## Morgan Stanley's Bullish Outlook on Bitcoin-Linked Stocks

Investment banking giant **Morgan Stanley** has identified two **bitcoin-linked companies** that could see their share prices more than double as they pivot from cryptocurrency operations to the **data center business**. This strategic shift comes even as **Bitcoin** experiences market retreats, highlighting the potential resilience of these firms in adapting to new opportunities.

### The Strategic Pivot

The two unnamed companies, which have historically been tied to **bitcoin mining** or related crypto activities, are now transitioning their focus to **data center infrastructure**. This move capitalizes on the growing demand for **cloud computing**, **artificial intelligence (AI) processing**, and **enterprise digital transformation**.

**Morgan Stanley analysts** believe this pivot positions these stocks for significant growth, with potential share price increases exceeding **100%**. The firm's research suggests that the **data center market** offers more stable revenue streams and higher valuation multiples compared to the volatile cryptocurrency sector.

### Market Context and Timing

This recommendation comes at a time when **Bitcoin** has been experiencing price declines, yet these companies' strategic redirection could provide insulation from crypto market fluctuations. The **data center industry** is projected to grow substantially in coming years, driven by increased **AI adoption**, **5G expansion**, and continued **cloud migration**.

### Investment Implications

For investors, this represents an opportunity to gain exposure to the **booming data center sector** through companies with existing infrastructure and technical expertise. The transition from **bitcoin operations** to **data center services** could unlock significant shareholder value as these firms tap into more predictable, recurring revenue models.

**Morgan Stanley's analysis** suggests that successful execution of this pivot could make these stocks outperform traditional data center plays, given their potential for rapid transformation and market repositioning.

A pair of bitcoin-linked firms could see their shares skyrocket, even as the flagship crypto retreats, due to their pivot to the data center business.

Morgan Stanley's Bold Prediction: These Bitcoin-Linked Stocks Could Skyrocket 100%+ in Data Center Pivot

Newly released documents have unveiled **Jeffrey Epstein's deep ties to the cryptocurrency industry**, shedding light on his early backing of bitcoin and major crypto companies like Coinbase.

Millions of files from the US Department of Justice reveal that Epstein **bankrolled the "principal home and funding source" for bitcoin** during its nascent stages. In 2014, he invested **$3 million in Coinbase**, the largest cryptocurrency exchange in the US, and also cut a check to **Blockstream**, a prominent bitcoin-focused technology firm. These investments came six years after his 2008 conviction for soliciting prostitution from a minor.

Despite online murmurings about a sector-level reckoning, most industry players predict **few consequences for crypto companies**. Some view Epstein as a "skeptical investor" who exited prematurely, while others claim he aimed to "undermine bitcoin."

## Coinbase's Questionable Cash

The crypto companies that secured Epstein's investment have grown into multibillion-dollar giants. Coinbase went public on the Nasdaq in 2021, with co-founder Brian Armstrong heavily influencing crypto regulation in the United States.

Epstein's 2014 investment in Coinbase was brokered by **Brock Pierce**, a crypto evangelist and co-founder of Tether. Documents show that Fred Ehrsam, a Coinbase co-founder, liaised with Pierce about the investment and sought to meet Epstein. Additional filings suggest Epstein sold half of his shares to Pierce's firm, Blockchain Capital, for $15 million in 2018.

A spokeswoman for Coinbase declined to comment; Pierce did not respond to requests.

## Backing Bitcoin

Epstein's financing of bitcoin's development stemmed from his role as a donor to MIT. Over 20 years, MIT accepted more than $800,000 from Epstein, who facilitated over $7 million in donations from other wealthy individuals.

In 2015 communications, Joichi Ito, then director of MIT's Media Lab, wrote that Epstein's "gift funds" were used to "underwrite" the launch of the **Digital Currency Initiative**, tasked with researching open-source crypto technologies. Ito explained the Lab served as the "principal home and funding source" for bitcoin.

In 2014, Ito brokered Epstein's $500,000 early-stage investment in Blockstream through a fund they co-owned. Email communications reveal Blockstream's co-founders, Adam Back and Austin Hill, were invited by Epstein to meet near his private island.

On Twitter, Back claimed Blockstream understood Epstein to be a "limited partner" in Ito's fund, which later divested due to "potential conflict of interest." He stated Blockstream has no direct or indirect financial connection with Epstein.

In communications, Epstein noted he "like[d]" Back. Hill continued emailing Epstein into 2017, checking in after a storm.

## Epstein Emails Elicit Muted Backlash from Crypto Industry

Luke Dashjr, an early bitcoin contributor, has called for Adam Back to resign as Blockstream's CEO over ties to Epstein. Dashjr said Epstein's interest in bitcoin was a sign that "evil men often seek to destroy what is good."

Charlotte Fang, founder of Remilia, said "only unserious people might care" about Epstein's investments, noting his Coinbase stake was a small part of the fundraise. She added, "Bitcoin is a decentralized technology that required no funding, and Epstein was evidently a skeptical investor."

Kadan Stadelmann of Komodo predicted retail consumers won't change habits, but some might leave Coinbase for exchanges without "unsavory sources." He surmised Epstein might have liked Coinbase's IPO prospects.

Antulio Rosales, a professor studying crypto, suggested Epstein was drawn to cryptocurrencies' potential for markets "without any ethical commitments or pressures of social norms and the law."

Newly released documents detail convicted sex offender’s early backing of bitcoin and Coinbase

Shocking Revelations: Jeffrey Epstein's Hidden Role in Bitcoin and Coinbase Exposed

While **Bitcoin** and **Ethereum** dominate the crypto headlines, they're not the only players in town. These two giants make up about 70% of the total crypto market value, but hundreds of smaller, higher-risk cryptos offer potentially greater upside that could outperform the market leaders.

Top investor **Dominic Basulto**, ranking among the top 3% on TipRanks, highlights three such coins worth watching in 2026: **XRP**, **Solana**, and **Chainlink**. He believes, "All three have the potential to outperform Bitcoin and Ethereum this year to deliver outsized gains to investors."

Let's dive into the case for each.

## **XRP (XRP-USD)**

XRP is possibly the most obvious pick, as it's the fifth-most valuable crypto and delivered outsized gains early last year, including a surge from $0.50 to $3.40 between November 2024 and January 2025. Basulto argues its case is stronger this year, with the long-running **SEC lawsuit** against creator Ripple resolved in August, removing a major regulatory overhang. Since then, Ripple has completed **$2.5 billion in blockchain acquisitions** and secured **$500 million in financing** at a $40 billion valuation.

"Now it’s time to buckle down and put that money to work building an end-to-end financial infrastructure with XRP at the core," says the 5-star investor. "If that happens, XRP could skyrocket in value."

![XRP chart](https://blog.tipranks.com/wp-content/uploads/2026/02/image-920.png)

## **Solana (SOL-USD)**

Since its 2020 launch, Solana has been seen as a potential **"Ethereum killer."** Crypto champion **Cathie Wood** has highlighted its advantages in speed, cost, and throughput. With a **$65 billion market cap** versus Ethereum's $326 billion, Basulto thinks Solana could close the gap—and possibly surpass Ethereum within five years.

Its rapid ecosystem growth supports such lofty ambitions. In the year ending September 2025, Solana generated **$2.85 billion in revenue**, and its decentralized exchanges now see more daily trading activity than Ethereum's.

"As long as Solana can continue to erode the market share of Ethereum in key areas such as **DeFi**, it should continue to increase in value," Basulto added. As recently as January 2025, Solana was trading at $294, suggesting it's not impossible for it to double in value this year.

![Solana chart](https://blog.tipranks.com/wp-content/uploads/2026/02/image-922.png)

## **Chainlink (LINK-USD)**

Chainlink had its last major rally in 2020–2021, when LINK jumped from about $2 to over $50, but has since crashed and now trades **83% below its all-time high**. Still, Basulto finds it attractive in 2026 as the leading **decentralized oracle network** that connects smart contracts to real-world data, enabling sophisticated blockchain applications and interoperability across chains—a foundational role in **Web3** that few other projects match.

Its **Cross-Chain Interoperability Protocol (CCIP)** and advanced data services are increasingly used to bridge liquidity and tokenized assets across blockchains, which could underpin demand for the LINK token if adoption continues to rise.

In late 2025 and early 2026, Chainlink expanded its footprint with major ecosystem milestones, including **24/5 U.S. equities data streams** across more than 40 blockchains, institutional collaborations for tokenized fund data, and products like the **Automated Compliance Engine** to embed KYC/AML checks into smart contracts, making Chainlink more appealing to enterprises and regulated financial players.

![Chainlink chart](https://blog.tipranks.com/wp-content/uploads/2026/02/image-921.png)

It's true all three are trading significantly below their all-time highs, which could signal that something major is wrong. "However," Basulto wrapped up, "I’m taking an optimistic (and perhaps foolhardy) view of things. All three of these altcoins look to be **grossly undervalued**, and as long as it looks like Bitcoin is going nowhere fast this year, I’m willing to take a flier on them. There’s just too much potential upside to ignore."

*Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended for informational purposes only. It is very important to do your own analysis before making any investment.*

Bitcoin (BTC-USD) and Ethereum (ETH-USD) get most of the headlines whenever the conversation turns to cryptocurrencies, but they are far from the only game in crypt...

Top Investor Reveals 3 Altcoins 'Too Cheap to Ignore' for 2026: XRP, Solana, and Chainlink Set to Outperform Bitcoin?

**BlackRock's iShares Bitcoin Trust ETF (IBIT)** experienced unusual trading activity during a sharp Bitcoin sell-off on Thursday. The fund dropped as investors rushed to hedge risk in the options market, but IBIT shares rebounded strongly on Friday as Bitcoin recovered.

Following the volatility, traders began watching options activity tied to the ETF, not just inflows and outflows, to better understand how large investors were positioning in Bitcoin.

## Record Hedging Activity Emerges

**Options volume linked to IBIT jumped to about 2.33 million contracts on Thursday**, the highest on record. Traders paid roughly $900 million in premiums, with put options slightly exceeding call options. Because puts are commonly used for downside protection, the data suggests investors were guarding against further declines as Bitcoin briefly dropped toward the $60,000 level.

The spike suggests large investors were hedging their positions rather than simply selling shares. Because IBIT is a key way institutions gain Bitcoin exposure, activity in its options market can hint at how they are positioning.

Some traders linked the surge to a leveraged fund under margin pressure, while others said it looked like normal hedging during a sharp drop. In any case, the move shows IBIT options are becoming another signal investors watch alongside ETF inflows to gauge demand for Bitcoin.

## What TipRanks Data Shows

According to TipRanks data, **IBIT recently traded around $39.68 after a nearly 10% daily gain**, with assets under management of about $58.2 billion and an expense ratio of 0.25%.

Despite the short-term rebound, the ETF remains down 31% over the past month and 34% in 2025, reflecting how closely its performance follows Bitcoin’s volatility.

![IBIT ETF Chart](https://blog.tipranks.com/wp-content/uploads/2026/02/image-860.png)

BlackRock’s ($BLK) iShares Bitcoin Trust ETF ($IBIT) drew unusual trading activity during Thursday’s sharp Bitcoin sell-off. The fund dropped in that session as inv...

BlackRock's Bitcoin ETF Sees Record Options Trading as Investors Rush to Hedge Amid Sell-Off

## The Rise of World Liberty Financial's USD1

World Liberty Financial, the Trump family's cryptocurrency startup, recently achieved a major milestone: its signature digital coin, **USD1**, reached a total circulation of **$5 billion**, cementing its place among the world's top cryptocurrencies. The company celebrated this achievement on social media, with Eric Trump marking the moment with fire emojis.

Much of this success can be attributed to an alliance with **Binance**, the world's largest cryptocurrency exchange. This relationship has become particularly significant since President Trump pardoned Binance's founder, **Changpeng Zhao**, in October 2025.

![Binance has offered a series of marketing promotions to encourage its customers to buy World Liberty Financial's stablecoin.](https://static01.nyt.com/images/2026/02/05/us/politics/dc-crypto-trump/dc-crypto-trump-articleLarge.jpg?quality=75&auto=webp&disable=upscale)

*Credit: Marco Bello/Reuters*

## Binance's Crucial Role

As the primary trading platform for USD1, Binance has become a vital engine for the Trump family's crypto business. Approximately **85% of the $5 billion USD1 coins in circulation** are held in accounts on Binance, according to data firms Arkham and Nansen. This dominance persists even though Binance's platform is only available outside the United States.

Jonathan Reiter, co-founder of crypto data firm ChainArgos, noted: "Most of the money is sitting within Binance, and has really always sat within Binance. They are the main trading venue for this."

## Controversial Connections

The relationship between World Liberty and Binance has faced **heavy scrutiny from ethics experts and members of Congress**, who view it as a significant conflict of interest. President Trump now serves as both a crypto mogul and the industry's chief policy maker, creating potential ethical concerns.

The White House has voiced support for legislation that would make it easier for crypto exchanges to operate in the United States, while simultaneously overseeing a family business that benefits from such policies.

![President Trump in October granted a pardon to Changpeng Zhao, Binance's founder, who spent four months in prison for money-laundering violations.](https://static01.nyt.com/images/2026/02/05/multimedia/dc-trump-crypto-pkvq/dc-trump-crypto-pkvq-articleLarge.jpg?quality=75&auto=webp&disable=upscale)

*Credit: Tamir Kalifa for The New York Times*

## Strategic Promotions and Incentives

Since the pardon, Binance has implemented several strategic promotions to boost USD1 adoption:

- **Fee-free conversions**: In December, Binance announced customers could convert other firms' stablecoins to USD1 without paying fees
- **Interest programs**: The exchange offered customers the chance to earn interest on USD1 holdings
- **$40 million rewards pool**: In January, Binance launched a promotion offering rewards to customers who held USD1

These incentives proved remarkably effective. Over one week following the $40 million rewards announcement, the amount of USD1 traded worldwide **shot up by nearly $2 billion**.

## The Stablecoin Business Model

Stablecoins represent a highly profitable sector of the crypto industry. Issuers like World Liberty accept deposits from traders, provide coins in return, and then invest the deposits to generate yield. According to financial reports, World Liberty has invested most of its deposits in government money-market funds, generating an annual return of about **4%**—potentially **$200 million in revenue** on $5 billion in deposits.

## Political and Regulatory Implications

The Trump administration has orchestrated a complete overhaul of the government's approach to cryptocurrency, ending a regulatory crackdown that began during Trump's first administration. At the same time, the Trump family has built a sprawling network of crypto businesses, with World Liberty at the center of this empire.

![Mr. Trump's two elder sons, Donald Trump Jr. and Eric Trump, are business partners in World Liberty Financial with Zach Witkoff, the son of Mr. Trump's Middle East envoy, Steve Witkoff.](https://static01.nyt.com/images/2026/02/05/multimedia/dc-trump-crypto-4-lgjk/dc-trump-crypto-4-lgjk-articleLarge.jpg?quality=75&auto=webp&disable=upscale)

*Credit: Spencer Platt/Getty Images*

## Legislative Challenges and Loopholes

The GENIUS Act, signed by President Trump last year, created industry-friendly rules for stablecoins but prohibited issuers from offering interest to customers. However, the legislation left a workaround: while issuers cannot offer interest, exchanges can—creating potential for similar incentives on U.S. platforms.

Congress is now considering broader crypto regulation, with banking lobbyists pushing to close this loophole. The White House has convened meetings between banking and crypto representatives to negotiate compromises.

## Defense and Denials

A spokesman for World Liberty stated that promotional incentives were funded by the Trump crypto company, not Binance, calling this arrangement "standard practice" for stablecoin issuers. A Binance spokeswoman emphasized that "it is not uncommon for large exchanges to hold large amounts of certain tokens" and that Binance offers promotions for a wide range of coins.

A lawyer for Changpeng Zhao asserted that "there are no conflicts of interest or quid pro quos," while a White House spokeswoman maintained that Mr. Trump's assets are in a trust managed by his children and that "there are no conflicts of interest."

## The Future of Crypto Politics

As the debate continues in Congress, the relationship between Binance and World Liberty Financial highlights the complex intersection of cryptocurrency, politics, and regulation. With President Trump having "direct skin in the game because of World Liberty and USD1," according to crypto expert Lee Reiners of Duke University, the outcome of these policy discussions could have significant implications for both the Trump family's business interests and the broader crypto industry.

Ties between the exchange and the president’s company, World Liberty Financial, have only strengthened since the president pardoned Binance’s founder, Changpeng Zhao.

Bitcoin Articles Published Today

Bitcoin Articles Published Yesterday