💧 Regional banks in the US continue to tumble!

Rise and shine, crypto fans! It's a new day in the world of digital currencies, and we at Coinsauce are here to help you understand it all.

Here are the top highlights from the past 24 hours 👇

1. All in - Bhutan plans a $500 million fund for bitcoin mining in the Himalayas ⛰️

2. From hype to humble pie - Balaji Srinivasan settles his crazy $1 million Bitcoin bet, 97% under price target 📉

3. Shaky Foundations - Stocks of multiple Regional USA Banks crash over 20% in a single day 🚨

Without any further adieu, let’s have a closer look into each of these stories.

Bank-runs, Bank-runs everywhere ❗️ 

Regional banks in the USA, like PacWest and Western Alliance, are feeling the heat 🔥 from short sellers.

In the past 48 hours, at its peak decline, shares of PacWest fell down ~57%%, while Western Alliance dropped 15% and Metropolitan Bank Holding Corp. dropped 20%. (bUT bItCoIN iS vOLaTiLe)

PacWest and Western Alliance have already seen some severe deposit outflows. In the first quarter alone, PacWest lost a whopping 17% of its deposits, while Western Alliance lost 11%. First Republic Bank also lost a big chunk of deposits, leading to JPMorgan Chase buying most of it in a bid to restore stability to the banking system.

But why are these banks struggling in the first place? Higher interest rates are a significant factor, increasing their funding costs and eroding the value of assets 📈. And as more deposits flee to higher-return vehicles, like money-market funds, banks are left with expensive funding from the Federal Reserve.

All this adds to some serious troubles for regional banks, making investors nervous about who will be next. It looks like these regional banks need more than just a piggy bank to keep their assets safe 🐷

Meanwhile, btc continues to show resilience and is up almost 80% YTD, in a time when the fiat banking system is falling like dominoes! Bitcoin was born out of the 2008 recession and is on its way to growing and becoming an adult post the potential 2023 recession❗

Reality check - Balaji's $1M Bitcoin bet falls 97% short 🙉 

Former Coinbase CTO Balaji Srinivasan has settled his $1M bet with a "hyperinflation doubter" James Medlock, by paying out $500K to him, $500K to Bitcoin Core devs, and $500K to non-profit charity Give Directly. That's $1.5M donated for a reality check! (Talk about paying up in style!)

The bet, which was initiated in March and set to conclude in June, was concluded ~45 days in advance by Balaji. If BTC failed to reach $1M, Medlock would receive $1M in USDC and an additional 1 BTC, but if BTC hit the $1M mark, Balaji would have kept the 1 BTC and the USDC.

Despite settling the bet 97% under its target price, Balaji is still convinced that a "fiat crisis" is imminent and the American economy will eventually experience hyperinflation. Under his view, investors will flock to Bitcoin to secure their rapidly-depreciating dollars, driving the price to $1M per BTC.

In the end, Balaji's bet was a bold move that raised eyebrows and sparked a debate. He said, and we quote, “I burnt millions to tell you they’re printing trillions! “(Amen 🙏 ) Who knows, maybe his prediction will come true one day - and when it does, he'll be the one saying, "I told you so." 😎

Bhutan following El Salvador’s footsteps 👣

Bhutan 🏔️, the land of Gross National Happiness, is turning its attention to crypto mining in the Himalayas!

The country's sovereign investment arm, Druk Holding & Investments, is partnering with crypto miner Bitdeer to raise a fund worth up to $500 million to develop green crypto mining that taps Bhutan’s abundant hydroelectric power. The goal is to set up a carbon-free digital mining operation focusing on Bitcoin.

Earlier last week, it was revealed that the company has already been mining bitcoin since $BTC was valued at $5k, but now the sovereign enterprise wants to take its operations to a whole new level 🚀

The company’s CEO believes mining is the least risky way for Bhutan to tap into crypto opportunities. This new initiative is expected to diversify the nation's economy, which is heavily reliant on hydropower revenues. The fund-raising campaign targeting institutional investors will start at the end of May.

Bitdeer, owned by Chinese entrepreneur Jihan Wu, is one of the top crypto miners by computer power and has one of the largest centres in Texas. The company expects to set up a 100-megawatt operation in Bhutan, with construction slated to start in Q2 and be completed by Q3.

While some countries are still figuring out how to regulate crypto, Bhutan is mining its way to a brighter economic future - and a happier nation! 😄 We hope they don’t have to climb the mountains to set up their mining rigs!

Meme of the day

And that’s a wrap for today's Crypto Roundup! But don't worry; we'll be back tomorrow with more news, insights, and crypto craziness. Until then, keep HODLing 🙌

Disclaimer: This newsletter is for educational purposes only and does not constitute financial advice or an offer to buy or sell assets. You must exercise caution and conduct your research before making any financial decisions.