Hut 8 Jumps, MSTR Holds Fire While Crypto Market Drifts Lower

Crypto-linked equities rose after hours even as the broader crypto market declined modestly.

• Hut 8 led gains following an analyst upgrade tied to its AI infrastructure strategy.
• Strategy boosted cash reserves through stock sales while holding off on new Bitcoin purchases.
• Coinbase suggested that proposed U.S. tax changes limiting gambling loss deductions could make blockchain-based prediction markets more attractive than traditional sportsbooks. 

Crypto-linked equities were in the green in after-hours trade on Monday, even as the cryptocurrency market edged lower.

The overall equity market was higher after the close. The SPDR S&P 500 ETF Trust (SPY) gained 0.04% after closing the day with a 0.62% gain, the SPDR Dow Jones Industrial Average ETF (DIA) edged 0.01% higher after closing 0.48% in the green, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) was up 0.13% after gains of 0.48% in the previous session. On Stocktwits, retail sentiment around QQQ remained in ‘bearish’ territory over the past day, accompanied by ‘high’ levels of chatter.

Meanwhile, the cryptocurrency market declined 0.3% over the past 24 hours, with major tokens largely rangebound into Monday night. CoinGlass data showed $204 million in liquidations over the past day. Bitcoin (BTC) fell 0.3% to around $88,4170, with retail sentiment around the asset continuing to trend in ‘extremely bearish’ territory on Stocktwits, with ‘low’ levels of chatter over the past day.

Hut 8 Leads After-Hours Moves

Bitcoin miner Hut 8 (HUT) led after-hours gains among crypto equities, rising 1.1% after surging more than 14% during the regular session. Retail sentiment around HUT’s stock remained in ‘extremely bullish’ territory on Stocktwits, accompanied by ‘extremely high’ message volumes over the past day.

The move followed a price target increase from Benchmark analyst Mark Palmer, who raised his target on Hut 8 to $85 from $78 and reiterated a ‘Buy’ rating, according to TheFly. Palmer cited the company’s recently announced AI and high-performance computing infrastructure transaction at its River Bend campus as a turning point, marking a shift from a crypto-native power owner to what he described as an institutional-grade digital infrastructure platform. 

Last week, Hut 8 disclosed a 15-year, $7 billion agreement to provide AI data center capacity through infrastructure provider Fluidstack, with financial backing from Google (GOOGL). The firm sees "superior deal economics" relative to peer deals, the analyst added. 

Strategy, Bitmine Diverge On Treasury Moves

Strategy (MSTR), viewed as a Bitcoin proxy, slipped 0.3% in regular trading before rising 0.6% after hours. Retail sentiment around MSTR’s stock on Stocktwits remained in ‘extremely bearish’ territory amid ‘low’ levels of chatter over the past day. The company did not announce any Bitcoin purchases over the past week. Instead, it reported an increase in cash reserves of approximately $748 million through the sale of common stock.

Ethereum-focused counterpart Bitmine Immersion Technologies (BMNR) declined 0.86% in regular trading but recovered in after-hours trade. The company reportedly purchased more than 13,000 ETH in a transaction valued at about $40 million late Sunday, according to wallet data flagged by Lookonchain using Arkham Intelligence. The company is yet to confirm the purchase.

Coinbase, JPMorgan Ride Institutional Shifts

Coinbase (COIN) edged 0.3% higher after hours following a 1.13% gain during the regular session. On Stocktwits, retail sentiment around COIN’s stock remained in ‘bullish’ territory over the past day, accompanied by ‘high’ levels of chatter.

The move came after Coinbase suggested that proposed U.S. tax changes limiting gambling loss deductions beginning in 2026 could make blockchain-based prediction markets more attractive than traditional sportsbooks. The firm discussed the potential shift in its Crypto Market Outlook 2026, arguing that new rules under the "One Big Beautiful Bill Act" could favor on-chain alternatives.

In traditional finance, JPMorgan (JPM) is reportedly considering offering spot and derivatives cryptocurrency trading to institutional clients, according to Bloomberg. The bank is evaluating potential products within its markets division in response to rising client demand and a shifting U.S. regulatory environment.

JPMorgan’s stock rose 1.85% during regular trading and was flat after hours. Retail sentiment around the stock remained in ‘bearish’ territory on Stocktwits, with ‘low’ chatter levels.

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