President Trump's Strategic Bitcoin Reserve is already breaking before launch. What should have been a flagship crypto victory, consolidating the government's $20 billion in Bitcoin scattered across agencies, is tangled in inter-agency turf wars over who can legally hold volatile crypto indefinitely. Bitcoin is down nearly 50% from its October peak, making any announcement about a "reserve" look like terrible timing.

Meanwhile, stocks brushed off the chaos. The S&P 500 rose 0.5%, the Dow hit a fresh record, and the Nasdaq jumped 1.1% as faith in the AI trade returned (again). Samsung and Penguin Solutions report earnings today, a fresh read on whether the chip rally has legs, or if Washington's fumbling on both crypto and fiscal policy starts catching up with sentiment.

Today:

📰 Market Headlines: Tech rallies, Nvidia delays, Microsoft cuts 4,800 jobs, Toyota invests $3.6 billion in US
🤖 AI/Future/Tech: SK Hynix $28 billion IPO, Alibaba blacklists Claude, Illinois mandates AI audits, Even Realities hits $1 billion
🚀 Market Movers: Vertex buys Crinetics $10 billion, Kroger acquires Giant Eagle $1.65 billion, Novartis M&A, Nvidia delays to 2028

We dive in below, but first, take a look at a BTC + AI stock Kevin O’Leary likes →

This is not financial advice. Always do your own research. Past performance doesn’t guarantee future results.

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President Trump's signature plan to create a Strategic Bitcoin Reserve, meant to cement America as the "crypto capital of the world," is tangled up in bureaucratic turf wars and unsolved legal questions. The executive order intended to house the reserve in the Treasury Department, pulling from asset seizures across federal agencies and new purchases. But Treasury raised concerns about whether it even has legal authority to indefinitely hold a volatile cryptocurrency, bringing the Commerce Department into talks as an alternative.

Now the Justice Department's Office of Legal Counsel is scrambling to find a legally viable structure. The fundamental problem: no one knows which agency can legally warehouse Bitcoin long-term given its volatility, and whether "indefinite holding" as President Trump envisioned is even defensible under law. Multiple parts of the administration are now crafting competing plans, turning what should have been a flagship pro-crypto victory into a mess of inter-agency politics.

The irony is thick. The US government already owns roughly $20 billion in Bitcoin scattered across agencies. The White House claims premature sales have cost taxpayers $17 billion over the years, the whole pitch for consolidating into one reserve. But with Bitcoin down nearly 50% from its October peak and no clear legal home in sight, the reserve announcement has lost momentum. Even if they solve the bureaucratic puzzle, announcing a "reserve" after a major price collapse sends the wrong signal about holding power.

Our take on Bitcoin: the Orange Coin has had a rough year, sitting at ~$65,000 and down almost 50% since October… but we still think it’s a legitimate long-term asset. However, that doesn’t mean it can’t go down further from here before it begins to climb again. Overall, these are some of the lowest prices we’ve seen in a while, so it might be a decent buying point if you’re a long-term believer. But if a drop from $65,000 to $50,000 or lower would terrify you, then maybe stay away!

US stocks climbed Monday as tech shares rallied and investors shook off last week's jitters.

Nvidia pushed back on reports that its next-generation Kyber AI server system faces massive delays. SemiAnalysis claimed the vertically-oriented rack design created manufacturing challenges that would push the launch to 2028, but an Nvidia spokesperson told Yahoo Finance "our roadmap remains intact." The Kyber server, set to debut with the Vera Rubin Ultra platform in late 2027, will expand GPU capacity from 72 chips to 144 per rack.

Microsoft is cutting 4,800 jobs immediately after its voluntary retirement program, with the Xbox division losing roughly 20% of its staff. The gaming unit will shed a total of 3,200 employees through fiscal 2027, while four studios, Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs, are being spun out or sold. More than one-third of eligible US employees accepted the retirement offer, and Xbox CEO Asha Sharma said the unit "will return to growth in 2027." Microsoft stock is down 19% this year, the worst performer among megacap tech names.

Toyota is investing $3.6 billion to move Tacoma pickup production from Mexico to its San Antonio, Texas plant. The move will create 2,000 US jobs, add a second assembly line, and roughly double the size of the facility by 2030, expanding annual capacity from 200,000 to 350,000 units. The announcement comes less than a week after the Trump administration confirmed it won't extend its trilateral trade pact with Canada and Mexico, opting instead for annual reviews. Toyota says it's "maintaining its operations in Mexico" and will continue producing Tacomas at its Guanajuato plant.

Hertz short interest hit a record high after the rental car company's stock plunged 60% this year, according to Bloomberg. Bears are piling in as the company struggles with its EV fleet strategy and elevated debt levels.

Samsung Electronics and Penguin Solutions report earnings Tuesday, giving investors another pulse check on the chip trade as tech continues its rally.

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Cheers,
Brandon & Blake of Invested Inc