The Dypto Times - Chains, Links, Fortunes, and Fortune Tellers

Back in the day…wow…we’re old. Anywho, back in the day, we used to think that earnings reports were gospel. After getting into crypto and kind of peeking behind the curtain of finance, we realized that those numbers aren’t always reality.

Before you start thinking crypto treasury companies are some sort of scam or destined to fail, check out our summary below. But that’s not all that went down last week. Let’s get after it.

From the Dypto Crypto Newsroom

Why ETH Treasury Companies Are Posting Lackluster Numbers

TLDR

• Ethereum treasury companies reported unappealing numbers for Q2.

• Stockholders didn’t like what they saw, and both companies experienced dips in stock price.

• But there is way more to it than just numbers on a ledger.

If you’ve been keeping an eye on Ethereum treasury companies lately, you might have noticed something puzzling: their earnings reports aren’t exactly setting the crypto world on fire. At least not for Q2 2025. 

Despite ETH’s impressive performance and growing adoption, companies betting big on Ethereum are showing some pretty underwhelming numbers. What gives?

The numbers fugazi.

Take Bit Digital, for example. This crypto infrastructure company reported a 11.7% decline in total revenue for Q2, generating $25.7 million, compared to the same quarter last year. That’s not exactly the growth story investors want to hear, especially when the company is pivoting hard into Ethereum treasury strategies.

But here’s where it gets interesting: despite the revenue decline, Bit Digital actually swung from a $12 million loss to a $14.9 million profit. 

SharpLink Gaming, backed by Ethereum co-founder Joseph Lubin, posted a massive $103 million net loss for Q2. But get this: $87.8 million of that loss was purely on paper.

Under Generally Accepted Accounting Principles (GAAP), companies must recognize the lowest price their crypto holdings traded at during the quarter. For ETH, that was $2,300 in Q2. 

Fundamentals > earnings reports.

Read the full story at Dypto Crypto

July CPI Report: Inflation Runs Hot While Crypto Cools

TLDR

• According to July’s CPI report, core inflation ran a bit hotter than expected.

• TradFi markets dumped early, but recovered by the end of the day.

• After reaching all-time highs, BTC experienced volatility, and the crypto market saw over $1 billion in liquidations over the last 24 hours.

The July CPI report dropped this week, and the markets saw some volatility. Given how many institutional players are now involved in crypto, it’s no surprise that BTC, ETH, and other digital assets have become susceptible to news like this. And believe us, some folks got hit hard. 

Inflation came in at 2.7% year-over-year, which was actually lower than the 2.8% experts predicted. Sounds good, right? Well, it’s a bit more complicated than that. 

How the market reacted.

The stock market had what we like to call a “mini freak-out” initially. The S&P 500, Nasdaq, and Dow all took a dive early in the day after the producer price index came out looking less than stellar. The producer price index tells us what companies are paying for materials, and when those costs go up, it usually means consumer prices will follow.

However, markets recovered by the end of the day. The S&P 500 even managed to close at a record high, though just barely. Bitcoin gave us a perfect example of how crypto reacts to economic news. After hitting a fresh all-time high of $123,400, Bitcoin dropped to $117,400 before starting to recover, and it went back over $118,000 at the time of this article’s writing.

Unfortunately, the volatility caught quite a few traders off guard. According to Coinglass, there were over $1 billion in liquidations over the 24-hour period following the news. 

Read the full article at Dypto Crypto

Big Boys of Finance Buy the Dip

TLDR

• Bitcoin and Ethereum dipped hard on Thursday, mostly from a combination of CPI, PPI, and Treasury Department news.

• While these tokens dipped, BlackRock, as well as other institutions, bought the dip.

• BlackRock now has over $88 billion in its IBIT ETF.

When crypto prices take a nosedive, most retail investors panic. But the financial giants? They’re pulling out their checkbooks. While Bitcoin and Ethereum tumbled over 5% on Thursday, BlackRock’s ETFs swept up more than $1 billion worth of these digital assets. Talk about turning fear into opportunity.

For BlackRock, buying the dip means the entire dip.

The world’s largest Bitcoin ETF actually bought over $500 million worth of Bitcoin on Thursday. Not to be outdone, their Ethereum equivalent scooped up a similar amount.

Think about that for a second. 

While Bitcoin was bleeding value and panic was spreading across crypto Twitter, one of the world’s most powerful financial institutions was essentially saying, “We’ll take some more, please.” By the way, BlackRock now holds more $88 billion in that fund. Talk about a whale of whales!

Read the full article at Dypto Crypto

Question of the Week

From an X DM - “I heard the US government is going to start adding trackers to DeFi smart contracts. How will this impact DeFi users?”

Whew. That’s a doozy of a question. And we’re happy to answer it.

Meme of the Week

Source

Deep Dive - The Chainlink Reserve

The words “Chainlink” and “innovation” are often found together in the same sentence. While pushing the envelope as far as innovation has always been the protocol’s thing, this new upgrade is a bit different. But it’s just as special as a lot of the other things they have going on — even though, at first glance, it appears to be a bit on the status quo side of things. 

Chainlink is one of the most important projects in the blockchain space, and the protocol has launched something called the Chainlink Reserve. Probably sounds familiar, right? What company doesn’t have a crypto reserve these days? 

The Chainlink Reserve is a smart contract on the Ethereum blockchain that stores LINK — Chainlink’s native token. What makes this interesting is how they’re filling this vault: by converting revenue from their business operations into LINK tokens and storing them away.

They don’t plan to withdraw from this Reserve for multiple years. It’s already accumulated over $1.5 million worth of LINK (at the time of that writing — it’s now closer to $3 million!). As more businesses use Chainlink’s services, more money flows into the Reserve.

Traditional companies keep cash reserves in banks. Crypto companies are starting to keep their reserves in their own tokens, and Chainlink is leading by example. This approach offers several advantages:

Alignment with Success: When Chainlink stores LINK tokens instead of dollars, its reserve grows when its token performs well — creating a positive feedback loop — success breeds more success.

Transparency: Unlike traditional corporate treasuries hidden in bank accounts, you can actually see the Chainlink Reserve in real-time on their analytics dashboard at reserve.chain.link. 

Network Effects: As the Reserve grows, it demonstrates confidence in LINK’s long-term value, which can attract more users and developers to the platform.

Read the full article at Dypto Crypto

Question of the Week Answer

The DM from one of our followers refers to this document from the US Treasury, and likely this article.

Can the US government track DeFi? Of course. It’s a public ledger. Anyone and everyone can track an address. All you need to do is go to Debank and put in a wallet address, and you can see everything that the user does on every chain.

Can they force every single DeFi project to add trackers and ID verification to their smart contracts? No. They can’t. Unless! 

1. It becomes some sort of law

AND 

2. The project in question is registered as a US business. For example…Polymarket would fit into 2 should 1 occur.

But right now, the Treasury is exploring options and looking for input from the general public. It will take at least a year, probably 2-3, for them to come up with the viable solutions they want. And that’s provided they come up with anything viable at all.

There is no need to freak out or worry. For now, DeFi is DeFi and will continue to operate as it always has. And you can expect that to be the case for quite some time. If that ever changes, Dypto Crypto will be there to give you the skinny on what’s happening and what you need to know to navigate the new DeFi. And yes, we are keeping an eye on this as it progresses.

Closing Shenanigans

Thanks for reading. Dypto Crypto is a safe place where crypto newbies can learn and ask questions to help them make informed decisions in this exciting and volatile world. We’re having a lot of fun with YouTube shorts and TikTok. 

So check out those videos and some of our website's tools. Feel free to ask questions on our social platforms or the site. Thanks for subbing! We’ll see you next week. We hope you guys are enjoying the newsletter, and we’d appreciate some feedback. Feel free to reach out on social media and let us know how we did on the first try.