Ten31 Timestamp 714,000
Welcome to the Ten31 Timestamp, a newsletter for our LPs and partners. The Timestamp will be covering portfolio companies, events and sector highlights including regulatory and political news around Bitcoin. We look to be a source of signal for our LPs as they attempt to navigate the quickly evolving ecosystem around Bitcoin. Going forward, we plan to send the Timestamp on a regular basis to provide updates and other notable information. This will typically not include confidential information such as investment terms, investment performance or other information sensitive to our portfolio companies (investment performance will be outlined in periodic performance reports to LPs).
We have also launched a private Ten31 Tribe Telegram group chat for the Ten31 tribe of investors, partners and advisors. This will be a place where we can provide additional updates, share ideas and collaborate. Please reach out to us directly for an invite into the group. Finally, please stay tuned for upcoming details on our first Ten31 Tribe events in early 2022. We are planning a virtual Tribe event in January and our first in-person Tribe event in Q1.
Fund Updates
Fund I: We closed Low Time Preference Fund I, having invested in a portfolio of 12 solid Bitcoin companies. There are very encouraging markups in the portfolio already (Unchained, Swan, Satoshi Energy), and more expected soon.
Fund II: We officially launched Low Time Preference Fund II. Fundraising discussions are underway, and we already have meaningful commitments and positive deal momentum as we move towards 2022. There are currently 5 new investments in Fund II, discussed further below, and many exciting deals in the pipeline.
Team
We are excited to have added new members to the team, all highly respected members of the Bitcoin community.
Parker Lewis (Advisor): Head of Business Development, Unchained Capital. Author: Gradually, Then Suddenly series. Previously: Hayman Capital, FTI Consulting, Deutsche Bank.
Matt Odell (Venture Partner): Bitcoin and privacy advocate. Host: Citadel Dispatch, TFTC. Co-Founder: Open Sats, BitcoinTV, Bitcoin Dev List, Final Message. Advisor: BottlePay, Hexa Wallet, Bitcoin Magazine, Swan Bitcoin.
Marty Bent (Venture Partner): Founder of TFTC.io, a media company focused on Bitcoin, Beauty and Freedom in the Digital Age. Board member, Cathedra Bitcoin (TSX-V:CBIT), a Bitcoin mining operator. Previously: Director of Business Development at Great American Mining.
Michael Tanguma (Venture Partner): Current: Managing Director, Client Solutions, Unchained Capital. Previously: Director, Global Enterprise Sales, WeWork; Enterprise Sales & Strategic Partnerships, Google.
Selected Portfolio News
Strike: Force of nature Jack Mallers continues his relentless pursuit of disrupting the legacy financial industry and empowering unbanked people around the world. All US users are now able to setup hourly, daily, weekly, or monthly recurring purchase as low as $0.50 without any fees. Jack continues to drive down the cost for individuals to acquire Bitcoin. (link)
River Financial: The River Financial team continues to provide added services for users of the platform. With the introduction of monthly account statements users can now provide needed financial information to creditors for access to low interest rates with long durations. River clients can easily review their Bitcoin performance, prepare taxes, and manage their Bitcoin as part of their overall financial portfolio. River also launched a hosted mining service, allowing customers holding bitcoin on River’s platform to put their bitcoin to work to earn incremental bitcoin. (link 1 and 2)
Start9: Start9 aims to reinvent personal computing for the sovereign era, developing “a personal server for everyone.” Their Embassy product provides a full Bitcoin and Lightning node capability, but further expands those capabilities to include a broad suite of open-source software including file storage, messaging, password manager, etc. We are users of the Embassy product and highly recommend it to anyone who wants to take back ownership of their personal data and remove big tech their lives. Matt Hill was on TFTC describing the long term vision. (link)
Impervious.AI: Continuing to abstract away the building on Bitcoin Core and LND, Impervious is next launching the Impervious Browser which will provide users the ability to interact and monetize in a truly P2P environment. The platform allows for direct monetization of content from producer to user without the risks of censorship, deplatforming and demonetization (expected launch early 2022). (link)
Unchained Capital: Self-custody of Bitcoin private keys is at the heart of Unchained’s ethos. Their IRA product allows Bitcoiner’s the ability to roll-over their traditional IRAs into collaborative multi-signature account where the individual holds 2/3 private keys. With the total value in IRA assets is estimated to be $13.2 Trillion Unchained is poised to provide a great off ramp for those early adopters who want to take back sovereignty of their wealth. (link)
Fund II New Investments
Giga Energy: vertically integrated off grid mining
Samourai Wallet: privacy wallet and services
Satoshi Energy: follow-on investment from Fund I
Bitnob: financial services in Nigeria
Impervious: follow-on investment from Fund I
Media
On the 13th anniversary of Satoshi Nakamoto's Bitcoin White Paper release, one of the most popular Bitcoin podcasts publicly announced the existence of Ten31. While many involved in Bitcoin have a deep and well-founded distrust of VCs, Ten31 is winning over the hearts of even the Bitcoin hardliners. Ten31's proof of work demonstrates we are solely focused on supporting the Bitcoin ecosystem. Ten31 separates itself from its traditional counterparts with this philosophy as an investment platform with laser eyes.
NYDIG Leads $25 Million Investment Round In Bitcoin Services Platform Unchained Capital
Swan Bitcoin Raises $6 Million, Co-led by Mimesis Capital and Ten31 (Fund I)
Market Happenings
Hashrate Recovery
Bitcoin Hashrate has made a full recovery from the June/July China miner exodus— hitting a new ATH December 10, 2021. The recovery of network hashrate acutely highlights the antifragility of the bitcoin network. A real-time stress test on the network losing ~50% of the hashrate over the course of a couple weeks. The network reacted to the exodus of hashrate with multiple downward difficulty adjustments as designed, which brought block production in line with the ten-minute target designated by Satoshi.
Regulatory Update
Statement by Commissioner Crenshaw on DeFi Risks, Regulations, and Opportunities November 9, 2021 Statement on DeFi Risks, Regulations, and Opportunities
SEC officials have conceded that Bitcoin is not a security. The SEC’s general attitude with respect to other crypto assets, however, continues to develop. Regulators have made it clear— nominally labeling something a “virtual currency,” “crypto asset,” “digital asset,” “token,” etc. is not determinate of its status as a security for purposes of the federal securities laws. Commissioner Crenshaw expressed concerns about defi and crypto, stating, “These digital products and activities have close analogs within the SEC’s jurisdiction.” According to the three-pronged “Howey test”— after the U.S. Supreme Court case, SEC v. W.J. Howey Co.—a financial instrument such as a crypto asset will likely be considered “investment contract,” and therefore a security. SEC hearings continue cuing defi protocols to seek compliance. Regardless, Bitcoin is property— indeed— the non-sovereign, institutional, safe-haven asset.
Brian Brooks, Bitfury CEO and recent US comptroller of the currency, provides a succinct response to Mr. Ted Budd’s, US House-R, question on current regulatory landscape on 12/8/21. Mr. Brooks ends his statement with a reference to the Banks being sued with they first to a digital ledger and then the ABA recommending against lawyers from using email to communicate.
Noteworthy
The Bitcoin protocol has distributed 90% of the 21 million supply cap as of 714,000. Only another 119 years for the remaining 10% (2,100,000 BTC).
Jack Dorsey, renowned bitcoiner, resigns from Twitter to focus on Bitcoin and participated in the launch video for the lightning dev kit film, which the Spiral Bitcoin team has been working on for years. (Dorsey starts with some heavy lifting!)
A REIT Stacks Sats (2021 Annual Institutional Investors Conference 12/06/2021)
So SLG Realty Corp was orange-pilled by a tenant, made a $10MM investment in a btc fund and are working to accept payment in bitcoin.
“We believe in the future of Bitcoin as a means of transacting business even in real estate.” — FULL STOP
Russia and India announced on 12/7/21 they have abandoned using the US dollar in mutual settlements and will use rubles and rupees. India also announced the delivery of Russian S-400 ground-to-air missile defense system. The US had previously imposed sanctions on Turkey for their purchase of the S-400 missile system in 12/15/2020.
Travel
You can regularly find us at a Bitcoin meetup near you (New York, Austin, Nashville, Houston, Chicago). Upcoming travel plans include:
NYC Bitcoin Meetup Dec. 15th
Austin Bitcoin Meetup Dec. 16th
Houston Bitcoin Meetup Dec. 20th
Nashville Bitcoin Meetup Jan. 12th
Chicago Bitcoin Meetup Jan. 13th
Houston Bitcoin Meetup Jan. TBD
Q1 2022 Ten31 Tribe event - in-person TBD location/date
Miami Bitcoin 2022 April 6
Feedback
Was this helpful? Let us know what would be most useful for you with respect to areas of interest and the level of depth and frequency of touchpoints we have with you on a go-forward basis. We are of course always available at your convenience for a direct call if you are looking for more information than we can share in these newsletters. Don’t hesitate to reach out!