Below is the latest edition of #w3w, my free newsletter about decentralization. If you would like to receive it in your inbox every Sunday, please subscribe here.
Earnings season is winding down on Wall Street, when the largest public companies in the U.S. announce their profits. That includes several whose results for the first quarter were significantly shaped by crypto -- and in some cases offer hints about its future.
A few highlights:
- Robinhood handily beat analysts' expectations thanks to its crypto trading revenue, which more than tripled in the first quarter compared to a year ago. However, the firm also disclosed that its crypto unit is under investigation by the Securities and Exchange Commission, which may announce an enforcement action soon. (The Block)
- Block, maker of the payment apps Cash and Square, also beat analysts' expectations. The company was bolstered in part by a program to steadily buy bitcoin for its corporate treasury -- a practice it will continue through 2024. Block's strong earnings the last two quarters have propeled the company's market valuation high enough that it may enter the S&P 500 soon.
- Earlier this month, Coinbase announced its quarterly revenue hit $1.64 billion, well ahead of Wall Street's expectation of $1.34 billion. The trading platform has recently seen a big increase in consumer transactions, as well as an increasing role as a custodian of bitcoin for institutions offering exchange-traded funds pegged to that token. (CNBC)
- Big Tech's economic dominance has also shined through loud and clear in this season's earnings reports. Just 10 companies, most of them tech giants like Apple, Alphabet, and Microsoft, now hold 34% of the cash on S&P 500 companies' balance sheets. (Investor's Business Daily)
Of course, the week also saw some notable tech headlines beyond Wall Street. Let's get to those as well...
Week in Review: May 5-11, 2024
- A bill to set a comprehensive framework for U.S. crypto legislation will get a vote before the full House, according to Rep. Patrick McHenry (R-N.C.), chairman of the chamber's Financial Services Committee. But the legislation faces a more uncertain path in the Senate. (CoinDesk)
- TikTok sued the U.S. government over a new law that could result in its app being banned in America. TikTok says the law violates its users' First Amendment rights. (Variety)
- FTX is ready to repay all non-governmental creditors in full, according to a plan the bankrupt exchange's laywers unveiled Tuesday. A federal bankruptcy judge in Delaware will have to approve the plan for it to move forward. (CNN)
- Exiled Russian dissident Mark Feygin is launching an anonymous referendum on the Arbitrum blockchain regarding the legitimacy of Vladimir Putin’s recent re-election. (CoinDesk)
- Erik Voorhees, a longtime bitcoiner and founder of the exchange ShapeShift, announced a new artificial-intelligence venture. Dubbed Venice AI, it will offer a privacy-focused chatbot. (Decrypt)
- Dfinity Foundation's Internet Computer Protocol celebrated the third anniversary of its mainnet launch Friday with a nine-hour online event that included developer talks, project showcases, and more. Congrats!
- In a new paper, researchers propose using an enhanced, ultra-pure form of silicon to create powerful chips for use in quantum computers. (Space.com)
- Welcome to New York. The Big Apple is attracting AI startups in an attempt to become a hub for such technology, according to the Wall Street Journal. The city is also set to host an expo for "smart city" tech next week.
Odds & Ends
- Fewer U.S. schoolchildren ages 8-12 are reading for pleasure. One possible explanation: This demographic is mostly too young to have smartphones, thus harder for marketers to target. (Slate)
- Quantitative trading pioneer Jim Simons died at 86. The son of a Boston shoe-factory executive, Simons as a child ignored the advice a family physician who said he would never make a living studying mathematics. (Wall Street Journal)
That's it for now. Thanks for reading the newsletter today! Again, if you want to receive #w3w in your inbox every Sunday, subscribe here.
Best wishes for a healthy and productive week ahead.