Best Twitter threads of the day – January 13th

WEN STAKING?

We are extremely happy to announce that you can now stake ETH with Lido or Rocket Pool through the Portfolio Dapp🎉

🔗https://t.co/HVLvcSDbw6 pic.twitter.com/9VkiU5jlsw

— MetaMask 🦊💙 (@MetaMask) January 13, 2023

Staking crypto can be a daunting task but we’ve made it easy 💪

MetaMask Staking allows you to interact directly with the Lido and Rocket Pool protocols – no sketchy third-parties doing your staking for you.

Read all about it here👇https://t.co/3qQlxMUEjK

— MetaMask 🦊💙 (@MetaMask) January 13, 2023

MetaMask Staking allows *YOU* to contribute to improving the security and decentralization of a healthy, censorship-resistant Ethereum network 🦊🙌

— MetaMask 🦊💙 (@MetaMask) January 13, 2023

❤️ We’re always working to bring you more ways to interact with the best of web3.

Let us know what you think about MetaMask Staking here: https://t.co/IKAG8OaQbQ

— MetaMask 🦊💙 (@MetaMask) January 13, 2023

.#SBF_FTX

1/

The exchange should never lose money if a customer gets liquidated. There is no excuse giving you hedge fund alameda an account with liquidation turned off.

— Arthur Hayes (@CryptoHayes) January 13, 2023

2/

All this talk about what Alameda did is misdirection. It doesn’t matter how they hedged or didn’t hedge, or what dogshit was in their portfolio.

— Arthur Hayes (@CryptoHayes) January 13, 2023

3/

If you want to do some explaining tell us why you thought it was a good idea to give your hedge fund an account with the liquidation feature turned off?

— Arthur Hayes (@CryptoHayes) January 13, 2023

4/
If you had liquidated Alameda like any other FTX punter, FTX would still be operational. It’s just that simple.

— Arthur Hayes (@CryptoHayes) January 13, 2023

5/

So stop talking about Alameda and tell us how you approached risk management at the FTX level. Why were some clients treated differently than others. I am keen to understand why you thought turning off liquidation on a $bn notional position was prudent.

— Arthur Hayes (@CryptoHayes) January 13, 2023

Last year was devastating for the #public bitcoin miners.

This thread summarizes the public mining year of 2022🧵https://t.co/Z4wVwQEc7C

— Jaran Mellerud (@JMellerud) January 13, 2023

It's hard to imagine how 2022 could have been any worse for mining stocks.

They suffered from the following:
– Falling #bitcoin price
– Growing global hashrate
– Rising energy costs
– Deteriorating access to capital

— Jaran Mellerud (@JMellerud) January 13, 2023

Let's look at performance.

The HI Crypto Mining Stock Index fell by a staggering 78% in 2022. Meanwhile, the #BTC price dropped by 65%, and the Nasdaq declined by 33%. pic.twitter.com/DGgMVRmZBu

— Jaran Mellerud (@JMellerud) January 13, 2023

Mining stocks can give investors high beta exposure to bitcoin. Unfortunately, this property also holds true during the worst bitcoin bear markets.

In 2022, the daily correlation between the Hashrate Index Crypto Mining Stock Index and bitcoin was 0.96.

— Jaran Mellerud (@JMellerud) January 13, 2023

Let’s look at the individual performances of bitcoin mining stocks.

Most pure-play #bitcoin mining stocks fell by 90% or more in 2022. pic.twitter.com/qEc23kiTlj

— Jaran Mellerud (@JMellerud) January 13, 2023

The once mighty valuations of #bitcoin mining companies evaporated as stock prices plummeted. pic.twitter.com/jYnSPNIId5

— Jaran Mellerud (@JMellerud) January 13, 2023

At the bull market's peak in November 2021, the total market cap of bitcoin mining stocks stood at more than $30 billion. Currently, this number sits below $3 billion.

— Jaran Mellerud (@JMellerud) January 13, 2023

Riot and Marathon are now the only mining stocks with relatively significant market caps.

All other mining stocks have been reduced to micro caps (below $300 million market cap).

— Jaran Mellerud (@JMellerud) January 13, 2023

Many stocks exited 2022 below Nasdaq’s $1 per share listing requirement, including Core Scientific, Bitfarms, Stronghold, Cipher, Greenidge, Sphere 3D, Terawulf, Bit Digital, Hut 8, and Mawson.

Unless mining conditions improve, we expect Nasdaq to delist some of these miners.

— Jaran Mellerud (@JMellerud) January 13, 2023

Driven by market incentives, public miners expanded as quickly as possible in 2022.

Public miners started the year producing 14% of Bitcoin’s hashrate and ended the year at 19%. pic.twitter.com/Egrfo0hXex

— Jaran Mellerud (@JMellerud) January 13, 2023

Still, only one of the public miners reached their 2022 hashrate targets.

These massive divergences between hashrate expansion plans and actual results should teach investors how challenging it is to grow a mining operation. pic.twitter.com/rd71gHwafe

— Jaran Mellerud (@JMellerud) January 13, 2023

The public miners sold more bitcoin than they produced in 2022.

Between January and November, the public miners offloaded 51,180 #bitcoin while producing 47,284 bitcoin. pic.twitter.com/cnvcafikL1

— Jaran Mellerud (@JMellerud) January 13, 2023

As the bitcoin price fell in 2022, miners didn’t have access to the same equity and debt financing as in 2021, and suddenly we saw several of the seemingly strongest hodlers offload their bitcoin holdings.

— Jaran Mellerud (@JMellerud) January 13, 2023

The biggest challenge for most public miners in 2022 was their massive debt levels relative to equity.

As 2022 came to a close, indebted companies were ravaged by falling hashprice. All but one of the miners listed above had to reorganize their business by the end of the year. pic.twitter.com/xIvYsQA86G

— Jaran Mellerud (@JMellerud) January 13, 2023

Part of the reason why public miners struggled in 2022 was that their capital tap was shut off. For the past two years, the public miners became accustomed to strong equity and debt markets.

In Q3, they only managed to raise $33 million. pic.twitter.com/2nwfOam5cU

— Jaran Mellerud (@JMellerud) January 13, 2023