Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Rebecca Zisser/Axios

Cryptocurrency exchange Coinbase made big headlines yesterday, after a Recode report that it's closing in on a $500 million investment led by Tiger Global at an $8 billion valuation.

Why it matters: This means that Coinbase would effectively quintuple its valuation from a round just 14 months ago. It's a huge validation for the company and the broader digital token market. But, as Axios has also learned, Coinbase's valuation increase could have been even larger, but instead was negatively affected by the 2018 price deterioration of cryptocurrencies like bitcoin.

The backdrop: Talk of a new Coinbase funding began in the first half of 2018, with sources telling us that firms like Sequoia Capital expressed interest at an expected valuation in the $6 billion to $8 billion range. But Coinbase wasn't enthusiastic. Not so much because it didn't like the suitors, but because it had an offer from Vy Capital at a $12 billion valuation. There also may have been other superior term sheets.

  • At the same time, cryptocurrency prices were sagging. Bitcoin had experienced a massive drop between January and February, and never recovered. By the end of June, it was 67% off its highs the prior December.
  • "Their performance right now is pretty tightly correlated to the price of bitcoin," an early Coinbase investor explains.

Vy Capital then pulled the offer, leading Coinbase to entertain the price it had earlier rebuffed (this time with Tiger).

  • Sources says that the Tiger deal isn't finalized yet, but they expect it to be soon. The final close could occur later this month or in November.
  • Reps from Coinbase, Vy Capital and Sequoia Capital all either declined or didn't return requests for comment.

Go deeper

Mike Allen, author of AM
50 mins ago - Economy & Business

America on borrowed time

Illustration: Aïda Amer/Axios

Economic recovery will not be linear as the world continues to grapple with the uncertainty of the pandemic.

Why it matters: Despite being propped up by an extraordinary amount of fiscal stimulus and support from central banks, the state of the global economy remains fragile.

Scoop: Gina Haspel threatened to resign over plan to install Kash Patel as CIA deputy

CIA Director Gina Haspel. Photo: Win McNamee/Getty Images

CIA Director Gina Haspel threatened to resign in early December after President Trump cooked up a hasty plan to install loyalist Kash Patel, a former aide to Rep. Devin Nunes (R-Calif.), as her deputy, according to three senior administration officials with direct knowledge of the matter.

Why it matters: The revelation stunned national security officials and almost blew up the leadership of the world's most powerful spy agency. Only a series of coincidences — and last minute interventions from Vice President Mike Pence and White House counsel Pat Cipollone — stopped it.

Updated 13 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Coronavirus deaths reach 4,000 per day as hospitals remain in crisis mode — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden says, "We will manage the hell out of" vaccine distribution — Biden taps ex-FDA chief to lead Operation Warp Speed amid rollout of COVID plan — Widow of GOP congressman-elect who died of COVID-19 will run to fill his seat.
  3. Vaccine: Battling Black mistrust of the vaccines"Pharmacy deserts" could become vaccine deserts — Instacart to give $25 to shoppers who get vaccine.
  4. Economy: Unemployment filings explode againFed chair: No interest rate hike coming any time soon —  Inflation rose more than expected in December.
  5. World: WHO team arrives in China to investigate pandemic origins.