Beyond Strategy: 3 More Crypto Trades to Watch on Trump’s Strategic Reserve Announcement

The cryptocurrency complex got a much-needed shot in the arm over the weekend, thanks to news of a U.S. strategic crypto reserve. The strategic reserve represents a major shift in U.S. cryptocurrency policy and could influence global adoption of digital assets. President Trump's declaration named Bitcoin, Ethereum (ETHUSD), XRP (XRPUSD), Solana (SOLUSD), and Cardano as core assets, leading to a substantial $300 billion surge in the overall cryptocurrency market capitalization. 

Top Digital Assets on the Move

Bitcoin (BTCUSD) responded with a 20% rally from recent lows to reach $93,000, while other cryptocurrencies included in the “strategic reserve” basket notched even larger gains, with Cardano (ADAUSD) surging over 60%. The initiative faces both support and skepticism from industry leaders, with Coinbase (COIN) CEO Brian Armstrong advocating for a Bitcoin-only approach to maintain simplicity and avoid potential complications. 

The funding mechanism for the reserve remains unclear, with options including taxpayer funds or utilizing seized crypto assets. Further details on implementation are expected at the upcoming White House Crypto Summit this Friday. 

While shares of leading corporate Bitcoin holder Strategy (MSTR) have erased early gains to trade up just 1% this afternoon, many crypto stocks are still making big moves as we head toward the close. Here’s a look.

Crypto Trade #1: Argo Blockchain, +42.37%

Argo Blockchain (ARBK) is sharply higher today after entering a non-binding term sheet for up to $40 million in financing. “The proceeds of the Financing are to be used to refresh Argo's Baie Comeau, Quebec mining fleet, to strengthen the balance sheet, and to assess a pipeline of merger and acquisition possibilities,” per a company release.

ARBK is notching massive percentage gains largely because it’s a true penny stock, trading at $0.58 this afternoon. Longer-term, ARBK is down 76% over the past 52 weeks, and has plummeted by 96.2% from its March 2022 peak.

Crypto Trade #2: TeraWulf, -8.95%

TeraWulf (WULF) is trading down 8.95% at $3.81, extending a long-term trend of underperformance that has dragged the stock to a loss of 90% from its November 2021 highs. 

Nevertheless, WULF reported solid financials for 2024, with revenue surging 102% year-over-year to $140.1 million and Bitcoin holdings nearly quadrupling to 1,801 BTC. WULF also successfully eliminated its legacy term loan debt of $139.4 million, while strengthening its balance sheet with cash and bitcoin holdings of $275 million as of December 2024. 

TeraWulf is strategically expanding into artificial intelligence (AI)-driven high-performance computing (HPC) hosting, securing long-term data center lease agreements expected to generate $1 billion in cumulative revenue over initial 10-year contract terms. The company's growth trajectory is further supported by an expansion of self-mining capacity to 9.7 EH/s, representing a 94% increase from 2023, while maintaining strong mining margins through its low-cost, predominantly zero-carbon infrastructure platform. 

The majority of analysts maintain a "Strong Buy" rating on TeraWulf stock, with the average 12-month price target of $9.83 suggesting significant upside potential from current levels.

Crypto Trade #3: 2x Bitcoin Strategy ETF, +4.01%

If you think crypto volatility is set to continue, this is the trade for you. The 2x Bitcoin Strategy ETF (BITX) seeks leveraged results that are double the daily return of Bitcoin, no matter which way it moves. While flat-to-moderate moves in Bitcoin are bad news for BITX, days like today appear to be exactly why the fund was created.