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9 May 2026, 13:23

5 Things to Know Before Investing in Tokenized Gold

Tokenized gold has crossed $6 billion in market value across all products as of early 2026, up from under $1 billion in 2022. The category has expanded materially in both size and structural diversity, with vault-backed tokens now sharing space with production-backed protocols and yield-bearing variants. The five facts below cover what investors should understand before allocating to any tokenized gold product. None of them is behavioral advice; they're structural realities about how the category works that determine investment outcomes. 1. Vault-Backed and Production-Backed Tokens Are Different Products PAXG, XAUT, KAU, and Comtech Gold are vault-backed: each token corresponds 1:1 with physical bullion held in LBMA-certified vaults . Holding the token is functionally equivalent to owning a fractional claim on the underlying gold bar. Ayni Gold operates on a different model. It's a production-backed gold protocol, with tokens tied to ongoing extraction at a real mining concession instead of stored bullion. Returns flow from production activity, not from gold-price appreciation on a fixed reserve. The production-backed model represents a smaller but distinct category within tokenized gold. The distinction determines what each token does in a portfolio. Vault-backed tokens deliver gold-price exposure with no income component. Production-backed tokens generate cash flow from real operations and pay scheduled distributions denominated in PAXG or another commodity-backed asset. Choosing between them depends on whether the goal is gold-price tracking or gold-denominated income. 2. Custody and Jurisdiction Vary Substantially Paxos issues PAXG under New York Department of Financial Services oversight, with bullion stored at Brink's vaults in London. Tether's XAUT operates under Hong Kong custody arrangements. Kinesis (KAU and KAG) uses LBMA-certified vaults across Singapore, London, Liechtenstein, and Switzerland. Each model carries different regulatory protections, attestation cadence, and bankruptcy-remote structures protecting holders if the issuer fails. These vault-backed gold tokens sit under one regulatory perimeter covering the issuer and custodian. Production-backed protocols add a second perimeter for the physical operation. A yni Gold's mining runs through Minerales SH San Hilario S.C.R.L. (Tax ID 20606465255) registered with INGEMMET , Peru's mining authority, under concession No. 070011405. The token issuer (AYNI TOKEN INC., BVI) sits as a separate legal entity from the mining operation. Two regulatory perimeters covering different functions: one for token economics, one for physical extraction. 3. Most Tokenized Gold Doesn't Pay Yield PAXG, XAUT, KAU, and most vault-backed instruments are price-tracking products without income. A $10,000 PAXG position held for a year delivers gold-price appreciation if gold rises but no scheduled payments along the way. The structure works for investors seeking gold exposure as a store of value, not for those seeking gold-denominated income. Gold yield protocols change the math by funding distributions from operational output. Ayni Gold is a DeFi protocol that turns gold mining output into on-chain yield, with stakers receiving PAXG rewards quarterly from mining production at the Minerales San Hilario concession in Peru. Kinesis distributes platform transaction fees as additional KAU or KAG, generating a modest yield from network usage. For investors looking for a gold-backed stable yield as part of an allocation, the distinction between price-tracking and yield-bearing tokens determines what the position delivers over time. The two are different investment theses with different risk-return profiles. 4. Audit Standards Differ from Spot Crypto Tokens A standard ERC-20 token typically gets audited for smart contract logic alone. Tokenized gold needs additional verification layers because the value depends on something off-chain: physical bullion in a vault or active mining production at a real concession. Vault-backed tokens publish monthly attestations from independent firms confirming that token supply matches physical bullion holdings. Paxos uses WithumSmith+Brown for PAXG attestations; Tether publishes BDO attestations for XAUT. Production-backed protocols add complexity. Ayni Gold's smart contracts were audited by CertiK and PeckShield in October 2025, with a CertiK Skynet score of 70.81 (top 25% of audited projects, against an industry average of 65). The 2025 Kangari Consulting scoping study estimated 9-10.7 tonnes of conceptual recoverable gold at the concession, with on-chain attestations covering extraction rates, operational costs, and net gold value distributed quarterly. 5. Liquidity and Redemption Rules Aren't Standardized Trading volume, redemption windows, and minimum withdrawal sizes differ widely across products. PAXG redeems to physical bullion at a minimum of 430 oz (one Good Delivery bar) at Paxos's discretion. XAUT requires 50 oz minimum for redemption. KAU and KAG offer physical redemption through Kinesis's vault network at smaller sizes accessible to retail. Production-backed tokens like AYNI typically don't offer physical redemption at all. Value flows through PAXG distributions to stakers and through token sales on secondary markets. The token isn't designed as a claim on physical metal; it's a position in operational output. Secondary market liquidity also varies. PAXG trades on Coinbase, Kraken, and Binance with deep order books supporting large position changes. Smaller tokens often have thinner liquidity outside their native platform, which means selling large positions can move the price meaningfully and require staged exits. Tokenized Gold Is Now a Category, Not a Single Product Tokenized gold in 2026 covers vault-backed bullion exposure, production-backed yield protocols, and hybrid platforms with their own redemption mechanics. Each model carries different structural characteristics affecting custody risk, yield potential, audit requirements, and exit liquidity. Understanding the five facts above gives investors the vocabulary to evaluate any specific tokenized gold product against their goals, whether the allocation calls for pure gold-price exposure, gold-denominated income, or operational diversification across mining and storage models. The right choice depends on what the position is meant to do in the broader portfolio. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

9 May 2026, 13:21

Bitcoin Hits Rare 10-Year Funding Extreme— History Points to Recovery

The 30-day average funding rate for bitcoin futures contracts stayed in the negative range for 67 days in a row, the longest negative streak seen in nearly 10 years. Brent crude surged above $103 following renewed conflict near the Strait of Hormuz, ushering in a risk-off trend for crypto assets. The 20-day exponential moving average acts as dynamic support of current BTC recovery. The pioneer cryptocurrency Bitcoin (BTC) retraced from its weekly high of $82,833 amid the renewed uncertainty in the middle east war. The pullback gained additional momentum as BTC’s futures logged their 67th straight day of negative funding rates— a move that highlights sellers’ conviction for a prolonged correction in its price. However, the historical data identifies this setup sets the stage for a potential recovery in the market. Here are key levels to watch in Bitcoin price in May 2026. Why Bitcoin Price Reverted From $83,000 Barrier Bitcoin price is up 0.18% on Saturday to trade at $80,344. This shallow uptick follows the re-escalating geopolitical tension as U.S. airstrikes against Iranian military facilities, Following attacks on American naval destroyers in the Strait of Hormuz. President Donald Trump has called this strike a “Love tap” in an ABC interview, while adding that the ceasefire with Iran is still intact but harder action is possible if Tehran refuses a deal. The move triggered notable volatility in oil market prices as benchmark index Brent Crude rose 2.9% to approximately $103 per barrel. Thus, the broader crypto market witnessed a quick pullback, dragging BTC to $80,000 level. What Are Funding Rates, and Why Do They Matter Now? Perpetual futures contracts are those that are not bound to expire ever, and that track the Bitcoin spot price, in which exchanges implement a periodic payment scheme called funding rate, to ensure that the price of the perpetual market remains grounded. When the majority of traders are bullish and long positions dominate, long holders pay short sellers. The opposite is when bearish sentiment gains the upper hand and shorts stack up – the shorts pay the longs. If the funding rate is negative, it indicates an imbalance in the market, favoring wagers against the market. Short sellers are paying a continuous, compounding cost to maintain their positions. According to K33 Research, the Bitcoin futures funding rates have been negative for straight 67 days, projecting its longest streak in a decade. Such a long period highlights short sellers’ determination to pay premium to long holders and hold their position against Bitcoin even during a recovery momentum. “I care about this regime for one simple reason: timing,” said Vetle Lunde , Head of Research at K33. “Lasting negative funding rates have a very strong track record of flagging where you should buy with conviction.” History Says Bitcoin Often Rallies After Extended Negative Funding When K33’s data is compared with on-chain analytics providers such as Glassnode and CoinGlass, it shows a similar trend in every case of long periods of negative funding. The COVID Crash Bottom occurred in March 2020: The world markets froze and Bitcoin lost control and dropped to $3,800. Traders started to bet further price drops, leading to funding rates going sharply negative. Rather, the bottom was created and Bitcoin entered a record run that saw it surpass $60,000 within a year. June – August 2021 – China Mining Ban: Bitcoin’s future was suddenly placed under a cloud of fear following Beijing’s sudden ban on crypto mining. The price slipped back to $30,000 and funding rates turned negative for 49 days. The market calmed, the shorts started to give way and Bitcoin rallied to a new all-time high later that year. November 2022 – The FTX Collapse: FTX, one of the world’s largest crypto exchanges, has collapsed, leaving a shudder in the crypto industry. Funding turned into a negative and open interest increased on the short side as traders took on more contagion bets and the price of Bitcoin settled around $15,500. It had reached $23,000 when the short side had essentially all capitulated by the end of January 2023. 2023 — Silicon Valley Bank Crisis: Negative funding coincided with a brief fall in Bitcoin price to under the $20,000 mark during the banking crisis.The negative funding coincided with a slight drop in Bitcoin’s price to under $20,000 during the banking stress. Within a few weeks, a recovery occurred. Bitcoin Funding Rate In each of these instances, the theme is the same: short sellers have been piling on for a long time and they go wrong — and when they begin to cover the squeeze makes the rally even bigger. The Short-Squeeze Coiling Beneath the Surface The current situation is very volatile, especially because of the structure of open interest. On major exchanges, open interest is also going up but funding continues to be in negative territory, where new short trades are being made and not unwinding. The combination of rising open interest and negative funding is a classic “loaded spring” set-up: With fuel increasing for a short squeeze, waiting for a catalyst to set it off. This week, FxPro chief market analyst Alex Kuptsikevich highlighted that Bitcoin surged to $82.8K on Wednesday and failing to breach 200-day moving average, is “not a sign of buyer exhaustion,” and a few analysts have pointed to $83,200 as the technical threshold that if breached could lead to a forced short cover and ascent to $93,000. K33 also pointed out that Bitcoin activity on the Chicago Mercantile Exchange (CME) has remained quiet even as the cryptocurrency has regained ground, as overall institutional positioning is far from the high of 2024 and 2025. Participation is still resuming, but with a certain hesitation. Bitcoin Price at a Crossroad as Channel Breakout May Fail Over the past week, the Bitcoin price showed a notable rally from $74,912 to a weekly high of $82,833. Amid this recovery, the coin buyers gave a decisive breakout from the resistance trendline of a rising channel pattern in daily charts. While the breakout was expected to further fuel the bullish momentum, the escalated geopolitical tension pushed Bitcoin BTC 0.74% within the channel range again to trade $80,388. This could be a retesting period for Bitcoin price to reattempt channel breakout and bolstering its position for a continued recovery. The post-breakout rally could challenge immediate resistance of $84,330, followed by a leap to $98,000. BTC/USDT -1d Chart On the contrary, if sellers continue to defend the channel resistance at $81,300 mark, the Bitcoin price could witness renewed selling pressure and potential retest of $73,500 support.

9 May 2026, 08:25

Bitdeer Sells All Mined Bitcoin Again This Week, Maintaining Zero-Treasury Stance

BitcoinWorld Bitdeer Sells All Mined Bitcoin Again This Week, Maintaining Zero-Treasury Stance Nasdaq-listed Bitcoin mining company Bitdeer has once again sold all the Bitcoin it mined during the past week, continuing a strategy that has seen the firm hold no Bitcoin on its balance sheet since February. The company reported mining 193.8 BTC this week and confirmed the entire amount was sold. Bitdeer’s Zero-Bitcoin Treasury Strategy Bitdeer’s decision to sell its entire mined Bitcoin output immediately, rather than accumulating a treasury, marks a clear departure from the strategy of many publicly traded miners such as MicroStrategy and Marathon Digital Holdings, which have historically held large Bitcoin reserves. Bitdeer has maintained this approach since February, prioritizing cash flow and operational liquidity over potential long-term price appreciation. The company has stated that the proceeds from these sales are used to fund operations, expand mining infrastructure, and manage debt obligations. Market and Industry Implications The consistent selling by a major Nasdaq-listed miner can have a subtle but persistent effect on Bitcoin market dynamics. While 193.8 BTC is a relatively modest amount compared to daily trading volumes, the regularity of these sales from a known public entity adds a layer of predictable supply to the market. This contrasts with the broader trend among some miners who are now holding more Bitcoin in anticipation of the next halving cycle. Analysts note that Bitdeer’s strategy may be a pragmatic response to the company’s specific capital structure and operational costs, rather than a bearish signal on Bitcoin’s future price. Why This Matters to Investors For investors and industry observers, Bitdeer’s consistent selling pattern provides a clear data point on miner behavior. It highlights the diverse financial strategies within the mining sector, where some firms prioritize immediate cash flow while others bet on future price increases. Understanding these strategies is crucial for assessing the overall health and supply dynamics of the Bitcoin network. Bitdeer’s approach also underscores the importance of operational efficiency and cost management in the capital-intensive mining industry. Conclusion Bitdeer’s continued sale of its weekly mined Bitcoin reinforces its commitment to a zero-treasury strategy, a distinctive position among major publicly traded miners. The company’s focus on liquidity and operational funding provides a real-world case study in miner treasury management. As the industry evolves post-halving, Bitdeer’s approach will remain a relevant example of prioritizing short-term financial stability over long-term Bitcoin accumulation. FAQs Q1: Why does Bitdeer sell all its mined Bitcoin immediately? A1: Bitdeer sells its mined Bitcoin to fund operational expenses, expand mining infrastructure, and manage debt, prioritizing cash flow over holding a Bitcoin treasury. Q2: How much Bitcoin did Bitdeer mine and sell this week? A2: Bitdeer mined and sold 193.8 BTC this week, continuing its practice of not retaining any mined Bitcoin. Q3: Is Bitdeer’s strategy common among other mining companies? A3: No, it is less common among large public miners. Many firms like Marathon Digital and Riot Platforms hold significant Bitcoin reserves, while Bitdeer has maintained a zero-Bitcoin treasury since February. This post Bitdeer Sells All Mined Bitcoin Again This Week, Maintaining Zero-Treasury Stance first appeared on BitcoinWorld .

9 May 2026, 01:10

Venezuela’s crypto mining ban could be solving a power crisis

The government of Venezuela issued an emergency bulletin stating that electricity demand is now at 15,579 megawatts (the highest level in 9 years). According to the official government communiqué , policymakers activated a supervision plan to uncover illegal crypto mining and punish offenders severely. Venezuela’s electricity grid was already in trouble long before Bitcoin existed OPEC’s latest annual statistical review states that Venezuela holds roughly one-fifth of the world’s crude oil reserves (about 303 billion barrels). The country also has the Guri Dam , a massive hydroelectric dam and the second-largest hydroelectric power plant in the world, which once supplied 80% of the nation’s power. According to research by the Borgen Project , the government charged extremely low electricity prices , so Venezuelans would pay only about 20% of the actual cost of generating power. As a result, the state-owned power company Corpoelec struggled to properly maintain the grid with the limited resources or even invest in new infrastructure, so eventually the transmission lines crumbled. On top of that, the mass immigration that sent over 7 million Venezuelans abroad since 2015 included the skilled engineers who once ran everything inside the plant. This meant the skill gap grew massively. As expected, the Guri Dam failed, and on March 7, 2019, the entire country was left in total darkness. The Center for Strategic and International Studies published a report on the incident and its effects, saying most cities lost power for more than 90 hours, which threatened the lives of many, especially critically ill patients in hospitals. The Maduro regime, at the time, blamed the power failure on opposition leaders and the US, accusing them of “using cybernetic and electromagnetic attacks.” But investigative reporting said otherwise, blaming years of neglect, corruption, and mismanagement. Miners went to Venezuela precisely because the electricity was so cheap Because Venezuela had subsidized its grid and offered near-zero electricity rates, the country became a safe haven for Bitcoin mining. BTC computers run 24/7 and use massive amounts of electricity, so cheap power only meant bigger profits for miners. Ordinary citizens also turned to mining because it allowed them to earn dollars in a country where the local currency had become almost worthless due to hyperinflation. In fact, a working mining rig in Venezuela could make more a month than most workers earned in a year of hard labor. So the crackdowns have been running for years, and aren’t a new declaration. For example, regulators ran an anti-corruption drive and seized about 2,000 mining machines in Maracay, forcing the Ministry of Electric Power to disconnect all crypto mining farms from the national grid in May 2024. “The goal is to disconnect all cryptocurrency mining farms in the country from the National Electric System (SEN), avoiding a significant impact on demand, which allows us to continue offering an efficient and reliable service to all Venezuelans,” the Ministry of Popular Power for Education (MPPPE) said on its Instagram account. The state governor of Carabobo, Rafael Lacava, even told citizens to report anyone mining crypto, saying, “If you see a house that you know is mining crypto, tell that person to turn off the farm, or just report it. Because they are directly deducting power from the grid to earn some money. And we will be left without electrical service if they don’t stop.” The government says the ban is necessary, but the numbers tell a more complicated story According to the official Venezuelan government statement electricity demand reached 15,579 megawatts, attributed to the heat wave and to “the economic growth that maintains its momentum.” The government also said it was working on an oversight plan and deploying technical teams to stabilize the grid, and passively emphasized the prohibition on digital mining. “The absolute ban on digital mining in the national territory is upheld. Those who illegally use this activity will be sanctioned as the law establishes.” — Venezuelan Government Communiqué, May 7, 2026 Not surprisingly, the government spent a big part of the statement blaming international sanctions for the grid failures and announcing a long-term plan that it plans to make known to private, industrial, academic, and scientific sectors. The crypto mining ban came near the end, almost as an afterthought, suggesting it wasn’t the main story. Sanctions, unpaid bills, and missing engineers are the real problems According to Eva Daily’s reporting on the situation with the Venezuela power grid, international equipment suppliers are demanding that the government provide advanced payment guarantees for grid repairs, but that might not be possible. Mismanagement of funds, sanctions, the collapse of oil revenue, and the cost of establishing an authoritarian political structure have shattered the country’s finances, severely limiting the government’s capacity. Now, because the government cannot make any payments, the grid continues to deteriorate as suppliers refuse to extend credit for parts. According to Wikipedia’s comprehensive account of Venezuela’s 2024 blackouts , the Maduro administration remained silent about the state of affairs over the electrical system for nearly 14 years. The engineering talent that kept the Guri Dam and broader grid system in check left the country as part of the great exodus, and since you really can’t operate a complex hydroelectric and transmission system without them, banning crypto miners won’t help much. There’s a middle ground between leaving money in the bank and rolling the dice in crypto. Start with this free video on decentralized finance .

8 May 2026, 21:34

TeraWulf’s AI hosting revenue hits $21 million, tops BTC mining

🚨 TeraWulf made $21 million from AI hosting, surpassing $BTC mining for the first time. AI contracts now drive stable revenue as mining declines sharply. 📊 Critical data: TeraWulf’s net loss rose to $427.6 million amid major infrastructure investment. Continue Reading: TeraWulf’s AI hosting revenue hits $21 million, tops BTC mining The post TeraWulf’s AI hosting revenue hits $21 million, tops BTC mining appeared first on COINTURK NEWS .

8 May 2026, 20:30

TeraWulf’s $21 million HPC revenue surpasses bitcoin mining for first time in Q1

TeraWulf’s transition from bitcoin miner to AI infrastructure operator crossed an important milestone in the first quarter of 2026, as revenue from its high-performance computing (HPC) hosting business surpassed income generated from mining cryptocurrency for the first time. The company reported $21 million in HPC lease revenue during the quarter, compared with roughly $13 million from bitcoin mining, according to its first-quarter earnings release. Total revenue came in at approximately $34 million. For years, companies like TeraWulf built out massive energy-intensive facilities to mine bitcoin. Now, many of those same operators are finding that artificial intelligence companies are willing to pay far more for access to power, cooling systems, and ready-built data center space. “This is the first period where HPC leasing is meaningfully reflected in our financials,” Chief Executive Paul Prager said during the company’s earnings call. The change happening at TeraWulf mirrors a wider shift across the crypto mining industry. As mining profits fluctuate with bitcoin prices and energy costs, operators with access to large power supplies are increasingly repositioning themselves as infrastructure providers for AI firms and cloud computing customers. That pivot comes as the race to secure electricity for AI systems intensifies globally. The International Energy Agency said electricity consumption from data centers worldwide is expected to nearly double to around 945 terawatt-hours by 2030, with AI emerging as the main driver behind the increase. The agency also said data centers could account for nearly half of U.S. electricity demand growth by the end of the decade. From volatile mining revenue to long-term AI contracts Although TeraWulf’s overall revenue was little changed from a year earlier, the business itself is starting to look very different. AI hosting has quickly become TeraWulf’s biggest source of revenue, a departure from the company’s traditional dependence on bitcoin mining. Unlike mining income, hosting contracts tied to AI infrastructure tend to provide steadier and more predictable cash flow. Chief Financial Officer Patrick Fleury described the company as “a business in transition”. He believes that revenue is increasingly tied to “stable, contracted” compute agreements, according to The Block. TeraWulf reported a quarterly net loss of $427.6 million, compared with a loss of $61.4 million during the same period a year ago after investing in data center expansion and AI-related infrastructure. So, the transition proved expensive. Operating expenses rose to nearly $200 million during the quarter, partly due to impairment charges associated with scaling back segments of its bitcoin mining operations. Despite the mounting costs, investor enthusiasm around AI infrastructure companies has remained strong. However, companies with large amounts of power capacity and ready-built facilities are the potential winners in the race to support growing AI demand. Barron’s reported that TeraWulf shares have more than doubled this year as investors. So, it comes as no surprise that the company intends to focus on AI hosting ambitions rather than its legacy mining operations. “As we continue to scale, we expect the business to be increasingly driven by recurring, contracted revenue, reducing exposure to the volatility historically associated with bitcoin mining,” Fleury said in the company’s preliminary quarterly filing. Morgan Stanley analysts Stephen Byrd and James Faucette said they are seeing “increasing willingness among key AI players to pay higher ‘time to power’ premia in the form of increasingly rich economics to Bitcoin companies,” according to Barron’s. Expanding beyond bitcoin mining TeraWulf said it ended the quarter with 60 megawatts of operational HPC capacity at its Lake Mariner facility in New York, where AI cloud company Core42 is among its customers under a long-term lease arrangement. The company is also developing additional facilities at the site while coordinating deployments with customers, including Fluidstack and Google. Outside New York, TeraWulf has expanded aggressively into new power markets. Its Hawesville, Kentucky, project carries roughly 480 MW of grid-connected power capacity, while a Maryland site could eventually scale to as much as 1 gigawatt if regulators approve expansion plans. The company has previously disclosed more than $12.8 billion in long-term AI and HPC contracts tied to 522 MW of critical IT capacity. TeraWulf reiterated plans to add between 250 MW and 500 MW of new contracted capacity annually and said it held approximately $3.1 billion in cash and restricted cash at the end of the quarter. AI demand is reshaping the power market The scramble for AI infrastructure is beginning to alter the economics of electricity markets in the United States and beyond. Building entirely new data centers and securing grid access can take years, especially in regions already facing transmission bottlenecks. Former bitcoin mining sites offer a shortcut because many already have high-capacity power connections in place. The International Energy Agency said electricity generation dedicated to data centers could rise from about 460 TWh in 2024 to more than 1,000 TWh by 2030. Utilities are already revising forecasts upward because of expected AI-related demand growth. American Electric Power said this week it expects 63 gigawatts of incremental electricity load by 2030, driven largely by data centers. For crypto miners that survived the industry’s downturns, AI infrastructure is increasingly being viewed as a more predictable and potentially more profitable business than mining bitcoin alone. If you want a calmer entry point into DeFi crypto without the usual hype, start with this free video.