🏦 Crypto's banking bind

…and Instacart thrives on delivering ads more than avos [Disclosures](   Searching for a silver lining (Jakub Porzycki/Getty Images)   Yesterday’s Market Moves   Dow Jones 33,004 (+1.05%) S&P 500 3,981 (+0.76%) Nasdaq 11,463 (+0.73%) Bitcoin $23,462 (-0.72%) Dow Jones 33,004 (+1.05%) S&P 500 3,981 (+0.76%) Nasdaq 11,463 (+0.73%) Bitcoin $23,462 (-0.72%) Hey Snackers, The Upside Down is coming to the town of the Underground: [Netflix]( [announced]( that it’s bringing a “Stranger Things” spinoff play to London’s West End theater district. US stocks rebounded yesterday, led by the Dow, after Atlanta Fed Reserve President Bostic said he “firmly” supports sticking with quarter-point rate hikes. SLIVER Crypto mega bank Silvergate suggests it might not survive, leaving crypto companies scrambling When the 800-pound gorilla gets sick… A California bank that's played a vital role in the crypto industry's growth [issued]( a stark warning on Wednesday: its days may be numbered. Publicly traded [Silvergate]( said it wouldn’t be able to file its annual report with the SEC on time because its financial position has deteriorated significantly since last month. Now it's "evaluating" whether it can continue operating. The fallout was swift: - Not so silver-great: The bank's stock plunged nearly 60% yesterday, hitting a record low as anxious investors shed shares. - Won't silver-wait: [Coinbase]( Galaxy Digital, and crypto-services biz Paxos all said they're taking their business elsewhere. Silver lining turns gray… Silvergate was the crypto bank because it was one of the few US banks willing to go all in on crypto, offering companies a bridge between digital assets and dollars. Before that, it was a relatively small community lender with three SoCal branches and less than $1B in assets. Fast forward to last year: Silvergate held $16B in deposits, 90% of which were crypto-related. But things took a turn after FTX's fall (FTX had accounts at the bank). Silvergate reported a $1B loss last quarter, and it’s reportedly facing a Department of Justice fraud investigation. THE TAKEAWAY Crypto risks becoming an island… if it loses its banking bridge to the financial mainland. Crypto promises a system separate from traditional finance (aka: TradFi), but it still heavily relies on regulated banking partners to get US dollars in and out of the system. Without partners like Silvergate, crypto's growth path looks narrower. Even Coinbase's substitute for Silvergate, [Signature Bank]( moved to reduce its crypto exposure last year. That, combined with a recent cautionary note from regulators aimed at crypto-curious banks, could pose a real problem. Avo Instacart’s reportedly thriving ahead of an anticipated IPO, but growth may be more in ads than avos Emergency hummus delivery… for when you just need to buy the dip. Instacart is America’s grocery-delivery leader, followed by [DoorDash]( and [Uber Eats](. Unlike its rivals, Instacart is private, so it doesn’t publicly report its earnings. But ahead of its anticipated IPO this year, The Wall Street Journal got its hands on some numbers. - Full carts: Instacart’s quarterly sales jumped 50% from last year, while profit surged 80%, [according]( to WSJ’s “people familiar with the matter” (#PFWTM). - Clear aisles: Instacart’s sales jumped 39% to $2.5B last year, even as order volume growth slowed from lockdown-era highs. - Not just groceries: Instacart has delivery partnerships with retailers like [Best Buy]( Sephora, Staples, and [Walgreens](. It’s less about avocados… and more about ads. While the grocery-ordering boom slowed from its pandemic peak, Instacart prospered from its push into advertising. Think: in-app ads for [Pepsi]( Bud Light, and Cheerios. For example, you search “chicken” on Instacart and get a sponsored listing for Applegate chicken strips at the top of your page. Instacart’s ad products reportedly generate a 15%+ sales boost for brands on the platform. - Secret ingredient? Instacart is one of the “sneaky advertisers” like Uber, [Kroger]( and [CVS]( which have leveraged their trove of customer data to sell targeted ads. - Silent come-up: When it comes to digital marketing, the focus has been on ad-reliant tech titans like [Google]( and [Meta](. That could be changing…. THE TAKEAWAY It pays to be the destination… Unlike Facebook, Google, and Twitter, Instacart is a shopping destination. You might scroll past a Pepsi ad on Instagram, but you’re less likely to scroll past a Pepsi ad on Instacart that appears after you searched “soda.” People come to platforms like Instacart, [Amazon]( and Kroger with the intention of shopping. That makes ad space on these platforms highly valuable for marketers. ORDINAL The Crypto Catch-Up… 🪙 Coins… Coinbase said it would [suspend]( trading of Binance-branded stablecoin BUSD (formerly the third-largest stable). Last month regulators [ordered]( BUSD issuer Paxos to stop minting the coin. 📸 Flashy… Yuga Labs, the crypto biz behind Bored Apes, said it's [launching]( a new NFT collection on [bitcoin](. The 300 "TwelveFold" NFTs will join a growing number of digital assets tied to bitcoin’s blockchain (aka: [ordinals](. 💰 Costly… Crypto conglomerate DCG said it [lost]( $1.1B last year, pointing a finger at declining crypto prices. Also: DCG’s crypto lender, Genesis, declared [bankruptcy]( in January. What else we're Snackin' - [Budmiser]( Bud maker [AB InBev]( said quarterly sales were down as year-end price hikes took their toll on beer drinkers. Now it’s shifting focus to cost-conscious consumers who opt for at-home brews over bar booze. - [AppGPT]( [Apple]( blocked an update for an email app that contained new AI-powered tools, asking the developer to set a 17+ age restriction. It suggests Apple’s concerned about AI’s potential harm and broad use. - [Malled]( [Nordstrom]( and [Macy’s]( reported lower sales and profits for the holiday quarter as shoppers cut back on department-store spending. While the retailers beat earnings expectations, forecasts were choppy. - [Ping]( [Salesforce]( shares popped 12% yesterday after the enterprise cloud-software titan (which owns Slack) reported a surprisingly strong quarter, an upbeat annual profit forecast, and a $20B buyback plan. - [Anticlimax]( [Tesla]( shares have fallen since its investor day on Wednesday, when it didn't discuss rumored next-gen models, disappointing some investors. Still, Elon said the biz plans to halve production costs. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day The sun is so big it could contain about 1.3M Earths [Read more]( Friday - Fed Gov. Michelle Bowman speaks Authors of this Snacks own bitcoin and shares of: AB InBev, Apple, Amazon, CVS, Google, Tesla, and Uber ID: 2769906 Robinhood Snacks newsletters reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk including the loss of principal and past performance does not guarantee future results. 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