Crypto Biz: The Bitcoin Treasury Shareholder Revolt

Bitcoin treasury companies are under mounting pressure this week as activist shareholders challenge corporate crypto strategies, stablecoin giant Circle delivers strong quarterly results, and PayPal attracts takeover speculation. The developments highlight widening tensions around digital asset balance-sheet bets. This edition of Crypto Biz unpacks the forces reshaping corporate crypto as of February 28, 2026.

Why Are Shareholders Revolting Against Bitcoin Treasuries?

Activist investors are pushing back against the corporate Bitcoin treasury model, with Empery Digital now facing a public campaign to unwind its crypto holdings. A nearly 10% stakeholder, investor Tice P. Brown, has demanded sweeping changes including the sale of the company's roughly 4,081 Bitcoin and the resignation of its CEO and board, according to a letter sent to management.

Brown argued that Empery's Bitcoin-heavy treasury strategy has failed to maximize shareholder value and demanded that capital be returned to investors. Empery defended its approach, but the dispute highlights growing friction between activist shareholders and public companies that have adopted BTC as a core balance-sheet asset.

Empery, which pivoted its legacy business into a Bitcoin treasury operation last year, has accumulated 4,081 BTC, placing it among the top 25 largest public holders of the digital asset globally.

The Bitcoin-heavy treasury strategy has failed to maximize shareholder value, and capital should be returned to investors.

— Tice P. Brown, Activist Investor

Circle Posts Strong Q4 as Stablecoin Demand Holds

Stablecoin issuer Circle delivered a stronger-than-expected fourth quarter, underscoring continued momentum in the dollar-backed stablecoin market even as early signs of a crypto winter surfaced. Fourth-quarter revenue reached $770 million, up 77% from a year earlier, according to the company's earnings report.

Net income totaled $133.4 million, or $0.43 per share, both ahead of analyst expectations. USDC supply expanded 72% to $75.3 billion by year-end, reflecting sustained demand for onchain dollar liquidity across the crypto ecosystem.

For the full 2025 fiscal year, Circle reported $2.7 billion in revenue and a net loss of $70 million, largely tied to stock-based compensation from its initial public offering. Shares surged more than 20% after the earnings release as investors responded to accelerating revenue growth.

PayPal Draws Takeover Interest Amid Stock Slide

PayPal is reportedly attracting early-stage takeover interest after a prolonged decline in its share price, as competitors weigh opportunities to consolidate parts of the digital payments market. Some potential buyers are evaluating a full acquisition while others may pursue specific business segments, according to Bloomberg. Discussions remain preliminary, and no formal offer has been announced.

Bitcoin-friendly payments company Stripe later emerged as one of the interested parties, said reporters. The development comes as PayPal continues restructuring efforts and deepens its digital asset footprint, including the rollout of its proprietary PayPal USD stablecoin.

Stablecoin Liquidity Meets US Mortgage Lending

Mortgage lender Better and crypto investment firm Framework Ventures are launching a $500 million initiative that channels stablecoin liquidity into United States mortgage lending, potentially bringing real-world housing finance deeper into decentralized markets. Under the structure, Better will continue underwriting and issuing home loans while funding is sourced through a stablecoin ecosystem.

The arrangement connects blockchain-based liquidity with traditional real estate finance, an area long discussed but rarely deployed at meaningful scale. The deal signals continued momentum behind tokenized real-world assets even as broader crypto markets remain volatile.

What This Means Going Forward

The corporate Bitcoin treasury thesis faces its most significant test yet as activist investors demand accountability and sliding prices erode confidence. Companies like Empery Digital could see their strategies unravel if shareholder pressure intensifies, potentially triggering forced BTC liquidations that further weigh on the market.

Stablecoins, meanwhile, remain the anchor of the digital asset industry. Circle's earnings confirm that demand for dollar-pegged tokens is resilient, and the $500 million Better-Framework Ventures deal shows stablecoin capital finding real utility beyond trading. Whether PayPal's rumored takeover materializes or not, the convergence of traditional finance and crypto infrastructure continues to accelerate in 2026.