March 09, 2025: Major Indices Remain Choppy

Last week, Dow Jones fell 2.4%, S&P 500 was down 3.1%, and Nasdaq composite lost 3.45%, major indices continue to chop around in a headline-driven market. Genesys, a private equity-backed customer service software company, delayed what would have been one of the largest 2025 IPO, citing a sliding stock market. Gemini, the crypto exchange founded by billionaire twins Cameron and Tyler Winklevoss, has filed confidentially for an IPO. Discord, the social messaging app, is in early talks with bankers about an IPO. Humanoid robotics firm ‘Figure’ is planning to raise US$1 billion to US$2 billion in equity financing at a US$38.5 billion pre-money valuation. That’s a staggering 15 times its valuation from a year ago. Anthropic, announced Monday that it has raised US$3.5 billion in its Series E funding round, hitting a US$61.5 billion valuation including the new money. CrowdStrike shares dropped nearly 9% in extended trading on Tuesday after the cybersecurity software provider issued disappointing earnings guidance. Broadcom’s latest quarterly results, boosted shares more than 11% in after-hours trading. Trump signed an executive order to build a Bitcoin reserve — crypto prices dropped following the announcement, because the stockpile will only involve the government maintaining existing crypto holdings. OpenAI reportedly plans to charge up to US$20,000 a month for specialized AI ‘agents’. Taiwan Semiconductor Manufacturing Company plans to invest US$100 billion in new chip manufacturing facilities in the U.S. In Canada, Spectra7 Microsystems will be acquired by Parade Technologies. Shareholders could receive a special cash distribution of ~$0.028/sh. In news pertaining to Sophic Capital clients, Beacon Securities launched research coverage of Intermap) with $4.00/share price target. Legend Power debuted its voltage adherence risk metric to identify and combat “dirty power” in buildings.

Spectra7 Microsystems (SEV-TSXV) and Parade Technologies, Ltd. enter into Definitive Agreement for sale of substantially all of spectra7’s assets.

Spectra7 Microsystems Inc. has entered into a definitive agreement (the “Purchase Agreement”) with Parade Technologies, Ltd. (“Parade”), an arm’s length party and a leading supplier of video display, touch controller, and high-speed interface ICs, under which Parade will acquire substantially all of the assets (the “Assets”) of Spectra7 and its subsidiaries (the “Sale Transaction”). The Assets include intellectual property (IP), products, designs, inventory, and other specified items. The purchase price (the “Purchase Price”) for the Assets is US$9,000,000 (approximately $12,933,000) in cash. On closing (the “Closing”) of the Sale Transaction, Parade shall make a cash payment to Spectra7 equal to the Purchase Price, less: (i) the Bridge Loans (as defined below), and (ii) US$1,800,000 (approximately $2,586,600) (the “Escrow Amount”). The Escrow Amount shall be deposited into escrow with a third-party escrow agent to cover certain potential indemnity claims by Parade until the date that is one year after the closing of the Sale Transaction (the “Escrow Release Date”). The total Special Distributions to the Spectra7 Shareholders is expected to be approximately US$5,100,000 (approximately $7,328,700) or approximately $0.028 per share. https://tinyurl.com/28nercwu

Sophic Client Legend Power Systems Inc. (LPS-TSXV, LPSIF-OTC) debuts its voltage adherence risk metric to identify and combat “dirty power” in buildings.

Legend Power Systems, announces its new Voltage Adherence Risk measurement service. This new tool, not only will highlight the scope of dirty power but also demonstrates the extent of the problems that need to be addressed urgently. This new metric is expected to shorten the sales cycle for organizations to make decisions to install Legend’s SmartGATE solutions. The Voltage Adherence Risk measurement in the Power Impact Report creates greater understanding of the extent and impact of poor power in any commercial facility. By tracking the minutes and hours per month a building experiences different levels of voltage deviation, owners and operators can finally take control of power issues rather than being forced to accept them. The SmartGATE Insights Power Impact Report is available now as part of Legend Power’s SmartGATE Insights Power Impact Assessment. https://t.co/7McDiUkN9i

Stock market volatility delays a planned big 2025 IPO.

Genesys, a private equity-backed customer service software company, delayed what would have been one of the largest initial public offerings of the year, citing a sliding stock market, people familiar with the matter said. The company’s advisers told people in recent days that it would push back the IPO by at least a few months, rather than try to go public in April or May as it had planned, the people said. The delay is another bruise to an IPO market that was looking toward public debuts by private equity-backed firms to help fuel a long-awaited revival. Genesys, which filed its IPO paperwork confidentially last fall, has been discussing a valuation of more than US$20 billion, one of the people said. It canceled a presentation it had planned for equity research analysts later this month because it doesn’t want to list publicly during a period of high market volatility, the people said. Volatility in stock and bond markets has surged in recent months as investors digest President Donald Trump’s on-again, off-again tariffs and grapple with the possible impacts of the president’s policies on government debt, the budget deficit and inflation. The riskiest parts of the market soared after Trump’s election but have tumbled over the past month. The Nasdaq is down nearly 10% from its recent peak, and stocks such as Nvidia and Tesla, are down significantly more. Only about a dozen software and internet companies have gone public through IPOs since the start of 2022, according to research by RBC Capital Markets, compared with about 100 in 2020 and 2021. https://tinyurl.com/4n4h736j

Gemini files confidentially for IPO.

Gemini, the crypto exchange founded by billionaire twins Cameron and Tyler Winklevoss, has filed confidentially for an initial public offering, Bloomberg reported. The exchange is working with Goldman Sachs and Citi as advisers and may go public as soon as this year, the outlet said, citing people familiar with the matter. Kraken, another crypto exchange, is aiming for an IPO in 2026, Bloomberg reported. A wave of crypto companies are gearing up to go public under a favorable regulatory environment. Circle also filed confidentially for an IPO in January 2024. https://tinyurl.com/4n48b5fh

Discord explores IPO.

Discord, the social messaging app, is in early talks with bankers about an initial public offering, the New York Times reported Wednesday. The company could go public as early as this year, according to the report. “We understand there is a lot of interest around Discord’s future plans, but we do not comment on rumors or speculation,” said a spokesperson for the company in a statement. “Our focus remains on delivering the best possible experience for our users and building a strong, sustainable business.” https://tinyurl.com/5n7akx4x

Humanoid robotics firm ‘Figure’ attracts US$39 billion valuation—and questions.

The three-year-old startup, which designs humanoid robots for work in factories and homes, is planning to raise US$1 billion to US$2 billion in equity financing at a US$38.5 billion pre-money valuation. That’s a staggering 15 times its valuation from a year ago. However, the venture funds which are putting money into the round—Align Ventures, Parkway Venture Capital and FutureNow Technologies, according to FutureNow general partner Rodney Thompson—previously invested in Figure. That makes their bidding up the value of their existing stakes less meaningful. https://tinyurl.com/dec6juse

Anthropic valued at US$61.5 billion.

Anthropic, the company behind the Claude series of artificial intelligence models, announced Monday that it has raised US$3.5 billion in its Series E funding round, hitting a US$61.5 billion valuation including the new money. The investment is higher than the US$2 billion initially discussed with some investors. Returning investor Lightspeed Venture Partners led the round. Other investors included Bessemer Venture Partners, Cisco Investments, D1 Capital Partners, Fidelity Management, General Catalyst, Jane Street, Menlo Ventures and Salesforce Ventures. The new pre-money valuation is about 58 times its year-end $1 billion in annualized revenue. While that makes Anthropic one of the most highly valued AI startups, the revenue multiple has dropped sharply from a year ago as revenue has surged. https://tinyurl.com/22ccwsfa

ByteDance hikes share price in latest employee buyback.

ByteDance is allowing current and former employees to sell their shares to the company at a slightly higher price than six months ago. The TikTok parent company set the price for an upcoming employee share buyback at about US$190 a share for current employees and US$161 per share for former employees, according to a notice sent to current and former employees. That’s up 5% to 6% from September, when ByteDance offered current employees US$181 a share and former employees about US$154 a share. It also offered an employee buyback in March 2024. The new buyback values the company at an estimated US$315 billion, based on the company’s valuation late last year, when it bought shares back from investors at a $300 billion valuation. A TikTok spokesperson did not immediately respond to a request for comment. ByteDance has offered regular share buybacks for employees and investors, to give shareholders a way to cash in their stock. ByteDance’s long-expected IPO has been indefinitely on hold since China started to crack down on its internet giants and tensions between China and the U.S. worsened. TikTok’s fate in the U.S. is still up in the air after President Trump delayed enforcement of a ban. Reuters earlier reported on the buyback. https://tinyurl.com/5dbvccnc

Plaid in talks for secondary share sale at US$6 billion valuation.

Fintech startup Plaid is in talks to arrange a secondary share sale at about a US$6 billion valuation, led by mutual fund Franklin Templeton, three people involved in the discussions said. The valuation would be a decline from the US$13.4 billion price at which the company last raised money in 2021. The company ended last year with about US$400 million annual recurring revenue, up more than 25% from the previous year, the people said. The terms of the talks could shift. Goldman Sachs is arranging the share sale. https://tinyurl.com/mr42jvr6

Ramp hits US$13 billion valuation, topping pandemic peak.

Ramp, the business card and expense software startup, has sold US$150 million in existing shares held by employees and early investors at a US$13 billion valuation, the company said on Monday. Buyers included Stripes, GIC, Thrive Capital, Khosla Ventures and General Catalyst. The announcement follows an earlier report in The Information that Ramp was considering selling shares at a US$11 billion valuation. The secondary offering represents a complete recovery in Ramp’s valuation. After investors valued it at US$8.1 billion in 2022, Ramp slashed its valuation in a subsequent fundraising. The New York-based startup joins other financial services companies in arranging secondary sales as most put off public offerings that allow employees to cash out. Payments giant Stripe is arranging for sales of employee and investor shares at a US$91.5 billion valuation. Plaid is also working on a secondary sale of between US$300 million to US$400 million, according to Bloomberg. https://tinyurl.com/2s3ewef9

CrowdStrike falls 9% on disappointing earnings forecast.

CrowdStrike shares dropped nearly 9% in extended trading on Tuesday after the cybersecurity software provider issued disappointing earnings guidance. For the year, CrowdStrike said it expects earnings, excluding some items, to range between US$3.33 and US$3.45 per share, falling short of the US$4.42 expected by analysts polled by LSEG. First-quarter earnings are expected to be between 64 cents and 66 cents per share, versus the average estimate of 95 cents. Despite the after-hours drop, CrowdStrike topped some metrics from Wall Street. The company posted US$4.24 billion in annual recurring revenue, reflecting 23% growth. That topped the US$4.21 billion estimate from analysts surveyed by StreetAccount and included US$224 million in net annual recurring revenue. Revenue guidance was roughly in line with estimates. CrowdStrike said it expects revenue of between US$4.74 billion and US$4.81 billion for the year, versus an LSEG estimate of US$4.77 billion. The earnings release comes almost eight months after a technology update from the company led to a global IT outage that grounded flights, disrupted businesses and led to class action lawsuits. https://tinyurl.com/bd397dsa

Broadcom’s AI chip revenue rises 77%, lifting shares.

Broadcom said Thursday its revenue from designing and selling artificial intelligence server chips rose 77% to US$4.1 billion in the quarter that ended in Feb. 2 from the same period a year earlier. It projected US$4.4 billion in such revenue in the current fiscal quarter, up 44% from a year earlier. Nvidia last week posted 93% year-over-year growth in sales of its own AI server chips and networking gear. Nvidia’s AI chip revenue is about 10 times bigger than that of Broadcom, which sells such chips to major firms such as Google, Apple and OpenAI. CEO Hock Tan said Thursday that in the past three months, two additional large technology firms started working with Broadcom to potentially produce custom AI chips at scale. The Broadcom results, which included a 28% increase in free cash flow to US$6 billion in the February quarter, boosted shares more than 11% in after-hours trading. Its shares have been bumpy after rising nearly 40% following its last earnings report in December, when Tan said the AI chip business would generate tens of billions of dollars in revenue in the fiscal year that ends November 2027. He reaffirmed the projection in a call with analysts on Thursday. Before Thursday’s earnings report, shares had fallen to nearly the same level they traded at before the spike. https://tinyurl.com/527w3tzk

Trump signs executive order to build Bitcoin reserve.

President Donald Trump signed an executive order Thursday to establish a U.S. bitcoin reserve and a digital asset stockpile for non-bitcoin tokens, ahead of the first-ever White House crypto summit on Friday. But crypto prices dropped following the announcement, because the stockpile will only involve the government maintaining existing crypto holdings, not buying large amounts of new crypto. Under the order, the U.S. will keep bitcoins it has already acquired through forfeitures in criminal or civil proceedings and develop strategies for acquiring additional bitcoin without imposing costs on taxpayers. The order also says the government will not acquire additional non-bitcoin tokens, other than those already gained through government seizures. Bitcoin fell as much as 5.7% after the executive order, before paring some losses to trade at $89,749 Friday morning. Ether, XRP, solana, cardano also fell. https://tinyurl.com/y56x9pkz

Italy has doubts about Starlink deal.

The Italian government is having doubts about completing a US$1.6 billion deal with Elon Musk’s Starlink, Bloomberg reported, citing people who said the concerns related to the U.S. retreat on commitments to European security. Starlink faces alternatives such as Eutelsat Communications in Italy, according to the report, which highlights the growing risks that Elon Musk faces from his close association with the Trump administration. Already statistics out of Europe have shown a sharp decline in Tesla sales. Bloomberg also reported on Wednesday that Tesla’s sales in China had dropped 49%. Musk may pick up some extra business in the U.S., at least for Starlink. Reports have suggested the Federal Aviation Administration may abandon a deal with Verizon in favor of one with Starlink. https://tinyurl.com/3cpb8pru

OpenAI reportedly plans to charge up to US$20,000 a month for specialized AI ‘agents’.

OpenAI may be planning to charge up to US$20,000 per month for specialized AI “agents,” according to The Information. The publication reports that OpenAI intends to launch several “agent” products tailored for different applications, including sorting and ranking sales leads and software engineering. One, a “high-income knowledge worker” agent, will reportedly be priced at US$2,000 a month. Another, a software developer agent, is said to cost US$10,000 a month. OpenAI’s most expensive rumored agent, priced at the aforementioned US$20,000 per-month tier, will be aimed at supporting “PhD-level research,” according to The Information. It’s unclear when these agentic tools might launch or which customers will be eligible to purchase them. But The Information notes that SoftBank, an OpenAI investor, has committed to spending US$3 billion on OpenAI’s agent products this year alone. OpenAI needs the money. The company lost roughly US$5 billion last year after paying for costs related to running its services and other expenses. https://tinyurl.com/329frdjx

YouTube Premium and Music surpass 125 million subscribers.

YouTube said its YouTube Premium and Music subscription services now have more than 125 million global subscribers, including those on free trials. YouTube is also expanding a cheaper ad-free tier it has been testing in the U.S. and in some markets overseas as the video giant aims to grow subscription revenues. The cheaper tier, called Premium Lite, is available for $7.99 per month, compared to $13.99 for YouTube Premium. It makes most videos on YouTube ad-free, with the exception of music videos, which will still require a YouTube Premium or Music subscription. YouTube Premium also offers users the ability to watch offline. The new tier is part of YouTube’s efforts to grow its subscription business, which generated more than US$15 billion in revenue during the 12 months that ended in September 2024. This has included offering a cheaper version of YouTube Premium that could entice users who do not want to pay US$13.99 per month, as well as growing products such as YouTube Primetime Channels, which allows users to subscribe to TV streaming services such as Paramount+ and Max without leaving the YouTube app. In the coming weeks, YouTube said it will expand the availability of Premium Lite in other test countries including Germany, Australia and Thailand, with plans to expand it to even more markets later this year. https://tinyurl.com/5n98vdda

Trump, TSMC announce US$100 billion chip factory investment in U.S.

Taiwan Semiconductor Manufacturing Company plans to invest US$100 billion in new chip manufacturing facilities in the U.S., President Donald Trump and CEO C.C. Wei said during a press conference on Monday. Trump said TSMC’s plan, the largest foreign direct investment in U.S. history, is “a tremendous move by the most powerful company in the world.” The investment will fund the construction of three new chip-making plants, in addition to an existing facility in Arizona that will begin mass production this year. TSMC will also set up two advanced packaging facilities that are essential for improving chip performance, particularly for artificial intelligence applications. The new facilities are expected to produce hundreds of billions of dollars worth of chips for AI and other advanced technologies, according to TSMC. The investment is expected to create 40,000 construction jobs and tens of thousands of high-paying jobs in chip manufacturing and research and development, the company said. The Wall Street Journal first reported the new TSMC investment. U.S. officials have long been concerned about the lack of chip manufacturing on American soil. It is unclear whether the Trump administration has plans to help the new TSMC plants to attract customers, such as incentives for companies that produce their AI chips in the U.S. In 2020, TSMS said it would build a chip manufacturing plant in Phoenix, Arizona for US$12 billion. It recently increased the investment to $65 billion to expand the site, alongside an up to $6.6 billion subsidy from the U.S. Commerce Department. https://tinyurl.com/5pm2ddkj