Today's Cryptocurrency News (January 7) | Ripple states no IPO plans for now; Pi Network activates Testnet 25

This article summarizes cryptocurrency news as of January 7, 2026, focusing on the latest updates on Bitcoin, Ethereum upgrades, Dogecoin trends, real-time crypto prices, and price forecasts. Major Web3 events today include:

1. Nike quietly “clears out” Web3: RTFKT sold, NFT ambitions officially retreat?

Nike quietly sold its digital assets subsidiary RTFKT in December 2025. Once considered a core part of Nike’s Web3 strategy—an NFT and virtual sneaker studio—RTFKT has been officially spun off from Nike’s ecosystem. According to OregonLive, the deal took effect on December 16, but Nike did not disclose the buyer’s identity, transaction amount, or specific terms, and the entire deal was completed almost silently in the market.

This sale came about a year after RTFKT announced it would shut down Web3 services in January 2025. Nike’s high-profile acquisition of RTFKT in 2021 aimed to leverage NFTs, virtual fashion, and metaverse digital assets to explore new brand growth points in gaming, virtual worlds, and crypto culture. However, with the cooling NFT market and obstacles in Web3 commercialization, this strategy ultimately could not be sustained.

Strategically, Nike’s exit from RTFKT is closely related to the company’s overall transformation. Since CEO Elliott Hill took office, he has clearly pushed Nike to focus on core sports products and traditional retail channels, re-strengthening relationships with wholesale partners like Dick’s Sporting Goods and Foot Locker. Compared to previous management emphasizing digital direct sales and experimental innovation, Hill prefers to reduce complexity and risk exposure in non-core businesses.

Despite selling RTFKT, Nike has not completely abandoned digital initiatives. The company has ceased NFT issuance but still maintains collaborations with game developers like Fortnite and EA Sports, focusing on in-game virtual items and digital wearables. This “light-asset” digital strategy is seen as a pragmatic adjustment to the high volatility of Web3.

Notably, the closure of RTFKT has also sparked legal disputes. Some investors sued Nike, claiming that the sudden termination of the Web3 project damaged the value of virtual sneakers. Nike has requested the courts to dismiss the lawsuit as of late 2024. Additionally, Nike faces operational pressures; its Converse brand saw a roughly 30% year-over-year decline in sales in Q4 2025.

Overall, the sale of RTFKT marks Nike’s clear contraction of its Web3 and NFT strategies. Against a tightening macro environment and pressure on core business, Nike is choosing to return to its sports roots and a manageable digital path rather than continue betting on high-risk crypto and metaverse narratives. This shift offers valuable lessons for traditional consumer brands planning Web3 strategies.

2. US community banks jointly call for amendments to the GENIUS Act: Stablecoins “yielding” threaten TradFi system

The US Community Bankers Alliance recently publicly urged Congress to amend the GENIUS Act, pointing out that current stablecoin regulation has “loopholes,” with yield-bearing stablecoins indirectly competing with traditional bank deposits, raising concerns about capital outflows from the banking system.

The Community Bankers Committee of the American Bankers Association has written to the Senate, asking lawmakers to tighten stablecoin regulatory boundaries further. Representing over 200 community bank executives, the committee believes that some stablecoin issuers, while not directly paying interest to holders, provide rewards linked to stablecoin holdings through crypto exchanges and partner platforms, effectively creating “interest-like deposits.”

Under the original design of the GENIUS Act, stablecoin issuers are explicitly prohibited from paying interest or yields, mainly to prevent stablecoins from draining funds from federally insured bank savings accounts. The community bankers point out that several large US crypto exchanges are now rewarding stablecoin users, weakening the effectiveness of this regulation.

Banking industry warns that this model could lead to ongoing outflows of deposits from local banks, impairing their ability to lend to small businesses, farmers, students, and homebuyers. Community bankers emphasize that crypto platforms do not have banking lending functions nor FDIC insurance but are effectively competing for deposits.

Therefore, the committee urges Congress to explicitly extend the GENIUS Act’s interest prohibition to affiliates and partners of stablecoin issuers in the ongoing crypto market structure legislation, closing regulatory loopholes. Previously, the Bank Policy Institute led by Jamie Dimon warned that unrestrained stablecoin incentives could trigger trillions of dollars in bank deposit outflows.

However, the crypto industry strongly opposes this. The Blockchain Association and Crypto Innovation Council argue that stablecoins are not used for traditional credit expansion, and overregulation could stifle innovation and limit consumer choice. Major US centralized exchanges (CEXs) have clarified that the GENIUS Act bans issuer interest payments, not rewards or loyalty programs offered by exchanges; conflating the two would violate legislative intent.

The ongoing battle over stablecoin yields, bank deposit safety, and financial innovation is becoming a key point of conflict in US crypto regulation’s next phase.

3. Ripple acquires Solvexia: strengthening TradFi-crypto bridge, XRP and RLUSD as core

In early 2026, Ripple announced that its enterprise finance company GTreasury had acquired Solvexia, marking further efforts to seamlessly connect traditional finance and crypto markets. Solvexia is a leader in no-code financial automation, focusing on reconciliation and regulatory reporting automation. Post-acquisition, GTreasury will gain robust financial management solutions, reinforcing Ripple’s position in digital asset infrastructure.

This acquisition combines GTreasury’s financial management platform with Solvexia’s automation tech, greatly improving processing efficiency. Solvexia’s solutions reduce manual reconciliation from days to minutes, lowering errors and audit risks, helping firms enhance operational transparency and reduce compliance and financial risks.

GTreasury CEO Renaat Ver Eecke said automation can achieve near-perfect accuracy and full transparency, avoiding fraud and disclosure risks associated with manual processes. The acquisition helps GTreasury offer frictionless, borderless financial solutions, further integrating corporate treasury and digital assets.

Through this deal, Ripple continues expanding in finance. Last October, Ripple acquired GTreasury for $1 billion to enter enterprise treasury management, and this acquisition further boosts Ripple’s competitiveness in digital asset infrastructure and compliance. Ripple aims to provide comprehensive digital asset services—including custody, liquidity, payments, and real-time settlement—via platforms like GTreasury, Rail, Palisade, and Ripple Prime in a unified environment.

XRP’s performance after the acquisition was also notable, rising nearly 30% in a week, though now some profit-taking has pulled the price back to $2.28. Despite a decline in 24-hour trading volume, market attention remains on XRP’s future, with open futures contracts on major exchanges showing mixed signals.

This acquisition not only enhances Ripple’s financial infrastructure but also marks a solid step in integrating crypto with traditional finance, especially in strengthening compliance and regulatory frameworks.

4. Ray Dalio warns of rising US election risks: why investors must diversify assets immediately?

Bridgewater founder Ray Dalio recently issued a clear warning in his 2025 year-end review. He pointed out that the US faces multiple risks—political polarization, debt structure deterioration, and long-term currency weakening—that could erupt around the 2026 midterm elections, impacting global financial markets.

As a long-term researcher of economic and debt cycles, Dalio believes the US economy is not just experiencing short-term volatility but approaching a deeper structural turning point. He emphasizes that political instability significantly increases the likelihood of policy reversals, especially if congressional power shifts.

Dalio notes that if Republicans lose control of Congress, current fiscal, tax, and regulatory policies could be swiftly overturned. Frequent and unpredictable policy changes would weaken long-term planning for businesses and capital, eroding investor confidence in US economic stability. In this environment, more funds are considering reallocating outside the US.

On the monetary front, Dalio is cautiously optimistic about the dollar’s outlook. He stresses that dollar weakness is driven not just by interest rate cycles but by structural issues like high government debt, persistent deficits, and expanding money supply. These factors are gradually eroding dollar purchasing power, risking negative real returns on dollar-denominated assets after inflation.

Based on this, Dalio sees gold, the renminbi, and other non-dollar assets as more attractive for allocation in the future. Gold, in particular, remains a key hedge against political uncertainty and systemic financial stress. He does not advocate abandoning dollar assets entirely but repeatedly emphasizes diversification to avoid systemic risks from overconcentration in a single currency system.

Looking ahead, Dalio urges investors to step back from short-term election emotions and consider longer-term shifts in global economic structures. He believes that as the 2026 US elections approach, political outcomes could profoundly influence monetary systems, capital flows, and global asset prices. Early strategic diversification will be crucial for managing uncertainty.

5. Pi Coin news today: Pi Network activates Testnet 25, mainnet upgrade voting countdown, accelerating network rollout

Pi Network officially activated Testnet 25 today, scheduled for full launch at UTC 21:00. This update is seen as a key step in Pi’s mainnet evolution, laying the groundwork for upcoming technical changes and community governance votes. As the upgrade rolls out, attention to mainnet upgrades, network openness, and ecosystem expansion continues to grow.

According to community notices, Testnet 25 builds on previous upgrades like Protocol 23, focusing on system-level optimizations. These improvements are expected to support future smart contract support, security tools, and more on-chain applications. Developers see this as a vital infrastructure upgrade for Pi’s move toward more complex applications.

Meanwhile, Pi Network has announced the next key date: mainnet upgrade voting will be held on January 22 at UTC 17:00. Members will vote on whether to implement related changes on the mainnet. This governance mechanism is viewed as an important part of Pi’s decentralization and signals further openness.

For ordinary Pi users, Testnet 25’s significance lies in “testing first, deploying later.” The mainnet remains partly closed; external wallet transfers and full node openness are not yet enabled, and most network activity remains internal. The team emphasizes that the current focus is on improving stability, security, and real-world use cases, not speed.

Notably, Pi Network recently launched an official in-app news feature to display reports from authoritative third-party media. This move aims to reduce misinformation, curb rumors, and help users better understand Pi’s long-term development plans.

On security and data, Pi’s core team reiterated that their official X account is the only verified external info channel and advised users to use Pi’s Security Center to guard against scams. Current community data shows about 15.8 million users have migrated to mainnet, around 17.5 million completed KYC, and over 215 applications are live within the ecosystem. Additionally, approximately 134 million Pi Coins are scheduled to unlock in January.

Overall, with Testnet 25 live and mainnet voting approaching, Pi Network is entering a critical preparatory phase. Its development pace favors steady progress, safety, and gradual openness rather than aggressive expansion. This strategy will continue to influence Pi’s mainnet upgrade and long-term narrative.

6. Ripple if obtains a national banking license, how high can XRP rise? Target $10 by 2027

As Ripple’s plan to become a fully regulated national bank approaches the final stages, market analysts are reassessing its potential impact on XRP’s price. Recently, analyst Chart Nerd revealed that Ripple’s application for a national banking license is nearing completion, with the process starting as early as July 2025 and receiving conditional approval in December 2025.

Public regulatory documents show Ripple applied for a federal-level national bank license, not a state license. This means its future operations will be directly overseen by federal regulators, allowing nationwide operation without dealing with state-by-state compliance. The proposed entity is called Ripple National Trust Bank, a trust bank focusing on asset custody, trust services, and asset protection.

Most importantly, this bank will be a member of the Federal Reserve System. This status would give Ripple direct access to the US financial system and Fed infrastructure, providing higher-level regulatory backing for services like stablecoin RLUSD reserves and client custody.

Market-wise, XRP has rebounded near $2.38 after the news. Many believe that the official establishment of Ripple’s bank will have a long-term impact on XRP, but price growth depends on actual application expansion, not short-term sentiment.

Based on this, Google AI evaluated the potential impact of Ripple’s full bank operation for a year. Its core view is that the bank license itself is strong regulatory recognition, reducing compliance barriers for institutions using XRP. If Ripple can promote XRP’s use in cross-border settlement and liquidity management through the banking system, demand could grow under a fixed supply.

In a scenario of steadily increasing adoption, Google AI’s model projects that by early 2027, XRP’s fair value could be between $10 and $15. Reaching $10 would give XRP a market cap close to $600 billion. However, higher valuations would require XRP to capture a larger share of the global banking liquidity system, which could take longer.

Overall, Ripple’s national bank license could push XRP from a “trading asset” toward a “financial infrastructure asset,” with its valuation logic undergoing a structural shift.

7. Bitmine holds $14.2 billion worth of ETH, is it quietly dominating the Ethereum ecosystem?

In crypto, amid the ETF boom, one company is quietly building a massive Ethereum asset reserve. Bitmine, a seemingly ordinary mining firm, recently disclosed holdings totaling $14.2 billion, primarily consisting of 4.14 million ETH, enough to make it one of the most influential ETH holders, with a total ETH holding of 3.43%.

Chairman Tom Lee of Bitmine recently analyzed: “Despite the slowdown in the crypto market in late 2025, we still bought 32,977 ETH last week.” He added, “Compared to other Ethereum data asset companies (DAT), Bitmine continues to accelerate ETH accumulation, becoming the world’s largest new ETH buyer.”

While actively acquiring ETH, Bitmine is also pushing its flagship project—the US Validator Network (MAVAN). Lee revealed MAVAN will be a “top-tier” staking solution, planned to launch in early 2026. The project aims to provide secure staking infrastructure, further consolidating Bitmine’s influence in the Ethereum ecosystem.

Latest data shows Bitmine’s 4.14 million ETH is second only to Strategy, making it one of the largest ETH holders globally. Additionally, about 659,219 ETH (~$21 billion) are staked, with a recent further stake of 118,944 ETH, increasing its total staked amount.

Meanwhile, Bitmine’s stock price has risen to $33.35, in line with Ethereum’s own increase (~1.9%, trading at $3,239). The company is actively strengthening its position as a top Ethereum vault worldwide, similar to Michael Saylor’s transformation of a traditional software company into a Bitcoin proxy.

8. Not Bitcoin, not Ethereum: CNBC names XRP as “Most Popular Crypto of the Year”

CNBC’s popular finance program “Power Lunch” publicly named XRP as “Most Popular Crypto of the Year,” quickly drawing market attention. Host Brian Sullivan stated that the most outstanding mainstream crypto asset this year was not Bitcoin or Ethereum, but XRP, which showed clear advantages in gains and market cap ranking.

Sullivan pointed out that XRP has gained over 20% since the beginning of the year, significantly outperforming Bitcoin and Ethereum. Currently, XRP ranks as the third-largest crypto by market cap globally, behind Bitcoin and Ethereum, a change that CNBC considers as “Most Popular of the Year.”

Price-wise, XRP opened 2026 at $1.84, then quickly strengthened, reaching a high of $2.41, a 30.97% increase. Despite recent technical corrections, pulling back to around $2.25, the year-to-date gain remains over 22%, demonstrating strong capital support.

In comparison, Bitcoin started the year at about $87,508, peaked at $94,762, with an approximately 8.28% increase; Ethereum rose from $2,967 to $3,303, about 11.32%. Among mainstream assets, XRP’s performance is notably ahead, reinforcing its “leader” status for the phase.

CNBC reporter MacKenzie Sigalos analyzed XRP’s rise, noting it’s not short-term hype but driven by multiple factors. She mentioned that in the weak crypto market of Q4 2025, some funds have begun early positioning in XRP. Notably, XRP ETFs continued to attract funds during the downturn, with a net inflow of $1 billion in the first month, and no net outflows, contrasting with Bitcoin and Ethereum ETFs.

Sigalos also believes XRP is more “trade-friendly,” more flexible, and easier to benefit from capital rotation. As market focus shifts from top assets to projects with clear real-world applications, XRP and Solana are gradually seen as “next-phase hot picks.”

She emphasizes XRP’s long-term positioning in cross-border payments, its transaction speed, and low costs as key factors attracting real-world financial institutions. This indicates that current capital flows are tilting toward blockchain assets with practical financial use cases, and XRP’s strong start this year reflects this trend.

9. Trump’s crypto interests: the biggest variable? US crypto regulation may be delayed until 2029

The long-anticipated US crypto market structure legislation faces serious delays due to political struggles and Trump family crypto entanglements. Recent analysis suggests that this “regulatory watershed” bill may not pass until 2027, with implementation possibly pushed back to 2029.

According to TD Cowen’s policy research cited by The Block, the Senate is currently deadlocked on key provisions, mainly over whether to restrict senior officials and their immediate relatives from participating in crypto businesses. Democrats strongly advocate including “conflict of interest bans,” explicitly prohibiting the President and family from operating or holding crypto projects during their term.

This clause directly affects Trump’s personal interests. Since his inauguration in January 2025, Trump and his family are reported to have earned over $1 billion from multiple crypto projects, including the Trump and Melania meme coins launched just before his inauguration, and holdings in Bitcoin mining firm American Bitcoin, as well as stakes in DeFi and stablecoin projects like World Liberty Financial (WLFI).

TD Cowen analyst Jaret Seiberg said that if the conflict of interest clause takes effect immediately or soon, “it would be almost unacceptable for Trump.” A compromise is to delay the clause’s implementation by three years, so it would take effect after the bill’s passage, bypassing Trump’s current term. But the issue is that Democrats are unlikely to make concessions unilaterally.

Seiberg believes that unless Republicans agree to delay the entire crypto market structure legislation by three years, Democrats will not accept this arrangement. For Democrats, delaying is not necessarily bad. To pass the bill, at least 60 Senate votes are needed, requiring support from 7-9 Democrats, giving Democrats leverage to push back the legislation.

As the 2026 midterms approach, Democrats’ chances of regaining control of the House increase, potentially strengthening their bargaining position. If the legislation is delayed until 2027 and enacted in 2029, the final rules will likely be shaped by the next president’s appointees.

In this context, US crypto regulation remains uncertain for years. For the industry, Trump’s crypto interests are not just political topics but could be key variables in timing the market and regulatory reforms.

10. Ripple raises $500 million, valuation $40 billion, states no IPO planned, focusing on business expansion

After completing a $500 million funding round, Ripple explicitly stated that it has no immediate plans for an IPO. Management believes that its strong balance sheet and ample cash reserves mean going public is not an “urgent choice,” with focus remaining on execution, M&A, and core product growth.

Ripple President Monica Long said in a Jan 6 Bloomberg Crypto interview that the company has no specific timeline for IPO. She emphasized that IPOs are often for growth capital and liquidity, but Ripple currently does not lack capital support. “Without the pressure of public markets, we have greater strategic flexibility.”

This round closed in November 2025, valuing Ripple at about $40 billion, a significant jump from the implied valuation of $11.3 billion based on early 2025 stock buybacks. Long expressed high satisfaction with the funding outcome. The round attracted heavyweight institutional investors from both traditional finance and crypto sectors, including Fortress Investment Group, Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace, further strengthening Ripple’s institutional market backing.

With funds secured, Ripple’s management is now focused on execution, especially integrating acquisitions from the past year. In 2025, Ripple expanded its institutional infrastructure, notably acquiring top broker Hidden Road for $1.25 billion, making Ripple the first crypto-native company with a multi-asset global prime brokerage, covering trading, financing, and clearing for digital assets and FX.

Additionally, Ripple acquired enterprise finance platform GTreasury for $1 billion, payment platform Rail for $200 million, and Palisade, a custody provider, to enhance compliance and custody capabilities. Ripple CEO Brad Garlinghouse said in November that from 2026, M&A activity would slow, shifting focus to integration and scaling.

Beyond infrastructure, Ripple continues developing stablecoins and network upgrades. Its stablecoin RLUSD’s market cap is expected to surpass $1 billion by year-end, and new features on XRP Ledger—including lending and privacy tools—are expected this quarter. Overall, Ripple is accelerating its long-term competitiveness in crypto payments, stablecoins, and institutional services without an IPO.

11. Foreign media: Gold may have surpassed US Treasuries, becoming the largest official reserve asset

According to foreign reports, driven by a surge in gold prices and active central bank purchases over the past year, gold may have overtaken US Treasuries to become the largest reserve asset held by overseas governments. Data from the World Gold Council released this month shows that US overseas official gold reserves exceed 900 million troy ounces (most country data as of November, some as of October). At the November 30 gold price, this equals about $3.82 trillion in gold. In comparison, as of October, US overseas government holdings of long- and short-term Treasuries were close to $3.88 trillion. Assuming reserves remain unchanged by year-end, at year-end prices, the total value of US overseas official gold reserves would be about $3.93 trillion, surpassing the total US overseas government Treasuries.

12. XRP ETF race suddenly faces change: massive capital inflows, WisdomTree withdraws application

Despite strong capital inflows into XRP spot ETFs, an unexpected development has occurred. Asset manager WisdomTree has officially filed to withdraw its XRP ETF registration with the SEC, choosing to exit the increasingly competitive crypto ETF race temporarily.

According to the SEC filing on January 6, WisdomTree Digital Commodity Services, the sponsor of the WisdomTree XRP fund trust, voluntarily requested withdrawal of its previously filed S-1 registration statement under the Securities Act of 1933. The document states that WisdomTree has decided not to proceed with the XRP ETF project and withdraws all attachments and amendments since its initial filing on December 2, 2024. The ETF aimed to provide investors with a compliant channel to directly participate in XRP’s price performance but never entered the issuance phase.

This decision is notable amid the ongoing surge in XRP ETF market activity. Early 2026, US spot XRP ETFs attracted significant institutional and retail funds. Data shows that within weeks, XRP ETF inflows exceeded $1.25 billion, making it one of the most prominent altcoin ETFs.

Just on Tuesday, the daily net inflow into US spot XRP ETFs reached $19.12 million, indicating continued strong demand. Franklin’s XRPZ led with $7.35 million, followed by Canary Securities’ XRPC with $6.49 million, and Bitwise’s XRP ETF with $3.54 million. With ongoing inflows, total net assets of XRP ETFs are approaching $1.62 billion.

In the context of rapid growth in crypto ETF products and diverse digital asset offerings, WisdomTree’s withdrawal does not imply declining demand but highlights the competitive complexity of XRP ETF market. Industry consensus suggests that regulatory strategies, product positioning, and internal risk assessments are key factors behind WisdomTree’s strategic pause.

Overall, XRP ETF capital flows remain robust, with institutional demand continuing. WisdomTree’s withdrawal appears as a strategic adjustment rather than a market rejection. The future landscape of XRP ETFs warrants ongoing attention.

13. Tom Lee bullish on 2026: if ISM returns to expansion, it could trigger a new cycle for Bitcoin and risk assets

Renowned Wall Street strategist and Fundstrat co-founder Tom Lee recently expressed strong optimism about 2026 on CNBC, believing macro conditions may be at a critical turning point. One key indicator he relies on is the ISM Manufacturing PMI, often seen as a “weather vane” for the US economy.

Currently, the ISM PMI has been below 50 for over three years, indicating a prolonged contraction in US manufacturing. The latest figure is 47.9, still in the downturn zone. Market watchers are focused on whether ISM will re-enter the expansion zone above 50. Tom Lee sees this as a potential macro shift that could significantly alter market structure and capital preferences.

When ISM exceeds 50, it generally signals manufacturing expansion, rising business confidence, increased capital expenditure, and overall economic improvement. In such an environment, investors tend to reduce defensive positions and increase allocations to stocks, crypto, and other risk assets. Tom Lee believes Bitcoin could be a major beneficiary of this macro shift.

Historical data shows a clear resonance between ISM and Bitcoin cycles. After the COVID shock in 2020, ISM quickly recovered into expansion, followed by a massive Bitcoin rally in 2020–2021, driven by risk appetite. Tom Lee notes that current conditions are structurally similar, with ample global liquidity, ongoing institutional capital inflows, and relatively low crypto penetration, leaving room for long-term growth.

Moreover, institutional participation continues to deepen, making Bitcoin and crypto markets more sensitive to macro improvements. As ISM data becomes a key indicator for traders and macro investors, sustained upward signals could trigger a new risk asset rally.

Overall, Tom Lee’s optimism for 2026 is based on macro data, historical cycles, and liquidity dynamics. If ISM successfully re-enters expansion, it could be a key driver of a new market cycle, with Bitcoin and other risk assets regaining investor favor.

14. Dragonfly partner: Uniswap’s fee switch activation values the protocol at 2.4x annual fees; this year may lose $100 million

On January 7, Dragonfly partner Omar Kanji stated, “After activating the fee switch, Uniswap’s current valuation is about 2.4 times its annualized fees ($5.4 billion FDV / $23 million annual fees).”

He further considered this year’s allocation of 20 million UNI tokens (at current price of $6.16, about $123 million), estimating the protocol may incur a loss of around $100 million this year.

15. Nvidia Rubin platform mass production imminent, Bitcoin miners accelerate shift to AI infrastructure

Nvidia CEO Jensen Huang announced at CES in Las Vegas that the next-generation Vera Rubin platform has entered mass production, with AI computing power about five times that of the previous generation. This news has attracted high attention from the AI industry and is profoundly influencing Bitcoin miners and the long-term direction of crypto infrastructure.

According to Nvidia’s plan, Rubin will be officially launched later this year, focusing on AI inference—the fastest-growing segment—helping users generate outputs efficiently from pre-trained large models. Huang revealed that Rubin servers will integrate 72 GPUs and 36 CPUs, forming large-scale clusters via high-speed interconnects, with a single cluster housing over 1,000 Rubin chips, targeting data center deployment.

The key point is efficiency leap. Nvidia states Rubin can improve generative AI token processing efficiency by about 10 times, driven by its self-developed data types and system architecture optimizations. Notably, performance has surged despite only a 1.6x increase in transistor count, raising industry technical thresholds.

Huang describes current AI development as an infrastructure race. Faster compute power means reaching the next model capability inflection point sooner, compelling competitors to invest heavily in chips, networking, and storage.

This “compute arms race” is also reshaping Bitcoin mining business models. More miners are shifting from pure crypto mining to operating power, racks, and data centers, selling energy contracts, cooling, and space to AI clients. Compared to highly cyclical Bitcoin mining profits, hosting AI workloads can provide more stable cash flow during bear markets.

However, the AI boom also raises survival thresholds. High-quality data center resources are becoming scarce assets, with hyperscale cloud providers and AI startups pushing up rents and equipment costs. This favors miners with scale, power advantages, and financing, while small miners relying solely on mining profits may face greater pressure in 2026.

Additionally, Nvidia is launching new network switches with integrated optical modules to support high-speed interconnects for thousands of servers. The company says CoreWeave will be among the first to adopt Rubin systems, with Microsoft, Amazon, Oracle, and Alphabet also potential users. This trend confirms that AI infrastructure is becoming a new competitive frontier for crypto compute capital.