Welcome back, financial enthusiasts — here’s the morning update.

Ethereum is experiencing a surge in institutional buying, evidenced by BitMine Immersion doubling its holdings to over 1 million ETH. Meanwhile, a surprising jump in the Producer Price Index (PPI) is sparking inflation worries, potentially impacting the Federal Reserve’s rate cut plans.

With institutions aggressively accumulating ETH and inflation data surprising to the upside, are we on the verge of a significant shift in digital asset strategies and monetary policy expectations?

In today’s financial recap:

  • Institutions dive into Ethereum, BitMine Immersion holdings double

  • PPI inflation shock threatens Fed rate cut bets

  • MIAX IPO sparks trading floor expansion

  • Coherent’s defense Business sale triggers stock selloff”

Ethereum & BitMine Immersion Surge Highlight Institution Crypto Treasury Trend

The TradeWatch: Institutional buying and treasury strategies push Ethereum near new highs, with BitMine Immersion doubling holdings to over 1 million ETH. The recent GENIUS Act legislation boosts stablecoin integration, further accelerating demand and use cases.

Unpacked:

  • BitMine Immersion stock remains attractive as a long-term holding, and the firm now holds over 1 million ETH on its balance sheet.

  • The passage of the GENIUS Act is expected to surge demand for Ethereum’s blockchain infrastructure, unlocking institutional use cases and accelerating adoption across traditional financial channels.

  • Standard Chartered analyst Geoff Kendrick sees ETH rallying to $7,500 by the end of the year due to the pivotal change that the GENIUS Act makes.

Bottom line: Growing institutional interest in Ethereum, coupled with regulatory advancements like the GENIUS Act, signals a robust trend toward crypto asset adoption. These developments are poised to reshape digital finance exposure for investors, making ETH and related stocks attractive options.

PPI Inflation Shock Threatens Fed Rate Cut Bets

The TradeWatch: July’s Producer Price Index (PPI) soared 0.9%, triggering concerns about persistent inflation and impacting market expectations for Federal Reserve rate cuts which you can explore via the BLS data release.

Unpacked:

  • The surge in core PPI was attributed to a “head-scratching increase” in margins for wholesalers and retailers.

  • Some economists suggest companies will pass tariff-related costs onto consumers, potentially leading to higher prices.

  • Markets are now pricing in slightly lower odds of a Federal Reserve rate cut at the September 17 meeting, down from 100% ahead of the PPI data, according to CME Group’s FedWatch tool amid the big overshoot for the PPI.

Bottom line: This unexpected rise in producer prices introduces uncertainty about the timing and extent of future rate cuts, forcing investors to reassess their strategies. This may be something to continue watching as Fed Chair Jay Powell is expected to address the central bank’s plans at the Jackson Hole Economic Symposium on August 22.

MIAX IPO Sparks New Trading Floor Expansion and Exchange Competition

The TradeWatch: Miami International Holdings (MIAX) went public on the NYSE, raising $345M and is planning a state-of-the-art Miami trading floor in September. This move enhances US market infrastructure amid growing options and equity trading volumes.

Unpacked:

  • MIAX’s shares, listed under the ticker MIAX, rose over 33% on their first day of trading, reflecting strong investor interest.

  • CEO Thomas Gallagher emphasized MIAX’s technology-driven approach in building and operating regulated financial marketplaces across multiple asset classes and geographies.

  • The new Miami trading floor will expand MIAX’s presence and potentially increase competition among exchanges.

Bottom line: MIAX’s IPO signals further evolution within regulated marketplaces and will likely contribute to more competition. The new trading floor underscores a commitment to the US market infrastructure that will benefit institutional trading and fintech development.

Coherent’s Defense Business Sale and Earnings Release Trigger Stock Selloff

The TradeWatch: Coherent Corp sold its Aerospace and Defense unit to Advent for $400 million to reduce debt and refocus on core markets, while the company reported strong Q4 2025 earnings, beating estimates, but guided cautiously, sending shares plummeting; the entity’s ticker exists here: COHR.

Unpacked:

  • Coherent sold its Aerospace and Defense business to Advent for $400 million, and plans to use the proceeds to reduce debt and improve EPS, as part of a strategic portfolio optimization, according to their press release.

  • CEO Jim Anderson stated the decision to sell the business was because it was not aligned with the company’s long-term strategic focus areas, and didn’t support long-term financial targets.

  • Despite beating analyst estimates for both EPS and revenue in Q4, Coherent’s stock price fell sharply due to light revenue guidance for the first quarter of fiscal year 2026, weighed down by the exclusion of A&D revenue.

Bottom line: The market reacted negatively to Coherent’s cautious guidance, overshadowing the positive earnings report and strategic sale, so investors should watch how Coherent executes its plan to focus on core growth markets amid tariff-driven economic pressures. The sale signifies a strategic shift to concentrate on core growth markets and optimize the portfolio.

The Shortlist

  • Content can be monetized, leveraging Microsoft’s pubCenter allows website owners to earn revenue through targeted advertising.

  • Bitcoin sinks after PPI comes in higher than expected while Treasury Secretary says ‘We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up.’

Cheers,

— Michael & the TradeWatch.io editorial team