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BFD Expert Voices - Private Credit

BFD Expert Voices

Coinbase is slowing its aggressive hiring plans as the crypto industry prepares for what's increasingly looking like a longer-term market downturn rather than a blip.

Driving the news: "Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs," Coinbase COO Emilie Choi wrote in a late Monday note.

Why it matters: The crypto exchange previously maintained plans to hire 6,000 in 2022 despite the softness in the industry. The announcement signals that Coinbase is now readjusting its optimism.

The response: Investors cheered the move, with shares of the company rising 6% Tuesday. 

Of note: These changes are not expected to affect the company's expense outlook for 2022, though it will help the company hit its adjusted EBITDA goal.

Of note: Coinbase, via a spokesperson, denied that the letter augurs layoffs.

"Slowing our hiring simply means we’re focusing our hiring efforts on roles that will have the most impact on our business priorities," the company said via email.

1 big thing: Hiring pullback 

Illustration of a sphere with the Coinbase logo rolling down a downward pointing trend line

Brex announced today that it closed a $250 million private tender offering, intended for the fintech's employee base. 

Why it's the BFD: The move shows that the expense management company, a so-called "decacorn" given its valuation, has earned the confidence of investors and is seeking to share some of that love with its employees, as it continues to grow even amid a tech rout. 

Details: The transaction was led by Y Combinator with participation from other investors, such as Mubadala and Baillie Gifford, at a $12.3 billion valuation, the company said.

Of note: "We know that this is not an easy time for tech companies given the volatile market environment, and we are overwhelmed with the incredible support, confidence, and trust we continue to receive from our investors and customers," co-CEO Henrique Dubugras said in the note. 

2. The BFD: Pay back 

Brex co-CEO Henrique Dubugras. Photo: Getty Images

Celsius Network, the crypto lending startup, said its mining subsidiary filed confidentially for an IPO.

Why it matters: The confidential filing comes at a rocky time for both the crypto world and for Celsius Network, which is facing an ongoing SEC probe.

Between the lines: Confidential filings gives companies more optionality around timing the timing of an IPO — if they decide to go through with the process at all.

Meaning this reads more like a way for the business to test investor appetite rather than a signal that the public markets are opening for crypto companies.

Of note: Shares of crypto mining companies tend to follow the ups and downs of the broader digital asset market. 

Riot Blockchain (Nasdaq: RIOT) and Marathon Digital Holdings (Nasdaq: MARA) are down roughly 68% year to date.

3. Celsius preps to IPO its mining subsidiary

Illustration of a pick axe hitting a Bitcoin with pieces flying everywhere. 

Sam Bankman-Fried's ethics worldview (New York Times)

FTX CEO Sam Bankman-Fried is known for his brand of effective altruism, with plans to amass as much wealth possible to give it virtually all away. The Times dives into the facets of that worldview, and the intentionality behind his zany, awkward image.

Luna Foundation Guard spends almost all bitcoin in reserves (CNBC)

The Luna Foundation Guard has spent almost of the $3 billion of bitcoin it had in reserve in its attempt to save terraUSD.

3. Credit score

Illustration of positive and negative trend lines coming out of center point.

• Voyager Digital (TSX: VOYG), a New York-based crypto trading platform, raised $60m via private placement. Alameda Research led and was joined by Galaxy Digital, Blockdaemon and Digital Currency Group. http://axios.link/GkLO

• Unit, a banking-as-a-service startup, raised $100m at a $1.2b valuation. Insight Partners led the round. It was last valued at $255m. http://axios.link/oeeB

• Nomad, a Latin American fintech for Brazilians to open bank accounts in the U.S., raised 160m Brazilian reais  (~$32m). Stripes led and was joined by monashees, Spark Capital, Propel, Globo Ventures and Abstract. http://axios.link/sG8i

• Coinshift, treasury management for DAOs and crypto businesses, raised $15m in Series A funding. Tiger Global led and was joined by Sequoia Capital India, Ryan Hoover and others. coinshift.xyz

• Parcl, a New York-based blockchain real estate investing platform , raised $7.5m. Investors include Fifth Wall, JAWS, IA Capital, Eberg Capital, Big Brain Holdings and Santiago Santos. www.parcl.co

• Experian will acquire a 51% stake in MOVA, a Brazilian credit assessment fintech, for 40m Brazilian reais ($7.9m) from Érico Sodre Quirino, a private investor, and Roberto Tesch, founder of MOVA. Experianplc.com

• Fortis Digital Ventures closed a $100m crypto fund. http://axios.link/n4vr

4. Deals of the day

• BlockFi named Brian Oliver as general manager of institutions. http://axios.link/5vjb

• Chainlink Labs named Kemal El Moujahid, former director of product management for TensorFlow at Google, as chief product officer. https://chainlinklabs.com/

• Bain Capital Crypto named TuongVy (Vy) Le has joined as a partner and head of regulatory and policy. www.baincapitalcrypto

5. It's personnel

Situational awareness: Revolut CEO Nik Storonsky has launched a $200 million venture fund that plans to use A.I. in its investing decisions.

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May 17, 2022

1 big thing: Hiring pullback