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Greetings Bitcoiner,
Welcome to Issue #664 of Bitcoin Breakdown, where it’s OPSEC Wednesday special, followed by the latest Quick Bits snippets. But first, today’s Top Stories:
El Salvador's Bitcoin Office says the state has no plans for any bitcoin, crypto, or stablecoin wallet after the sale of Chivo Wallet. Bitget's CEO doubts a full recovery of roughly $388M as customers pull more than 4,000 BTC in an hour. And SUBFROST data shows Alkanes filling 61.1% of Bitcoin transactions while paying 13.4% of fees.
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🏦 El Salvador Denies Bloomberg's Wallet Claim
El Salvador's National Bitcoin Office said the government has no plans to launch or operate any bitcoin, crypto, or stablecoin wallet, replying to a Bloomberg report that President Nayib Bukele is turning to dollar-backed stablecoins. Coinbase said Sivar is being launched by private company Modveon using Coinbase infrastructure, according to Bitcoin News.
Why it matters: The Bitcoin Office said all state involvement officially ended with the sale of Chivo Wallet to a private operator. Bitcoin adoption in El Salvador keeps spreading through grassroots education because self-custody needs no government wallet. Read more→
🔓 Bitget CEO Doubts $388M Recovery After Breach
Bitget CEO Gracy Chen said she is not very optimistic about fully recovering the roughly $388M lost in the exchange's security breach, citing the 2025 Bybit hack where only about 3.5% of stolen funds were frozen. Bitget customers withdrew more than 4,000 BTC, about $334M, in the first hour after withdrawals resumed.
Why it matters: Chen said cold wallets and private keys were unaffected, yet credential theft through a third-party vendor still cost roughly $388M. Holding your own keys means no exchange's security failures can touch your funds, which is why not your keys, not your coins endures. Read more→
📊 Alkanes Fills 61% of Bitcoin Transactions
Alkanes transactions made up 61.1% of all Bitcoin transactions between June 23 and September 20, 2026, according to SUBFROST's published data. Over that window Alkanes used 40.3% of block space by weight and 94.2% of OP_RETURN bytes but contributed only 13.4% of transaction-fee revenue.
Why it matters: Alkanes used 94.2% of OP_RETURN bytes while contributing just 13.4% of fee revenue, which feeds the debate over whether token data belongs on Bitcoin. The activity shows a geographic shift because it happens almost entirely in Chinese-speaking APAC communities. Read more→
A COLDCARD firmware bug that weakened seed generation let attackers rebuild private keys offline and drain single-signature wallets from 30 July, with Galaxy Research confirming 1,778 BTC lost by mid-August, and no firmware update can repair a seed that was weak from the start.
This week's OPSEC Feature Article shows you how to rebuild your stack as a 2 of 3 multisig across three vendors and prove, with Bitcoin Core, that you can recover it from the descriptor alone.
Get instant access to this special feature by becoming a premium supporter here.
Coljac Café in Farmington, Missouri anchors a growing Bitcoin corridor where 40+ independent farms, diners, and main street merchants accept bitcoin payments.
Braiins, the Czech Bitcoin mining software developer and pool operator, marks 1M Lightning Network payouts delivering instant, fee-free bitcoin to home heating miners and industrial farms, and targets 10M next.
Edmonds Marshall McMahon (EMM), a law firm, helps a client recover 20.00444711 BTC, worth about $1.725M, stolen in the Coldcard wallet fraud, using ethical hackers and a trustee's ownership verification process.
Tether, the largest stablecoin issuer, says it helped freeze about $550M in USDT tied to Iran's Central Bank and sanctions networks in 2026, as the US Treasury expands its Iran sanctions campaign.
Bitcoin's price in terms of Iranian Rials reaches a record 115B, up 5,600% in five years, as the country's fiat currency continues to weaken.
Glassnode, an on-chain analytics firm, reports that Bitcoin's 35% rally from August lows coincided with coin-denominated open interest, a measure of leveraged positions, falling nearly 20% to March lows, limiting liquidation risk.
Smarter Web Company, a UK-based Bitcoin treasury firm, launches an IPO for its 'MORE' preferred share on the London Stock Exchange, targeting £15M to £25M, with up to £8M for bitcoin purchases.
Metaplanet, a Tokyo-listed Bitcoin treasury company, has independent directors defend executive stock options after criticism, citing a 41% share cut, $220M in removed value, and lock-ups through 2031.
Blockchain(dot)com, an exchange and wallet provider, seeks a $4B to $6B valuation in a $500M IPO, well below its 2022 $14B peak as industry stock values have corrected themselves.
Roxom, a Bitcoin financial platform, launches BLOC ReFi to help borrowers refinance bitcoin-backed loans at 7.25% APR, with direct lender payoff and a first-month interest rebate.
Coinbase wins US CFTC approval to launch its derivatives clearinghouse, completing end-to-end infrastructure for regulated futures with USDC collateral and 24/7 settlement.
US SEC issues non-binding guidance on when crypto tokens count as securities, matching earlier Commodity Futures Trading Commission guidance for token issuers, after the Senate stalls the CLARITY Act.
Spain's tax authority, Agencia Tributaria, confirms that self-custodied bitcoin and crypto above €50,000 need no Form 721 foreign asset filing when holders control private keys, though capital gains reporting requirements continue.
CoinShares, an asset manager, says September US Spot ETF inflows largely reflect basis arbitrage rather than institutional bets on rising bitcoin prices.
CryptoQuant, an on-chain analytics firm, says bitcoin's bull market holds while it trades near $82,939, but 33% average short-term profits make a correction toward $80,000, $71,000, or $67,000 likely.
