hodler

26 May 2026, 10:51

Web3’s Next Winners Will Be Built by Leaner, Denser Teams

Somewhere between 2021 and 2023, a significant portion of the Web3 industry learned, at a considerable cost, that the same logic driving a bull market hiring surge can work just as efficiently in reverse. During the peak of these years, the sector added staff at a pace that made traditional tech look conservative, but when token prices fell, revenue projections were revised sharply downward, and corrections arrived fast. Over 26,000 crypto employees lost their jobs in 2022 alone, with Coinbase and Kraken eliminating 20% and 30% of their workforces, respectively. In fact, by some estimates, the crypto sector as a whole shed roughly 40 percent of its total workforce between 2022 and 2024, leading many to believe that the organizational model being used by the industry was not sustainable. That said, the firms that avoided the worst of that cycle tended to share a common characteristic, i.e., they had not hired for scale. Infrastructure-focused companies that kept building through the contraction, especially those working on Layer 2 performance, cryptographic tooling, enterprise compliance systems, and cross-chain interoperability, were often the ones that emerged stronger. Startale , the company behind the Ethereum Layer 2 network Soneium, reflects this shift clearly, having continued to expand its infrastructure footprint without adopting the oversized organizational structures that defined much of the previous crypto cycle. The Case for Depth Over Scale The concept of talent density, i.e., building organizations around exceptional capability per person rather than total headcount, applies with particular force in deep infrastructure development. In fact, the teams responsible for the most significant technical advances in crypto have consistently been small by enterprise standards. For instance, the original Ethereum team, who were behind the first practical implementations of zero-knowledge proofs, and the engineers who built the EVM architecture that most L2s still depend on, were each operating with a fraction of the headcount their output might suggest. And while job postings in the sector have rebounded in recent years (47 percent in 2025), the demand for fresh talent seems to have drifted toward compliance engineers, security specialists, AI-Web3 hybrid architects, and enterprise systems integrators, basically the disciplines where the gap between a strong hire and an average one produces outsized consequences for what actually gets shipped. Building What Does Not Fully Exist Yet The particular challenge Startale is working on (i.e., regulated, institutional-grade blockchain infrastructure that also functions at consumer scale) involves technical problems without established playbooks. To this point, Soneium has recently surpassed 600 million transactions and 5.4 million active wallets since launching during Q1 2025. Furthermore, the 250-plus independent developer-built applications now live on Soneium (spanning gaming, music, AI-driven content, and creator tools) are evidence of what that kind of cross-disciplinary depth makes possible at scale. So is the Startale Superstars incubation program, which offers a $250,000 prize pool designed to attract developers capable of building for audiences that may never know they are interacting with a blockchain. That cross-disciplinary depth, where each specialist understands enough of adjacent disciplines to integrate their work effectively, is not something that can be approximated by adding more personnel but by making deliberate decisions. In sum, the broader takeaway for Web3 does not seem to be overtly complicated, as the companies that emerged from the 2022-2024 contraction in the strongest technical position were largely those that optimized for depth rather than scale. The ones now building the infrastructure (primed to define the next crypto innovation cycle) are doing so with lean teams by any conventional measure.

26 May 2026, 10:47

Hut 8: Richly Valued And Still Highly Dependent On Bitcoin Mining

Summary Hut 8 Corp (HUT) is transitioning from bitcoin mining to AI data center hosting, but remains reliant on bitcoin for near-term cash flow. I rate HUT as Hold due to its premium valuation—trading at 36x sales versus peers—and execution risks tied to delayed AI segment monetization. Despite improved mining efficiency and revenue growth, HUT posted a $253 million net loss in Q1 2026, with negative margins in its digital infrastructure segment. Material AI data center revenue is not expected until Q2 2027, while current share prices already reflect much of HUT's future potential. Hut 8 Corp ( HUT ) is one of the companies transforming its business to become an AI hosting provider. But HUT is not completely abandoning the bitcoin ( BTC-USD ) mining business, as it has a strategic mining partner in American Bitcoin ( ABTC ). This vision could be a little different from similar miners that are betting on becoming pure AI hosting providers. I wrote about this transformation in this article , where I compared the 10 main companies going through that process. Transforming this business is not easy for any company, and there are differences between each one. HUT focused more on leasing its land through long term contracts, known as triple-net leases. Other similar companies, although they also have long term agreements, were more focused on producing and offering cloud AI services, as is the case of IREN Limited ( IREN ). IREN already has an agreement with Microsoft ( MSFT ) and has NVIDIA as its strategic partner. Both hyperscalers ensure more stable monetization by hosting the cloud service. To find a similar approach to HUT, I think we should look at Riot Platforms ( RIOT ). But RIOT moves at a different rhythm and targets a different kind of client. While RIOT has a contract with Advanced Micro Devices ( AMD ), HUT has a much more strategic contract with Alphabet ( GOOG ) and its cloud infrastructure provider, Fluidstack, which also provides a guarantee for securing financing. So, almost all of these companies have the same goal: to monetize the AI boom and the need for optimal energy infrastructure. But if we can understand the differences in levels, we will also understand which ones will be more successful than others in the future. I mean: I believe they will all grow, but not at the same level or rhythm, and above all, perhaps not at the same prices. That's why I believe it is important to know when to buy. In this case, HUT is not in my portfolio, but of course I am paying attention to it. I believe there are additional risks associated with still relying on Bitcoin as a funding source, although in the last reported quarter, HUT improved its hashrate efficiency, allowing it to increase revenue. HUT shows net losses and a slightly more pronounced negative adjusted EBITDA than similar companies. This is normal in companies that are transitioning in their business, but regardless, I believe it's important to keep an eye on them. Finally, I believe HUT shares are a little expensive, with a huge rise of almost 100% so far this year. I am rating HUT as Hold, while I expect better results in the following quarters, or some price correction to change my perspective. Q1 2026: increased mining efficiency didn't prevent accounting losses in Bitcoin Q1 2026 results left some positive and negative things. I'll start with the positives: improved hashrate efficiency. The mining capacity went from 25.1 to 28.1 EH/s, while they also achieved a lower energy cost per mined coin. In addition, the HUT mining sites saw increased activity, which boosted the amount of Bitcoin mined from 135 in Q1 2025 to 817 in Q1 2026. In other words: bitcoin multiplied by 6. That's what allowed the company to compensate the fall of the average price of bitcoin, which went from $91.5k to $76k. Basically, that was a big boost to total revenue in the quarter, especially in the Compute segment. Hut 8 HUT has three revenue segments: Compute, Power, and Digital Infrastructure. But Compute represents almost 95% of revenue. Compute revenue was $66 million in Q1 2026 compared to $16 million in Q1 2025. On the other hand, the other segments remained constant. Power revenue decreased from $4.3 million to $3.7 million due to the divestiture in Far North, while Digital Infrastructure revenue remained at $1.3 million. Digital Infrastructure is the key segment for future revenue growth. That's where I see the core AI business and the monetization of the business transformation. I'd like to see in the following quarters an increase in its weight on total revenue. Hut 8 Despite the increase in total revenue, net losses increased to $253 million compared to $134 million in Q1 2025. This was due to losses on digital assets ($295 million), representing the decline in book value of HUT's bitcoin holdings, similar to the $248 million loss seen in 2025. The effect of losses in digital assets was also noted in the adjusted EBITDA of the quarter, as you can see in the image above, which is a metric I consider key to understanding whether these companies are well directed toward profitability. Another important metric I'm looking at in these companies that are trying to become AI hosting providers is gross margin. In this case, HUT has negative margins of 18% on its digital infrastructure segment, without counting depreciation and amortization. That's why my preliminary conclusion is that HUT's transformation is still in its early stages. That doesn't mean the company can't strongly monetize its current investment, it simply means it can't yet show even positive margins. I'll explain later HUT's plans, the facilities it seeks to leverage, and when it expects to achieve contract monetization and profit margins. Meanwhile, the gross margins for Power and Compute were 43% and 66% in Q1 2026, respectively. These margins should ensure the viability of the company's overall business as it undergoes this transition. To understand this transition, I analyzed its portfolio and its plans to become a pure AI data center. HUT Portfolio, investment plans, and monetization expectations Regarding HUT's installed capacity, it currently has 710 MW operational, and although management mentions a long term platform with a capacity of over 9 GW, I think it's important to clearly understand the breakdown of the categories. Hut 8 I'm including projects under construction with sales agreements (830 MW) and exclusive development agreements (1.68 GW). These would represent 3.2 GW of medium term agreements. The 5.3 GW shown in the earnings report slide are early-stage projects under evaluation, which I don't expect to come online in 2027 or 2028, for example. What I'm trying to say is: the current and concrete expansion plans, concentrated on the River Bend and Beacon Point sites, are projected to generate initial revenue by the second quarter of 2027. That is very far from the forecast that 70% of bitcoin mining revenue will come from AI data centers by the end of 2026. Hut 8 Part of the investment to increase the capacity of these sites came from $3.25 billion in debt raised in Q1 2026 through the issuance of senior bonds. The debt was allocated to River Bend and its structure seems solid, with an amortization period of 16.5 years, without the need to renegotiate rates and terms. Besides, it covers 95% of the build cost, which allowed HUT to recover $184 million. The coupon rate is 6.19% annually, a bit high for my taste, but understandable for a long-term business hoping to capitalize on the AI boom. I believe HUT pays a premium for the volatility of its bitcoin-related business model, but it compensates for this with its stable revenue plan by aiming to be a data center REIT. Hut 8 In line with the NNN contracts, with fifteen year terms, the annualized NOI (net operating income) would be $1.1 billion. The total projected value of the long term leases is $16.8 billion, but the company also presents a hypothetical bullish scenario of up to $42.8 billion. If the bullish scenario comes true, and the contract term remains at fifteen years, that would triple the annualized NOI. But I still can't take a bullish scenario as a basis for my analysis. For now, I believe the base case is sufficient to generate positive expectations. Regarding monetization timelines, Q2 2027 is the period mentioned on the conference call to start generating revenue. In line with my doubts about the digital infrastructure segment, Sean Glennan, CFO, precisely said it depends on the investment in River Bend and Beacon Point facilities. Q: Digital Infrastructure segment revenue was flat year-over-year. With River Bend and Beacon Point Phase 1 now commercialized, when should investors expect this to change? A: So Digital Infrastructure segment revenue was $1.3 million, which is consistent with the prior year period. Cost of revenue is also stable year-over year. However, again, going to the real story here, beginning in Q2 2027, the data halls at River Bend and Beacon Point Phase 1 are expected to come online. We expect this segment to become the primary growth driver, with contribution scaling materially as contracted, investment-gradebacked cash flows come online over time. Valuation: HUT trades at premium prices for its level of execution I believe HUT has some attractive catalysts, but the one I like the most is its transformation into an AI hosting provider. However, valuation multiples incorporate other factors related to the bitcoin mining business, and therefore its prices. The partnership with American Bitcoin and its ability to accumulate cryptocurrencies, I think also gives HUT's stock price a valuation premium. I mean: stock price may be discounting a significant portion of the bitcoin mining business, in addition to its future core function as an AI data center. It is not easy to value these kinds of companies, and even more when current revenue are still far from future expectations, and the losses prevent me from seeing their price to earnings ratio. As a reference, I used the price-to-sales multiple for valuation, which is not only relevant for HUT but also for its peers. But that's just a secondary reference. In my opinion, the volatility of these transforming bitcoin miners still affects valuation. Consider this as an approximation. HUT's stock is trading at 36 times its sales , while IREN, RIOT, and KEEL are trading at 19, 14, and 12 times their sales, respectively. I mean: other companies that are moving more decisively to abandon the bitcoin mining business seem not to have a premium in their share price. Author’s Tabulations Execution risks and dependence on hyperscaler CAPEX timelines As with similar companies, the timelines for implementing the planned energy infrastructure are among the main risks. Market prices, which are many years ahead of future earnings, I believe today reflect an execution that is on time, on track, and in line with revenue projections. Since the revenue thesis for AI data centers will not materialize until at least Q2 2027, the dependence on Bitcoin mining and its price also represents another type of risk. It's been a while since I started assuming volatility as a risk in my portfolio. If an asset is highly volatile, it falls into my personal high risk category. In the case of HUT, bitcoin revenue represents today, and will represent for at least one more year, the main source of cash flow. Beyond mining efficiency, losses on digital assets in Bitcoin holdings could continue to impact the balance sheet. Another risk related to execution is a moderation of hyperscaler CAPEX that could have an impact on monetization. This is a general risk of the industry, but it could be stronger for companies that take longer to monetize their investments, which in some cases are financed with debt from the hyperscalers themselves. Because of these kinds of risks, I think the sector expectations should be analyzed in detail for each company individually. All have the chance to exploit their energy infrastructure, but not all have the same execution plans. Conclusions HUT showed in Q1 2026 that it could be very efficient in bitcoin mining despite its transition toward AI data center hosting, but a bitcoin dependent business isn't what I'm looking for. What I want to see is greater focus and execution in energy infrastructure geared toward the future electrification boom, where data centers are key. I believe HUT could be a very attractive long term investment, like its peers, but I see some factors that are making me choose other companies. For example, the price of its shares seems to reflect a big part of its potential, both in bitcoin mining and in the AI data center thesis. The margins in its AI segment, through NNN contracts, are still negative, and according to management, stronger revenues won't be seen until the second quarter of 2027. So my rating is Hold, while I expect to see some corrections in prices and news about the execution of its transformation plan.

26 May 2026, 09:36

Worldcoin jumps 22%: why WLD price is surging today

Worldcoin has recorded a sharp 24-hour jump of about 21.3%, to trade at around $0.363 at press time. Today’s price surge extends a broader short-term rally that has seen WLD gain 47.2% over the past seven days and nearly 38.8% in the past month. But despite this recent strength, the token still trades far below its all-time high of $11.74, reflecting a long-term downtrend that remains intact. Why is the Worldcoin price rising? A key driver behind the latest price surge is the integration of Oku Trade into World App , which has introduced structured trading incentives for users. The platform has launched weekly swap competitions where participants can earn up to 100 WLD, along with additional rewards such as 50 WLD for second place, 30 WLD for third place, and bonus raffle payouts of up to 100 WLD. According to Oku Trade , the competition has already moved into its fifth weekly cycle, with leaderboard updates showing active participation and consistent reward distribution. The structure encourages users to repeatedly swap tokens within the app, with rankings determining reward allocation each week. Besides the campaigns, wallet interface updates within World App show daily multiplier systems tied to WLD rewards, further increasing user incentives to engage with the ecosystem. By rewarding active trading behaviour, the system has created a cycle where participation directly influences token demand. WLD technical analysis Besides the price rally, Worldcoin has also seen a noticeable spike in trading volume, which has climbed over $389 million in the last 24 hours. This level of activity suggests strong participation from short-term traders reacting to both the reward campaign structure and the ongoing ecosystem updates. Technical indicators also show a strong short-term trend. Out of 23 tracked signals , 11 remain bullish, 7 bearish, and 5 neutral. Moving averages show a dominant bullish structure, with 10 buy signals compared to just 2 sell signals. On the daily chart, WLD is trading above the 10-day, 20-day, 50-day, and 100-day exponential moving averages, indicating sustained upward momentum in the short term. Worldcoin price analysis However, not all indicators point in the same direction. The Relative Strength Index (RSI) on the daily chart stands at 77.02, placing the token firmly in overbought territory. Historically, RSI levels above 70 often signal slowing momentum and the possibility of short-term pullbacks as traders begin to take profits. Worldcoin price forecast The short-term outlook for WLD remains tied to whether current momentum can overcome nearby resistance levels. A sustained break above $0.4011 would strengthen bullish continuation signals and open the path toward $0.6381, where further resistance is expected. However, the elevated RSI reading supports the possibility of short-term cooling, especially after a rapid multi-day rally. If the price fails to hold above $0.3630, the market could see a quick retracement as overbought conditions unwind. The post Worldcoin jumps 22%: why WLD price is surging today appeared first on Invezz

26 May 2026, 08:30

Squid Clarifies Role After $3.2M Gnosis Safe Exploit

The project clarified that the vulnerable contract was not built, deployed, or operated by Squid, despite early reports linking the exploit to its protocol. According to the team, the compromised module independently integrated with Squid among other protocols, while Squid’s core router infrastructure was unaffected throughout the attack. Gnosis Safe Exploit Drains $3.2M A third-party module connected to the Gnosis Safe ecosystem was exploited across the Ethereum and Base networks, which resulted in approximately $3.2 million being drained from 86 different Safes in a matter of two hours. Blockchain security firms Blockaid and PeckShield were among the first to report details surrounding the incident. The vulnerable contract was verified on Basescan under the name “SquidRouterModule,” which initially led to confusion due to its association with Squid. However, Squid quickly clarified that the contract was not built, deployed, or operated by the project itself. Pseudonymous Squid co-founder Fig stated in a post on X that the compromised module was unrelated to Squid’s core infrastructure. According to the team, the protocol’s main router architecture stayed completely separate and was not affected by the exploit at all. The attack was reportedly made possible because the module accepted a caller-supplied constant string as proof that a transaction message was secure. By passing this value, attackers were allegedly able to bypass signature verification mechanisms and execute arbitrary call data from victim wallets. Squid explained that this flaw effectively gave attackers the ability to spend tokens held in affected Safes without requiring legitimate wallet approvals. Security researchers said the exploit relied on Foundry-based exploit contracts that targeted the module’s DelegateBundler execution path. According to Blockaid , the attackers impersonated authorized delegates tied to each Safe and initiated arbitrary token swaps through Uniswap V3 liquidity pools. The stolen assets were converted into an attacker-created worthless token known as “u” through specially seeded liquidity pools controlled by the exploiter. After routing the assets through these pools, the attacker reportedly removed liquidity and consolidated the proceeds into approximately 3.07 million DAI. PeckShield stated that the funds are currently being held in a wallet beginning with “0xa447...54859.” Squid criticized early public reporting that incorrectly connected the exploit directly to its protocol. The team explained that the vulnerable contract merely shared the Squid name and independently integrated with several protocols, including Squid, without direct involvement from the project itself.

26 May 2026, 05:55

Alps Blockchain Begins Bitcoin Mining at Decommissioned Bolivian Gas Plant

BitcoinWorld Alps Blockchain Begins Bitcoin Mining at Decommissioned Bolivian Gas Plant Italian energy company Alps Blockchain, in partnership with Bolivian firm Kuruvika, has launched a Bitcoin mining operation at a decommissioned 127-megawatt (MW) natural gas power plant in Cochabamba, Bolivia. The facility currently uses approximately 27 MW of power and operates with a hashrate of 1.23 exahashes per second (EH/s), according to a report from Beets. The company plans to increase power consumption to 45 MW by the end of the year. Repurposing Stranded Energy for Crypto Mining The partnership represents a growing trend in the cryptocurrency mining industry: repurposing stranded or underutilized energy infrastructure for digital asset production. The Cochabamba plant, previously offline, now hosts mining hardware that draws power directly from the site’s natural gas supply. This approach can reduce energy waste and provide a revenue stream for otherwise idle assets. Alps Blockchain, which specializes in energy-intensive blockchain operations, sees Bolivia as a strategic location due to its available natural gas reserves and relatively low energy costs. Expansion Plans and Local Impact Alps Blockchain’s current 27 MW operation is just the first phase. The company aims to scale up to 45 MW by late 2024, which would significantly increase the site’s hashrate and mining output. The expansion could create local jobs in maintenance, security, and operations. For Bolivia, a country with limited cryptocurrency adoption and regulatory uncertainty, this project marks one of the first large-scale Bitcoin mining ventures. The partnership with Kuruvika, a local firm, may help navigate regulatory requirements and community relations. Why This Matters for the Crypto Mining Industry The Bolivia project highlights a broader shift in Bitcoin mining toward using flared or stranded natural gas. Miners are increasingly seeking locations where energy is cheap or otherwise wasted, reducing both operational costs and environmental criticism. If successful, this model could be replicated in other regions with decommissioned power plants or surplus gas. However, the venture also faces risks, including potential regulatory changes in Bolivia, fluctuating Bitcoin prices, and the technical challenges of operating in a remote location. Conclusion Alps Blockchain’s launch of Bitcoin mining at a decommissioned Bolivian gas plant demonstrates the practical reuse of stranded energy assets for cryptocurrency production. With current power usage at 27 MW and plans to reach 45 MW, the project could serve as a case study for similar initiatives worldwide. The partnership with local firm Kuruvika underscores the importance of regional expertise in emerging crypto-mining markets. The long-term viability will depend on energy prices, regulatory clarity, and Bitcoin’s market performance. FAQs Q1: What is Alps Blockchain’s role in this project? Alps Blockchain is the Italian energy company leading the Bitcoin mining operation. They provide the mining hardware and operational expertise, while Bolivian partner Kuruvika handles local logistics and regulatory compliance. Q2: How much power does the mining facility currently use? The facility currently consumes approximately 27 megawatts of power, with plans to expand to 45 megawatts by the end of 2024. The plant has a total capacity of 127 megawatts. Q3: Why is a decommissioned power plant being used for Bitcoin mining? Decommissioned power plants often have existing electrical infrastructure and access to cheap or stranded energy sources, such as natural gas. This reduces mining costs and repurposes assets that would otherwise remain idle, aligning with the industry’s push for energy efficiency. This post Alps Blockchain Begins Bitcoin Mining at Decommissioned Bolivian Gas Plant first appeared on BitcoinWorld .

26 May 2026, 04:00

Crypto Founder Takes Seat On SpaceX Journey To Mars

Wang Chun has a specific worry about Mars. Not whether humans can survive the journey, but whether anyone will bother to try. The founder of crypto mining pool F2Pool put his money behind that worry this week by purchasing a seat on SpaceX’s first crewed mission to the red planet. A Man On A Mission To Keep Mars Alive SpaceX announced the two-year mission on Thursday. It will fly past the Moon, continue to Mars, and return to Earth. Wang also secured a seat on a separate weeklong lunar flight set to launch before the interplanetary mission. “I have no confidence that Mars will still happen within our lifetime,” Wang wrote on X. “And I think I should do something about that.” His argument is straightforward. Governments, he believes, will eventually return humans to the Moon because competition between the US and China makes it almost inevitable. Now that Starship V3 has made its debut, we are one step closer to making life multiplanetary. During Fram2 training, apart from the usual Dragon-related topics, I remember that what we talked about most in the training room was how to reliably tether down on Phobos. Three… https://t.co/7nukQWUwDd — Chun (@satofishi) May 23, 2026 Mars is a different story. Without private money keeping it on the table, he fears the goal could slip out of reach entirely. “I hope that by purchasing a flyby mission to Mars, SpaceX will have another reason not to forget about Mars,” Wang said. From Bitcoin Mining Pools To Outer Space Wang is not new to funding space travel . Last April, he bankrolled and commanded Fram2, a SpaceX mission that orbited over Earth’s poles. The crew of four conducted experiments during the flight, including taking an X-ray in space and growing mushrooms. The Mars mission would take that ambition considerably further. He founded F2Pool in 2013, one of the first Bitcoin mining pools to emerge from China. According to mempool.space data, it currently holds an 11.85% share of the global mining market, making it the third largest pool in operation. SpaceX: A City On Mars, One Ticket At A Time SpaceX’s broader vision for Mars goes well beyond a single flyby. Reports indicate the company aims to eventually build a self-sustaining city on the planet, a goal it estimates will require more than 1 million people and millions of tons of cargo. Cargo flights for research and exploratory purposes are not expected before 2028. Wang says the mission carries a message beyond the technical. “I hope this mission can show the public that Mars is not just a point of light in a telescope,” he said. “It is a real place, and humans can fly there and come back alive and come back healthy.” The Chinese-born citizen of Malta joins a growing group of tech entrepreneurs who have moved from funding space ventures to riding on them, including Jeff Bezos, Richard Branson, and Jared Isaacman. Featured image from SpaceX, chart from TradingView