Bitcoin Treasury Pressure Mounts as Stablecoins Gain Strength
By Crypto Biz Desk – February 28, 2026
Public companies that have loaded their balance sheets with Bitcoin are now confronting heightened scrutiny from activist investors, even as the broader digital‑asset market finds a new source of stability in dollar‑backed stablecoins. The contrasting fortunes of Bitcoin‑heavy treasuries, a booming stablecoin business, and legacy payments players such as PayPal illustrate how divergent strategies are shaping the next phase of the crypto economy.
1. Shareholder Revolt Targets a Bitcoin‑Heavy Treasury
Empery Digital, a publicly traded firm that pivoted from its legacy operations to a Bitcoin‑centric treasury last year, is at the center of an escalating shareholder dispute. Holding roughly 4,000 BTC—valued at more than $120 billion at current prices and placing the company among the top 25 public holders of the cryptocurrency—a minority investor representing close to 10 % of the equity has formally demanded a series of changes.
The activist’s letter to the board calls for:
- An immediate sale of the entire Bitcoin position, converting the volatile asset into cash or more predictable securities.
- The resignation of the chief executive officer and a restructuring of the board to better align with shareholder interests.
The investor’s rationale is that the Bitcoin‑centric approach has underperformed relative to alternative capital‑allocation strategies and has not maximized shareholder value. Empery’s management has pushed back, arguing that the long‑term appreciation potential of Bitcoin justifies the current exposure and that the company’s treasury policy remains consistent with its original strategic roadmap.
Analysis – The confrontation underscores a growing tension between corporate governance and the speculative nature of crypto assets. While Bitcoin’s price has recovered from its 2023 trough, its volatility remains a point of contention for investors seeking stable returns. If Empery were to liquidate its holdings, the market could absorb a multi‑billion‑dollar sell‑off without major disruption, but the move would also send a cautionary signal to other firms that have adopted similar treasuries, possibly prompting a wave of divestitures.
2. Stablecoins Show Resilience – Circle’s Strong Q4 and USDC Expansion
Stablecoins, particularly those pegged to the U.S. dollar, have continued to anchor on‑chain liquidity despite the broader “crypto winter” narrative. Circle, the issuer of USDC, reported a fourth‑quarter revenue of $770 million—a 77 % year‑over‑year increase—alongside a net income of $133.4 million. Both metrics exceeded analysts’ expectations and propelled the company’s stock more than 20 % higher in after‑hours trading.
More striking than the earnings numbers is the growth in USDC supply, which rose 72 % to $75.3 billion by year‑end. This expansion reflects sustained demand from a range of participants, including decentralized finance (DeFi) protocols, institutional custodians, and corporate treasuries seeking a low‑volatility bridge to the blockchain.
Circle’s full‑year results show $2.7 billion in revenue, offset by a $70 million net loss primarily driven by stock‑based compensation linked to its recent IPO. Nonetheless, the earnings beat and the scaling of USDC have reinforced the narrative that stablecoins remain a core infrastructure layer for digital finance.
Analysis – The robust performance of USDC suggests that market participants value a reliable, regulated stablecoin for both on‑chain transactions and as a cash‑equivalent reserve. As traditional finance institutions increasingly explore crypto‑adjacent services, the demand curve for dollar‑denominated stablecoins is likely to stay upward‑sloping, potentially attracting more competition but also consolidating the role of incumbents like Circle.
3. PayPal’s Digital‑Asset Push Meets Market Headwinds
PayPal, a pioneer among legacy payment processors to embrace crypto, has seen its share price tumble more than 30 % over the past year. Recent reports indicate that the company is now the subject of early‑stage takeover interest, with potential suitors ranging from full‑acquisition bidders to parties interested only in specific business units. Bloomberg sources name Stripe, a payments firm with a reputation for supporting Bitcoin‑friendly services, among the interested parties.
The speculation comes as PayPal continues to expand its digital‑asset offering, most notably through the launch of its own stablecoin, PayPal USD. While the stablecoin has not yet generated the same market traction as USDC, the move signals PayPal’s commitment to building a broader crypto ecosystem.
Analysis – PayPal’s challenges highlight the difficulty for established fintech players to translate crypto enthusiasm into sustainable revenue growth. The company’s declining stock may make it an attractive acquisition target for a competitor seeking to accelerate its own crypto roadmap, but any deal would need to address integration risks, regulatory scrutiny, and the competitive pressure from more nimble, crypto‑native firms.
4. Bridging DeFi and Real‑World Finance – A $500 Million Stablecoin Mortgage Initiative
In a separate development, mortgage lender Better, together with venture firm Framework Ventures, announced a $500 million program that channels stablecoin liquidity into U.S. mortgage financing. Under the arrangement, Better will continue to underwrite and service home loans, while the capital is sourced from a stablecoin‑based liquidity pool. The partnership represents one of the most sizable attempts to fuse decentralized finance mechanisms with traditional real‑estate lending.
Takeaway – The initiative demonstrates that stablecoins are increasingly being used as a bridge to bring blockchain liquidity into conventional financial markets, a trend that could accelerate tokenization of real assets if the pilot proves successful.
Key Takeaways
| Theme | Development | Implication |
|---|---|---|
| Bitcoin Treasuries | Shareholder activism at Empery Digital demanding a Bitcoin sell‑off and leadership change. | Signals rising investor discomfort with volatile crypto assets on corporate balance sheets; may trigger reevaluation of similar treasury strategies. |
| Stablecoins | Circle’s Q4 earnings beat; USDC supply up 72 % to $75.3 bn; $500 M stablecoin‑mortgage deal. | Reinforces stablecoins as the primary on‑chain liquidity source and a conduit for real‑world financial integration. |
| Legacy Payments | PayPal’s stock slump and emerging takeover interest, despite its own stablecoin launch. | Highlights challenges for incumbent fintechs in monetizing crypto services; potential consolidation in the payments sector. |
| DeFi‑Real‑World Fusion | Large‑scale mortgage funding via stablecoins. | Could pave the way for broader tokenized asset financing, expanding DeFi’s relevance beyond pure digital assets. |
Outlook – As the cryptocurrency market continues to mature, the divergent performance of Bitcoin‑heavy treasuries and stablecoin ecosystems is likely to shape corporate strategies and investor sentiment. Companies that can demonstrate disciplined risk management while leveraging the liquidity and regulatory clarity of stablecoins may find a competitive edge, whereas those overly reliant on the price swings of Bitcoin could face renewed pressure from shareholders and the market alike. The evolving dynamics surrounding PayPal and potential acquisition activity further suggest that the payments landscape will remain fluid, with crypto‑centric capabilities becoming a critical differentiator.
The Crypto Biz team will keep tracking these developments and provide updates as new data emerge.
Source: https://cointelegraph.com/news/crypto-biz-bitcoin-treasury-shareholder-revolt?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
