SoftBank Returns to Bitcoin Investing

CRYPTO
SoftBank Returns to Bitcoin Investing

SoftBank, the $308.7 billion Japanese investment giant, is stepping back into crypto by backing Twenty One Capital—a new bitcoin investment firm—alongside Tether, Bitfinex, and Cantor Fitzgerald. For some, SoftBank’s renewed interest signals growing institutional adoption of bitcoin, with Bitwise’s Jeff Park even likening the firm to a Japanese sovereign wealth fund. But for longtime observers, this feels more like déjà vu than a breakthrough.

In 2019, SoftBank’s founder Masayoshi Son infamously lost $130 million after buying bitcoin near its 2017 peak and selling during the 2018 crash. Had he held on, his investment would be worth far more with bitcoin now at $93,000. Skeptics may wonder if history will repeat. Interestingly, following news that SoftBank would help lead a $100 billion U.S. AI push with OpenAI and Oracle, ORCL stock fell 28%. One analyst quipped, “When SoftBank enters an asset you own, you sell.” Is this pattern coincidence—or a warning?

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TECH
Google Posts Strong Q1 Results

Despite economic fears, Google showed no signs of slowing down in Q1. The tech giant reported strong earnings, with revenue rising 12% year-over-year to $90.2 billion and EPS hitting $2.81, well above expectations. Advertising and cloud services fueled growth, especially from sectors like finance, healthcare, and retail. YouTube ad revenue grew 10% to $8.9 billion, and cloud revenue jumped 28% to $12.3 billion.

Alphabet announced a $70 billion stock buyback and raised its dividend slightly. Still, executives remained tight-lipped about Q2 conditions, offering no updates on how recent economic turbulence or Trump-era trade tensions might affect business. While Alphabet faces risks from tariffs, AI competition, and regulatory threats, the company emphasized progress in AI and search tools, with 1.5 billion users now using “AI Overviews.” With no guidance offered, some interpret Alphabet’s silence as quiet confidence. As advertising makes up 75% of revenue, future ad demand remains the key question.

FINANCE
Intel Warns of Recession Risk

Intel’s CFO David Zinsner warned that President Trump’s tariffs and international retaliation are raising the risk of a global recession. On Intel’s latest earnings call, he cited fluid trade policies and regulatory uncertainty as key threats to economic stability. Although Intel beat expectations in Q1—helped by customers stockpiling chips before tariffs hit—its guidance for the current quarter fell short, sending the stock down over 5% in after-hours trading.

Intel forecasted revenue between $11.2 billion and $12.4 billion, a wider-than-usual range due to tariff uncertainty. Zinsner noted that higher costs and reduced consumer demand could shrink the overall chip market. Intel, despite manufacturing some processors in the U.S., relies on global supply chains, including Taiwan, Korea, Europe, and China. CEO Michelle Johnston Holthaus added that customers are hedging by favoring cheaper, older-generation chips. New CEO Lip-Bu Tan pledged to cut costs and streamline operations amid this challenging macro environment.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.