Adding banks to the list of counterparties we avoided or had limited exposure to:
Valkyrie never had exposure to SVB, Silvergate, nor First Republic Bank.
Have limited exposure (well under FDIC limits) to Signature (they were one of our redundancy measures)
And yes, I said First Republic. They are similar in scope to SVB, but better diversified. We will wait and see on that one...
Here is something I posted on an internal channel in June that we can discuss (I cant seem to post a screenshoot in Nostr, sorry):
Banks may be in more trouble than the rest of the markets think.
Most banks have been holding MBS on their balance sheets to generate yield. These securities probably yielding 2-3.5% (the more senior tranches) and have 7 year expected WALs. In rising rate environments, people don't re-fi nor move as much. This extends life of MBS. Also rates are at 6% + now. So these holdings have decreased in price- about 10%. If banks sell these holdings, they are at losses.
Many regional banks have also taken up venture lending, given the higher rates these lines of credit can command. I've seen 9-12% - imagine if you will a blockchain startup taking a loan and buying say, Avax or ETH heavily on their balance sheets because they are in that ecosystem. Not too crazy to imagine someone doing that. I just spoke to an entrepreneur in the NFT space that raised $1mm, and spent $700k on JPEGs just to get in the clubs. I imagine some of those venture loans might be in trouble.
No US bailouts for falling banks.
Let the markets decide.
Some bigger bank will want SVB deposit base (or not).
Either way, SVB played fast and loose and now the chickens have come hime to roost.
Bitcoin Park such an amazing hub in Nashville. #[0] and Rod have done a great job curating good people and a beautiful location.
Bitcoiners all over the world stop in and hang out. Nothing like it.
#[0] interview of Sonnenshein will go down as most legendary bitcoin podcast in last decade. It must be watched from the beginning.
Wow, close. Curb, Seinfeld, GOT, Breaking Bad. In that order.
Same. Mostly because when I played around with it in 2007-08; it was very unintelligent. Just a bunch of logic statements that try to predict reactions. Basically coded behavioral economics. Still is.
If it ever becomes real, we go SkyNet, so that doesn’t interest me either.
But her wallet not connected…c’mon, you the ThunderQueen, what gives?
I seriously love zapping Sats, but hard knowing that NGU from here.
Whatever, zapping my girl anyway
Excited to see what #[0] builds on NOSTR
We still have macro headwinds this year, but does it really matter if you are buying bitcoin for $23k today, even if it goes a little lower? We are in bottom range.
This is the accumulation zone.
Solid business plan.
Can’t wait to see this
Once I follow someone, I no longer see the pubkey, I see their profile name. But it could be a feature through the Damus app
My favorite feature of NOSTR is that I only see the pub key, not the identity, of people who post until I follow them.
This has forced me to mostly follow people who post interesting content rather than a name I recognize
BTW, I was also wrong about bitcoin at first, but bought a small amount just in case.
When gambling, never spend more than you can stomach losing.
No, but it should
I admit that I’m probably wrong…
But still not a fan of paying for JPEGs, even if on Bitcoin. (And especially paying with BTC)