Morning Minute is a daily newsletter authored by Tyler Warner. The views and insights shared are his own and may not necessarily represent those of Decrypt. Also, check out our new daily news show that covers all the major stories in just 5 minutes, available on Apple Pod or Spotify.

Good morning!

Here are the key updates for today:

  • Major cryptocurrencies dip by 2-3% ahead of Warsh’s inaugural FOMC meeting today; BTC is priced at $64.8k
  • Saylor’s STRC has dropped to $91.80, marking its lowest point this year
  • Coinbase introduces a comprehensive range of new offerings, including stocks, perpetual contracts, and AI tools
  • Ethereum’s Amsterglam upgrade reaches its final development phase
  • SBF hints at launching a new coin upon his release from prison

🏦 Coinbase Seeks to Establish Itself as an “Everything Exchange” With New Offerings

On Tuesday, Coinbase introduced a wide array of products in its latest System Update, marking a significant step toward its goal of becoming the “everything exchange.”

The new features are extensive. Customers can now trade U.S. stocks, ETFs, and indices in addition to cryptocurrencies, with the option to transfer stock portfolios from other brokerages. Additional offerings include:

  • options trading for both equities and cryptocurrencies
  • tokenized stocks that are backed one-for-one by actual shares, with dividends passed through
  • perpetual futures linked to thematic categories such as AI, defense, and Chinese stocks;
  • pre-IPO perpetual contracts
  • an SEC-registered AI advisory service
  • automated trading agents, and
  • consumer products like a USDC-backed credit card, Bitcoin travel rewards, and loans secured by staked Solana.

The underlying message is that the division between traditional finance and cryptocurrency is disappearing, and Coinbase aims to be the singular platform bridging that gap. Users can transfer their equities from platforms like Schwab or Robinhood, trade options alongside cryptocurrencies, borrow against their staked SOL, and utilize an AI advisor for comprehensive management. This development offers users a wealth of options.

But will this strategy prove effective for Coinbase?

While they are not the pioneers of these features, the overall concept is compelling. The future of trading appears to be agent-driven, and establishing infrastructure for AI agents is a prudent move. Moreover, the popularity of tokenized stocks and perpetual futures is surging, especially following Hyperliquid’s impressive performance. If the overall market expands significantly (with Standard Chartered predicting a 40-fold increase in RWAs by 2030), Coinbase might not need to compete aggressively for market share; it could benefit from the overall growth.

🤖 SpaceX Acquires AI Coding Firm Cursor for $60 Billion

Just days after achieving the largest IPO in history, SpaceX has begun to reinvest its stock.

On Monday, it announced its acquisition of Anysphere, the company behind the AI coding tool Cursor, for $60 billion in an all-stock transaction that will integrate it into xAI. This valuation is approximately double the $29 billion it had in November.

Cursor’s rapid growth justifies this valuation increase. It scaled from $100 million in annual recurring revenue in 2024 to $1 billion by late 2025, and then to over $2 billion by February, marking the fastest growth for a software firm, with around 50,000 engineering teams and nearly 70% of the Fortune 1000 companies as clients, including Nvidia and Salesforce.

Cursor relies on external intelligence, paying Anthropic and OpenAI for the models that generate its suggestions, resulting in significant costs. At one point in 2025, it was reportedly paying Anthropic around $650 million annually against approximately $500 million in revenue, a scenario that most software companies would struggle to sustain. Moreover, its largest supplier is also a competitor, as Anthropic’s Claude Code directly challenges Cursor. Effectively, Cursor was financially supporting a rival.

A pivotal change in business strategy was to cease renting these models. Cursor’s own Composer model and more efficient routing led to slight profitability in enterprise gross margins by April, which aligns with SpaceX's interests. Cursor had previously arranged to utilize xAI’s Colossus supercomputer, and owning it allows Musk to provide affordable computing power, shift more workloads to xAI’s models, and improve margins while cutting ties with Anthropic. Cursor had declined offers from OpenAI to remain independent, making it noteworthy that Musk's first major investment from SpaceX’s public stock is in enterprise AI. With a projected $6 billion run rate, the $60 billion price tag represents less than 10 times the anticipated revenue, indicating a favorable deal for Musk.

🌎 Macro Crypto and Markets

  • Major cryptocurrencies are down 2-3% ahead of FOMC; BTC is down 3% at $64.8k; ETH is down 3% at $1,763; SOL is down 4% at $72.20; HYPE is down 6% at $71.
  • UNI (+10%), ASTER (+10%), and VVV (+5%) were among the top performers
  • Oil prices fell by 2% to $76.50; Gold remains stable at $4,350
  • Stock futures are showing mixed signals ahead of today’s FOMC (Warsh’s first), with the Nasdaq up 0.5% while the DOW remains unchanged
  • Saylor’s STRC dipped to $91.80 yesterday, its lowest mark this year
  • Ethereum’s upcoming major upgrade, Glamsterdam, has entered the final development phase, with developers testing all proposed changes on development networks before moving to testing networks
  • Binance is expected to be denied an EU license under MiCA, which may limit its access to the European market as the compliance deadline approaches
  • Robinhood laid off about 10% of its workforce to streamline operations due to declining revenue from crypto trading
  • Altcoin selling pressure on spot exchanges has reached a five-year high according to CryptoQuant data
  • Kalshi perpetuals volume exceeded $5.5 billion within the first two weeks of its launch, with plans for expansion into additional asset classes

Corporate Treasuries & ETFs

Meme Coin Tracker

📈 Myriad Market of the Day

💰 Token, Airdrop & Protocol Tracker

  • SBF hinted at launching his own coin once released from prison, as establishing a genuine business would necessitate $50 million to $100 million
  • MegaETH distributed $1 million in USDM to participants in its points program and teased the launch of their MOSS program starting today
  • MNSTR achieved a new all-time high in daily gacha volume with $1.5 million as the broader gacha meta continues to rise

🚚 NFT Market Updates

  • NFT leaders showed mixed results; Punks rose 2% to 33.5 ETH, BAYC remained steady at 9.18 ETH, Pudgy declined 6% to 4.48 ETH; Hypurr’s decreased by 7% to 253 HYPE
  • Re0rder (+40%) and Normies (+13%) were notable gainers

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