Coldcard Breach Hits $114M, Miners Pivot to AI, Circle Downgraded

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Welcome to Stock Market Today, your market briefing with actionable insights on stocks, bonds, crypto, and the events moving markets.
Let's get into it. Bitcoin is trading at $62,625 and Ethereum at $1841 as a massive security breach dominates sentiment. The Coldcard hardware wallet exploit has expanded to a suspected fourth wave, draining over $114 million across 5,200 addresses since July 30th. This firmware flaw from March 2021 caused devices to use predictable software randomizers instead of hardware security chips, letting attackers reproduce private keys offline. The latest wave uses replace-by-fee features that give victims minutes to outbid attackers.
Unlike the FTX collapse that drove withdrawals to self-custody, this breach is pushing small holders back to exchanges. Bitcoin exchange reserves jumped from 2.706 million to 2.718 million BTC since the attacks began. Bitcoin mining difficulty dropped 14% from January peaks to 126 trillion, falling below year-ago levels for only the second time in Bitcoin history. Hash price collapsed from over 20% annualized yields in 2021 to just 3% today, now trailing two-year treasury notes at 3.8%.
Miners are pivoting, capital is flowing to AI and high-performance computing. Forward markets price hash price at 31.85 through December, signaling minimal revenue recovery expected. Circle Internet stock dropped over 6% in pre-market after Morgan Stanley downgraded from equal weight to underweight, citing declining USDC balances, shifting revenue mix toward lower margin transactions. Strategy sold another 105 million in Bitcoin last week, 1638 BTC, using proceeds to fund 52 million in STRC, preferred dividends and 81 million in share buybacks. Senate time ran out on the Clarity Act with only five session days before August 10th recess. Polymarket odds dropped to 31% for passage this year. That wraps your market intel. Trade smart out there. For deeper insights and real time analysis, visit capitalcopilot.io.