The Breakdown First Five - Tuesday, February 13, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Templeton Joins the ETH Race

Franklin Templeton has applied to launch a spot Ethereum ETF, joining seven other asset managers with active filings. Templeton’s product will seek to offer ETH staking, similar to the ARK product. There is no real indication that the SEC is leaning towards approving ETH products yet, but another asset manager spending the time to lodge an application adds some weight to the probability. First final deadline is May 24, when the SEC must make a decision. 

4. DCG Reports Strong Earnings

Troubled crypto conglomerate Digital Currency Group reported a return to strength last year. The private firm told shareholders that it had grown revenues by 59% in 2023. The firm made $99M in Q4 profit, a long way from a 7% quarterly loss in Q4 of 2022. Grayscale accounted for three quarters of revenue, recording 24% quarterly growth on the back of growing asset prices. The firm shrugged off a $3B restitution claim in the NYAG fraud case, saying they will fight. 

3. Ethiopia Courting Chinese Miners

With the opening of Africa’s largest hydroelectric power plant, Ethiopia is opening the door to Chinese mining firms. The state power monopoly has signed electricity deals with 21 mining firms, 19 of them Chinese, offering plentiful fixed rate power cheaper than Texas. Chinese miners have been somewhat homeless after being thrown out of the mainland and then Kazakhstan the following year. Ethiopia might become the new mining powerhouse.  

2. Miners Outperform

Although Monday was a big day for Bitcoin, it was an even bigger day for Bitcoin miners. Alongside Bitcoin’s 5% pump since the Friday close, Riot Platforms shot up 9.4%. Marathon is now up 64% since last Monday. Bitcoin above $50,000 means almost all large miners will remain profitable after the halving, so maybe the massive jump was justified. 

1. 50K

$50,000 dollar Bitcoin. The last time we were here was December 2021. Bloomberg was touting Binance as the big winner, recording a 1300% gain for BNB on the year. Luna was yet to hit its all time high. Zero firms had declared bankruptcy. This time around there’s nothing but a relentless spot bid and Michael Saylor memes. Futures Open Interest is high but liquidations continue to be mild. Bitcoin has only spent 143 days above $50,000. Price Discovery time.

Thanks for reading -NLW