1/ investing in bitcoin has historically been limited to passive exposure (long BTC)

yesterday, @viridifunds launched $RIGZ, the first publicly listed crypto mining ETF

as the bitcoin industry grows, so do opportunities to invest along the bitcoin value chain 👇

let's dive in!
2/ before bitcoin, i worked in the oil & gas industry.

investors who want exposure to oil & gas in their portfolio don't just buy contracts for WTI crude or nat gas.

they buy a diversified portfolio of companies and commodities across the oil and gas value chain
3/ an E&P company can produce oil at a lower cost than they sell it, and investors can realize significantly more upside than holding just the underlying commodity, oil

a refining company that converts crude into product and retails it can extract higher margins
4/ similarly, companies are starting to emerge along different parts of the bitcoin value chain

for example, my company @CoinSharesCo ($CS.ST) creates bitcoin-based financial products and services. so does @coinbase ($COIN).

miners are like E&P companies - they "produce" $BTC
5/ now, to "produce" bitcoin, you need

🖥️ a specialized semiconductor (ASIC)
⚡️ electricity

per the the economics of bitcoin 👇the real competitive edge is lowering the cost of "producing" bitcoin by (a) reducing the capex drag of hardware and (b) securing the lowest cost power
6/ $RIGZ is an actively managed ETF, with a mandate is to invest in semiconductor and ASIC companies and crypto mining operators who are getting the majority of their power from "clean energy" or renewable power sources

you may be confused 😕 isn't bitcoin boiling the ocean?
7/ interestingly, over 50% of north american bitcoin mining is done with renewable energy 🌿

note the current US energy grid only utilizes 19% renewables 😢

that makes bitcoin mining one of the greenest industries in north america, and a great sector for this type of product!
8/ as one of the world's largest digital asset managers, @CoinSharesCo is proud to be Viridi's lead investor, and to continue to expand the universe of crypto investment products with innovative partners like @ViridiFunds, @3iq_corp, and @InvescoEMEA
9/ for more detail on $RIGZ, see the link below!

disclosure: this is not financial advice, DYOR. CoinShares is an investor in Viridi, and an advisor to the management company. i personally own $RIGZ.


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More from @Melt_Dem

5 Jul
1/ time for my monthly #Bitcoin mining update, apologies for skipping June

i'm 151 days into my @compass_mining experiment, and i've mined 0.09 bitcoin

🧮 let's whip out the calculator and do some basic math
2/ i bought my rig and hosting service from Compass - i sent them $, they did everything else

i chose @f2pool_official as my pool - i see my daily payouts and hash power on a nice little dedicated dashboard and download the CSV file to assemble this lil' report
3/ BTC mined - in the last week alone, bitcoin mined per day has gone up 45% thanks to the drop in difficulty

BTC price has dropped by ~45%, effectively keeping dollar ROI flat from May 5 to now 🦥

BUT rn mining 72% more BTC per day than i was in february when i started
Read 7 tweets
30 Jun
1/ some insights from our amazing speakers

Ian Lee from IDEO VC / SyndicateDAO

"we are building a new social graph that reflects what you believe in based on what you invest in and who you choose to back."

influence isn't about likes + RTs, its about how you allocate $$$!
2/ Kinjal Shah from @blockchaincap / Komorebi Fund

"today, a career is a collection of activities, a portfolio. DAOs are an amazing way for people to build this portfolio based on their participation in different communities."

DAOs can help reshape traditional career paths!
3/ Erikan from Audacity Fund

"people should be paid for their passion, their time, their creativity - so many creators are exploited and left empty handed while platforms and their investors are enriched. what's the value of time? DAOs can help people earn money for their time."
Read 5 tweets
30 Jun
1/ house hearing on cryptocurrencies

brad sherman just stated he believes it is more beneficial to society that people play the California lottery than invest in cryptocurrencies, ladies and gentlemen this is your elected representative
2/ now on to witness testimonies - Eva Su from the Congressional Research Service reminding everyone that bitcoin and ethereum are *not* securities, good start

she's focusing on securities regulation and potential changes to securities laws
3/ ok next witness @alexisgoldstein

kicking off with archegos capital and form 13-F issues and then extrapolating to crypto - this is nonsensical since exposure today is on-chain and fully collateralized?

she claims "dire risks" from forced liquidations in crypto (how?)
Read 18 tweets
20 Jun
1/ the #Bitcoin network is a complex, dynamic ecosytem, and the latest changes to the distribution of the network are interesting, but not unpredecented

let's look at the data - here is how market share has evolved over the last three months
2/ total hash rate on the network fluctuates in response to a number of factors including the cost and availability of ASICs (capex), the cost and availability of power (opex), and the price of bitcoin

looking at the last six months, we've seen a lot of volatility in global hash
3/ the size and rate of this decrease is consistent with other previous drops. migratory mining has been a trend for the last 3-4 years!

long-term, hash rate will respond to these variables and seek jurisdictions where there is clear, consistent policy and ample renewable energy
Read 8 tweets
14 Jun
1/ paul tudor jones suggests a 5% allocation to #bitcoin as an effective portfolio diversifier

our team @CoinSharesCo did the research, and our recommendation? 4%


let's delve into portfolio construction and the numbers - see the full report here coinshares.com/research/a-lit…
2/ over the last 18 months, bitcoin has been increasingly financialized as an asset

our weekly digital asset fund flows report shows AUM in crypto products is nearly $50B, a sharp increase from $5B a year ago when PTJ first talked about bitcoin 😎

medium.com/coinshares/vol… Image
3/ behavioral analysis of bitcoin holders also shows that investors holding bitcoin longer than a year has risen from ~30% in 2012 to ~55% today

in 2020 alone, ~22% of all bitcoin in existence were moved off exchanges (presumably into LT custody + ETPs) Image
Read 8 tweets
8 Jun
1/ there is now over $100B of dollars on-chain

there are seven stablecoins with >$1B in market cap

while market cap is an important metric, there are a few other insights we can glean from looking at velocity and collateralization rates

a short thread 👇 on crypto dollars
2/ velocity is the rate at which money is exchanged in a financial system

high velocity money tends to be associated with more developed systems

$USDT is HIGH velocity with one tether changing hands more than 1.5x per day

the USDT/BTC trade pair is *BY FAR* the highest volume
3/ some stablecoins have virtually no velocity, meaning once issued, their use as a medium for exchange is very limited

notably UST (trueUSD) and TUSD (terra USD) are the lowest velocity - this will be an interesting area to explore further
Read 6 tweets

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