Open Range | May 4th, 2025 | Bitcoin Finds Its Floor. Capital Finds Its Benchmark.

Portfolio Update

Onramp saw exceptional customer growth in April, driven by both rising bitcoin prices—prompting existing holders to reassess their custody setups—and increased interest from new market entrants. The company launched a redesigned website with self-onboarding capabilities, introduced a revamped pricing structure, and expanded its team with key hires across product and strategic partnerships. Additionally, Onramp launched The Guild, a new offering tailored to private clients.

In the MENA region, heightened bitcoin demand from asset managers and family offices led to a sharp uptick in custody and portfolio construction advisory services through Onramp MENA.

Acropolis reported a strong April, with a full pipeline and multiple new client onboardings. The demand was largely fueled by the success of corporate bitcoin treasury strategies. The team also teased several major partnerships in progress, expected to be announced in the coming months, potentially accelerating their impact and market presence.

Flash launched Version 2 of its web app and continues to see steady merchant adoption. Demand for its mobile app is also gaining momentum, reflecting broader traction among retail users seeking a simple, bitcoin-native payment experience.

Bitcoin & Macro Update

Bitcoin ended the week around $95,539, fueled by a weaker dollar. Volatility was muted, even as macroeconomic data and policy noise increased across the board.

In traditional markets, U.S. equities rallied sharply. The S&P 500 gained 2.9% to close at 5,686.67, while the Nasdaq Composite surged 3.4% to 17,977.73, marking its best weekly performance since February. The Dow Jones Industrial Average followed closely, rising 3.0% to finish at 41,317.43. Investor sentiment was buoyed by strong tech earnings, resilient consumer spending, and renewed speculation around a near-term shift in Fed language following weaker GDP growth.

Gold pulled back slightly, closing the week down 1.47% at $3,240.72 per ounce. The decline followed a return to risk-on behavior in equity markets and improving short-term liquidity conditions, with some traders rotating out of defensive assets.

In the bond market, yields climbed again. The U.S. 10-year Treasury rose to 4.33%, up 8 basis points on the week. While inflation data remained mixed, the move reflects growing investor caution ahead of next week’s FOMC meeting, where traders will closely parse Powell’s tone for any deviation from the “higher for longer” stance.

Meanwhile, the macro backdrop grew more precarious. The U.S. economy contracted by 0.3% in Q1 — the first decline since early 2022 — as businesses front-loaded imports ahead of new tariffs, leading to a record trade deficit. Consumer confidence slumped to its lowest since May 2020, and inflation pressures persisted, with core PCE rising 0.3% month-over-month and 2.6% annually.

Despite these headwinds, the labor market showed resilience. April's jobs report exceeded expectations, adding 177,000 non-farm jobs, though unemployment held steady at 4.2%. However, economists warn of potential cracks forming, as employment in logistics and warehousing spiked, likely reflecting pre-tariff activity.

China's Commerce Ministry announced it is evaluating recent U.S. overtures for trade negotiations but insisted that steep U.S.-imposed tariffs, reaching up to 145%, must be removed before genuine dialogue can proceed. Despite U.S. assertions of a willingness to negotiate, including those from Treasury Secretary Scott Bessent, who urged China to call due to the unsustainable impact of tariffs, Beijing remains resolute. 

Meanwhile, trade negotiations allegedly proceeded with other countries, as Commerce Secretary Lutnick announced trade agreements with an unnamed country, likely a way to calm investor fears without any necessary deal named.

At the same time, Japan's Finance Minister mentioned their massive stockpile of U.S. Treasuries could be used among tools in trade talks.

Institutional Update

Strategy announced it had acquired an additional 15,355 BTC for $1.42 billion, bringing its total to over 553,555 BTC. The firm also announced a doubling of its capital plan from $42B to $84 billion, underscoring its long-term conviction and capital efficiency through bitcoin accumulation.

Japanese firm Metaplanet issued $25 million in corporate bonds to finance further bitcoin acquisitions. The company also opened a new wholly-owned subsidiary in the U.S. to support round-the-clock treasury operations.

Semler disclosed a fresh $15.7 million BTC purchase, bringing its total to 3,467 BTC. With three consecutive buy disclosures, Semler is quickly becoming one of the more aggressive corporate buyers outside of the U.S. mega-cap sphere.

Swiss Bitcoin broker Relai partnered with Sygnum Bank to offer BTC-backed loans to retail and institutional users. The product lets users access liquidity without selling BTC, adding to a growing trend of loan offerings in the bitcoin space.

In a 13F filing, Brown University reported owning 105,000 shares of the IBIT Bitcoin ETF as of March 31, valued at $4.9 million, joining Emory and University of Austin as other endowments holding bitcoin ETFs.

Regulatory Update

Arizona’s House passed legislation allowing the state to hold Bitcoin as a treasury reserve asset, which would have permitted state officials to invest up to 10% of the state and pension assets in digital assets like bitcoin. However, the governor rejected the proposal, calling bitcoin and virtual currencies untested. Nowhere was it mentioned that the Arizona state retirement system is only 74% funded.

Senator Cynthia Lummis mentioned President Trump's support of her Strategic Bitcoin Reserve bill, outlining plans to buy 1 million bitcoin.

The Deputy Director of the CIA described bitcoin as another area of technological competition where they would like to be well positioned versus adversaries, and a leader in the field internationally.

The Return of Sound Capital: How Early Riders Is Restoring Venture Capital to First Principles 

Venture capital has lost its way.

What began as a craft rooted in seasoned judgment and long-term value creation has turned into a nominal numbers game—one often rigged by cheap money, inflated valuations, and perverse incentives. Too many funds now chase short-term paper gains in a depreciating currency, resulting in a bloated $1.5 trillion industry that too often burns more than it builds.

 Early Riders is a response to that dysfunction.

We’re the first venture capital firm denominated entirely in bitcoin. That’s not a branding exercise—it’s a foundational principle. Bitcoin isn’t just an asset we believe in; it’s the benchmark we hold ourselves to. Investing in early stage companies which solve a problem which the market has not yet identified can return more than simply holding bitcoin. If the opportunity can’t outperform, we shouldn’t invest in it. It’s that simple.

Why This Matters

All VCs operate on fiat terms, chasing returns that often look good on paper but disappear when adjusted for inflation or benchmarked against more resilient stores of value. Meanwhile, limited partners (LPs) bear the cost—locked into funds that may post nominal gains while underperforming in real terms.

At Early Riders, every investment is weighed against bitcoin as our hurdle rate. Our fund’s carried interest only kicks in if we return in excess of 25% more bitcoin to our investors. No other firm is built this way.

The Legacy of Capital Destruction

The rot in VC didn’t emerge overnight—it metastasized over years of silent decay. Once upon a time, capital allocation meant something. The Medici in Florence, the Rothschilds across Europe, and early American industrialists all understood that wealth creation required discipline and accountability. They measured returns not in fleeting headlines or venture rounds, but in real purchasing power—often pegged to gold.

With the death of the gold standard in the 20th century, capital lost its anchor. The venture industry followed suit. Returns were celebrated regardless of value created. Founders were taught to spend, not save. And funds optimized for scale, not sustainability.

We think it’s time for a reset...

Bitcoin as the Benchmark

We don’t view bitcoin as a tech theme. It’s the world’s soundest money. And just as sound money defined capital formation in centuries past, it will define the next era too....But we also back companies outside bitcoin, if they adopt our benchmark: outpacing bitcoin by at least 25% over time.

Early Riders’ Framework For Outperforming Bitcoin

We are value investors focused on opportunities which are under appreciated or completely unknown by the market, yet deliver substantial value to the world. We invest in tremendous founders who have identified a market opportunity with very strong growth opportunity...

Why Now?

Technology is evolving rapidly and its deflationary impacts will only accelerate. This means startup costs will continue to fall and capital efficiency will be paramount. Existing incumbents are naturally slower to adopt new technologies and subsequently reap the rewards of lower costs, allowing challengers to outcompete on the basis of cost...

The Bottom Line

Venture capital doesn’t need to be reinvented. It needs to be remembered for what it was: a craft rooted in value creation, sound money, and aligned incentives...

Read the full blog

Early Riders Media 

The Bitcoin Floodgates Are Open: Institutions, Governments, and the Next Wave

 In this episode of Final Settlement, the Early Riders team breaks down the new wave of financial engineering sweeping across Bitcoin capital markets. From Coinbase’s international Bitcoin yield fund to Schwab’s impending spot trading launch, the race is on to package Bitcoin for institutions still afraid to touch the underlying asset.

We kick things off with Coinbase’s Bitcoin Yield Fund, a new offering for offshore clients promising 4–8% returns. But behind the pitch lies a familiar trap: yield generation through derivatives, synthetic structures, and opaque counterparties. As Michael warns, “Every cycle brings new wrappers—but the underlying risks don’t change.” If you’ve seen BlockFi, Genesis, and Celsius implode, this is déjà vu in a new outfit.

Next, the team unpacks Galaxy’s crypto lending report, showing a dramatic collapse from $35B to $10B in total loan volume since 2022. The takeaway? The system isn’t deleveraged—it’s just moved underground. Hedge funds are borrowing off-books. Sovereigns are accumulating quietly. And Bitcoin’s role as pristine collateral is only growing, especially for those building more robust frameworks like multi-institution custody (MIC).

From there, we zoom out to the geopolitical chessboard. Russia just launched a high-net-worth-only Bitcoin exchange backed by its central bank. The UAE’s Ruya Bank became the first Sharia-compliant institution to offer Bitcoin directly through its mobile app. And Binance is now openly advising governments on digital asset frameworks and strategic reserves. The world is splitting into two blocs: one led by dollar-based institutions and another by energy-rich nations betting on Bitcoin.

The discussion then turns to 21 Capital, the SoftBank–Tether–Cantor-backed Bitcoin treasury SPAC that’s making headlines for its 42,000 BTC war chest and MicroStrategy-style business model. But the team digs deeper: is this really about Bitcoin exposure, or about reinventing the altcoin casino in public markets? Brian and Michael debate whether these vehicles are a top-of-funnel gateway to sound money—or just Wall Street’s latest gimmick to extract fees from the uninformed.

Finally, we examine Schwab’s long-delayed entry into Bitcoin trading. Despite its legacy credibility, Schwab looks poised to launch a buffet of altcoins alongside BTC—undermining the very principles that gave Bitcoin its staying power. As Brian notes, “Putting Bitcoin on a balance sheet doesn’t make it a reserve asset.”