Bitcoin Boom Roils Markets, Andreessen Horowitz Raises $515M

Coinbase experienced a brief outage yesterday as investors raced to the crypto exchange, propelled, in part, by a fear of missing out.

FOMO is seen elsewhere in the market, as derivatives products soar 300% on daily trading volumes and Grayscale reported a notable uptick in shares of its Bitcoin Trust. Meanwhile, a16z is making another long-term play, launching its second, larger crypto fund. Here’s the story:

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Delayed Telegram
Messaging app Telegram postponed the launch of its TON blockchain for a second time on Wednesday, pushing the new launch date to April 2021. This delay triggers a clawback clause in which the company will offer to return up to 72% of each investor’s stake from its initial $1.7 billion token sale in 2018. Investors can choose to loan their capital to Telegram in exchange for a higher equity stake next year.

Back in Business
Obsolete mining equipment is becoming profitable again, at least for a short time. According to the miner profitability index, tracked by mining pools PoolIn and F2Pool, older mining rigs, such as Bitmain’s AntMiner S9 or Canaan’s Avalon A851, can now generate a 10%-20% gross margin at an average electricity cost of $0.05 per kilowatt-hour (kWh).

Second Crypto Fund
Andreessen Horowitz has raised $515 million for its second crypto fund. The firm launched an initial $300 million crypto-focused in 2018. (Fortune)

Jump Shares
Amid the sharp rise in bitcoin’s price Wednesday, shares in the Grayscale Bitcoin Trust (GBTC) also saw notable gains of 14.3% on the day. Grayscale’s Ethereum Trust also saw a 7.7% jump to $104.50 per share. (Disclosure: Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.)

Coinbase Outage
Coinbase experienced a brief outage Wednesday as the price of bitcoin rallied to…

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