Hi Reader,

Thanks for reading The BlockByte Weekly, where we summarise the key updates in crypto over the last week and provide our perspective on what you need to know as an investor.
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Executive Summary

This week the crypto markets remained relatively flat. Arizona’s Bitcoin Reserve Bill passed both the Senate and House of Representatives but was vetoed at the final hurdle by Governor Hobbs on Friday. Hobbs noted it would not invest any of the states retirement savings into "untested investments like virtual currency".

Strategy announced a further $21 billion stock offering within a new $84 billion capital raise target. To date, Strategy holds 553,555 BTC worth $52 billion after raising ~$26.7 billion from investors.

Lastly, Ripple’s $4-5 billion bid for Circle was rejected, with Circle eyeing IPO and European growth. XRP dipped 5.15% on the news but has since recovered. The battle for stablecoin market share is heating up as major banks and non-bank players recognise the enormous size and potential of moving currency on chain and away from traditional, slower and more expensive payment rails.

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Performance of the Top 5 Crypto Assets Over the Week

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Market Update

Arizona’s Bitcoin Reserve Bill Vetoed by Governor

On April 28, 2025, the Arizona House and Senate passed Senate Bill 1025, the Arizona Strategic Bitcoin Reserve Act, with votes of 31-25 and 29-25, respectively. The bill, co-sponsored by Senator Wendy Rogers and Representative Jeff Weninger, aimed to allow Arizona to invest up to 10% of public funds in bitcoin as a strategic reserve, positioning the state as the first in the US to adopt such a policy. However, on May 2, 2025, Governor Katie Hobbs vetoed the bill, citing concerns over bitcoin as an “untested investment” and prioritising bipartisan disability funding.

The veto has sparked debate among crypto advocates, who argue Arizona missed a chance to hedge against inflation and diversify its reserves. Critics, including Senator Rogers, called it a rejection of financial innovation, while supporters of the veto emphasise the need for stability in public pension funds. With states like North Carolina advancing similar legislation, the race for state-level bitcoin reserves continues, though Arizona’s setback may temper expectations.

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Strategy Announces Additional $21B Stock Offering to Acquire Bitcoin

Strategy has announced a $21 billion at-the-market (ATM) common stock offering as part of its ambitious 42/42 Plan, aiming to raise $84 billion by 2027 ($42 billion in equity and $42 billion in fixed-income securities) to acquire more bitcoin. The company reported a Q1 2025 loss of $4.2 billion, or $16.49 per share, following a bitcoin price decline. As of April 28, 2025, Strategy holds 553,555 bitcoin, acquired for $37.9 billion (approximately $68,459 per bitcoin), with a current market value of ~$52 billion. The company has raised ~$27.2B billion to date, with ongoing offerings to fund further purchases.

Chairman, Michael Saylor has stated plans to capture a significant portion of the fixed-income market, targeting up to $3 trillion in issuances. This depends on sufficient demand for Strategy’s stock and bonds. New company Twenty One and Japanese firm MetaPlanet have entered the US market with similar bitcoin treasury strategies. Institutional buying is expected to continue to drive the price of bitcoin in the months and years to come as a race to acquire as much of the scarce digital asset as possible heats up.

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‍Ripple’s $5B Takeover Bid for Circle Rejected

According to a Bloomberg report, Ripple offered between $4B and $5B to acquire stablecoin issuer Circle, part-owned by Coinbase. Circle, which recently filed for an IPO, has gained traction in Europe, where competitor Tether cannot operate due to non-compliance with the Markets in Crypto Assets (MiCA) regulations. Sources indicate Circle rejected the bid as too low.

The offer reflects Ripple’s ambition to become a major player in the future crypto and payments economy. However, the rejection highlights Circle’s confidence in its stablecoin and project growth. Visa’s recent launch of a card enabling users to spend USDC directly from their wallet for everyday purchases underscores this potential. Ripple’s native token, XRP, dropped by as much as 5.15% on the announcement of the failed bid, before recovering.

Important context for investors is that Ripple processes 1.7M transactions per day, less than 2% of other blockchains like Solana. If Ripple is able to pull off the takeover deal by raising its bid however, it could be a bullish catalyst for further XRP price action. Rumours like the one below are talking about a possible $20B offer though no concrete source has been provided and we think this is a low probability outcome and rumours for now.

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Until next week,

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James Brannan
Managing Director
BlockByte
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​james@blockbyte.com.au​
​https://blockbyte.com.au/​

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