Cango is moving a step closer to becoming a Bitcoin mining proxy for Bitmain by agreeing to divest its Chinese auto-financing business for $352 million to a firm linked to Bitmain’s affiliate, Antalpha.

In a press release, Cango announced that it has entered into a definitive agreement with Ursalpha Digital Limited—a buyer introduced by Enduring Wealth Capital Limited (EWCL)—to sell its operations in China as part of a full pivot into Bitcoin mining.

Last month, Cango received a letter of intent from EWCL, which offered to take control of Cango’s mining business and assist in finding a buyer for its legacy auto-financing division. As previously reported, EWCL is tied to Antalpha, which is owned by Antpool and ultimately controlled by Bitmain Chairman Micree Zhan.

While Cango noted in Thursday’s release that Ursalpha Digital is registered in the British Virgin Islands, Hong Kong corporate records show that Ursalpha Digital and Antalpha Digital Limited share the same corporate address and founding director—Chiu Chang-Wei, a Taiwanese national who also serves as a director of Antalpha’s Singapore entity.

According to Cango, the deal includes an upfront payment of $210.6 million from Ursalpha, with additional installments contingent on meeting tax obligations and reducing credit risk exposure of the divested entities.

Effectively, Bitmain could be bringing its proprietary Bitcoin mining assets into the public market by first selling 32 EH/s of on-rack hashrate to Cango, then using its Antalpha affiliate to orchestrate a two-pronged takeover: one entity acquiring Cango’s mining business and another acquiring its original auto-financing arm.

Cango mined 530 BTC in March and held 2,475 BTC at the month’s end. That production equates to a realized hashrate of 29.13 EH/s, placing Cango among the top five publicly traded Bitcoin mining companies.

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Recent developments in the U.S. markets have led to a remarkable increase in Bitcoin ETF investments, despite the largely overlooked effects of tariffs imposed by the Trump administration. Market participants capitalized on lower price points, leading to a substantial influx of $220 million in net investments, effectively countering the recent sell-off trends.

What Sparked the Surge in Bitcoin ETF Investments?
Net investments in Bitcoin ETFs rebounded impressively by Wednesday, April 2, amounting to $220 million. Major institutional players such as Fidelity and Ark Invest were at the forefront, contributing $119 million and $130 million, respectively. Conversely, the iShares Bitcoin Trust, under BlackRock’s management, faced withdrawals of $116 million.

Why Are Institutions Increasing Their Bitcoin Holdings?
Interest from institutional players in Bitcoin is seeing a revival after a period of market instability. Recent reports indicate that the total Bitcoin reserves among 75 leading publicly traded companies in the U.S. have surged to 696,456. In the past week, eight companies increased their holdings by a cumulative total of 26,303 Bitcoins, reflecting a renewed confidence in Bitcoin’s future value.

The cryptocurrency market experienced heightened volatility following Trump’s tariff announcements. Bitcoin’s value dipped from $88,000 to $81,000, with daily trading volume soaring by 85% to reach $54 billion. As of now, Bitcoin is trading at $83,394, with a market capitalization estimated at $1.65 trillion.

Amid these fluctuations, market analysts have been evaluating potential price shifts, highlighting that movements on hourly charts will play a crucial role in determining future market trends.

Insights from recent institutional purchases illustrate the market’s current landscape and longer-term expectations. Participants emphasized the importance of closely watching technical benchmarks moving forward.

Market volatility may lead many to reconsider their investment strategies and risk tolerance. Key considerations include identifying optimal buying opportunities while remaining vigilant about potential risks associated with market fluctuations.

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Japan’s Metaplanet has acquired an additional 160 Bitcoin, bringing its total holdings to 4,206 BTC.

According to the company’s Apr. 2 statement, the latest purchase was made at an average price of 12.49 million yen ($80,063) per Bitcoin (BTC), totaling 1.998 billion yen ($13.39 million). This purchase is a part of Metaplanet’s ongoing Bitcoin treasury strategy, which has played a major role in the company’s expansion.

Through the sale of cash-secured Bitcoin put options, Metaplanet revealed that it had purchased 696 BTC in Q1 2025. 50 BTC came from premiums, and 645.74 BTC came from option exercises. The total cost for these acquisitions was ¥10.152 billion ($91.7 million). Metaplanet continues to actively raise capital from investors to fund more purchases.

On Mar. 31, the company raised 2 billion yen ($13.22 million) in its 10th Series of Ordinary Bonds, all of which will go toward purchasing additional Bitcoin. Since adopting a Bitcoin-focused strategy, Metaplanet’s stock has risen by more than 3,000%, demonstrating strong investor interest.

The company has stated that it is on track to reach its goal of earning ¥3.0 billion (~$27.5 million) from its Bitcoin program this year. This will help meet the company’s total revenue target of ¥3.4 billion (~$31.3 million) for the entire year.

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The primary key perfomance indicator that the company uses to assess the success of its Bitcoin acquisition strategy is its BTC Yield, which measures the percentage change in total Bitcoin holdings compared to fully diluted shares. The Bitcoin yield rose to 309% in Q4 2024 and 95% in Q1 2025.

Metaplanet’s long-term objective is to hold 21,000 BTC by 2026. Its aims to surpass 10,000 BTC by the end of 2025, establishing itself as Asia’s largest corporate holder of Bitcoin.

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Tether, the issuer behind the USDT stablecoin, has continued its Bitcoin investment strategy, purchasing an additional 8,888 BTC on the last day of Q1 2025. The latest acquisition, which cost $735 million, expands Tether’s (USDT) total Bitcoin (BTC) holdings to 100,521 BTC, or roughly $8.29 billion, according to data from Arkham Intelligence. The acquisition is part of Tether’s ongoing strategy to bolster its reserves by allocating 15% of its profits to Bitcoin purchases, a commitment the company made in May 2023.

Among the company’s other on-chain assets are $5.16 billion in USDT, $215.85 million in XAUT, and $46.17 million in AUSDF.

Tether’s expansion extends beyond cryptocurrencies. On Mar. 27, the company increased its stake in Adecoagro, a Latin American agricultural firm, to 70%. This is in line with Tether’s policy of supporting companies that promote economic freedom, especially in emerging markets.

To further expand its investments across a variety of industries, Tether plans to purchase a 30% stake in the Italian media company Be Water.

The company reported a record profit of $13.7 billion last year, according to its Q4 2024 report. It established itself as the biggest stablecoin issuer by issuing USDT totaling $45 billion. With a market valuation of $144 billion, USDT now accounts for 61% of the total stablecoin market, far outpacing competitors such as USD Coin (USDC), which has a market cap of $60 billion.

To ensure that every USDT issued is completely backed, the company maintains $7 billion in excess stablecoin reserves. Tether also made big moves in traditional markets, becoming 2024’s seventh-largest buyer of U.S. Treasury securities with a $33.1 billion investment. This further diversifies Tether’s assets and puts its holdings ahead of nations like Canada, Mexico, and Germany.

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The stablecoin sector is undergoing rapid transformation as major players shift strategies and prepare for substantial growth. CoinFund's managing partner David Pakman recently projected that the global stablecoin supply could surge to $1 trillion by the end of 2025, driven by increasing onchain capital movement and rising adoption for everyday payments. At the same time, blockchain firm Sonic Labs has canceled plans to launch a US dollar-pegged algorithmic stablecoin, opting instead to develop a UAE dirham-based alternative amid growing regulatory scrutiny and market concerns over algorithmic models.

Stablecoin Supply Could Soar to $1 Trillion by End of 2025, Says CoinFund's David Pakman
The global stablecoin market is poised for exponential growth, potentially reaching a staggering $1 trillion in supply by the end of 2025, according to David Pakman, managing partner at crypto-focused investment firm CoinFund. Pakman believes this surge could become one of the most significant catalysts for broader cryptocurrency adoption and decentralized finance (DeFi) expansion over the next year.

“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” Pakman stated. “We could go from $225 billion stablecoins to $1 trillion just this calendar year.”

While a trillion-dollar stablecoin market would still be modest compared to the multi-trillion-dollar traditional financial markets, Pakman underscored that such growth would mark a “meaningfully significant” shift in blockchain-based finance. He noted that the capital inflow would not only serve as a bridge between traditional and decentralized financial ecosystems but could also unlock deeper liquidity, utility, and yield opportunities within DeFi protocols.
The stablecoin market has already shown signs of this rapid growth trajectory. Data from blockchain analytics platform Glassnode reveals that the aggregate supply of the five largest stablecoins recently hit an all-time high of over $208 billion as of March 28. That figure has continued climbing and surpassed $219 billion in recent weeks, reinforcing the narrative that stablecoins are driving fresh liquidity into the cryptocurrency ecosystem.
Pakman views this growing stablecoin supply as a structural tailwind that could catalyze broader crypto market expansion.

Furthermore, the CoinFund executive noted that stablecoins could become even more influential if regulatory developments allow for additional yield-generating features. Specifically, he mentioned that if exchange-traded funds (ETFs) in the US or other major markets are permitted to offer staking rewards or yield-bearing mechanisms, it could fuel a wave of DeFi activity and mainstream adoption.

“If we have a moment this year where ETFs are permitted to provide staking rewards or yield to holders, that unlocks really meaningful uplift in DeFi activity, broadly defined,” Pakman said.

Beyond their role as a trading instrument and store of value, stablecoins are increasingly being used for everyday payments and remittance services — a trend that supports the case for long-term growth.

Pakman pointed out that stablecoin transaction volumes have skyrocketed, increasing more than 22 times since 2021. More importantly, he highlighted a noticeable decrease in the average transaction size, indicating that stablecoins are being used more frequently for smaller, everyday payments rather than just large institutional transfers.

This aligns with recent observations from CryptoQuant CEO Ki Young Ju, who has noted that stablecoins are evolving into an essential payment and remittance tool, particularly in emerging markets and regions where access to traditional banking is limited.

However, Ju tempered expectations about the direct impact of stablecoin growth on Bitcoin’s price, cautioning that an expanding stablecoin supply alone may not be enough to fuel Bitcoin’s next major rally without additional catalysts.

Market Mid-Cycle, Not Euphoric Peak
Analysts at blockchain intelligence firm IntoTheBlock have also weighed in on the growing stablecoin supply, suggesting that the market may still be in a “mid-cycle” phase rather than at the euphoric peak of a bull market.

The steady increase in stablecoin liquidity is often viewed as a leading indicator of capital readiness for broader crypto market participation. Historically, when stablecoin reserves on exchanges rise, it signals that investors have cash on the sidelines, ready to flow into Bitcoin, Ethereum, and other crypto assets.

With stablecoins now playing an integral role in payment processing, trading, lending, and cross-border transactions, the industry could be on the verge of a new era of digital finance — one in which blockchain-based money serves billions worldwide.

Sonic Labs Cancels US Dollar-Pegged Algorithmic Stablecoin, Shifts Focus to UAE Dirham-Backed Model
In related news, Sonic Labs, a leading blockchain development firm co-founded by renowned DeFi architect Andre Cronje, has abandoned its plans to launch a US dollar-pegged algorithmic stablecoin, pivoting instead to a new project focused on a United Arab Emirates dirham-denominated alternative. The move comes amid growing regulatory scrutiny of algorithmic stablecoins and in the wake of lessons learned from past catastrophic failures in the crypto market.
The unexpected reversal was announced by Cronje on March 28 via a post on social platform X, just one week after revealing the firm's ambitious plans to launch a USD-based algorithmic stablecoin offering yields of up to 23% annually.

“We will no longer be releasing a USD-based algorithmic stablecoin,” Cronje wrote. “Completely unrelated, we will be releasing a mathematically bound numerical Dirham, which is settled and denominated in USD, which is definitely not a USD-based algorithmic stablecoin.”

The change in strategy coincides with the UAE’s announcement that it will roll out its digital dirham central bank digital currency (CBDC) in the fourth quarter of 2025 — a development that may have influenced Sonic Labs’ shift toward a dirham-backed solution.

Sonic Labs’ original plan to launch a USD-pegged algorithmic stablecoin was met with considerable skepticism within the crypto community. Many critics cited the collapse of TerraUSD (UST) — a dollar-pegged algorithmic stablecoin that infamously lost its peg in May 2022, wiping out over $40 billion in market value — as a cautionary tale. The failure of Terra’s algorithmic model triggered widespread regulatory backlash, significant investor losses, and a loss of public confidence in such mechanisms.

Cronje himself has been candid about the emotional toll the Terra collapse had on him and other developers in the decentralized finance (DeFi) space. In previous statements, he admitted to experiencing post-traumatic stress disorder (PTSD) related to algorithmic stablecoins.
“Pretty sure our team cracked algo stable coins today, but previous cycle gave me so much PTSD not sure if we should implement,” Cronje said at the time.

The memory of Terra’s downfall, which saw UST depeg from the US dollar and crash to as low as $0.30 while sister token LUNA plummeted from over $120 to under $1, remains fresh in the minds of investors and policymakers alike. The incident became a defining moment for crypto regulation, leading the European Union to explicitly prohibit algorithmic stablecoins under its Markets in Crypto-Assets Regulation (MiCA) bill to prevent similar collapses.

Sonic Labs' pivot toward a UAE dirham-denominated stablecoin appears to align strategically with the broader digital transformation of the UAE’s financial system. Earlier this month, Khaled Mohamed Balama, governor of the Central Bank of the UAE, confirmed that the country plans to launch its blockchain-based digital dirham CBDC by the end of 2025. The digital dirham is expected to function alongside its physical counterpart and will be accepted across all payment channels.

Balama emphasized that the introduction of the digital dirham could strengthen financial stability, improve cross-border payments, and aid in combating financial crimes through enhanced transparency and traceability.

While Cronje stressed in his announcement that Sonic’s new project is “definitely not” an algorithmic stablecoin, the company's focus on a mathematically bound, dirham-based model suggests an attempt to create a compliant and regionally integrated digital asset that could benefit from the UAE’s progressive stance toward blockchain and financial innovation.

The timing of Sonic Labs’ decision reflects a broader recalibration within the crypto industry regarding stablecoins. Recent market trends show that stablecoins are increasingly being used for small, everyday payments, as opposed to large speculative transfers.

A Safer Approach to Onchain Payments?
The decision to build a UAE dirham-denominated stablecoin, rather than a USD algorithmic model, may prove to be a prudent long-term strategy for Sonic Labs. By integrating their product with the financial ecosystem of a jurisdiction actively pursuing a regulated digital currency, the firm can potentially avoid the pitfalls and risks that doomed Terra and other algorithmic stablecoins.

Whether Sonic Labs’ dirham-backed stablecoin will gain traction remains to be seen, but the project reflects an increasing trend toward stablecoin models that are either fully collateralized, centrally regulated, or closely tied to sovereign digital currencies — rather than relying on opaque algorithms and unsustainable yield incentives.

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