December 1, 2024: Great November, Ready For Santa

Last week, Dow Jones rose 1.4%, S&P 500 and Nasdaq were up 1.1% — Dow Jones and S&P 500 hit record highs. In November, Dow Jones gained 7.5%, S&P 500 5.7% (for their best monthly gains in a year), and Nasdaq rose 6.2%. OpenAI is conducting a share sale for employees to sell about US$1.5 billion worth of shares to SoftBank. CrowdStrike stock fell after issuing a disappointing earnings outlook. Shares of Zoom dropped more than 4% after reporting Q3 results. China’s Huawei Technologies unveiled its latest flagship smartphone featuring a homegrown operating system designed to compete with Google’s Android and Apple. Meta plans to build a US$10 billion subsea cable spanning the world. Meta’s text app, Threads, gained 35 million new signups since Nov. 1, Meta provided the update amid a flurry of news reports about the growth of rival text app Bluesky. Australia passed a law banning social media for under 16s. The Federal Trade Commission has opened an investigation into whether Microsoft has violated antitrust law in multiple segments of its wide-ranging business. In Canada, Sophic Client Ionik reported Q3 results and provided a corporate update. Revenue of US$44.0 million, grew 29% y/y, Adjusted EBITDA of US$5.6 million grew 49% y/y. Sophic Client Plurilock, reported Q3 results — 2024 revenue is on track to exceed 2023 revenue. As of October, year-to-date revenue and Gross Margin already exceeds 2023. The company also announced a US$1.2 million critical services contract with a NASDAQ listed semiconductor manufacturer. Sophic Client, Boardwalktech, reported Q2 Fiscal 2025 results. Annual recurring revenue (“ARR”), at September 30, 2024 was US$4.6 million. The company continues to see growth and expansion from existing customers and expects to see both new direct sales and channel sales contracts. Sophic Client, NowVertical announced a strategic partnership with Microsoft and the launch of a global center of excellence.

Sophic Client Ionik (INIK-TSXV, INIKF-OTCQX) reports Q3 2024 results and provides corporate update.

Financial Highlights for Q3 2024: Revenue of US$44.0 million, an increase of 29% over the same period of the prior year (“Q3 2023”), attributable to revenue generated from the acquisitions of Shift44, Inc. (“SHIFT44”) and Nimble5, LLC (“Nimble5”). Gross profit growth in Q3 2024 reflected top line revenue growth, increasing 33% to US$17.1 million (39% margin), compared to US$12.9 million (38% margin) in Q3 2023. Adjusted EBITDA of US$5.6 million, an increase of 49% over Q3 2023, with growth derived mainly from the additions of SHIFT44 and Nimble5. Year-to-date cash flow from operating activities of US$3.7 million, compared to US$6.0 million at September 30, 2023. Adjusted Free Cash Flow of US$5.1 million (91% Adjusted Free Cash Flow conversion rate), compared to US$1.9 million (52% Adjusted Free Cash Flow conversion rate) for Q3 2023. At September 30, 2024, the Company had not drawn on its revolving facility of US$10.0 million and had available to it US$9.25 million of its US$105.0 million term loan facility. Management believes that its current capital position is sufficient to execute its current business and operational strategies. Assuming Ionik’s acquisition of Shift44, Nimble5 and Rise4 had been completed as at October 1, 2023, Ionik’s Pro Forma Revenue for the twelve months ended September 30, 2024 would be approximately US$221.7 million with a 15% Pro Forma Adjusted EBITDA Margin, which management expects to position Ionik as a leading fully integrated marketing technology company in North America. Ionik maintains a conservative Syndicate Debt Facility leverage ratio of less than 3.0x Pro Forma Adjusted EBITDA for the trailing 12 months period ended September 30, 2024, staying within the Syndicated Debt Facility covenant limits and actively reducing debt as a strategic priority. https://t.co/l37xKSj4Xw

Sophic Client Plurilock (PLUR-TSXV, PLCKF-OTCQB) Security Inc. reports third quarter fiscal 2024 financial results.

Fiscal 2024 Revenue on track to exceed Fiscal 2023 Revenue. Full Year Revenue and Gross Margin ahead of 2023 as of October. Q4 2024 performance expected to outpace Q4 2023. “While Q3 recognized revenue was impacted by the timing of certain orders and mix, we have already secured and recognized more sales in Q4 than in the prior year’s Q4,” said Ian L. Paterson, CEO of Plurilock. Q3 2024 Financial Highlights: Total revenues for Q3 2024 and YTD 2024 were $14,328,564 and $38,545,520, respectively, compared to $20,000,867 and $48,019,338 for Q3 2023 and 9 months ended September 30, 2023 (YTD 2023), respectively. Revenue YTD 2024 is lower than the comparative period as a result of the timing on a few large orders and lower volume from the Integra acquisition offset partially by growth in professional services sales. Hardware and systems sales revenues for the Q3 2024 and YTD 2024 accounted for 83.1% and 80.3%, respectively, of total revenues compared to 87.6% and 84.0%, respectively, for Q3 2023 and YTD 2023. Software, license and maintenance sales revenues for Q3 2024 and YTD 2024 accounted for 10.7% and 11.1%, respectively, compared to 9.3% and 11.9%, respectively, for Q3 2023 and YTD 2023. Professional services revenue for Q3 2024 and YTD 2024, accounted for 6.1% and 8.7%, respectively, of total revenues, compared to 3.1% and 4.1%, respectively, for Q3 2023 and YTD 2023. Gross margin for Q3 2024 and YTD 2024 was 6.8% and 14.2%, respectively, compared to 7.2% and 10.3%, respectively, for Q3 2023 and YTD 2023. Outlook for 2024: Revenue and gross margin for the first 10 months of 2024 (year-to-date as of the end of October) have already exceeded the total revenue and gross margin for the entire year of 2023. Plurilock has a proven track record of delivering stronger results in the latter half of the fiscal year, and 2024 is no exception. The Company’s expanding sales team, rising market demand, and well-executed strategic initiatives position it for a strong performance to end the year and beyond. https://tinyurl.com/yjx6j85u

Sophic Client Boardwalktech, Inc. (BWLK-TSXV, BWLKF-OTCQB) reports second quarter fiscal 2025 financial results.

Boardwalktech Software Corp. reported revenue for Q2-FY25 was US$1.28 million, a 2% increase from US$1.25 million in Q1-FY24, but a 16% decline from US$1.53 million in Q2-FY24. Annual recurring revenue (“ARR”), at September 30, 2024 was US$4.6 million is a non-IFRS measure. Gross margin for Q2-FY25 was 88.6%, up slightly from Q1-FY25 level of 87.9% due to lower costs, but down slightly from 90.1% in Q2-FY24 due to lower revenue levels year-over-year. Adjusted EBITDA for Q2-FY25 was a loss of US$(0.37) million, a 10% improvement versus the US$(0.41) million loss in Q1-FY25, and a 2% change versus US$(0.36) million in Q2-FY24, as adjusted operating expenses of US$0.6 million are lower year-to date versus the comparable period last year. As a result, despite lower revenue levels than last year, cash from operations was a positive US$0.2 million in the recent quarter. “We continue to sign contracts with new partners as we expand our channel sales strategy. We are in multiple later stage deals with several partners and are enthusiastic about the pipeline of opportunities through the partner channel. We continue to see growth and expansion from existing customers and will see both new direct sales and channel sales contracts based on interest in the Boardwalk’s software solutions. The foundation has now been set for growth in 2025, including an anticipated increase in revenue and an overall improvement in the business.” https://t.co/Bz6084Cp43

Sophic Client Plurilock (PLUR-TSXV, PLCKF-OTCQB) announces US$1.2 million critical services contract with NASDAQ listed semiconductor manufacturer.

Plurilock Security Inc announced a significant follow-on contract valued at US$1.2 million with an existing NASDAQ-listed semiconductor client. This 9-month contract strengthens the Company’s existing relationship with the client and underscores the success of Plurilock’s “land-and-expand” strategy to deepen customer engagements and drive high-margin growth. Under this agreement, Plurilock Critical Services (PLCS) team will implement Zero Trust Architecture, delivering comprehensive cybersecurity services including next-generation AI-driven solutions and robust network infrastructure enhancements. The U.S. Government’s push to modernize its cybersecurity strategy with a focus on Zero Trust Architecture presents a significant opportunity for Plurilock. https://t.co/gDRPo05M2X

Sophic Client NowVertical Group (NOW-TSXV, NOWCF-OTC) announces strategic partnership with Microsoft and launch of global center of excellence.

NowVertical Group Inc announces the launch of its Microsoft Center of Excellence (COE) designed to meet enterprises’ demand for Microsoft Azure-based data solutions. Recent studies show the widespread adoption of Microsoft’s technology, capturing a 45% share of new cloud projects. This progress, accelerated by GenAI, signals the importance of Azure in enterprise data strategy, providing a large addressable market for NOW. The Global COE, part of the Microsoft AI Cloud Partner Program, leverages NOW’s proven track record in AI-powered data transformation and deep expertise in cloud-based architecture. Comprising over 50 Microsoft specialists across India, the UK, and LATAM, the COE will enhance NowVertical’s competitive edge, driving significant growth and positioning the Company to further capture opportunities in the rapidly expanding Generative AI market. The team’s vast experience includes successful completion of over 50 projects with enterprise clients on Microsoft Azure, from saving over US$3 million in 57 days for one of Europe’s largest telecom and media companies, to improving marketing campaign conversion by 30% for one of Latin America’s biggest Newspapers, underscoring the transformative potential of this collaboration. https://t.co/nsm5bBDMB1

With new name, FleetOps secures $30.8-million Series A round.

Toronto-based trucking data startup FleetOps has rebranded to Class8 and secured a $30.8-million Series A round. The round predominantly featured US investors, led by Xplorer Capital with participation from Commerce Ventures alongside return investors Inspired Capital and Resolute Ventures. The round also featured a follow-on investment from Canadian firm BCF Ventures, which invested in Class8’s seed round, to protect its pro rata rights. Founded in 2017 by CEO Chris Atkinson, Class8 is a freight marketplace that matches truck drivers with shipment opportunities using vehicle data and artificial intelligence (AI). Class8’s platform provides transport trucking companies with tracking, vehicle inspection reporting, fuel profitability calculations, and automated scheduling for its drivers. Class8 says it uses the electronic logging devices (ELDs) integrated into transport trucks by original equipment manufacturers (OEMs), meaning truckers don’t have to install any extra hardware to use its platform. The company says it currently processes data from 227,000 trucks. Toronto-based Terminal is another Canadian company offering a monitoring solution to trucking fleet managers. A Y Combinator graduate, the startup closed a US$3.1-million seed round last December to expand its team. Terminal offers its own API, which allows insurance products and fleet software access to GPS data, speeding data, and other digitized vehicle stats collected through ELDs. Class8 claims it sets itself apart from other tracking or management providers by using the data to benefit carriers with features such as automated load planning and real-time pricing. Class8 previously raised a $6-million seed round in 2020, which was co-led by Inspired Capital and Resolute Ventures, and included participation from Canadian investors BCF Ventures and Panache Ventures. https://tinyurl.com/3fu8ykra

Boosted.ai raises $20.9 million to grow AI investment manager platform.

The all-equity round saw participation from existing investors Ten Coves Capital, Spark Capital, Portage Ventures, Royal Bank of Canada, and HarbourVest Partners, as well as “certain fund(s)” managed by Fidelity Investments Canada. Boosted.ai did not disclose who led the round but described them as “a strategic investor who is also a client.” Launched in 2017 by CEO Joshua Pantony, Jon Dorando, and Nicholas Abe, Boosted.ai uses AI for its proprietary web-based platform called Boosted Insights, which brings quantitative investing techniques to portfolio managers. Boosted.ai told BetaKit that it anticipates raising a much larger round in 2025. With this latest raise, Boosted.ai has raised US$61 million to date. This figure does not include $10 million in growth capital the startup secured from CIBC Innovation Banking this past August, which Boosted.ai said it would use to invest in product development and sales expansion across the Canadian and United States markets. https://tinyurl.com/ycxeu288

Practice Better looks to opportunistic growth with $18-million credit facility from CIBC.

Toronto-based Practice Better has closed a US$13-million debt facility from CIBC Innovation Banking. The credit facility, which closed in September, will help Practice Better explore new initiatives and growth opportunities, as well as double down on initiatives the startup believes are working, the company said. To date, it has raised US$40 million. This credit facility is Practice Better’s first capital injection since the startup secured a $37.7-million growth investment from Kansas City, Mo.-based growth equity firm Five Elms Capital. https://tinyurl.com/yx8pkevs

WonderFi (WNDR-TSX) and Kraken Canada each break $2-billion mark for assets under custody.

Toronto-based WonderFi revealed its Bitbuy and Coinsquare crypto trading platforms have achieved a new record in client assets under custody that surpasses the $2.1 billion mark. San Francisco-based crypto exchange Kraken also announced last week that its Canadian operation has exceeded $2 billion in combined assets under custody. Assets under custody refer to the total value of digital assets that an entity holds on behalf of clients. This includes cryptocurrencies, tokens, and other digital assets stored in wallets managed by the custodian. https://tinyurl.com/yukuy69z

Canada’s antitrust watchdog sues Google alleging anti-competitive conduct in advertising.

Canada’s Competition Bureau is suing Alphabet’s Google over alleged anti-competitive conduct in online advertising, the antitrust watchdog said on Thursday. The Competition Bureau, in a statement, said it had filed an application with the Competition Tribunal seeking an order that, among other things, requires Google to sell two of its ad tech tools. It is also seeking a penalty from Google to promote compliance with Canada’s competition laws, the statement said. Google said the complaint “ignores the intense competition where ad buyers and sellers have plenty of choice and we look forward to making our case in court.” The Competition Bureau opened an investigation in 2020 to probe whether the search engine giant had engaged in practices that harm competition in the online ads industry, and expanded the probe to include Google’s advertising technology services earlier this year. https://tinyurl.com/kx92ypc5

Canadian news companies challenge OpenAI over alleged copyright breaches.

Five Canadian news media companies filed a legal action on Friday against ChatGPT owner OpenAI, accusing the artificial-intelligence company of regularly breaching copyright and online terms of use. The case is part of a wave of lawsuits against OpenAI and other tech companies by authors, visual artists, music publishers and other copyright owners over data used to train generative AI systems. In a statement, Torstar, Postmedia, The Globe and Mail, The Canadian Press, and CBC/Radio-Canada said OpenAI was scraping large swaths of content to develop its products without getting permission or compensating content owners. A New York federal judge dismissed a lawsuit on Nov. 7 against OpenAI that claimed it misused articles from news outlets Raw Story and AlterNet. In response, OpenAI said its models were trained on publicly available data, grounded in fair use and related international copyright principles that were fair for creators. https://tinyurl.com/2z86ps68

SoftBank plans to buy OpenAI shares worth US$1.5 billion.

OpenAI is conducting a share sale for employees to sell about US$1.5 billion worth of shares to SoftBank, a person familiar with the discussions said. Employees will have until Dec 24th to decide if they want to participate in the offer, which could impact the amount of shares that are ultimately sold. SoftBank is the only investor involved in the tender, and comes after the firm indicated it wanted to put more capital into OpenAI’s last round. The tender is expected to close early next year, according to the same person. The pricing of the tender couldn’t be learned. CNBC was first to report news of the employee share sale. The financing comes after OpenAI announced last month that it had raised US$6.6 billion in new funding at a US$157 billion post-money valuation from investors including SoftBank’s Vision Fund. In that financing, SoftBank agreed to invest US$500 million into OpenAI, marking the Japanese conglomerate’s first investment into the ChatGPT-maker. At the time, the investment in OpenAI was the largest bet SoftBank has made in startups working on generative AI, The Information reported. https://tinyurl.com/mpm454an

CrowdStrike falls after issuing disappointing earnings outlook.

CrowdStrike shares fell in late trading after the cybersecurity software firm issued a fourth-quarter earnings forecast that fell short of investors’ expectations. The company said it expects adjusted earnings of 84 cents to 86 cents per share, below analysts’ estimates for 87 cents. The report is the company’s second since a flawed CrowdStrike update crashed millions of devices operating on Microsoft Corp.’s Windows systems. The outage, which unfolded on July 19, disrupted a wide range of industries, including air travel, banks and health care. The company posted sales three months ago that exceeded expectations, a sign that investors took to mean that the global IT outage may not significantly affect its finances. The company’s shares were down about 2% in after-market trading on Tuesday at US$356.44. https://archive.ph/wB90H

Zoom changes name, CEO touts contact center growth in Q3.

Shares of Zoom dropped more than 4% after its third-quarter earnings after the videoconferencing provider reported sales growth of 3.6% to nearly US$1.18 billion compared to last year, exceeding its earlier forecast. But the bigger news was Zoom’s decision to change its legal name to Zoom Communications, dropping the word “video” to reflect its focus on newer businesses like voice-over-IP, productivity, and contact center products. On an earnings call, Zoom founder and CEO Eric Yuan talked up his firm’s investments in building AI-powered features like meeting transcriptions, noting that these are expensive to develop. Still, while other providers of productivity applications pass that cost onto customers by charging US$30 per user monthly for AI features, Zoom has chosen not to follow suit, Yuan said. Yuan also touted growing sales for Zoom’s contact center product, which lets companies automate interactions with customers and now has more than 1,250 customers, up 82% from last October. And new customers for Workvivo, the employee communications software provider Zoom acquired in 2023, rose 72% compared to last year, he said. https://tinyurl.com/48aew3n9

Neuralink approved to test robotic arm.

Elon Musk’s Neuralink said it was approved to begin testing a robotic arm that can be controlled with its brain chip implant. The company did not provide much further detail about the project. The company’s existing device has been implanted in two patients and currently allows them to control computers using only their thoughts. It is one of a few companies racing to commercialize the technology, which is still likely a few years away from becoming widely available, if it is approved. Earlier this week, the company said health regulators in Canada approved it to begin a clinical trial there, too. Neuralink, which as of November 2023 had raised more than US$687 million and was last valued at US$3.52 billion, according to PitchBook, would not be the first company to test such a robotic arm. Blackrock Neurotech is one other brain chip company that has previously tested such a tool. https://tinyurl.com/y7j32w8j

Nvidia unveils AI model to generate Music.

Nvidia on Monday unveiled it was working on Fugatto, a new artificial intelligence model for generating audio based on text prompts. Fugatto, an abbreviation of Foundational Generative Audio Transformer Opus 1, can compose a new piece of music based on a text prompt, or users can upload their own audio and request tweaks like adding in new instruments, according to Nvidia’s announcement. If Nvidia eventually releases the audio model, it would compete against similar models from Google and AI startups Suno and Udio that allow hobbyist and professional musicians to quickly generate new songs. Nvidia claims the new model is more flexible than existing audio models. For instance, the chip maker suggested in a blog post that ad agencies could use Fugatto to modify the accents in an ad campaign for different parts of the world, and video game developers could use Fugatto to modify sound effects as users play the game. https://tinyurl.com/422vt24j

Huawei launches new phones to rival Apple in China.

China’s Huawei Technologies has unveiled its latest flagship smartphone featuring a homegrown operating system designed to compete with Google’s Android and Apple. This launch marks the company’s renewed effort to penetrate China’s high-end smartphone market, a sector predominantly dominated by Apple. The Mate 70 smartphone series represents Huawei’s strategy not only to recover from U.S. sanctions but also to reclaim market share in China. Since 2019, the company has faced restrictions that prevent it from accessing Google software and purchasing chips manufactured with U.S. technology, significantly impacting its smartphone-driven consumer business. Richard Yu, Huawei’s CEO, said at the launch event that the Mate 70 series is the company’s most advanced product to date, offering a range of new features powered by artificial intelligence—capabilities that Apple has yet to implement in China due to regulatory obstacles. Despite the triumphant claims surrounding the event, Huawei still needs to address the production snags in smartphone chip manufacturing. The company and its chipmakers are struggling to produce enough chips for the Mate 70 smartphones and had previously postponed the Mate launch to September due to a shortage of chips, The Information reported. https://tinyurl.com/znjphjjj

Meta plans to build a US$10 billion subsea cable spanning the world, sources say.

Meta, the parent of Facebook, Instagram, and WhatsApp, is the second-biggest driver of internet usage globally. Its properties — and their billions of users — account for 10% of all fixed and 22% of all mobile traffic. Meta’s investments into artificial intelligence stand to boost that usage even further. So to make sure it will have reliable infrastructure to support that business, Meta is taking the pipes into its own hands. TechCrunch has confirmed with sources close to the company that Meta plans to build a new, major, fibre-optic subsea cable extending around the world — a 40,000+ kilometer project that could total more than US$10 billion of investment. Critically, Meta will be the sole owner and user of this subsea cable — a first for the company and thus representing a milestone for its infrastructure efforts. https://tinyurl.com/2d4wjtaz

Meta shares Threads user-number update as Bluesky gains ground.

Meta’s text app, Threads, has gained 35 million new signups since Nov. 1, according to company spokesperson Andy Stone. Meta provided the update to Axios amid a flurry of news reports about the growth of rival text app Bluesky, which has surged in popularity in the wake of the presidential election and now has more than 20 million users. Threads, which launched in 2023, had nearly 275 million monthly active users at the end of October, according to Meta CEO Mark Zuckerberg, meaning it is still much bigger than Bluesky. Still, the newer app’s recent growth is something Meta leaders appear to be watching closely. Recently, Meta copied several features for Threads, and rolled out certain improvements, in response to Bluesky’s spike in popularity. https://tinyurl.com/3vfewmzu

Australia passes law banning social media for under 16s.

Australia’s Parliament has approved a law banning children under 16 years old from having social media accounts, drawing a strict line under a global debate about how to protect young people online. The ban, approved in Australia’s senate Thursday, requires social media companies to take “reasonable steps” to block under 16s from setting up accounts. But the law, which won’t come into effect for another 12 months, also mandates social media companies determine the age of users without requiring people to upload government IDs. A breach of the law could result in fines of up to US$33 million. In a statement posted online, Australia’s prime minister, Anthony Albanese, said the platforms the ban will apply to include Snapchat, TikTok, Facebook, Instagram, X and others. But questions remain about how the law will be enforced. Age-verification is a polarizing issue among U.S. tech companies: Meta Platforms has argued that app store providers like Apple and Google should be responsible for determining how old app users are, while Apple has argued that platforms and websites are better positioned to shoulder such responsibility. https://tinyurl.com/z5ejufjb

F.T.C. launches Antitrust investigation Into Microsoft.

The Federal Trade Commission has opened an investigation into whether Microsoft has violated antitrust law in multiple segments of its wide-ranging business, according to two people familiar with the inquiry, the latest salvo in a battle by the government to rein in the most powerful tech companies. The agency recently sent a long and detailed formal request for information to the company asking about its cloud computing, artificial intelligence and cybersecurity products, the people said. Of particular interest to the F.T.C. is the way that Microsoft bundles its cloud computing offerings with office and security products, they added, alongside the company’s growing power in the artificial intelligence space. The aggressive move by the F.T.C. comes as its chair, Lina Khan, is probably heading out the door with less than two months left in the Biden administration. The inquiry into Microsoft continues the Biden administration’s scrutiny of the biggest tech companies over the way people consume information, communicate and shop online. Already, the F.T.C. has sued Amazon and Meta, accusing them of anticompetitive behavior and stifling rivals. The Justice Department has also sued Google over its dominance in advertising technology, and Apple for making it difficult for consumers to leave its tightly knit universe of devices and software. Microsoft, one of the most valuable companies in the world, with a disparate business that includes its Windows operating software, social media platform LinkedIn and video game platform Xbox, had largely escaped the recent ramp-up in antitrust scrutiny. As part of its investigation, the F.T.C. is looking at how Microsoft handles licenses for software used in the cloud, according to the two people. https://tinyurl.com/bdcm8m6n

California could exclude Tesla from EV credits.

Gavin Newsom, California’s Democratic governor, announced on Monday that he would reinstate a tax credit for electric vehicle purchases if the incoming Trump Administration removes federal EV tax credits. But the state may not extend the credits to Tesla because of the company’s large market share. Tesla’s stock price fell 4% on Monday. Newsom has proposed bringing back California’s Clean Vehicle Rebate Program, which ended in November 2023, if the Trump administration eliminates the US$7500 credits buyers of electric vehicles get from the federal government under the Inflation Reduction Act, President Joe Biden’s signature energy law. On an earnings call in July, Tesla CEO Elon Musk said that a repeal of federal tax credits would “be devastating for our competitors, and it would hurt Tesla slightly, but longterm probably actually helps Tesla” because the company is better than competitors at running a business without subsidies. A spokesperson for Newsom said the decision to set market caps for the program would have to be negotiated with the state legislature. Newsom’s announcement is the latest in Tesla’s troubled relationship with California. Musk relocated Tesla from California to Texas in 2021 after Covid-19 regulations delayed the reopening of Tesla’s Fremont, Calif. factory. Over the summer, Musk threatened to relocate two of his other companies, X and SpaceX. https://tinyurl.com/3254zh49

Cantor’s ties with Tether grow.

Wall Street financial services firm Cantor Fitzgerald—which is run by Howard Lutnick, Donald Trump’s nominee for Commerce Secretary—struck a deal last year to invest in Tether, the world’s biggest stablecoin issuer, receiving a stake of about 5% which the Wall Street firm valued at $600 million, the Wall Street Journal reported. Separately, Cantor is in talks to receive funding support from Tether for Cantor’s recently announced Bitcoin financing business. Bloomberg reported Sunday. Under the program, Cantor will provide US$2 billion Bitcoin-backed loans initially to investors and will expand the program further. The moves show Cantor’s deepening relationship with Tether, which has reportedly been under regulatory scrutiny over anti-money laundering issues. Cantor manages reserve assets such as U.S. treasury for Tether. Lutnick is co-chair of Trump transition team in addition to being the Commerce nominee. He has said he would step down from Cantor once the Senate confirms him as Commerce Secretary, and intends to divest himself of interests in his companies to comply with government ethics rules. https://tinyurl.com/y7txuhka

Goldman Sachs takes US$900 million hit on Northvolt investment.

Funds managed by Goldman Sachs will write off almost US$900 million after Swedish battery maker Northvolt filed for Chapter 11 bankruptcy this week. Goldman’s private equity funds have at least US$896 million in exposure to Northvolt, making the US bank its second-largest shareholder. They will write that down to zero at the end of the year, according to letters to investors seen by the Financial Times. The losses mark a sharp contrast to a bullish prediction just seven months ago by one of the Goldman funds, which told investors that its investment in Northvolt was worth 4.29 times what it had paid for it, and that this would increase to six times by next year. Goldman first invested in Northvolt in 2019 when, along with other investors including German carmaker Volkswagen, it led a US$1 billion Series B funding round that enabled Northvolt to build its first factory in northern Sweden, and fuel future expansion. https://archive.ph/greWc