Today in crypto: The UK gambling regulator is weighing allowing punters to bet using cryptocurrencies, Block has announced cuts to 40% of its staff, citing growing AI-driven efficiencies, and high-yield bonds are increasingly being used by Bitcoin miners to fund their rush to build AI and data center.
UK gambling regulator weighs allowing crypto payments for online betting
The United Kingdom’s Gambling Commission is exploring how cryptocurrency could be used for payments at licensed online casinos, as the country prepares to bring more crypto activity under a new regulatory regime led by the Financial Conduct Authority (FCA).
Tim Miller, the commission’s executive director for research and policy, said Thursday that the regulator wants to examine “the potential path forward” for allowing “cryptoasset to be used as a consumer payment option for licensed and regulated gambling in Great Britain.” Miller made the remarks at the Betting and Gaming Council’s annual general meeting in London, according to his published speech.
Companies carrying out regulated crypto activities will require authorization by the FCA under the Financial Services and Markets Act 2000 (FSMA) when the new regime commences, Miller said.
“And that, as well as the growing appetite we see from punters, means we do now want to start looking at what the potential path forward would be to create a way for cryptoasset to be used as a consumer payment option for licensed and regulated gambling in Great Britain.”
Jack Dorsey’s Block to cut 4,000 jobs
Jack Dorsey’s payments company Block is set to cut around 40% of its staff in a major shake-up, a decision the co-founder attributed to the rapid acceleration of AI at the company.
“We're already seeing that the intelligence tools we’re creating and using, paired with smaller and flatter teams, are enabling a new way of working which fundamentally changes what it means to build and run a company, and that's accelerating rapidly,” wrote Dorsey in a letter to the company, which he shared on X.
“I had two options: cut gradually over months or years as this shift plays out, or be honest about where we are and act on it now. I chose the latter. Repeated rounds of cuts are destructive to morale, to focus, and to the trust that customers and shareholders place in our ability to lead,” he added.
Affected employees will receive 20 weeks of salary, plus one additional week for each year of tenure, six months of health care coverage, their corporate devices and an extra $5,000 for personal needs, Dorsey said. Employees will be notified today if they are losing their jobs or entering consultation.
High-yield bonds used to fund AI, data center
The AI and data center boom partly driven by Bitcoin miners is increasingly being financed through high-yield bond issuance, underscoring how lenders are pricing both risk and opportunity in the sector.
According to TheEnergyMag’s latest newsletter, companies tied to AI data center development have raised about $33 billion in long-term senior notes over the past 12 months, excluding convertible debt — bonds that can later be converted into equity and typically carry different risk dynamics.
The interest rate spread is notable: While regulated utilities and traditional energy companies generally borrow at 4% to 5%, AI- and crypto-linked issuers pay closer to 7% to 9%.
