Latest developments: Hardware wallet maker Ledger and MetaMask developer ConsenSys are among crypto companies delaying IPO plans.
- Fundstrat Head of Digital Asset Strategy Sean Farrell told CoinDesk’s Jennifer Sanasie on Public Keys that crypto trading volumes are down roughly 75% year-to-date, pressuring valuations across publicly traded crypto firms.
- Farrell said companies are reluctant to go public in a weak market because IPOs represent a critical fundraising opportunity and firms want to maximize valuations for existing investors.
- Ledger had reportedly lined up Goldman Sachs, Jefferies and Barclays for a planned $4 billion New York Stock Exchange listing before pausing those plans.
- Farrell said many crypto IPO processes are already “70% to 80% along the way,” positioning firms to move quickly once markets recover.
The contrast: AI-linked companies are still finding strong demand in public markets.
- Farrell said the current IPO market is “wide open” for emerging technology firms tied to artificial intelligence.
- He pointed to a broader equity rally driven primarily by AI-related stocks, even as other sectors face macroeconomic headwinds.
- Farrell said investors continue pouring money into AI infrastructure because hyperscalers are racing to expand computing capacity despite inflation and rate concerns.
- The divergence highlights how crypto companies remain more exposed to falling token prices and weaker retail trading activity.
What this means: Bitcoin miners pivoting into AI infrastructure have become one of the stronger-performing corners of the crypto market.
- Farrell said many miners control valuable energy infrastructure and power purchase agreements that can be repurposed for AI data center demand.
- He said those firms are generating higher returns by leasing power and infrastructure capacity to AI companies instead of relying solely on Bitcoin mining.
- Farrell said investors are increasingly valuing some miners as “digital REITs” because of their infrastructure exposure.
- He added that AI-linked crypto infrastructure names have been “a great place to hide” during broader crypto market weakness.
The macro backdrop: Farrell said interest rates and inflation remain major obstacles for crypto IPO activity.
- He said stronger labor market data and hotter inflation prints have reduced expectations for near-term Federal Reserve rate cuts.
- Farrell warned that continued pressure on long-term Treasury yields could weigh on risk assets over the next several months.
- Farrell said he expects eventual monetary easing once AI-driven productivity gains spread through the economy and labor market weakness reemerges.
- Until then, he expects crypto firms to remain cautious about entering public markets.
Worth watching: Farrell highlighted Hyperliquid as one of the few crypto ecosystems outperforming in 2026.
- Farrell said Hyperliquid generated roughly $850 million in trailing twelve-month revenue and recently partnered with Coinbase to make USDC the platform’s canonical stablecoin.
- He estimated the Coinbase partnership could add roughly $150 million in annualized non-cyclical revenue.
- Farrell also pointed to growing interest in Hyperliquid’s pre-IPO trading markets, including contracts tied to companies like Cerebras and SpaceX.
- Farrell said those markets could become a major narrative and revenue driver for the protocol.
The complication: Regulatory scrutiny remains the biggest risk facing Hyperliquid.
- CME Group and Intercontinental Exchange have reportedly pushed regulators to examine Hyperliquid’s offerings more closely.
- Farrell acknowledged regulators could target products tied to U.S. equities or commodities trading.
- Still, he argued the scrutiny also signals traditional exchanges increasingly view Hyperliquid as a competitive threat.
- Farrell said Hyperliquid’s partnership with Coinbase may help the protocol navigate Washington more effectively as U.S. crypto regulation evolves.
