On April 11, 2025, publicly traded crypto companies witnessed notable developments, according to the weekly report from Decrypt. Robinhood and MARA Holdings recorded growth, Coinbase faced competition in the custody sector, and analysts questioned the importance of the upcoming GDP report. Can crypto companies capitalize on volatility in the market to break through? Let's analyze in detail.
Robinhood and MARA Holdings: Bright Spots of the Week
In a turbulent week, #Robinhood (HOOD) and #MaraHoldings are the only two crypto stocks that recorded gains compared to the previous week:
Robinhood (HOOD): Shares traded on Nasdaq reached $42.75 before closing, up 5.8% from the previous Friday. Notably, Morgan Stanley just downgraded this stock, reducing its price target from $90 to $40 due to concerns about the company's dependence on transaction-based revenue. However, Wall Street analysts remain optimistic about Robinhood's long-term potential, although they predict that the company will face short-term difficulties as retail investors are affected by the economic downturn. Trump's decision to suspend reciprocal tariffs for 90 days (according to the previous article) also contributed to the stock price increase, as the overall market rebounded (Nasdaq rose 10%).
MARA Holdings: Shares of this Bitcoin mining company rose 4.5% to $12.47. MARA reported a 6% increase in Bitcoin production in March 2025, accounting for 5.8% of the mining rewards during the same period. A bright spot is that the company is about to complete a 40-megawatt data center in Ohio in the coming weeks, a step towards vertical integration to reduce operating costs – a key factor as Bitcoin mining difficulty surges (each block currently rewards about $260,000, according to Decrypt).
Both companies benefited from positive sentiment following Trump's decision to suspend tariffs, leading to a strong rise in crypto stocks (according to the previous article, Nasdaq rose 10% and Coinbase's stock increased by 12%).
Coinbase: Facing Competition in the Custody Sector
Coinbase – the largest custody platform for crypto ETFs – is facing new competition:
BlackRock chooses Anchorage Digital: Earlier this week, BlackRock added Anchorage Digital as a second custodian for the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA), trading on Nasdaq. These two funds currently hold $45 billion in Bitcoin and $1.7 billion in Ethereum, making this move noteworthy.
Coinbase's custody revenue: However, according to journalist Andre Beganski from Decrypt, the custody sector is not a significant revenue source for Coinbase. After spot Bitcoin and Ethereum ETFs were approved in 2024, Coinbase's custody fee revenue doubled to $142 million over the past year (from $70 million in 2023), but only accounted for 6% of total revenue of $2.3 billion in Q4/2024. The largest revenue source for Coinbase comes from its agreement with Circle, sharing interest from cash and cash-equivalent assets supporting the USDC stablecoin.
Despite competition from Anchorage Digital, Coinbase's position in the custody sector remains strong, thanks to its reputation and scale (Coinbase is the primary custodian for many large ETF funds, according to information from the web).
GDP Report: Important or Outdated?
The upcoming gross domestic product (GDP) report from the U.S. Department of Commerce is attracting attention, but asset managers are not overly concerned:
GDP – A Lagging Indicator: GDP measures the total value of goods and services sold and is a lagging indicator that does not reflect the economic health in a timely manner. James Butterfill, Director of Research at CoinShares, believes that GDP is not a noteworthy indicator for asset managers. Although the Q1 GDP report may not show a recession, other indicators are "flashing red": consumer confidence has sharply declined, the NFIB small business survey shows increasing stress, and bankruptcies have risen by 13% year-on-year – the highest level since the COVID crisis.
PMI – A Leading Indicator: In contrast, the PMI (Purchasing Managers’ Index) from S&P Global – a leading indicator based on surveys – shows growth in March 2025, but largely due to companies ramping up production to "get ahead" of Trump's tariffs. However, S&P also noted that business confidence is "broadly declining" in most sectors, except for Russia.
Butterfill warns that the impact of the tariff dispute (Trump imposed a 104% tariff on China, according to the previous article) may only become apparent in Q2 data, increasing pressure on the U.S. economy.
Other Developments in Public Crypto Markets
MicroStrategy (MSTR) loses $6 billion: The company announced a $6 billion loss from its Bitcoin investment purchased in Q1/2025, as the price of BTC dropped from over $100,000 (January 2025) to $79,000 (according to the previous article). This could affect earnings in the upcoming earnings report.
Block, Inc. pays a $40 million fine: Block, Inc. (traded on the NYSE under the ticker XYZ) has paid $40 million to settle a lawsuit with the New York Department of Financial Services over "serious deficiencies" in its anti-money laundering compliance program. The company's stock ended the week at $53.75, down 1.9% from the previous week.
The Bakkt lawsuit: The class action lawsuit against Bakkt – alleging that the company did not adequately warn investors about its dependence on the crypto business – will have a preliminary hearing in August 2025.
Impact on the Crypto Market
Positive sentiment: The price increases of HOOD and MARA reflect a return of confidence in publicly traded crypto companies, thanks to Trump's decision to suspend tariffs (according to the previous article, XRP, SOL, DOGE rose 10%, 12.5%, and 10.5%, respectively). This could drive capital flows into other crypto stocks.
Competition in custody: BlackRock choosing Anchorage Digital could put pressure on Coinbase, but also indicates the maturity of the crypto ETF market, with large funds like IBIT and ETHA attracting $46.7 billion in assets.
Macro risks: Although GDP is not a crucial indicator, negative signals such as rising bankruptcies and declining business confidence could impact investor sentiment, especially as the crypto market has lost 11.65% of its market capitalization in Q1/2025 (according to the previous article).
Conclusion: Opportunities and Challenges Coexist
Robinhood and MARA Holdings are the two bright spots of the week, benefiting from positive sentiment following Trump's tariff decision and sustainable development strategies (Robinhood with long-term potential, MARA with vertical integration). Coinbase faces competition from Anchorage Digital, but the custody sector still accounts for only a small portion of revenue. Meanwhile, analysts believe that GDP is not a crucial indicator for assessing the economy, especially when other indicators are flashing warnings. In the context of a volatile crypto market, can companies like Robinhood and MARA continue to lead, or will macro factors hinder their growth? Investors need to monitor closely to seize opportunities.
Risk warning: Investing in crypto stocks carries high risks due to market volatility and macroeconomic instability. Please consider carefully before participating.
