Self-Custody Concerns Resurface as Bitcoin ETF Inflows Surge

A recent $116 million hardware wallet exploit has reignited concerns over self-custody risks in Bitcoin, just as US spot Bitcoin ETFs notched their strongest weekly inflows since April.

The Coldcard-related vulnerability was tied to the draining of approximately $116 million in Bitcoin. Meanwhile, major industry players are making moves on the edges of the Bitcoin ecosystem: Strategy is signaling a return to accumulation after a period of small sales, Riot Platforms is reportedly lining up long-term power for a large AI compute deal, and Trump Media is revisiting how it manages its crypto-linked treasury.

Strategy CEO Phong Le told FOX Business that the company intends to resume Bitcoin accumulation later this year. The company has 'bought' roughly 175,000 BTC and sold about 7,000 BTC this year, roughly 25 times more buying than selling. Strategy now holds more than 840,000 BTC and remains the largest institutional Bitcoin holder.

US spot Bitcoin ETFs attracted roughly $1 billion in net inflows for the week, according to Cointelegraph's reporting referenced to data on weekly ETF flows. Riot Platforms is reportedly negotiating a major compute-adjacent arrangement: a 20-year contract for 191 megawatts of capacity from its Texas campus.