Bitcoin self-custody users are being urged to move their funds after Block disclosed two critical vulnerabilities in multiple generations of Coldcard hardware wallets.
A hardware wallet randomness bug turned “impossible to guess” seeds into guessable ones, and $38 million is already gone.
Coldcard warns Mk3 users to move funds as experts investigate a 594 BTC sweep worth about $38 million, with the cause still unconfirmed.
The $32.1 million turn ended four negative sessions, but every listed fund except IBIT was flat or negative.
Coinkite issued a security advisory Thursday warning owners of its Coldcard Mk3 hardware wallet that funds tied to certain firmware versions may be at risk. Hardware wallet incidents rarely unfold as isolated events. When long-dormant addresses begin moving in a tightly coordinated pattern, the timing alone warrants scrutiny.
Coinkite urged Coldcard Mk3 users to migrate funds after identifying a potential seed-generation risk, as Bitcoin security experts separately examine an unexplained $38 million wallet drain.
Strategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin, reported an $8.2 billion net loss for the second quarter after the recent decline in Bitcoin prices significantly reduced the fair value of its cryptocurrency holdings. The loss was largely driven by an $8.32 billion unrealized markdown under fair-value accounting rules, reflecting weaker market prices rather than realized asset sales.
A Bitcoin whale sold BTC worth $39 million, incurring a $20 million loss after one year.
The U.S. midterms may be Bitcoin's turning point, landing as inflation fears mount and the bond yield hits a 19-year high.
Fair value changes drive quarterly loss even as bitcoin treasury grows 25% year to date
Strategy just released its Q2 2026 earnings report, noting an $8.22 billion unrealized net loss as Bitcoin (BTC) traded near $65,000, well below the average cost basis of $75,476. This massively exceeded Wall Street projections of $2.15 billion. Headwinds during this time included economic downturns, geopolitical conflict, and lower product support revenues.
The Central Bank of Brazil reported that demand for cryptocurrency assets, including bitcoin, ether, and stablecoins, reached over $14 billion during the first half of 2026. This represents a 135% increase over H1 2025, indicating continued demand expansion.