Meltem Demir◎rs Profile picture
#bitcoin i like sci fi books, bitcoin, and talking with my hands. i identify as a corporation. disclaimers @CoinSharesCo.
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5 May
1/ time for my monthly #Bitcoin mining update 🚀

i'm 90 days into my experiment, and i've mined 0.05 bitcoin.

let's run the numbers, fam 👋🏾

(i use @compass_mining to source hardware + manage ops, but make this report myself) Image
2/ in case you missed it, last months update covered each line item in great detail. i'll keep this update a little shorter since many of the line items haven't changed much.

3/ bitcoin mined - 86% of bitcoin mined to date is block rewards, 14% is transaction fees (up from 12% last month)

hardware - the market for mining equipment continues to be incredibly supply constrained, semiconductor shortages are everywhere in crypto compute
Read 7 tweets
1 May
1/ USD stablecoins will soon hit $100B in market cap, and make up 4% of the crypto market

let's take a closer look

despite making up only 64% of the stablecoin market, tether dominates daily trading volume, with >90% of daily traded volume
2/ this chart tells a very clear story.

rumors of tether's demise are overstated. it is *the* dominant trade pair, which drives its staggering daily turnover.

bUSD is the only close competitor, b/c its @binance's preferred trade pair that they push to millions of traders.
3/ while market cap is an impressive number, its a poor measure of adoption.

the number that we should be focused on is daily traded volume and velocity, which is driven by the integration of stables into market structure via trade pairs.

this is *utility*
Read 6 tweets
16 Apr
1/ "why is $DOGE pumping?"

pull up a chair, my friends, the answer is in plain sight

DOGE is up 500% over the last 7 days and is now $48B in market cap, making it the fifth largest cryptocurrency by market cap.

but why?

let's look at r/WallStreetBets
2/ on wednesday, ahead of the $COIN listing, the WSB mods changed their ban on crypto discussion to allow talk about 3 cryptocurrencies - #Bitcoin , ethereum, and... you guessed it... $DOGE

as you can imagine, the WSB community went wild
3/ not 24 hours later, the mods reverse that decision and announced they would ban all crypto chatter on the forum indefinitely

according to some reports, the ban was a response to this @business article claiming WSB mods were bowing to pressure

bloomberg.com/news/articles/…
Read 7 tweets
16 Apr
1/ today's #bitcoin sell-off has nothing to do with turkey 🇹🇷 banning the use of crypto in payments. at all.

it's the tail wagging the dog i.e. derivatives

traders were highly levered long going into the $COIN listing which everyone expected to be a catalyst for $BTC 🚀
2/ remember that leverage in crypto is EXPENSIVE AF.

cash borrow rates in crypto are now 20 – 40% while bitcoin borrow rates remain very low at 2-3%, highlighting the massive demand for cash borrow!
3/ coinbase listed. BTC moved, but not enough.

traders need volatility to profit. when volatility doesn’t materialize and cash funding is expensive, traders tend to close out positions

so those longs get unwound, cuz it's too EXPENSIVE to keep them open.
Read 7 tweets
13 Apr
1/ crypto is not just an asset class, its an entirely new industry.

the Coinbase $COIN listing firmly plants that flag.

this industry will mint dozens of unicorns, including @CoinSharesCo, that bring equity ownership opportunities to public markets.

cnbc.com/video/2021/04/…
2/ these listings bring much needed transparency and insight into crypto business models, and highlight how profitable companies are

at @CoinSharesCo, we reported a 65% EBITDA margin in Q4, compared to traditional banks who reported an average 47% EBITDA margin in Q4
3/ coinbase reported 65M users and over $1.5B in EBITDA in Q1 alone, and is on track to book revenues and net income that exceed any other US exchange - ICE, Nasdaq, CME, and CBOE.

when it lists, i fully expect coinbase to valued higher than Goldman Sachs (h/t @JasonYanowitz)
Read 6 tweets
7 Apr
1/ my friends and family in Turkey 🇹🇷 saw their savings drop 15% last week.

inflation may be an abstract concept in the states, but it is painfully real for people in other parts of the world.

thread below 👇 (trigger warning for MMT peeps 😬)
2/ inflation isn't just a rise in the cost of goods and services. It is the money you worked hard for becoming less valuable.

it is going to be more expensive for Turks to buy bread tomorrow. more importantly, it's going to be more difficult for them to retire.
3/ and while it may feel like outside the realm of possibility in the US, the Fed is printing money at historic rates.

before the most recent $1.9 trillion stimulus, M2 money supply had already increased by more than 25%.

but sure, inflation is only 1.4%.
Read 10 tweets
6 Apr
1/ numbers don't lie.

crypto is a $2T market. millions of people are billions of dollars per day across public blockchain networks.

i'm excited to join the board of @KingdomTrustCo @choicebyKT to bring #bitcoin to retirement accounts.

a short thread!

retirewithchoice.com/meltem-demiror…
2/ while firms like Goldman Sachs are working on offering bitcoin to only their wealthiest clients, @choicebyKT is working on democratizing access for everyone.

at @CoinSharesCo, we believe bitcoin is for *everyone*

equality of access is critical!
3/ since the launch of Choice, digital assets have grown to over $1.6B of the firm’s $18B in assets under custody.

today, Choice powers 125,000 retirement accounts.

but we see a MASSIVE opportunity to bring crypto to the $34.9 trillion held in US retirement accounts.
Read 6 tweets
5 Apr
1/ as crypto markets continue to rally, a few observations on the funding landscape

it continues to change *dramatically* as more capital floods into the space and more individuals in crypto become institutions in their own right

as they say, mo' money, mo' problems...
2/ the smartest founders i know are designing their own round.

they start with an idea of what type of folks they want on the cap table and what they need help with.

they then work with existing investors, like me, to fill out the round and curate the best group possible.
3/ founders want builders, not LARPers

i see crypto founders, operators, and execs on cap tables, especially in the early stages

some have become prop firms ie @cmsholdings @nascentxyz @sinoglobalcap and some are prolific angels @theklineventure @rleshner @StaniKulechov
Read 9 tweets
1 Apr
1/ time for another #Bitcoin mining update 🚀

i'm 56 days into my experiment. providing an update on profitability and *emissions*

see my summary below. i'll delve into each line item in the thread.

let's go 👋🏾
2/ bitcoin mined - @compass_mining gives me a link directly to @f2pool_official to view & download my machine stats

interesting fact - 87.4% of BTC is from block rewards and 12.6% is from transaction fees

every ten days or so, bitcoin gets deposited directly into my wallet!
3/ hardware - i've already covered hardware extensively in my original thread 👇🏾

the price of hardware has gone even higher due to massive shortages. at the end of Feb, my machine was worth 9k. it's now selling for 11.5k, used.

Read 10 tweets
30 Mar
1/ reflection from deal sourcing calls

the pandemic has leveled the playing field for startups

large conferences, $$$ sponsorships, and ad spend are no longer necessary to drive engagement

new channels and more content focus enables low cost brand and audience building
2/ new marketing mediums require startup execs and sales teams to change their approach and upgrade their skills

engagement, expertise, and insight is more important than ever, and curation of brand "voice" requires more consideration when its diffuse across many channels
3/ however, we've also seen a lot of companies get early traction but fail to convert it into recurring sales growth

will be interesting to see what startups and services emerge around converting a digital audience into actual sales from mediums like clubhouse, substack, etc
Read 4 tweets
16 Mar
1/ always a pleasure to chat with @MelissaLeeCNBC on @CNBCFastMoney - she’s an OG bitcoin bull!

wanted to share data around the three trends i highlighted:
1. fund and ETP inflows
2. retail v insto
3. record highs in derivatives market volume

2/ lets start with fund and ETP flows

we continue to see crypto products and funds gathering more AUM, with a record $56B in AUM across all platforms

our @CoinSharesCo research team produces a weekly Digital Asset Fund Flows report with excellent data - coinshares.com/research/digit…
3/ a large portion of inflows into fund flows are "one way" via US trust structures, like @Grayscale or @BitwiseInvest - meaning once the assets go in, they don't come out

investors also buy these in tax advantaged accounts or with the intent of holding for long term cap gains
Read 14 tweets
12 Mar
1/ i've been mining #bitcoin with @compass_mining for a month now, and as promised, am sharing my experience as i go!

disclosure: i'm an investor in Compass personally and via @CoinSharesCo ventures, and a board director

here's the high level summary 👇 details in thread
2/ i purchased a @BITMAINtech S19 from Compass in late December for $7500. due to the massive shortage of ASICs and the high demand, this machine would currently sell for $9000.

more on the machine here: asicminervalue.com/miners/bitmain…
3/ i elected to host my miner in the US, and Compass organized for my machine to be installed at this facility in Kentucky.

i pay about ~$250 / month for electricity to power my miner

you can browse all of Compass' hosting facilities here:
compassmining.io/facilities/
Read 7 tweets
21 Feb
1/ what grinds my gears - boomer bankers saying “oh bitcoin is a fad because my teenage son / cab driver / housekeeper was talking about it” like it’s 1929

it’s 2021

we have supercomputers in our pockets

high quality research is freely and readily available
2/ anyone with a smart phone, a little bit of cash in their checking account, and a desire to learn can start investing and can get exposure to a wide range of asset classes

they don’t need a dude in a suit to do it

they don’t need a 60/40 portfolio
3/ people are watching the dollar get obliterated and their portfolios get rekt

they’re tired of getting 0.1% interest while subsidizing the lifestyles of the people who laugh in their faces while robbing them

they’re taking charge of their portfolio to get out of the rat race
Read 5 tweets
17 Feb
1/ #Bitcoin FUD-busting time!

claim: bitcoin ownership is heavily concentrated.

@business published an article claiming "2% of accounts control 95% of all Bitcoin" 🤣

truth: the facts, my friends, simple don't line up. let's dive in!
2/ interrogating on-chain addresses is tricky.

address =/ account.

one person can control multiple addresses.

one address can hold bitcoin belonging to multiple ppl.

exchanges and trading firms will have addresses with large balances that represent client funds.
3/ the fine folks @glassnode published an excellent analysis of on-chain address balances in January

the ownership distribution of bitcoin among wallets is actually much more diverse than one might expect.

full piece here:
insights.glassnode.com/bitcoin-supply…
Read 10 tweets
17 Feb
1/ "the first structure that stood taller than the Great Pyramid of Giza was erected nearly four thousand years later.

it was a cathedral."
2/ "religion is not always about God.

someday scholars will study Federal Reserve papers with the academic detachment with which we study ancient papal bull.

at the time, it meant something.

but in hindsight, it was arrogant gibberish."
3/ "the fact that we keep thinking and talking in terms of the rational (economics) to explain the irrational (the divine) reflects the inability of our society to experience a reality exists between these two poles."
Read 5 tweets
7 Feb
1/ how to manage your investors - a short thread

i am always talking to my portfolio company founders about how to work with investors.

remember, founders, investors work for you!

a great place to start - @briannekimmel's piece

wfh.substack.com/p/three-ways-t…
2/ at a minimum, send out investor updates. they're as much for you to track your progress as they are for investors.

here's a simple template i use @CoinSharesCo Ventures and my angel portfolio.

quarterly is a must, but monthly helps in the early days.

coinshares.com/assets/resourc…
3/ you cannot lead if you are unwell! manage your mental state.

get sleep. get sunlight. create space to do the things that nourish you.

DMs are always open. a coach, therapist, or mental health pro is a great resource!

kudos to @alexisohanian for leading the way w 776 VC.
Read 6 tweets
25 Jan
1/ outlook for bitcoin: positive 🚀

in this thread, i'll quickly outline key data points on #bitcoin sentiment, demand, market structure, and macro conditions

disclosure: i own BTC, obvi. this is not investment advice. DYOR. further disclosures at coinshares.com
2/ let's start w sentiment ☺️

first, investor sentiment:
@blackrock filed to add BTC to 2 funds, CIO has 400k price target
@RayDalio's Bridgewater reportedly issuing BTC research report
✅JPM, Goldman, and other bulge brackets initiated research coverage
3/ next, trader sentiment:

🚨 most important indicator is the forward curve

normally BTC futures trade in backwardation after a price drop.

this time, the curve stayed in contango following drop, meaning market makers are bullish 🐂📈 despite funding rate increase!
Read 9 tweets
24 Jan
1/ let me give an example of how deals are going down in crypto VC - i’ll do a sample equity deal and token deal

deal 1: early stage company raising equity w/ ~$0 revenue in nov 2020

deal 2: token project bootstrapped by anon founders in oct 2020

let’s go 🧠🪐
2/ let’s start w the equity deal. early stage co that was just getting started w monetizing in november. will obfuscate all detail ofc - this is directional.

we negotiated terms to raise $2-3M at a sub $15M valuation w expected revs of $2-3M in 2021.
3/ in Dec, the co did over $1M. Jan to date, the co has beaten its entire 2021 revenue and profit goals.

they cut the round to strategic investors only + raised way less b/c they don’t need money, just help. firms got cut entirely or allocation dropped to $25k (too small!)
Read 11 tweets
24 Jan
1/ crypto VC is going through an explosive 🧨 phase

there are big funds (>$500M AUM), a lot of small funds (<$50M AUM), and *tons* of prop firms + angels

i’ve done 15 deals in the last 3 months as an angel + small fund @CoinSharesCo VC.

observations + implications... 👇🏾
2/ the big firms need to deploy in size - $5M checks and up

a $250M fund could do a $5-10M deal every month for two years and still be under-allocated

and there aren’t enough companies raising series B / C / D rounds!!!

every deal i’ve done lately is under $50M valuation
3/ so we see firms competing to take down entire rounds.

a recent series A financing had two firms competing to take down the ENTIRE ROUND, and it eventually got upsized, a LOT.

if a company is putting up user acquisition / growth and a revenue story, it’s highly competitive
Read 11 tweets
18 Dec 20
1/ as evidenced by the recent corruption of all US systems, from gov't to corporate, securing networks is very difficult to do persistently.

bitcoin is a global telecommunications network that secures financial information.

mining is what keeps it secure.

a short thread!
2/ power in our world is changing

the world's largest and most powerful companies used to own, make, and finance physical inputs and things.

not anymore.

today's behemoths own, maintain, and manage digital networks. and they're bigger than most nation-states.
3/ in the coming decade, we will see a rapid proliferation of digital networks in the energy, compute and connectivity, and capital markets and finance world

as a result, nations will spend trillions of dollars on securing their data and access to global systems and networks
Read 17 tweets
9 Dec 20
1/ a quick thread on trading, investing, and managing your own psychology.

we've all had moments where hindsight gives us 20/20 vision into a trade, an investment, or deal.

*BUT* we're bad at incorporating these experiences into our future decision-making.
2/ there is not enough self-improvement or mental fitness training out there for our relationship with money 💸 it's a toxic relationship for many

but you can take more ownership and control of your financial decisions by adopting some simple self-improvement practices!
3/ start by keeping a journal of your investing decisions. document *why* you're doing what you're doing.

simple questions:
- why am i investing?
- what are my expectations of return? are they realistic?
- what is the timeline i plan to hold this?
- how am i sizing this?
Read 8 tweets