Happy Monday!
The quantum computing risk debate rages on, so we weigh in today the following question: if investors are actually pricing in quantum computing risk — which has no knowable timeline — why haven’t they sold bitcoin because of other, immediate vulnerabilities to Bitcoin’s code, mining incentives, and consensus?
Plus:
Bitcoin IPOs are back, baby!
Is Strategy the only buyer right now?
A scorecard from the worst winter storm to hit the U.S. in years.
No, investors aren't selling bitcoin because of quantum computing FUD
Earlier this month, investment bank Jefferies made headlines announcing the reduction of its exposure to bitcoin due to perceived quantum computing risk.
Pundits on the issue made several victory laps, noting that capital allocators indeed care about the potentially fatal risk to bitcoin.
However, while some investors may be reallocating, I would push back on the idea that this is currently a broad trend.
Moreover, when I see a claim like Charles Capriole’s “Quantum Discount,” I have reason to suspect some (not all) are manufacturing a narrative.
Charles Capriole’s “Quantum Discount” chart attributes BTC price decline vs S&P to quantum | Source: Charles Capriole
I do believe that investors have started scoping the risk, but outside of a few anecdotes and the Jefferies headline, I strongly doubt that this has had any effect on confidence in bitcoin, yet.
As I see it, the argument is as follows:
If investors were pricing quantum risk correctly, they would need deep technical understanding or close communication with experts who do.
Deep technical understanding would lead to accurate pricing of other technical risks to Bitcoin.
I do not believe those other technical risks are accurately priced in. I would wager most investors are unaware of them.
Therefore, quantum risk is likely not accurately priced in either.
Just to get it out of the way: it’s fair to criticize perceived nonchalance from leading Bitcoin developers. And further, investors should take quantum risk seriously, and selling bitcoin is the logical way for inventors to derisk from quantum computing exposure.
I’m just not convinced that they’re selling today.
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Blockspace Headlines
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BitGo Goes Public at $18 Per Share
Crypto custodian BitGo priced its IPO at $18, raising $212.8 million and valuing the company at over $2.1 billion. The firm will trade under ticker BTGO on the NYSE, marking 2026's first major crypto-related public listing. - link
Ledger seeks US IPO at $4 billion valuation: Financial Times
French hardware wallet designer Ledger is tapping investment banks for an initial public offering (IPO) in the United States that could value the business at more than $4 billion, according to reporting from the Financial Times. - link
Strategy Crosses 700,000 BTC After $2.13B Purchase
Strategy acquired 22,305 bitcoin for $2.13 billion, pushing its total holdings to 709,715 BTC. The company funded the purchase through a mix of common and preferred stock sales, paying an average of $95,284 per coin. - link
FIBRE Network Returns with v30.0 Release
The Bitcoin FIBRE (Fast Internet Bitcoin Relay Engine) network is being revived with a new released based on Bitcoin Core v30.0. Originally created by developer Matt Corallo to minimize block propagation times across the network, FIBRE is getting a fresh update after years of dormancy. - link
Blockspace acquires Bitcoin Layers to integrate bitcoin assets intelligence
New York, Jan. 19, 2026 – Blockspace Media, a bitcoin trade publication at the intersection of markets, compute, and tech, has acquired Bitcoin Layers, an independent data provider for metrics on Bitcoin’s layer 2 (L2) ecosystem. - link
Tweet/Chart of the Week
Casa Chief Security Officer Jameson Lopp has been on a lone crusade documenting worldwide crypto “wrench attacks” (i.e., kidnapping, assualts, and other forms of hostility meant to force crypto holders to hand over private keys/funds to assailants). Lopp has compiled this unfortunate compendium using local news reports on these attacks, which on a per capita basis, overwhelming occur in France — the seat of the hardware wallet company, Ledger, which has experienced several customer data leaks.
Blockspace Podcasts
On the latest news roundup, Charlie and Will talk about a massive week in markets and compute. We break down BitGo’s $2.1 billion IPO valuation and why the New York Stock Exchange’s move toward tokenized securities and instant settlement is a game changer for TradFi. The duo also discusses Blockspace’s acquisition of Bitcoin Layers, Zebedee’s $40M Series C, and the controversial exit of the Farcaster founding team. Finally, we look at how OpenAI and Microsoft are handling grid upgrades and why Coinbase is building a "Quantum Avengers" advisory board.
For our Saturday show last week, we tackle the technical battle to protect Bitcoin from quantum computers. We explore why quantum-resistant signatures are up to 100x larger than current ones and the impact this has on block space and fees. From lattice-based math to STARK-based compression, Charlie breaks down the leading proposals like BIP 360 and BIP 347. We also calculate the "migration" timeline—how long it would actually take to move every Bitcoin to a safe address before "Q-Day" arrives.
This past weekend, roughly 230 million Americans across +34 states braced for Winter Storm Fern, which meteorologists anticipated as the worst widespread winter cell since Winter Storm Jonas in 2016. Fern left over 1 million households and business without power, including ~227,000 in TN, where power outages hit the hardest; power prices in the PJM market rose above $3,000/MWh; while +10,000 flights were disrupted; and Bitcoin’s hashrate has fallen 6%. If you want a breakdown of all the ramifications for energy markets and bitcoin mining, check out this fantastic breakdown from Luxor’s Haley Thomson.
-CBS, CMH
Header image by RuinDig/Yuki Uchida.