impacted results, though specific details remain undisclosed.

Financial Metrics Tell a Challenging Story

The company’s current financial position presents ongoing difficulties. Key metrics include a net margin of -204.38%, return on equity of -23.36%, and return on assets of -11.21%—all trailing industry benchmarks.

A noteworthy positive indicator: the debt-to-equity ratio stands at 0.7, below industry norms. This conservative leverage profile provides management with operational flexibility moving forward.

Revenue expansion registered at 1.91% for the quarter ended September 30, 2025. While representing growth, this figure lags behind typical performance within the Industrials sector.

Management has identified the electrolyzer segment as a promising growth catalyst, expressing confidence in expansion opportunities throughout the upcoming fiscal period.

The company maintains its full-year 2025 revenue target of $700M.

Both Seeking Alpha’s quantitative analysis and the Wall Street analyst community have assigned Hold ratings to the stock.

Monday’s Q4 earnings presentation will provide initial insights into Crespo’s strategic vision for navigating the company’s operational hurdles.

The post Plug Power Q4 Earnings Preview: New Leadership Faces First Test Monday appeared first on Blockonomi.