😲Bybit Suffers $1.5 Billion Hack

☀️Good morning. It's Monday, Feb. 24, and we're covering, Berkshire Hathaway Record Profits On Insurance And Investment Gains, Alibaba Plans $53 Billion AI Investment In Major Strategic Shift, Conservatives Led By Friedrich Merz Win German Election, and much more. First time reading? Sign up to get this newsletter: Sign up here. 

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MARKETS

Cryptocurrency Prices by Market Cap

• The global cryptocurrency market cap today is $3.12 Trillion, a 1.54% decrease in the last 24 hours.

• The total crypto market volume over the last 24 hours is $84.33B, which makes a 23.14% increase.

• The total volume in Defi is currently $6.7B, 7.94% of the total crypto market 24-hours.

• The volume of all stablecoins is now $79.41B, which is 94.17% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 60.79%, an increase of 0.55% over the day.

Bybit Suffers $1.5 Billion Hack But Assures Funds Are Safe, CEO Says

Bybit, a major cryptocurrency exchange, has suffered a $1.46 billion hack, making it potentially the largest crypto heist in history. The breach targeted an Ethereum cold wallet, with 401,346 ETH ($1.1 billion) and other staked ETH being transferred to an unknown address. The hacker has already liquidated $200 million on decentralized exchanges. Bybit CEO Ben Zhou confirmed the hack but reassured users that all other cold wallets are secure and withdrawals remain unaffected. The incident caused ETH to drop 4% and BTC to fall over 1.5%. If verified, this hack surpasses past major crypto breaches, including Mt. Gox ($470M) and Ronin Bridge ($650M). (Read Deeper)

BUSINESS & FINANCE

Berkshire Hathaway Record Profits On Insurance And Investment Gains

Warren Buffett's Berkshire Hathaway reported record operating profit for the fourth quarter and full-year 2024, driven by strong performance in its insurance businesses and higher investment income. Despite record profits, 53% of Berkshire’s 189 businesses saw earnings decline. Buffett remains cautious, preferring investments over cash holdings but acknowledging that attractive deals are scarce.

Takeaway: Berkshire ended 2024 with $334.2 billion in cash, double the previous year, largely from $143.4 billion in stock sales, including selling 62% of its Apple holdings. Improved underwriting at Geico and higher U.S. Treasury yields boosted profits. Geico’s pre-tax underwriting profit rose 29% in Q4 and more than doubled in 2024. Berkshire repurchased only $2.9 billion of its stock in 2024, and none since May. Buffett signaled a lack of attractive investment opportunities. (Read Deeper)

Prosus To Acquire Just Eat Takeaway In $4.3 Billion All-Cash Deal

Technology investment giant Prosus NV has agreed to acquire Just Eat Takeaway.com NV for €4.1 billion ($4.3 billion) in what marks its largest acquisition to date. The all-cash deal, priced at €20.30 per share, represents a 49% premium to the company's three-month volume-weighted average.

Takeaway: Amsterdam-based Just Eat Takeaway.com, a leading food delivery platform, operates in 17 international markets, serving 61 million customers through its network of 356,000 local partners. Prosus CEO Fabricio Bloisi had previously stated that the company has close to $20 billion available for investments and is actively seeking expansion opportunities in Europe. (Read Deeper)

TECHNOLOGY & SCIENCE

Alibaba Plans $53 Billion AI Investment In Major Strategic Shift

Alibaba’s $53 billion AI investment signals a major strategic shift, putting it in direct competition with global AI leaders like OpenAI, Microsoft, and Alphabet. The company’s focus on AGI and AI infrastructure underscores China’s ambition to reduce reliance on foreign technology, despite challenges like U.S. chip sanctions.

Takeaway: Alibaba’s cloud and AI efforts will be crucial in the broader AI arms race, especially as companies like DeepSeek disrupt the market with lower-cost models. The company’s return to favor with Beijing also gives it political backing for these ambitions. (Read Deeper)

Musk’s Starlink Faces Growing Competition From China’s SpaceSail And Bezos’ Kuiper

Elon Musk’s Starlink is facing increasing competition in the satellite internet sector from Chinese state-backed rival SpaceSail and Jeff Bezos' Project Kuiper. SpaceSail, controlled by the Shanghai government, has aggressive global expansion plans, including deals in Brazil and Kazakhstan, and aims to launch 15,000 satellites by 2030. China, which launched a record 263 low-Earth orbit (LEO) satellites in 2023, is investing heavily in satellite networks, military research, and tracking technology to challenge Starlink’s dominance.

Why It Matters: The rapid growth of LEO satellite networks has raised concerns in the West over Beijing’s influence and potential internet censorship. The competition is intensifying as China accelerates its space strategy, positioning itself as a major player in satellite communications. (Read Deeper)

AROUND DE WORLD & POLITICS

Conservatives Led By Friedrich Merz Win German Election

Germany’s conservative Christian Democrats (CDU), led by Friedrich Merz, have won the country’s national election, while the far-right Alternative for Germany (AfD) surged to become the second-largest party. The election, held early after Chancellor Olaf Scholz’s coalition collapsed, was driven by concerns over economic stagnation, migration, and geopolitical uncertainty.

Takeaway: With 208 seats in the 630-seat Bundestag, Merz is in a strong position to become Germany’s next chancellor and aims to form a government by Easter. The AfD secured 152 seats, but remains isolated as mainstream parties refuse to collaborate due to its ties to right-wing extremism. Scholz will remain in office during coalition negotiations, as Germany prepares for a political transition amid mounting global challenges. (Read Deeper)

U.S. Government Officials Resist Musk’s Email Mandate

Elon Musk’s directive requiring 2.3 million federal employees to justify their work via a mass email has sparked confusion and resistance across U.S. government agencies. Many officials, including Director of National Intelligence Tulsi Gabbard, have instructed workers not to reply, citing security concerns, particularly in intelligence, defense, and law enforcement agencies.

Takeaway: Musk’s email, titled “What did you do last week?”, demanded five bullet-point summaries of work by Monday night. Musk warned that non-compliance would be treated as voluntary resignation, though legal experts say such a move would be unlawful. While some agencies like the Cybersecurity and Infrastructure Security Agency (CISA) initially ordered compliance, others, including the FBI, DHS, and Secret Service, later reversed course. (Read Deeper)

ENTERTAINMENT & SPORTS

Liverpool Make A Statement with A Win Over Man City

Liverpool silenced their critics with a dominant 2-0 victory over Manchester City at the Etihad, solidifying their title credentials and extending their lead at the top of the Premier League. Mohamed Salah led the way with a goal and an assist, bringing his season tally to 30 goals and 21 assists in 38 games. Liverpool now lead Arsenal by 11 points, though manager Arne Slot remains cautious, emphasizing the difficulty of maintaining form in the Premier League. (Read Deeper)

SAG Awards: ‘Conclave’ And Chalamet Shake Up Oscars Race

The Screen Actors Guild (SAG) Awards set the stage for a heated Oscars showdown as "Conclave" won Best Ensemble Cast, while Timothée Chalamet pulled off a surprise Best Actor win for his portrayal of Bob Dylan in A Complete Unknown. "Conclave", a papal thriller starring Ralph Fiennes, Stanley Tucci, John Lithgow, and Isabella Rossellini, took the top honor, strengthening its bid for Best Picture at the Oscars. With "Conclave" winning both the SAG and BAFTA top prizes, it’s a strong contender for Best Picture at the Oscars, but faces competition from "Anora", which won Producers and Directors Guild awards. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• Siqi Chen shared captivating anecdotes from his tenure at Zynga, the gaming company renowned for hits like "FarmVille" and "Words with Friends." He recounted the company's rapid growth and the intense, fast-paced environment that characterized its early operations. (Listen)

EXTRA BREVITI

• Pope is resting on 10th day of hospitalization after early stages of kidney failure detected. (Read More)

• Trump's Push for Ukraine Peace Talks Could Boost Russian Economy. (Read More)

• Palantir CEO Alexander Karp’s New Book Criticizes Silicon Valley’s Direction. (Read More)

• Aston Martin’s Fernando Alonso believes the team is in a much stronger position heading into the 2025 Formula 1 season. (Read More)