QuantumScape now belongs to Siemens. Coinbase is diversifying. J. P. Morgan develops the technology direction.
Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.
If I change the battery: QuantumScape successes
Startup QuantumScape (NYSE: QS), engaged in R&D in the field of batteries for electric vehicles, signed a long-term agreement with energy storage solution provider Fluence Energy. QS Technology, according to the terms of the agreement, will be used in fixed Fluence equipment.
This can be considered a great success for QS: the previously planned path for the development of the company assumed the development of the electric car direction.
But collaboration with Fluence gives hope, that its solutions will be more widely used: the rapid spread of ESG principles in the financial world is forcing many industrial enterprises to show zeal in the fight against global warming. The use of energy-efficient technologies in production is one of the options to wave a rag in front of the “greens” without terrible damage to their business..
Fluence itself is a joint venture between two industrial giants: Siemens and AES. Therefore, if the experience of their cooperation with QS turns out to be successful, then QS technology will receive excellent advertising - this will be a big plus for its quotes, as well as for business. More precisely, even so: QS is finally moving away from R&D alone and moving closer to being a commercial enterprise.
For its shareholders it is, certainly, will be a great joy: Siemens and AES have enough resources to, to keep part of the QS business afloat and not let it go bankrupt too quickly.
But in general, if we extrapolate the experience of QS to other issuers "without commercial activity, but with great technological ambitions", then, probably, it wouldn't be such a bad idea to look at other similar companies: suddenly they are also lucky and they will receive a major contract.
Based coin: Coinbase Expands Business
Coinbase cryptocurrency exchanger (NASDAQ: COIN) buys derivatives exchange FairX. The amount of the deal is still unknown., but expected, that it will be closed this quarter, so sooner or later we will find out the cost of FairX from the report of Coinbase itself.
Coinbase bought the platform with an eye to further developing its own crypto derivatives trading business using the partner ecosystem already built by FairX. Supposed, that FairX will help Coinbase popularize crypto investing among retail investors, which would greatly strengthen Coinbase's business.
The move by Coinbase is absolutely logical: its competitors FTX US, CME Group is also developing crypto derivatives trading. And Coinbase itself is closely within the framework of its main exchange business: activity in this area is extremely volatile, depending on the ups and downs of client activity, it turns out to be empty, then thick. Not so long ago, the company tried to diversify through the introduction of credit products based on cryptocurrencies., but the case stalled due to the unfriendly position of the regulators.
Crypto exchange Gemini is also trying to develop alternative areas of work: she recently bought Bitria, a portfolio management platform, used by financial advisors. Gemini hopes to attract institutional investors to its platform, who are still very cautious about using cryptocurrencies.
Probably, Coinbase will continue to invest in the development of alternative sources of income, that will strengthen the company in the long term. Understandably, that the effect of these investments will not appear immediately, but very good, that Coinbase management understands the need to invest current windfall profits to diversify their business. After all, the final margin of the company is greater 40% from proceeds.
Fintech must invest: J. P. Morgan will be generous on technology
American investment bank J. P. Morgan (NYSE: JPM) announced, that this year will increase its spending by $3 billion to $15 billion overall. Moreover, most of this money - 12 billion - the bank plans to spend on technology..
The announcement came amid disappointing analysts' quarterly results.. There is, certainly, probability, that JPM wants to distract investors from the unpleasant obvious fact: her business began to slip. Boom in stock trading, thanks to which the bank was able to make excellent money at the beginning of the pandemic, has already passed - but low rates prevent you from earning now.
In this regard, it would be logical to expect, that JPM management will look for new investment opportunities in fintech in the hope, that the money invested in this will be beaten back "somehow". But if JPM doesn't have a clear plan, How will these technologies be used?, then the bank runs the risk of simply wasting money in vain - and the story with Gref and programmers will repeat itself. However, it's too early to judge.
Probably, JPM's example will be followed by all other major US banks, which will greatly increase the demand for fintech companies. And it will be very good for fintech startups: if they don't buy, then, at least, they can hope for some major contract and partnership with leading US financial institutions, which will now boost investment in fintech. Therefore, finding such startups and investing in them for this purpose will not be the most stupid idea..
