News Block: ColdCard Hack Explained - First Self-Custody Breach at Scale, Strategy Makes First STRC Buyback, Fed's Most Hawkish Dissent in Decade

— COLDCARD hardware wallet compromise: Attackers drained over 1,300 Bitcoin from thousands of wallets whose seed phrases were generated on affected COLDCARD devices between March 2021 and the present. A firmware update switched the random number generator to a much weaker entropy source, making seed phrases far easier to brute-force. CoinKite confirmed the flaw; the attacker reportedly used AI to discover the vulnerability after it went undetected for over five years.

— Self-custody risk and diversification: This is the first time a major self-custody device has been compromised at scale. Affected users remain at risk even if they later moved Bitcoin to different wallets or multi-sig setups, as long as the original seed was generated on a vulnerable COLDCARD.

— MicroStrategy capital allocation shift: MicroStrategy announced it will no longer allocate 100% of future capital raises to Bitcoin purchases. Proceeds will instead be split between Bitcoin and cash reserves, with ratios depending on market conditions. The company remains a net buyer (purchases exceeded sales 48 to 1 in the first seven months of 2026) and boosted cash reserves to $3.75 billion.

— Federal Reserve dissent on rates: Three FOMC members voted for a quarter-point rate hike at this week's meeting—the most divided vote since September 2016. This signals some Fed officials believe inflation remains above the 2% target despite five consecutive years above that level.

— Treasury yields and macro headwinds: Long-term yields rose on Fed dissent; the 10-year reached ~4.74% and the 30-year moved above 5.2%. Higher rates tighten financial conditions, which typically pressure risk assets like Bitcoin.

— If you own or ever owned a COLDCARD, check the Coinkite advisory ([https://blog.coinkite.com/coldcard-mk3-seed-generation-warning/](https://blog.coinkite.com/coldcard-mk3-seed-generation-warning/)) immediately and move your Bitcoin if your seed was generated on an affected device. This applies even if you later moved funds to other wallets or multi-sig setups.

— Diversify security practices and never assume any single self-custody device is beyond failure. Consider multi-sig setups and avoid relying entirely on one hardware wallet brand or firmware version.

— Monitor Fed policy closely: the FOMC's internal dissent on rate hikes suggests uncertainty about inflation and tighter financial conditions ahead, which could continue to pressure Bitcoin and other risk assets in the near term.