• GRIT
  • Posts
  • SEC Makes Huge Announcement

SEC Makes Huge Announcement

SEC, Energy Merger, Google

Good Morning!

It’s almost Friday! We have an exciting issue for you today:

👉 SEC makes a big announcement

👉 A huge energy merger

👉 Google lays off workers

Let’s get into it!

APPROVED: Bitcoin Spot ETFs Are Here

On Wednesday, the U.S. Securities and Exchange Commission (SEC) greenlit the nation's first exchange-traded funds (ETFs) that follow Bitcoin's value, marking a significant milestone for the leading cryptocurrency and the wider crypto sector.

This approval occurred just a day after a bogus announcement was mistakenly shared on the SEC’s social media account on platform X, claiming these products had been sanctioned for trading. The agency promptly refuted and removed the fraudulent post.

Source: Fox Business

A day later, the SEC gave the nod to 11 applications from major firms like BlackRock, Ark Investments/21Shares, Fidelity, Invesco, and VanEck. This decision came despite concerns raised by some officials and advocates for investors about the potential risks of these products. Most of these ETFs are slated to start trading on Thursday, as announced by the issuers, setting the stage for intense competition in the market.

These Bitcoin ETFs are transformative, representing a decade-long journey, allowing investors to gain exposure to the number one cryptocurrency without owning it directly. This move significantly bolsters the crypto industry, with companies gearing up for a wave of digital advertising and other promotional activities. Several issuers have already begun advertising campaigns highlighting Bitcoin as an investment option.

🎯 GRIT TAKE: Here is a cheat sheet…upgrade to VIP to read the full GRIT Take. 

MERGER: Between Energy Companies

Chesapeake Energy and Southwestern Energy have entered into a $7.4 billion all-stock merger, creating one of the U.S.'s largest natural gas producers. The deal, based on Chesapeake’s closing price on Wednesday, will see the merged company with a market value of over $17 billion. This merger is a significant step in Chesapeake’s shift towards natural gas since its 2021 bankruptcy emergence.

Source: Marketwatch

It follows their strategic acquisitions and divestitures in U.S. shale regions. Similar large-scale deals by Exxon Mobil, Chevron, and Occidental Petroleum underscore the consolidation trend in the energy sector. Expected to close in the second quarter, Chesapeake shareholders will own about 60% of the new entity, with the remainder held by Southwestern investors.

GOOGLE: Lays Off Hundreds

Google is proceeding with layoffs affecting several hundred employees in its digital assistant, hardware, and engineering departments as part of its cost-reduction efforts. This move is in response to growing competitive pressures on Google's primary search business from Microsoft and OpenAI's AI advancements.

Source: Business Insider

The tech giant, a subsidiary of Alphabet, joins a series of tech firms implementing workforce reductions this year, a trend that began in early 2023. Similar actions are seen at Amazon, which is downsizing its Prime Video and Twitch segments, and Unity Software, which is planning to cut its workforce by 25%.

Headlines You Need To Know: 🎙

  • CPI rose by 0.3% in December

  • What will it cost you to buy a Bitcoin spot ETF?

  • SpaceX and T-Mobile send first texts via Starlink

  • Citigroup at risk of quarterly loss

  • Bytedance is shutting down its music streaming service in India

  • Goldman traders dethrone Morgan Stanley

The WILD Founding of Air BnB

These tech-founders started selling cereal to raise cash and turned those profits into an $85 billion dollar business. The founders of Air BnB, Brian Chesky and Joe Gebbia, couldn’t afford rent in 2007 because they were trying to launch a failing startup. The Industrial Designers Society of America was hosting a conference in San Francisco, and all hotel rooms were booked. The two roommates decided to rent their rooms out so they could afford rent for the month. They bought three air mattresses and marketed their idea as “Airbed & Breakfast.” On the first night, they had three guests stay with them.

Source: Techcrunch

The two roommates went full-time on the new startup and added a 3rd founder, but unfortunately, they were making no money and struggling to pay their bills. To receive funding, Chesky and his co-founders created special-edition cereals called "Obama O's" and "Cap'n McCains" based on presidential candidates Barack Obama and John McCain. They sold these cereals at the Democratic and Republican conventions and raised over $50,000. Y-Combinator was impressed by their cereal venture and invited them to their seed funding program. Today, Airbnb has over 5 million listings and is in over 100,000 cities.

Chart of the Day

📊 House Prices Have Soared

Source: Fortune

GRIT Meme of the Day 😂

Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇

Source: @wallstmemes

Don’t follow us on social yet? Follow us on Instagram, TikTok, and Twitter.

Have feedback to share? Click HERE. Good or bad, we are always eager to improve our newsletter.

Interested in being featured in our GRIT Newsletters? Click below!

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

/

If you have any questions please contact us at help@gritcap.io

N

Join the conversation

or to participate.