Coinbase Earnings, Bitcoin vs Tech, and Crypto’s Quantum Threat
Watch on YouTube ↗  |  February 12, 2026 at 16:53 UTC  |  2:25:07  |  Unchained (Chopping Block)
Speakers
John Todaro — Needham & Company
Zach Pandl — Grayscale
Justin Drake — Ethereum Foundation
Chris Peikert — Algorand

Summary

  • Bitcoin miners are aggressively pivoting to AI/HPC (High-Performance Computing) to capture higher valuation multiples (15x EV/EBITDA for AI vs. 3-4x for mining).
  • Bitcoin is currently trading with high correlation to "frontier tech" (quantum stocks, software) rather than gold, challenging its "digital gold" narrative in the short term.
  • A "differentiation trade" is emerging where utility-focused crypto assets (stablecoins, tokenization, smart contract platforms) may decouple from and outperform Bitcoin.
  • The quantum computing threat is estimated to be relevant by ~2032; Ethereum is aggressively upgrading to post-quantum security by 2029 to attract institutional capital, while Bitcoin's slow governance poses a systemic risk regarding Satoshi’s vulnerable coins.
  • Privacy coins face an existential "silent death" threat from quantum computing, where pools could be drained undetected.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG John Todaro
Needham & Company
Miners are signing lucrative "colo" (colocation) leases with hyperscalers (e.g., Hut 8's deal with a Google credit backstop). Hyperscalers have committed $660B+ to capex. The market currently values miners at 3-4x EBITDA, whereas AI data centers trade at ~15x. As miners prove they can execute on these AI contracts (without taking on GPU depreciation risk), their stock prices should re-rate upward to close the discount gap with traditional data center REITs like EQIX. LONG. These miners are effectively value plays on AI infrastructure. Failure to execute on power delivery; political pushback on energy usage; "one-and-done" contracts without renewal. 16:42
WATCH John Todaro
Needham & Company
Traditional data center REITs trade at a significant premium to Bitcoin miners pivoting to AI. These serve as the valuation benchmark. If miners successfully transition to HPC/AI hosting, they should trade closer to these multiples. WATCH. Use as a relative value comp for the miner trade. Tech sell-off dragging down the entire data center sector.
LONG Zach Pandl
Grayscale
Bitcoin is trading like speculative tech, not gold. The "differentiation trade" involves allocating to assets tied to "mega trends": Tokenization, Stablecoins, and the "Three Ps" (Privacy, Prediction Markets, Perps). As the market matures, capital will flow to assets that provide the "rails" for these trends. Smart contract platforms (ETH, SOL) and middleware (LINK) are the direct beneficiaries of stablecoin and tokenization adoption, potentially decoupling from BTC's price action. LONG. Focus on utility and infrastructure over pure store-of-value assets. Continued high correlation with the broader tech sector (Nasdaq/QQQ). 65:04
BTC
AVOID Justin Drake
Researcher at Ethereum Foundation
Quantum computers (relevant ~2032) can derive private keys from public keys. Satoshi’s ~1M BTC are in P2PK (Pay-to-Public-Key) addresses, making them the "canary in the coal mine" for theft. Bitcoin governance is notoriously slow (only two upgrades in 10 years). If they fail to coordinate a migration to post-quantum cryptography in time, the theft of Satoshi's coins would cause a systemic collapse in confidence and price. AVOID (Long-term structural risk). Quantum computing timelines could be much slower than predicted (decades away). 12:35
ETH
LONG Justin Drake
Researcher at Ethereum Foundation
The Ethereum Foundation is actively building a "lean VM" and aggregating signatures to upgrade the entire chain to post-quantum security by 2029. By becoming the first "quantum-secure" global financial infrastructure, Ethereum positions itself as the only safe harbor for long-term institutional capital (TradFi) looking to settle on-chain, effectively flipping the "store of value" narrative away from Bitcoin. LONG. Technical execution risk in upgrading the cryptography without breaking the chain. 65:04
AVOID Justin Drake
Researcher at Ethereum Foundation
Quantum computers break the soundness of the cryptography used in privacy pools (like Zcash). Unlike public chains where theft is visible, a quantum attacker could drain a privacy pool silently. No one would know the inflation occurred or funds were stolen until the pool is empty. This makes them the "first target" for quantum attackers. AVOID. Existential threat to the core value proposition. Quantum timeline delays. 65:20
LONG Chris Peikert
Head of Cryptography at Algorand
Algorand has already implemented "state proofs" using Falcon signatures (a NIST-standardized post-quantum scheme). While other chains are theorizing about upgrades, Algorand has deployed quantum-secure checkpoints and transaction signatures, offering immediate resilience against future threats. LONG. Technical leadership in the specific niche of quantum resistance. Lack of broader adoption or liquidity compared to major L1s. 117:45
WATCH John Todaro
Needham & Company
Coinbase earnings depend heavily on retail take rates and USDC interest income. Regulatory clarity is a double-edged sword; a "bad bill" could restrict the yield Coinbase earns on USDC (a massive revenue driver), while a lack of regulation keeps DeFi open but uncertain. WATCH. Monitor retail engagement numbers and legislative progress on stablecoins. Regulatory crackdown on stablecoin yields; retail volume drying up in a sideways market. 41:43