NAKA, ABTC Lead Crypto Stocks Higher as Bitcoin Reclaims $68K

U.S. spot Bitcoin ETFs saw $635.6M in outflows on October 22, the largest since June, with BlackRock's IBIT and Fidelity's FBTC leading withdrawals. Bitcoin's price fell to $80,483 by October 24. Coinbase's stock declined 2.7% on October 23, partly due to ETF outflows. IBIT and FBTC continued to see outflows on October 23. Weekly inflows for the week ending October 22 were $442.7M, up from the previous week's outflows.

IREN's stock rose 4% after announcing a 300MW AI data center in Spain, targeting 2028 operations. The project adds long-term optionality but no immediate revenue. IREN's capex was $4.33B in FY2026, exceeding operating cash flow. Other neocloud stocks also rebounded, with Applied Digital receiving a Buy rating and $35 price target from Roth Capital.

Bitcoin's network hashrate hit a seven-month high of 1 zettahash per second, despite large miners shifting to AI. Mining difficulty rose 5.92% in October, with another 5.16% increase expected. Public miners' hashrate fell 23% while AI revenue rose 52% in Q2 2026, displacing about $1.5 billion in equipment. Companies like Core Scientific and IREN reduced Bitcoin production, while MARA and Riot absorbed displaced network share.

Autonomous Research lowered its price target for Coinbase Global to $130 from $135. The company's Irish unit was fined $3.6 million for regulatory failures. Coinbase's stock has declined 8.01% in the past year.

Coinbase (COIN) offers 3.75% annual rewards on USDC holdings, funded through a revenue-sharing agreement with Circle. The OCC's finalized rule, effective Jan. 2027, will judge such programs case by case, leaving Coinbase's rewards potentially vulnerable. USDC-related revenue contributed $292.1M in Q2, about 25% of Coinbase's net revenue, but the impact of losing rewards is uncertain.

The OCC finalized rules for stablecoin issuers, effective Jan. 2027, addressing backing assets, exchangeability, and risk management. Issuers cannot pay interest for holding coins, but third-party rewards may be allowed. Coinbase offers up to 3.5% on USDC balances, compared to average savings rates. Banks may face deposit outflows, impacting lending and profits. The American Bankers Association criticized the decision, citing potential threats to local lending.