Bitcoin’s $116M Wallet Hack Shakes Self‑Custody, ETFs Surge

A $116 million hardware wallet exploit has reignited the debate over Bitcoin self‑custody.

The Dark Side of Self‑Custody Meets ETF Surge

US spot Bitcoin ETFs recorded their strongest weekly inflows, netting $1 billion; Bloomberg analyst Eric Balchunas suggests the surge may stem from heightened security concerns.

Strategy’s BTC Buying‑Selling Playbook

Strategy CEO Phong Le disclosed that the firm purchased 175,000 BTC and sold 7,000 BTC this year, still holding over 840,000 BTC, making it the largest institutional holder.

■$116 million loss traced to a Coldcard hardware wallet key‑generation flaw.

■US spot Bitcoin ETFs attracted roughly $1 billion net inflows this week.

■Strategy bought 175,000 BTC, sold 7,000 BTC, and now holds 840,000+ BTC.

■Riot Platforms is converting 191 MW of mining capacity into a $9 billion AI deal with Anthropic.

Riot Platforms Teams Up With AI Power Demand

Riot secured a 20‑year agreement to supply 191 MW from its Texas mining campus to Anthropic, addressing AI data‑center power constraints.

Trump Media’s Crypto Treasury Overhaul

After a $238 million Q2 net loss, Trump Media is reshaping its digital‑asset strategy; the firm holds 9,477 BTC, but after a $159.6 million Bitcoin‑related securities sale in July, its holdings rose to 14,139 BTC.

Markets are reassessing self‑custody risks in the wake of a major hardware‑wallet breach. Over the long term, the liquidity and protection offered by ETFs may attract risk‑averse institutions, while miners repurposing energy assets for AI projects could usher in a new integration wave within the crypto ecosystem. These dynamics temper Bitcoin’s price pressure yet may redefine the role of token‑based assets among institutional portfolios.