Cryptopolitan

LG Energy Solution Ltd, a leading global manufacturer of lithium-ion batteries for electric vehicles (EVs) in South Korea, is relying on growing demand from AI data centers for energy storage systems to offset the decelerating adoption of EVs.

This news was made public after the South Korean battery giant announced that it had finalized battery supply agreements with six developers of humanoid robots. According to their report, LG Energy’s main plan is to expand its revenue streams. The company adopted this plan after facing an operating loss for the fourth quarter.

LG Energy seeks to ramp up EV production capacity to remain competitive 

Concerning the current situation in the EV market, analysts have conducted an analysis. They discovered that demand for electric vehicles in the United States is projected to remain at a low baseline until next year. This is because of the elimination of electric-car incentives and American carmakers’ habit of reducing their electric-vehicle targets.

Nonetheless, despite these setbacks, reports from sources claimed that several individuals have demonstrated heightened interest in energy storage systems, with global demand set to increase by 40% this year. This prediction follows Chief Financial Officer Lee Chang Sil’s statement that global demand surged 22% in 2025 during a conference call following the release of recent financial results. 

In an attempt to address the current situation in the EV market, Lee announced that LG Energy aims to ramp up EV production capacity to maximize its worldwide output of energy storage system cells from 36 gigawatt hours (GWh) to over 60 GWh, targeting to secure orders totaling at least 90 GWh this year.

Meanwhile, it is worth noting that LG Energy has a strategic, long-term partnership with the Energy Storage System (ESS) market. Following this collaboration, the Seoul-based battery manufacturer relies heavily on its ESS business as a key driver of revenue and profit growth.

To demonstrate LG Energy’s commitment to solidifying its position in the EV market, Kim Min Soo, who leads ESS planning and management, alleged that a new team has been established to oversee and stabilize all the operations of ESS, particularly in North America. Here, demand is largely fueled by the rapid expansion of AI data centers.

Apart from its robotics collaboration, the firm is also researching other applicable uses of batteries, such as in ships and urban air mobility. So far, Lee Yeon Hee, head of corporate strategy, disclosed that LG Energy has already secured orders for cylindrical batteries from six major global firms specializing in humanoid robot development, offering samples for upcoming models and establishing timelines for large-scale manufacturing.

LG Energy plans to introduce a new model for humanoid robots by 2030

In a statement, the head of corporate strategy at LG Energy Solution noted, “We have a range of products that provide strong safety features, high energy density, and significant power output. In markets like the US, Korea, and China, we are recognized as a top partner.”

LG Energy is stepping up its development of solid-state technology, with plans to introduce a new humanoid robot model by 2030. In the EV sector, the South Korean firm announced that it intends to commence mass production of lithium-iron-phosphate and high-voltage mid-nickel batteries in the first quarter to target budget-conscious consumers. 

Moreover, the company is preparing to roll out its new 46-series cylindrical batteries, which optimize rapid charging performance, at its new Arizona-based plant by the end of this year. It is also boosting hybrid electric vehicle production to meet steady demand.

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Senior government figures are having conversations about bringing in a universal basic income scheme to help workers whose jobs may disappear because of AI, according to Britain’s investment minister.

Lord Jason Stockwood said the “bumpy” shifts in society from AI would mean there would have “to be some sort of concessionary arrangement with jobs that go immediately”.

Warnings mount over AI employment impact

“Undoubtedly we’re going to have to think really carefully about how we soft-land those industries that go away, so some sort of [universal basic income], some sort of life-long mechanism as well so people can retrain,” he said.

While UBI hasn’t been adopted as official government policy yet, Stockwood confirmed that when asked whether his colleagues in government were thinking about the need for such a scheme, “people are definitely talking about it.”

Stockwood explained that one reason he decided to take the position was to make sure the government was getting ready for the fast-moving changes coming to Britain and its workers. His remarks came during the same week that the head of Anthropic issued a warning about “unusually painful” disruption to employment as AI was a “general labour substitute for humans”.

London mayor Sadiq Khan also raised concerns this month about a possible “new era of mass unemployment” brought on by AI. Technology secretary Liz Kendall said on Wednesday that “some jobs will go” because of AI, pointing to early worries about entry-level positions in finance and law.

Kendall maintained that “more jobs will be created than will go, but I’m not complacent about that.” She promised the government would support people through the transition. “We will not leave individuals and communities to cope on their own.” Stockwood has floated the idea before that technology firms could be hit with a windfall levy to pay for UBI schemes.

Political outlook and market stability

Stockwood revealed to FT that he used his first week as a minister saying sorry for remarks he’d made before joining government and hasn’t repeated his push for additional wealth taxes.

But he maintained, “If you make your money and the first thing you do is you speak to a tax adviser to ask ‘where can we pay the lowest tax’, we don’t want those people in this country, I’d suggest, because you’re not committed to your communities and the long-term success in this country.”

Despite this stance, Stockwood was in Davos recently with global business leaders, encouraging investors and wealth creators to choose the UK. “Investors can look at us as a safe haven, relative to the chaos in politics which we witnessed first hand last week.” He noted US investors were “shell-shocked” about Trump’s tariff threats over Greenland.

Promoting the UK’s stability becomes harder when Prime Minister Sir Keir Starmer must constantly dismiss leadership speculation, including questions about Andy Burnham, Greater Manchester mayor. Stockwood stressed he wanted Starmer to lead Labour into the next general election, despite calling Burnham “brilliant.”

“What we need now is stability … the most important thing for us is not sending political chaos into our system.”

He acknowledged Reform UK was drawing support from both his business and investor contacts. Stockwood said the government must better demonstrate to regular people how they’ll gain from its growth plans and trade agreements.

The prospect of a Reform government “leaves me in a cold sweat,” he said, criticizing Reform’s proposal to put business leaders in cabinet roles as an “absolute disaster” because running government wasn’t only about “deals and trades.”

He’s already discovered that business is simpler than politics. “I’ve been a CEO of a thousand people, I thought I ran a relatively complex operation, but it’s an absolute walk in the park compared to government.”

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Bitcoin is on the move and trading at higher levels above $89,000. According to some experts, the price level of $88,000 is a buy zone for long-term holders. Experts believe that the price may rise higher in the coming days. However, it may take time for the price to rise to higher levels. This is making smart investors look for alternative options that can bring them quick gains.

Investors are looking for the next big crypto with huge potential for short-term gains. Investors are investing in new projects that are available for presale. One such crypto is Mutuum Finance (MUTM). It is a new crypto available in DeFi with a live testnet. It is available for presale and is offering a limited opportunity for investment. Experts believe it’s the best crypto to buy for huge gains in the coming days.

The Last Low-Price Window

Mutuum Finance is available for investment in its current phase, i.e., Phase 7. In this phase, it is available for investment at a price of only $0.04. This is a low price for the crypto and will not be available for long. In the next phase, i.e., Phase 8, the price will be higher by almost 20% at $0.045. It is planned to be launched at a price of $0.06. 

This means that investors will be able to make an instant profit by investing in the crypto. Analysts predict the price of this new crypto may rise 6x to 8x its current price shortly after it is launched on the stock exchange. This means that a small investor investing only $500 will be able to make huge gains up to $4,000.

Secure Your Investment with Safer Technology

The Mutuum Finance protocol is a safe platform. It has a professional bug bounty program. The program has a $50,000 reward for users to find bugs in the code. This is a great safety feature. It ensures that the platform is safe for investors while providing additional rewards to investors. 

Mutuum Finance is a safe place for people to earn. For example, you could put $5,000 in the pooled market and earn a 12% annual return, which is $600 a year. These compounding returns make Mutuum Finance the next big crypto in the making. 

Earn Twice: Interest and Dividends

Mutuum Finance takes a fraction of fees accrued in the network and uses it to buy MUTM tokens. These tokens are then sent to people who stake their tokens as a dividend. If you put $1,000 into the project’s safety module, you could earn $50 to $100 in tokens. This is why MUTM is a powerful tool for passive income and the best crypto to invest in this quarter. 

Live Protocol Launch

The Mutuum Finance protocol is a complete platform. It is already launched with the official V1 protocol live on the Sepolia testnet. This is a testnet of the real protocol and it means that everyone can test the platform’s features, such as lending & borrowing, staking, mtTokens, debt tokens, and a liquidator bot. 

This testnet phase is the final step before the actual mainnet launch and is the final test to ensure the product works. Having a working product at this stage is the pieces are now set for the price to explode. It makes MUTM a much safer bet than any other coin without a working product.

Position Before the Explosion

While the goal of Bitcoin is to reach new heights, the opportunity offered by Mutuum Finance is different. It is the final call to invest in the presale, which will offer the cryptocurrency at a very low price. It has security features that will protect the funds of investors and a reward system that provides strong reasons why the price will increase after the launch.

Having a working product, the pieces are now in place for the price to explode. For investors wondering what cryptocurrency to invest in now, which has the potential to explode in Q1, MUTM is the answer. Do not miss the opportunity.

For more information about Mutuum Finance (MUTM) visit the links below:

Website: https://mutuum.com/ 

Linktree: https://linktr.ee/mutuumfinance

The U.S. Senate is questioning Deputy Attorney General Todd Blanche over the Department of Justice’s shutdown of the crypto enforcement unit, urging reconsideration. The Senators are responding to Blanche’s recent reporting that he held substantial amounts of crypto when he made the decision. 

In a letter to the Deputy AG dated January 28, 2026, the Senators emphasized that his actions violated 18 U.S.C. § 208(a). They previously warned that disbanding the National Cryptocurrency Enforcement Team and adopting a hands-off approach to crypto would be a big mistake. The Senators believe that this approach allows criminals to continue evading sanctions and running scams, citing the 162% surge in illicit crypto activity in 2025. 

According to the Senators, most crypto categories saw a rise in criminal activity, but the huge jump was mainly driven by sanctioned entities receiving crypto. Chinese money laundering networks moving billions for Mexican drug cartels are also emerging as a “dominant force” in the crypto space.

Senate scrutinizes DAG’s suspicious handling of crypto holdings

The Senators are raising concerns over Blanche’s decisions during the period leading up to and after his decision to disband the crypto enforcement unit. As per the letter, they believe that President Donald Trump’s interest in offloading his crypto stash at the time may have led to the easing of law enforcement scrutiny. They also alleged that Trump’s financial interests appear to be behind some of his recent pardons of crypto-related criminals. 

The Senate specifically questioned Deputy AG Blanche’s motivation, noting that he held a large amount of crypto when he decided to shut down the crypto enforcement unit. On January 18, 2025, the DAG disclosed cryptocurrency holdings of between $158,000 and $470,000, mainly in Bitcoin and Ethereum. On February 10, 2025, Blanche agreed to divest these assets “as soon as practicable.” 

On March 5, Todd Blanche was confirmed as Deputy Attorney General, and on April 7, he issued a memo scaling back the DOJ’s crypto enforcement. His entire crypto holdings were sold or transferred to relatives between May 31 and June 3, 2025.

Following the chain of events described above, the Senate concluded that Blanche’s decision to direct this favorable change in DOJ policy violated the provisions prohibiting executive branch employees from actively participating personally or substantially in such decisions in which they have a financial interest. They added that his conduct is now the subject of a complaint to the DOJ’s Office of the Inspector General, and his willful violations of 18 U.S.C. § 208(a) warrant a five-year prison sentence.

Senators say disbanding crypto enforcement unit makes no sense

According to the Senate, it makes no sense for the DOJ to take a hands-off approach to crypto-related tools that are used to support terrible crimes, such as child sexual exploitation and drug trafficking. A TRM Labs report released on January 28 claimed that illicit crypto volume reached an ATH of $158 billion in 2025, up 145% from 2024.

The TRM Labs report also found that the volume of crypto-related crimes as a percentage of overall crypto volume fell from 1.3% in 2024 to 1.2% in 2025 despite the general increase in total illicit volume. However, while crypto-related criminal activity accounted for only a small share of overall on-chain volume, criminals still captured 2.7% of available liquidity in 2025.

On the other hand, criminals stole a combined total of $2,87 billion in crypto across 150 hacks. Bybit alone accounted for over half of the losses (~51%), with the $1.46 billion stolen through the platform pushing much of the YoY increase in total losses. 

Meanwhile, the TRM analysis also noted China’s role in the illicit crypto space. The report claims that the illicit crypto volume associated with Chinese-language escrow services and underground banking networks has increased significantly from $123 million in 2020 to over $103 billion in 2025.

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When Binance Futures announced it would remove $DMC perpetual contracts earlier this month, some observers read it as a setback for the project. Instead, it became a moment of alignment. What could have marked a downturn has turned into a rallying point for one of Web3’s most community-charged automotive projects.

Over the week that followed, DeLorean’s token, backed by the heritage of an iconic global brand, rebounded sharply, rising over 200% as traders and holders reasserted control of the market narrative. Even more surprising, liquidity and participation increased rather than declined, an unusual outcome that reflected renewed confidence and healthier market structure. The shift highlighted a broader theme across crypto’s current cycle: communities, not derivatives, now shape the stories that last.

Freed from what the team calls “distorted derivatives pressure,” $DMC now trades as a more transparent reflection of real participants, not leveraged traders chasing short-term volatility.

Turning Volatility into Alignment

Rather than viewing Binance’s decision as an obstacle, many in the DeLorean ecosystem saw it as a clearing of noise, a chance to let genuine market forces surface. Without perpetual futures driving exaggerated swings, $DMC’s trading activity began to reflect actual conviction rather than leveraged positioning.

For long-term supporters, that distinction mattered. The rebound was matched by an uptick in wallet activity, deeper liquidity, and renewed social engagement, as the community framed the shift as a reset: not just in price, but in participation and purpose. In effect, the ecosystem began to heal rapidly once the influence of perpetual futures was removed

A Reset That Strengthens the Signal

DeLorean Labs is using this shift as an opportunity to recalibrate around long-term alignment rather than exchange-driven cycles. “This moment allows DMC to focus on adoption, community participation, and building with intention,” said Evan Kuhn, CEO of DeLorean Labs. “Speculative instruments come and go, cultural relevance and utility compound over time.”

In the days following the delisting, engagement and organic demand returned as the community rallied around the brand’s broader vision. The result wasn’t just a price recovery; it was a fast-healing ecosystem with stronger liquidity, a growing user base, and a market structure that now looks oddly healthier than it did before the change. This reflects renewed confidence in both price and direction showing how DeLorean’s identity, roadmap, and growing ecosystem stand to benefit from a more deliberate, brand-first trajectory.

From Auto Icons to Blockchain Infrastructure

Beyond its nostalgic heritage, DeLorean has rapidly become one of the most visible intersections between blockchain and real-world assets. Its 2025 on-chain vehicle marketplace brought authenticated car ownership and trading into the blockchain era, creating a foundational use case that connected decades of brand equity with next-generation digital infrastructure.

DeLorean Labs demonstrates that its ambitions go well beyond token performance. The company continues to position itself as a first mover in a category where legacy automotive value meets decentralized technology.

A Turning Point for Token Launches

The $DMC experience also serves as a case study in the pitfalls of derivatives-first launches. Introducing perpetual futures before deep spot liquidity distorts discovery and disincentivizes genuine holders.

Now, as the industry becomes more discerning, projects like $DMC are drawing attention to a growing sense among founders and investors alike: that long-term value emerges when liquidity and demand are built from the ground up rather than from high-leverage exposure.

Driving the Long Road Ahead

The DeLorean story has always balanced heritage with forward momentum, and the $DMC ecosystem reflects that same DNA. In both automotive innovation and crypto, periods of volatility often act as moments of alignment, concentrating energy around the builders and believers who remain. This chapter, marked by a futures delisting and a community-led rebound, reinforces that dynamic.

Rather than chasing short-term market optics, DeLorean Labs is using this moment to sharpen its focus on brand-led adoption and real-world relevance, advancing how blockchain integrates with one of the world’s most recognizable legacy marques.

Coinbase is expanding its crypto exchange business into prediction markets for events worldwide through the Coinbase app. The new feature, run by Kalshi, a U.S.-regulated prediction market operator, is now live on Coinbase Financial Markets. This represents a significant product expansion for the publicly traded exchange, according to Coinbase’s official prediction markets website.

Previously available to select users, the prediction markets platform now lets individuals in every state participate using U.S. dollars or USDC held in their Coinbase accounts. Contracts represent yes/no outcomes on specific events, and their prices reflect the market’s collective judgment on what’s likely to happen. Minimum trade sizes start at $1, making the feature accessible to a broad range of users.

Coinbase launches regulated prediction markets for users across the United States.

Coinbase launched its prediction markets nationwide in the U.S. This means it’s no longer a beta project restricted to early access, but anyone across the 50 states can participate freely.

The feature is available directly in the Coinbase app, in a new tab labeled “Predict,” allowing users to do so without creating another account or using an external platform.

By integrating prediction markets into its main app, Coinbase is making it easy for existing users to switch seamlessly from crypto trading to event-based markets, all within the same app and interface they are already familiar with.

Users will be able to trade through Coinbase Financial Markets, as it’s registered as a futures commission merchant and complies with applicable U.S. laws and regulations.

Coinbase Financial Markets is also a member of the National Futures Association, and therefore, the product is not being offered outside the normal regulatory framework.

Prediction markets offer simple yes/no contracts on real-world events, such as sports, crypto, politics, economics, culture, and technology. The contract pays $1 if the event occurs and $0 if it does not, and the results are easy to understand, even for beginners. 

The prices of the contracts depend on what people predict will happen; if the price is $0.65, that means there is a 65% chance the event will occur.

As more information becomes available, prices change in real time, and users can buy and sell contracts. This model allows users to react to the breaking news rather than waiting for the final result. This is one of the key differences between prediction markets and other betting models.

A user can fund their trade with U.S. dollars or USDC currently in their Coinbase account, and have their funds from closed positions returned to the same account. The markets operate nearly 24/7, and the only time they are closed is during a short weekly maintenance period.

Coinbase is expanding beyond crypto with prediction markets.

Coinbase decided to create a prediction market after seeing a dramatic increase in users in late 2025, driven by traders who used it to express opinions on actual events, rather than purely traditional financial instruments.

During this time, sers were looking for new ways to bet on events such as sports, politics, and culture; therefore, interest in prediction markets increased, and prediction markets became more popular

Many top platforms’ activity levels increased dramatically, with some reaching volumes of billions at their peak (Kalshi, Polymarket). This rapid increase was also reflected in their funding and valuations, as Kalshi and Polymarket together recently raised over $2.3 billion in funding rounds.

Through these funding rounds, Kalshi’s valuation increased to around $11 billion, and Polymarket’s to roughly $9 billion, underscoring investors’ confidence in the long-term potential of prediction markets.

The company’s CEO, Brian Armstrong, said prices in prediction markets match the best available information when people risk real money. He said the method is more truth-seeking than those influenced by opinions or narratives.

In his view, prices set by the crowd adjust quickly as facts change, making prediction markets a useful tool for understanding what people believe is most likely to happen. The company said it will know if the project succeeds through total trading volume, user adoption, and demand for more events over time.

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World Network’s WLD token jumped 7.61% after OpenAI was reportedly investigating a biometric social network to authenticate users and restrict accounts created by artificial intelligence.

Sam Altman, the CEO of OpenAI, co-founded the cryptocurrency project World, which raised $135 million in a token sale last year from a16z and Bain Capital Crypto. The project’s basic idea is World ID. This decentralized, privacy-focused identity system uses the orb, a specially designed biometric device that complies with privacy regulations by scanning users’ irises to provide unique identities.

The token surged 7.61% to $0.5291 after the report. Data from CoinMarketCap showed that the token’s 24-hour trading volume increased sharply by 763% to $645.76 million, momentarily outpacing most major cryptocurrencies even as it didn’t confirm any official cooperation between OpenAI and World.

World Network faces scrutiny as biometric identity gains traction

Since its debut on July 24, 2023, the World Network has attracted both interest and criticism. Despite the project’s claims to have validated millions of people globally, it has encountered regulatory resistance, including a temporary ban in Kenya and questions about its processing of personal data in the United Kingdom.

However, the concept of linking biometric verification to online identification is still gaining popularity, particularly as generative AI technologies bombard social media with false content and spam. In light of this, focus is now turning to OpenAI itself. According to Forbes, OpenAI is discreetly developing a biometric-based social network to eliminate bot activity on popular platforms like X.

Forbes reported, citing people familiar with the matter, that fewer than 10 individuals are working on the software, which may include a biometric identification component. The World Orb, a cantaloupe-sized eyeball scanner that uses a person’s iris to create a unique, verifiable ID, and Apple’s Face ID have been considered by the team as “proof of personhood.” 

All accounts on OpenAI’s social network would be authenticated by true biometric verification. However, since iris scans are permanent and might be disastrous in the wrong hands, privacy advocates have cautioned about the dangers of identity verification systems like World’s.

Sources stated that users could use AI to create content, such as photographs or movies, on the new software, although it was unclear how the social network would enhance OpenAI’s current product line. Notably, OpenAI’s social network does not yet have a launch schedule, and sources warned that things could change significantly before it is ready to be shown to the public.

The Verge reported in April of last year that OpenAI was working on a social network that resembles the X platform.

Bots undermine trust and authenticity on X

Bot accounts have been a problem on social networks for a long time. These accounts usually imitate human interaction. Specific issue on Twitter, which was made much worse when Elon Musk bought the company, changed its name to X, and fired almost 80% of its employees. This destroyed the trust and safety team responsible for removing bots from the platform and moderating messages.

Notably, Musk vowed war on bots before purchasing Twitter. In an effort to cut down on reply spam, on October 12, Head of Product Nikita Bier revealed that X had eliminated 1.7 million automated accounts that were clogging reply areas with spam, including cryptocurrency solicitations and repetitive advertisements. The effort sought to enhance user experience by emphasizing real interactions. 

Users’ responses ranged from applause for cleaner conversations to concerns about the efficacy of the purge and possible errors in some automated processes. However, they are still an issue.

Altman, who has been using X often since 2008, has been open about how frustrated he is with the bots on the platform. “Somehow AI Twitter/AI Reddit feels very fake in a way it really didn’t a year or two ago,” he wrote on X in September of last year.

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Strive said it used proceeds from a preferred stock sale to retire most of Semler’s debt and buy an additional 334 BTC. It cleared 92% of the debt it inherited after officially completing its acquisition of Semler Scientific on January 13.

The company said Wednesday that investor demand for its SATA offering reached $600 million, prompting it to increase the target raise from $150 million to $225 million. The raise was part of its strategy to transition toward a “perpetual-preferred only amplification model” as it builds out its Bitcoin treasury.

Strive’s total Bitcoin treasury is now roughly 13,132 BTC, valued at over $1.1 billion at current prices. That total now places Strive among the top 10 largest corporate holders of Bitcoin, surpassing CleanSpark in the corporate BTC rankings.

Strive now has 13312 BTC holdings

Strive said earlier this month it would combine funds from its stock offering, existing cash, and potential hedge proceeds to pay off liabilities, then invest what’s left in Bitcoin products.

Matt Cole, chairman and CEO of the Dallas-based company now confirmed they have wiped out $110 million, or 92%, of Semler’s debt, swapping $90 million in convertible notes for SATA stock and fully repaying the $20 million Coinbase loan. He noted the firm intends to clear the debt in its entirety by April this year.

Its latest buy also brings its Bitcoin stash to 13,132 BTC, he said. With that, Strive is now a top 10 corporate Bitcoin treasury company. The firm is also seeing a 21.39% BTC yield and elevated amplification, especially from its SATA offering,

Most X users congratulated the firm on its recent accomplishment, while others took to the platform to make inquiries on the firm’s offering and ASST asset

Almost 200 publicly traded companies hold a combined 1.134 million Bitcoin

But ASST stock fell 2.23% to $0.80 on Wednesday, and the share price is now down more than 92% from its post-Bitcoin-strategy high, illustrating execution risks regarding corporate crypto plans. Bitcoin treasuries became popular with companies in 2024 and early 2025, but many shares fell later last year amid doubts about the approach’s sustainability.

More than 190 publicly traded companies hold a combined 1.134 million Bitcoin, covering roughly 5.4% of the cryptocurrency in circulation. Almost two-thirds of Bitcoin held by companies — about 63% — is owned by Michael Saylor’s Strategy, which still continues to purchase despite recent funding obstacles and the downturn in the crypto market.

Overall, CryptoQuant analysis shows that since January, Bitcoin whales have continued buying amid volatility, while retail investors have been exiting the market. It noted that monthly whale holdings have grown despite geopolitical escalations, suggesting the market is experiencing structural accumulation rather than a sell-off. For starters, Strategy bought 22,305 BTC for $2.13 billion between January 12-19 at an average price of $95,284 per coin. 

Earlier this month, Bitcoin’s estimated leverage ratio also hit 0.184 on Binance near the $90K mark — its highest since last November — showing a renewed appetite for leveraged positions amid mixed market conditions. But historically, when futures traders borrow heavily, the market becomes more prone to sudden liquidations during fast-moving price changes. 

Asian equities had also climbed nearly a week ago, with Bitcoin hovering near $90,000, as Trump’s comments on a future deal for Greenland eased fears of imminent tariffs. Analysts at Bitfinex also noted that the market is watching for signs of stability, including flattening ETF flows, strong spot buyer volume, and sustained trading above $90,000 with lower volatility.

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Gold hit a new record above $5,600, jumping 4% Friday after already soaring 4.6% the day before, its biggest daily spike since March 2020.

Spot gold is now up 28% on the year, while silver has gained nearly 65%, with both rallies draining market liquidity and making prices more volatile.

Bitcoin dipped to $88,000, ETH fell under $3,000, and SOL dropped over 3%, as flows shifted to metals.

Most of the current cryptocurrencies continue to be driven by fashion and trend in the social media, but a new breed of utility-oriented projects is gaining momentum. These initiatives do not offer miraculous results in the short term. Instead they emphasize on planned growth and quantifiable take-up. Investors are currently seeking protocols which create a strong base and then look to break out.

The recent market activity involving Mutuum Finance (MUTM) perfectly exemplifies this change in sentiment. The protocol is indicating a very distinct model of growth as it passes through its development phases. It is a model that is constructed on practical application and economic reasoning. 

Constructing a Long-term Capital 

Mutuum Finance (MUTM) is a new lending and borrowing protocol that is decentralized. The essence of the project is that users can unlock the value of their crypto without selling their assets. In case you have Ethereum and you want to buy something, you can borrow money using the protocol as a security to your asset.

Such utility design has already attracted major initial attention. The project has already raised more than $20.1 million through more than 19,000 holders. This constant increase in the presale phase is not only the indicator of marketing success. It is an indication that investors perceive value in a platform where structured mechanics are of great importance. Mutuum Finance develops Peer-to-Contract (P2C) and Peer-to-Peer (P2P) markets to allow the flexibility that modern DeFi users require.

Risk Controls and Stability of Price

The protocol safeguards emphasis is one of the most alluring aspects of serious investors. Mutuum Finance employs stringent Loan to Value (LTV) regulations to safeguard its liquidity. An example of this is that when assets are of good quality, it can take a 70%-75% LTV whereas more volatile tokens need a far higher collateral cushion.

In the event that the value of the collateral of the borrower declines to a significant degree, the system sends a Health Factor warning. A Liquidator Bot settles the debt in case it falls below 1.0. The logic prevents the accumulation of bad debt by the protocol in times of market crashes. 

These safeguards are essential in the case of the token price. They minimize the possibility of the “shock events” that tend to ruin the newer projects. According to the experts, this stability would only provide a conservative price trend to 0.25 to 0.30 as the market is convinced with the stability of this system.

V1 Activation and Adoption Curve

One of the critical milestones for Mutuum Finance (MUTM) now has the V1 protocol live on its testnet. The transition between a testnet and a live environment in the DeFi world is thus typically the indication of a colossal valuation change. It is the point when a project demonstrates that it is capable of doing something.

With the adoption curve starting to rise, the core markets will be accessed by more users. Traditionally, protocols achieving a working product on time experience a gradual valuation of tokens as money pours in, which analysts consider a major catalyst towards the MUTM price of $0.45 which translates to over 600% appreciation from current MUTM price. The reason behind this development is that users require MUTM in order to engage in the ecosystem and not just a trader wanting to make a quick transaction.

Compounding Price Effects 

The price potential is further enhanced with the addition of the mtToken system. Your loan of assets is returned in the form of mtTokens which are your portion in the pool. These tokens increase in value as the borrowers repay their loans together with interest. This necessitates a natural urge of people to possess and own their assets.

In addition, the protocol is based on a buy and distribute system. In order to purchase MUTM tokens, a part of the platform revenue is sold in an open market. These are then donated back to mtTokens stakers. This puts pressure on making purchases all the time. Combinations of yield demand and this compounding effect give a bullish price model, which suggests that MUTM might go to $0.65. On this tier, the token would be a leading competitor in the DeFi industry.

Multi-Year Outlook

According to the official roadmap, Mutuum Finance (MUTM) is developing a native over-collateralized stablecoin. It will enable the users to issue a dollar-pegged asset in direct proportion to their crypto-collateral. Moreover, the intended development to Layer-2 networks will render the transactions almost free and instant.

These characteristics could expand the protocol to millions of new users who cannot afford the Ethereum mainnet. In the end of 2026 and 2027, the liquidity level may drive the token to a total growth of 950% out of its present value. This would price it at an approximate of $0.42 per MUTM when computed using its mid-presale value. Mutuum Finance is ensuring its place in the financial sector by targeting security, utility, and growth within a controlled environment.

For more information about Mutuum Finance (MUTM) visit the links below:

Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance

Samsung Electronics concluded the year with its strongest-ever results and a threefold increase in fourth-quarter operating profit. Growing demand for artificial intelligence servers and a global shortage of advanced memory chips helped push profits beyond record highs and beat benchmarks.

Quarter-over-quarter revenue totaled 93.8 trillion won, or roughly $65.6 billion, beating analysts’ expectations. Operating profit rose to 20.1 trillion won, more than 200 percent higher than a year earlier. It was Samsung’s most impressive quarterly profit on record, breaking through the previous record high of 2018 and confirming the magnitude of its comeback after a sustained semiconductor drop.

Surging AI memory demand delivers record earnings

The profit boom was led by Samsung’s memory chip division, which delivered record revenue and operating profit. Price increases across the memory market and the expansion of sold-out products in high-value segments boosted overall performance during the quarter. That growth was fueled by high-bandwidth memory (HBM).

HBM is a vital part of the AI infrastructure for servers and data centers, enabling the high-performance workloads of generative AI and massive-scale machine learning models. Samsung has increased its focus on this sector in recent years through its Device Solutions division.

HBM’s global demand has outpaced supply, with AI chipmakers, including Nvidia, competing for limited volumes. By concentrating memory producers’ attention on the need for AI-related product capacity, shortages in many parts of the broader market have spread into the general market, with price premiums for chips that support personal computers and mobile phones pushing up the cost of chips used in personal computers and smartphones.

That pricing strength has massively increased margins for major memory suppliers such as Samsung and its rival SK Hynix, which posted record earnings this week.

Samsung said demand for AI and server products is expected to keep climbing heading into the first quarter of 2026. We have also focused on maintaining that focus across our high-performance, high-margin memory product lineup to sustain strong structural growth.

Smartphone unit struggles as competition intensifies

Though semiconductors contributed to overall performance, Samsung’s smartphone business remained under pressure. The mobile experience and networks business logged an operating profit of 1.9 trillion won in the fourth quarter, almost 10% lower than the same period last year, a far cry from last quarter’s high.

Samsung said the weaker result was due to softer momentum from recent mobile launches and tough competition in major markets worldwide. Slower demand growth and pricing pressure hurt profitability, but it retained its status as one of the world’s top handset manufacturers.

With 2026 upon us, Samsung is betting on artificial intelligence to revitalize its mobile business. The company will release what it calls “Agentic AI experiences” with the launch of the upcoming Galaxy S26 series. Simultaneously, it is seeking to expand profits by driving flagship device sales, implementing tighter cost controls, and strengthening its supply chain amid intense global competition.

The MX Business intends to consolidate its mobile AI leadership by leveraging next-generation AI experiences and innovation in slimmer, lighter form factors. Additionally, it will pursue comprehensive growth across all segments via AI-driven product sales and new market expansion, while upholding a steadfast commitment to profitability through process optimization amid persistent cost pressures.

For now, the AI-powered memory boom is shaping Samsung’s performance. The most recent findings underscore how central advanced chips have become to the company’s growth story and to the broader worldwide technology sector.

 

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 The U.S. Securities and Exchange Commission (SEC) has issued new guidance on tokenized securities, making clear that digital tokens representing securities are subject to the same federal securities laws as traditional instruments — and that issuing them on a blockchain does not exempt them from compliance.

The Divisions of Corporation Finance, Investment Management, and Trading and Markets created this guidance and made it available in the SEC’s official statement on tokenized securities. It provides insight into managing compliance when using crypto networks to issue or represent securities.

The SEC shows issuers how to tokenize securities and follow the rules.

The SEC said a tokenized security will still be an existing security under US law even if crypto ledgers classify it otherwise. The guidance explains that a security becomes “tokenized” when ownership records are kept, even partly, on a crypto network. But nothing else really changes. However, this does not change the fact that the underlying asset is still a security under US law.

The SEC made it clear that putting a security on a blockchain or turning it into a token doesn’t change what it is or how it should be regulated. A new format doesn’t mean new rules.

Therefore, if the token moves between accounts on the blockchain, the official record of ownership for the security can be updated to reflect the transfer, making the token transfer a legal transfer of the security itself.

The SEC said the new changes don’t affect the application of federal securities laws, so all offers and sales must still be recorded under the Securities Act unless an exemption applies.

The statement also explains that the issuer of the securities can offer the same security in different formats. The company can offer shares to some investors in the traditional way, while offering tokenized shares to others. This does not change the legal status of the shares.

When tokenized securities have the same rights and privileges as traditional securities, the SEC has indicated that such securities can be treated as belonging to the same class under certain provisions of the securities laws.

The SEC also provided alternatives to tokenization, in which the blockchain is not the actual record of ownership. In this case, the issuer has the option to create a token that does not represent actual ownership but is used to notify the issuer of a change in ownership.

The issuer then updates ownership records off-chain based on that information, while the underlying security remains recorded in a traditional system.

The SEC warns third parties to follow the law when they tokenize securities.

Additional risks, the SEC noted, also exist when third parties issue securities they did not originally issue themselves, as such structures tend to raise legal and investor protection issues.

In its release, the agency stated that these models may alter the relationships among investors, issuers, and intermediaries, making it more difficult for investors to understand exactly what they own and who is responsible for their rights. 

In this regard, the SEC stated that firms that utilize third-party tokenization must determine how existing securities laws apply.

The agency said third-party tokenized securities will be divided into custodial and synthetic securities. Custodial tokenized securities will remain security entitlements and must comply with the same federal laws for custody assets. On the other hand, synthetic tokenized securities do not give investors voting rights, equity interests, or access to issuer information, but they will be subject to stricter laws.

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Robinhood Markets Inc. is positioning itself as a central retail distribution channel in what could become one of the largest initial public offerings (IPOs) in history — that of spaceflight and satellite giant SpaceX. According to reports published this week, the US‑based online broker is competing with traditional Wall Street banks to secure a significant block of SpaceX shares to sell directly to its millions of retail investors.

Reports indicate that Robinhood is in talks to obtain a large allocation of SpaceX stock that it would distribute through its IPO Access platform — a feature designed to let users buy IPO shares ahead of public trading. This move would put Robinhood alongside major investment banks, which typically handle such allocations.

Concerning Robinhood’s commitment to acquire a high-level position in the SpaceX IPO, sources close to the situation, who requested anonymity due to the sensitivity of the matter, revealed that the fintech company seeks to secure a large amount of SpaceX’s highly sought-after stock to foster direct engagement with its retail investors with the sale of these shares.

Meanwhile, it is worth noting that the firm prefers to offer the shares through the Musk-led aerospace firm’s IPO Access platform. This is because the platform will enable users to buy stock at the IPO price before it begins trading in the open market.

Robinhood seeks to participate in SpaceX’s significant listing 

Reports disclosed that Elon Musk’s rocket and satellite company is currently weighing setting aside a large number of shares, particularly for retail investors, citing sources familiar with the situation. Notably, while the listing is anticipated for mid-2026, these sources noted that the timing might change.

In response to Robinhood’s efforts, top Wall Street banks responsible for retail allocations during an IPO raised concerns, sparking heated discussions among individuals.

Even with these concerns raised, the fintech company, which reported approximately 27 million funded customers on November 30, still upholds its goal of participating in this significant listing. 

On the other hand, several analysts weighed in on the banks’ concerns. They acknowledged that this move illustrated the retail trading app’s influence on Wall Street over the past ten years with its mobile-first, commission-free trading model. 

The firm’s efforts also demonstrate that Musk supports retail traders. This allegation aligns with his viral tweet “Stonks,” which he posted on his X account during the meme-stock craze.

In the meantime, SpaceX made clear its intention to pursue an IPO that could raise over $30 billion, potentially boosting the company’s valuation to around $1.5 trillion.

In light of the company’s strong desire to initiate an IPO, analysts predicted that SpaceX might seek a June listing conveniently scheduled around Musk’s birthday. Moreover, they anticipated that this listing could raise up to $50 billion; if successfully executed, it could mark the largest IPO in history.

Some of the leading banks expected to play a crucial role in this process include Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley.

Robinhood’s CEO calls for improved regulatory clarity while SpaceX IPO nears

Earlier, a report from a reliable source hinted at the possibility of an IPO for SpaceX, citing Musk’s suggestion of setting the timing. This report further highlighted that this listing process will coincide with a planetary event and his birthday in June.

Following this announcement, sources noted that retail traders have been occasionally disregarded in the Initial Public Offering process. To further explain this point for better understanding, they alleged that major firms typically prefer to sell their stock to institutional investors first, before anyone else. Afterwards, these investors set the price before the company goes public.

While this situation ignites debates among individuals, recent reports indicate that Vlad Tenev, the CEO of Robinhood, has called for improved regulatory clarity and renewed efforts to effectively back tokenized stocks to prevent another incident such as the “GameStop freeze.”

This news was made public after Tenev shared an X post dated Wednesday, January 28, stating that, “Five years ago today, Robinhood and other brokers had to stop people from buying several popular stocks, especially GameStop, during one of the oddest and most obvious failures in the stock market in recent times.” 

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Senators have proposed several important amendments ahead of the historic final vote on a bill aimed at reforming the crypto market, as the Senate Agriculture Committee prepares to advance the legislation through its committee stage. 

With logistical hurdles, such as severe weather, mostly cleared and some of the bill’s more contentious provisions removed, the legislation appears poised to pass Thursday’s committee vote with little disruption.

However, other provisions on ethics, consumer protection, governance, and national security could continue to shape the bill’s path as lawmakers begin discussions on whether to send it to the full Senate. There are a few recent surprises: the Senate Agriculture Committee’s markup of the crypto market structure bill should run fairly smoothly. The recent heavy snow that blanketed Washington, D.C., has largely cleared, easing concerns about attendance and missed deliveries. 

Even more importantly, though, Senators Roger Marshall of Kansas and Dick Durbin of Illinois have indicated they would not pursue a proposed amendment on credit card swipe fees in the markup. Supporters of the crypto bill have embraced that move. 

Lawmakers advocate for ethics and consumer protections via amendments

Markup is expected to last approximately two hours. In this time frame, senators will consider and vote on a few modifications before deciding whether to send the bill to the Senate floor. Although the process may be orderly, the political calculus is not quite certain.

It also aims to limit or regulate the use of digital assets by public officials and close relatives, as described in other statements, a provision reflective of broader fears about the role-play of conflicts of interest in emerging markets. Minnesota Senator Amy Klobuchar, ranking Democrat on the Agriculture Committee, submitted two amendments. Both proposals would also delay the bill’s passage into law until the Commodity Futures Trading Commission (CFTC) has at least 4 confirmed commissioners. 

That would involve two appointees from the minority party, who were selected through consultation with the committee’s ranking minority member. Proponents of this move assert that a fully staffed, politically balanced regulator is required to justify the CFTC’s expansion of jurisdiction over crypto markets. Klobuchar’s second amendment concerns retail participation and consumer advocacy. 

It would expand the meaning of a “retail participant” and define the function of a proposed Digital Commodity Retail Advocate. Rather than merely supervising and overseeing registered intermediaries, the advocate’s role would be more precise, thereby better protecting the average person in the crypto market.

National security concerns shape broader crypto debates

Security measures were proposed to combat hostile states or other actors using digital asset platforms to compromise economic or national security interests. Ultimately, it is not clear which of these amendments will be debated or passed. Some are to be postponed to expedite the process, and some are to be included to reach wider backing. 

Meanwhile, activity is also picking up in the Senate Banking Committee. Senators have returned from recess, and cryptocurrency executives have returned from the World Economic Forum in Davos to the United States. 

It is unclear whether Coinbase’s chief executive officer has made any headway with major bank executives on stablecoin-related yield issues. Still, yield remains a central point of dispute and concern.

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The cryptocurrency industry plans to secure victories for crypto-friendly candidates in the coming 2026 elections with Fairshake’s war chest of over $193 million. 

Major cryptocurrency companies, including Coinbase, Andreessen Horowitz and Ripple are major contributors to Fairshake, the pro-crypto super PAC.

How is the crypto industry spending money on the 2026 elections?

The pro-crypto super PAC known as Fairshake has reported that it has more than $193 million in its “war chest” ahead of the 2026 election cycle.

“With the midterms approaching, we are united behind our mission with Fairshake continuing to oppose anti-crypto politicians and support pro-crypto leaders,” Fairshake’s spokesman, Josh Vlasto, said. 

For years, crypto companies have argued that U.S. laws are outdated. They have said that the current regulations, which are often enforced by the Securities and Exchange Commission (SEC), are confusing and harmful to innovation. 

By spending nearly $200 million, the industry hopes to seat a Congress that will pass specific crypto-friendly laws like the Financial Innovation and Technology for the 21st Century Act, also known as FIT21 and also laws regarding stablecoin regulation.

During the 2024 cycle, Fairshake-funded advertisements were credited with helping defeat candidates like Jamaal Bowman and Cori Bush, who were seen as critics of the cryptocurrency industry. 

Coinbase gave $25 million to the PAC in the first half of 2025. Ripple and Andreessen Horowitz also contributed, giving $25 million and $24 respectively. 

Which political figures and parties are being targeted by these funds?

Fairshake has stated that it does not strictly support Republicans or Democrats, but its spending often targets specific high-profile individuals who hold anti-crypto views. 

The organization consists of a trio of super PACs that work together to influence both parties simultaneously. Fairshake provides the funds, while “Protect Progress” supports Democrats and “Defend American Jobs” supports Republican candidates. 

During the 2024 election cycle, the trio spent over $40 million to defeat Senator Sherrod Brown in Ohio. Brown was the Chairman of the Senate Banking Committee at the time and so was a high-profile skeptic of digital assets. 

Fairshake and its affiliate, Defend American Jobs, supported his challenger, Bernie Moreno, who was a former luxury car dealer and blockchain entrepreneur. 

In the 2026 cycle, Fairshake is expected to focus on key Senate races where the margin of victory is thin. By running television ads and digital campaigns, they can influence undecided voters.

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The 2026 financial environment is at an accelerated pace. Wise investors realize that you should join a project when it is only happening when the technology is transitioning to reality. We are in a transition period whereby the next big crypto player in decentralized finance is emerging. This is a moment of a window of opportunity. The installation is made and the security checked. 

The people who have to see the project on the first page of all the news sites usually lose the largest profits. The actual rise occurs in the silent period prior to an entire market introduction. When the code becomes operational, and the initial users start dealing with the system, the process of valuation begins to change. This is whereby a protocol becomes more than just a good idea and it becomes a robust financial engine.

Evolution of Mutuum Finance (MUTM)

Mutuum Finance (MUTM) is developing a digital wealth management system. It is decentralized and designed to use crypto assets without selling them. The protocol has two methods of communication with the market.

The first of them is the Peer-to-Contract (P2C) market. This is aimed at being fast and convenient. To illustrate, in case you are holding the USDT, you can deposit it in a common pool. The protocol will automatically borrow it out and you get interest. It is an investment approach that is non-custodial. 

The second is the Peer to peer (P2P) market. This is to be used by those who prefer to have more control. There is a chance to negotiate certain terms with another person. This is ideal when it comes to special deals or when the more volatile assets are being used as collateral.

There has already been colossal support of the project. It has raised and has an excess of 19.900 holders. This is important as a big investor-base translates to a strong and diversified base of the project. 

V1 Protocol Launch

As of now, Mutuum Finance (MUTM) reached a major milestone by releasing its V1 protocol to the Sepolia testnet. This launch moves the project from a plan to a working tool where users can test the system without using real money. The main goal of this beta is to stress-test the core lending and borrowing markets in a live environment.

The V1 protocol features Liquidity Pools for initial assets like ETH, USDT, LINK, and WBTC. When you deposit these assets, you receive mtTokens. These are interest-bearing receipts that track your deposit and grow in value as the protocol collects interest from borrowers. 

On the other side, borrowers receive Debt Tokens to track their loan balances in real-time. To keep the system safe, an automated Liquidator Bot is active to manage risky positions and ensure the protocol stays solvent.

The tech is backed by high security standards, including a full audit by Halborn and a 90/100 safety score from CertiK. The team is also offering a $50,000 bug bounty during this phase to reward anyone who finds a vulnerability. 

This successful launch has pushed the project to over $20.1 million in funding. While the current price is $0.04 and the launch is set for $0.06, the live testnet gives analysts confidence that the token could realistically target 750% growth after the mainnet follows.

The Rush for Q1 2026

The overall supply of MUTM has a limit of 4 billion tokens. To be fair, the team divided the supply between the initial distribution stages 45.5%. This equals 1.82 billion tokens. Demand is moving very fast. Up to now, there are more than 835 million already sold tokens.

Currently MUTM is in pre-sale Phase 7. The token had already gained 300% appreciation since the very first stage. The initial investors in the protocol will record a 500% MUTM growth by the time the protocol officially goes live at $0.06.

The cost is raised with each stage. The second step will involve price increasing by almost 20%. It is due to this that timing is a matter of importance. Now would be the time to have a cheaper price because the next automatic price will be higher. It generates an inherent profit prior to the token ever entering the open market.

Mutuum Finance (MUTM) being an Ethereum-based protocol is poised to remain a new crypto leader for the rest of 2026. It is attracting both small and big investors by addressing the liquidity issues of the past by offering a secure and audited platform. Phase 7 has sold out and the V1 protocol in place, meaning the time to get MUTM at a 50% discount is rapidly running out.

For more information about Mutuum Finance (MUTM) visit the links below:

Website: https://www.mutuum.com
Linktree: https://linktr.ee/mutuumfinance

Cryptocurrency exchange Coinbase has pledged to match the US Treasury’s $1,000 contribution to Trump Accounts for eligible employees’ children, with CEO Brian Armstrong proposing to pay the company’s match in Bitcoin rather than traditional currency.

Armstrong announced the commitment on X in response to a White House post where President Donald Trump stated that major employers were joining the federal children’s investment program.

“Starting to invest early is more important than ever,” Armstrong wrote. “We’re proud to join @POTUS’s initiative by matching the $1k from the U.S. Treasury for all eligible children of Coinbase employees. Hopefully, we can pay the $1k in Bitcoin.”

With the announcement, Coinbase becomes a name on a growing roster of corporate participants in the Trump Accounts program, which was created under the Working Families Tax Cuts legislation to encourage early wealth building among American children.

Companies match federal government’s contribution

The White House rapid response account listed Uber, Charles Schwab, Charter Communications, Intel, Nvidia, Broadcom, IBM, Steak ‘n Shake, Continental Resources, and Comcast among the companies participating in the initiative.

On Wednesday, January 28, JPMorgan Chase and Bank of America announced they would match the federal contribution for their US employees, with Bank of America covering all 165,000 American staff members.

Financial services firms, including SoFi, BNY, BlackRock, Investment Company Institute, Robinhood, and Charles Schwab, have also committed to matching the $1,000 federal deposit.

Intel CEO Lip-Bu Tan stated that the company would provide matching contributions to support employees’ families.

Employer contributions of up to $2,500 annually will not count as taxable income for employees, which should be an additional incentive for corporate participation beyond the initial $1,000 match.

How will the Trump Accounts work?

Trump Accounts are tax-advantaged IRAs for children under 18, featuring a $1,000 pilot program contribution from the Treasury for children born between January 1, 2025, and December 31, 2028. The accounts must be invested in US equity index funds tracking the stock market with fees no higher than 0.10% annually.

Parents can establish accounts and enroll in the pilot program using IRS Form 4547 when filing 2025 tax returns or through an online portal launching in summer 2026. Actual contributions to the accounts will begin on July 4, 2026.

Parents can contribute up to $2,500 annually in pre-tax income, with total yearly contributions capped at $5,000.

Some wealthy Americans have also pledged substantial support, with one of the biggest pledges coming from hedge fund founder Michael Dell and his wife, Susan. They committed $6.25 billion in December 2025 to provide $250 contributions to 25 million American children, targeting those too old to qualify for the Treasury’s $1,000 bonus but still under the age of 10.

The billionaire hedge fund founder Ray Dalio, along with his wife Barbara, also stated that they would commit $250 to 300,000 children who fall under the age of 10 in Connecticut and live in areas where the median income is less than $150,000.

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Microsoft pulled in $81.3 billion in revenue for its second fiscal quarter ending December 31, 2025, a 17% rise compared to the same period last year.

The company beat revenue estimates by $1 billion and earnings estimates by nearly 20 cents per share. Still, none of that stopped its stock from slipping 3% after hours on Wednesday.

Why? Slower growth in cloud was enough to cool investor excitement, even with every other number flashing green.

Microsoft’s earnings per share landed at $4.14 on an adjusted basis, compared to the expected $3.97. On a GAAP basis, it was even higher at $5.16. Net income jumped 60% to $38.5 billion under GAAP. On a non-GAAP basis, it reached $30.9 billion, up 23%.

The change in earnings presentation had a big role in that. In 2024, investments in OpenAI reduced Microsoft’s bottom line. But in this latest quarter, that same stake added $7.6 billion in value. That reversal helped push profit numbers higher across the board.

AI revenue grows as OpenAI boosts cloud pipeline

Satya Nadella, Microsoft’s CEO, said, “We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises.”

That came as Microsoft confirmed its cloud revenue crossed $50 billion, up 26% from last year. Amy Hood, the company’s CFO, said, “We exceeded expectations across revenue, operating income, and earnings per share.”

Microsoft’s commercial remaining performance obligation, future contracted revenue not yet recorded, hit $625 billion, more than double last year’s level. That massive jump came after OpenAI committed $250 billion to Microsoft’s cloud services. OpenAI alone now accounts for 45% of that $625 billion.

Azure and other cloud services revenue grew 39%. That matched analyst forecasts but slightly missed the 40% growth seen in the previous quarter. Intelligent Cloud, the segment that includes Azure, pulled in $32.9 billion, up 29%.

Microsoft also highlighted its Productivity and Business Processes segment, which brought in $34.1 billion, up 16%. Within that, Microsoft 365 Commercial cloud revenue climbed 17%, Microsoft 365 Consumer shot up 29%, LinkedIn rose 11%, and Dynamics 365 was up 19%.

Gaming and device sales slide while shareholder payouts grow

Not everything was sunshine. Microsoft’s More Personal Computing division brought in $14.3 billion, down 3%. Xbox content and services revenue fell 5%, and even with a tiny 1% increase in Windows OEM and device sales, the overall category dragged.

On the plus side for investors, Microsoft returned $12.7 billion to shareholders through dividends and share buybacks in the quarter. That’s a 32% increase over the same quarter last year.

Here’s the detailed financial table showing how Microsoft’s OpenAI investment impacted GAAP and non-GAAP figures:

GAAP net income (2025): $38.5 billion

Adjusted net income (2025): $30.9 billion

GAAP EPS (2025): $5.16

Adjusted EPS (2025): $4.14

GAAP net income (2024): $24.1 billion

Adjusted net income (2024): $25.0 billion

GAAP EPS (2024): $3.23

Adjusted EPS (2024): $3.35

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Meta stock rose 4% after hours on Wednesday after the company posted fourth-quarter revenue of $59.89 billion, blowing past Wall Street’s estimate of $58.59 billion.

Earnings per share came in at $8.88, also ahead of the $8.23 forecast. That pushed Meta into the green after markets closed.

The company’s founder and CEO, Mark Zuckerberg, called 2025 a strong year, saying, “We had strong business performance in 2025. I’m looking forward to advancing personal superintelligence for people around the world in 2026.”

Meta posts strong year-on-year gains across most metrics

For the full year, Meta brought in $200.97 billion in revenue, a 22% increase from 2024’s $164.5 billion. Q4 revenue alone surged 24% year-over-year, up from $48.39 billion in the same quarter last year.

But expenses also shot up. Costs for Q4 hit $35.15 billion, a 40% increase from last year. Annual costs rose 24% to $117.69 billion. Operating income for the quarter climbed to $24.75 billion, up just 6%, while full-year operating income landed at $83.28 billion, up 20% from 2024.

Meta’s operating margin shrank. In Q4 it dropped to 41% from 48% a year ago. The full-year margin also dipped slightly, from 42% to 41%.

Net income rose 9% in Q4 to $22.77 billion, but full-year net income actually fell 3% to $60.46 billion. Diluted earnings per share for the quarter rose 11%, from $8.02 to $8.88. For the full year, EPS ticked down slightly from $23.86 to $23.49.

The company’s effective tax rate for 2025 jumped from 12% to 30% due to the One Big Beautiful Bill Act passed during Q3. Without that change, the tax rate would have been 13%. Provision for income taxes climbed 207% over the year to $25.47 billion.

Engagement, ad impressions, and prices continue rising

Meta reported 3.58 billion daily active people (DAP) across its apps in December, up 7% from a year ago. Ad impressions increased 18% year-over-year in Q4 and 12% across the full year. The average price per ad went up 6% in Q4 and 9% for the year.

Capital spending reached $22.14 billion in Q4 and $72.22 billion in total for the year. The company ended the year with $81.59 billion in cash, equivalents, and marketable securities. Free cash flow stood at $14.08 billion in Q4, and $43.59 billion for the full year.

Operating cash flow hit $36.21 billion for the quarter and $115.8 billion for the year. Long-term debt totaled $58.74 billion by December 31, and headcount was 78,865, a 6% increase year-over-year.

Meta returned capital to shareholders with $26.26 billion in stock buybacks and $5.32 billion in dividend payments for the year. No buybacks were made in Q4, but $1.34 billion in dividends were paid out.

2026 forecast signals more spending and legal risks

The company expects Q1 2026 revenue to land between $53.5 billion and $56.5 billion, with foreign exchange adding a 4% boost. Full-year 2026 expenses are expected to fall between $162 billion and $169 billion, mostly due to bigger infrastructure costs and higher employee pay.

The biggest driver of that growth is spending on AI infrastructure, which includes third-party cloud, depreciation, and maintenance. The next largest factor is compensation, mostly for new technical hires brought on to support Meta’s AI push. Reality Labs will stay in the red, with no improvement expected over 2025.

Capital expenditures in 2026 are projected to jump to between $115 billion and $135 billion, fueled by investments into Meta Superintelligence Labs and core platforms. Despite these rising costs, the company believes it will report higher operating income than it did in 2025.

Meta’s estimated 2026 tax rate sits between 13% and 16%, assuming no further changes to U.S. tax policy.

On the regulatory front, Meta said it reached an agreement with the European Commission to roll out new Less Personalized Ads starting this quarter. But the company flagged ongoing risks from court cases in the U.S., especially around youth safety. Some of those could result in material losses, Meta warned.

Meta cuts Reality Labs, leans harder into AI devices

Earlier in January, Meta laid off more than 1,000 employees from its Reality Labs division. That move was part of a shift away from virtual reality and toward AI-powered hardware, including the Ray-Ban Meta smart glasses made with EssilorLuxottica.

Meta also shut down internal VR studios, prompting worries about a VR winter. Tech chief Andrew Bosworth pushed back on that idea, saying VR is still alive inside Meta, just slower than they expected. Last fall, instead of releasing a new Quest headset, Meta rolled out a new $799 Ray-Ban Display smart glasses with a built-in digital screen.

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