Naira Crude Sale Faces Dollar Fee Challenges 💲

Good morning. It's Thursday, Aug. 8, and we're covering, Naira Crude Sale Faces Dollar Fee Challenges, How Intel Missed Out On The AI Boom, UK And Egypt Issue Alerts To Avoid Iranian And Lebanese Airspace, 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 $2.01 Trillion, a 0.02% decrease in the last 24 hours.

• The total crypto market volume over the last 24 hours is $96.53B, which makes a 6.80% decrease.

• The total volume in Defi is currently $4.25B, 4.40% of the total crypto market 24-hours.

• The volume of all stablecoins is now $89.33B, which is 92.54% of the total market 24-hour volume.

• Bitcoin’s dominance is currently 56.08%, an increase of 0.21% over the day.

Bitcoin Miners Seek New Revenues After Halving

Bitcoin miners are facing a critical juncture as the recent halving event has impacted their revenue streams. The halving, which reduced the Bitcoin block reward from 6.25 BTC to 3.125 BTC, has introduced financial strain on major mining operations. With the industry grappling with decreased earnings, miners are exploring innovative strategies to sustain profitability. (Read Deeper)

BUSINESS & FINANCE

Naira Crude Sale Faces Dollar Fee Challenges

The Nigerian government's plan to sell crude oil in naira is facing challenges due to the industry's reliance on dollar-denominated transactions, regulatory fees, and royalties. The initiative, driven by President Bola Tinubu and approved by the Federal Executive Council, aims to sell 450,000 barrels for domestic consumption in naira, starting with the Dangote refinery. However, the heavily dollarized oil market and existing contracts with International Oil Companies (IOCs) specifying dollar payments pose hurdles. Regulatory fees from the Nigerian Upstream Regulatory Services Commission (NUPRC) are also charged in dollars, complicating the implementation of naira transactions.

Why It Matters: Industry experts and financial analysts are skeptical about the feasibility of the policy, noting potential legal disputes and the need for a regulatory framework. The Crude Oil Refinery-Owners Association of Nigeria (CORAN) confirmed that none of its members have started receiving crude oil in naira and emphasized the need for stakeholder involvement in the process. As the government navigates these complexities, the industry awaits further discussions and a clear regulatory framework to resolve the challenges of transitioning to naira-based crude sales. (Read Deeper)

Sendsprint Expands To The US With Acquisition Of Nobel Financial

Sendsprint, a cross-border payments startup operating in the UK, Ghana, Kenya, South Africa, and Nigeria, has acquired US-based remittance company Nobel Financial Inc. for an undisclosed amount. This acquisition will enable Sendsprint to offer money transfers and gift-sending services to customers in 16 US states. Nobel Financial Inc.'s Chief Compliance Officer, Scott McClain, will join Sendsprint in the same role. Launched in 2022, Sendsprint competes with established players like Western Union and MoneyGram and charges a $5 flat fee for transactions. The company claims to partner with over 3,000 retailers across Africa—including major names like Shoprite, Dapper Monkey, Jumia, and Cake City—to allow users to send gift cards to recipients on the continent.

Takeaway: Nobel Financial, founded in 2014, offers remittance services to over 32 countries and allows in-kind gifts to Africa. The acquisition comes as remittance flows to Africa reached $100 billion in 2022, driven by rising migration and improved financial wellbeing among Africans in the diaspora. (Read Deeper)

TECHNOLOGY & SCIENCE

How Intel Missed Out On The AI Boom

About seven years ago, Intel had the opportunity to invest in OpenAI, the then-fledgling research organization behind ChatGPT. Discussions in 2017 and 2018 considered Intel buying a 15% stake for $1 billion and another 15% stake if Intel made hardware for OpenAI at cost. Intel ultimately declined, with then-CEO Bob Swan doubting the immediate market potential of generative AI models. Intel, once a leader in computer chips, has seen its stock price plummet, with its market value falling below $100 billion for the first time in 30 years. Despite multiple attempts, including acquiring startups Nervana Systems and Habana Labs, Intel has yet to produce a successful AI chip, lagging behind Nvidia and AMD.

Takeaway: OpenAI, which aimed to reduce reliance on Nvidia’s chips, later received investment from Microsoft, propelling it to launch ChatGPT in 2022 and achieve a valuation of around $80 billion. Intel’s decision against the investment marked a major missed opportunity as the company struggled to adapt to the AI era. (Read Deeper)

Anduril Raises $1.5 Billion, Valued At $14 Billion

Anduril Industries, a defense tech startup founded by Palmer Luckey, has raised $1.5 billion in a funding round that values the company at $14 billion. This investment highlights Anduril's ambition to become a major defense contractor alongside established firms like Lockheed Martin and Boeing. The company recently outperformed industry giants in a program to develop unmanned fighter jets and aims to move faster than its competitors by adopting a Silicon Valley approach to defense production. The funding round was co-led by Founders Fund and Sands Capital, with new participation from major institutional investors like Fidelity Management and Research Company and Baillie Gifford.

Takeaway: Anduril's new funding will support the expansion of its "Arsenal" manufacturing platform, which includes a facility designed to produce tens of thousands of autonomous military systems annually. The company plans to employ over 1,500 people and focus on producing scalable, cost-effective defense systems. Anduril's success is spurring increased interest in the defense tech sector, though it remains uncertain if this trend will extend beyond the company itself. (Read Deeper)

AROUND DE WORLD & POLITICS

UK And Egypt Issue Alerts To Avoid Iranian And Lebanese Airspace

Due to escalating fears of broader military conflict in the Middle East, the UK and Egypt have advised their airlines to avoid Iranian and Lebanese airspace. This caution follows the killing of senior members of Hamas and Hezbollah, increasing regional tensions. Egypt's advisory specifically targets a three-hour window on Thursday, during which Iran is conducting military exercises. The Egyptian directive was prompted by a notification from Iran about military exercises scheduled on August 7 and 8. This precautionary measure aims to enhance flight safety amidst rising regional tensions.

Why It Matters: Globally, airlines are adjusting their routes to avoid these regions, with some suspending flights to Israel and Lebanon. This move mirrors past industry precautions, such as after the MH17 incident over Ukraine. Notably, U.S.-based United Airlines and Delta Air Lines have paused flights to Tel Aviv, while Singapore Airlines and Egyptian airlines have already rerouted away from Iran. (Read Deeper)

FG Warns Foreign Nations To Steer Clear Of Nigeria’s Internal Affairs

The Federal Government of Nigeria has warned foreign nations to refrain from interfering in the country's internal affairs amid ongoing protests against economic hardship. This warning follows the display of foreign flags and the arrest of several foreigners allegedly sponsoring the protests in northern states like Kano, Kaduna, and Zamfara. The protests have been marked by violence and have spread to cities such as Lagos, Benin, Osun, Oyo, and others. The Minister of Foreign Affairs, Yusuf Tuggar, emphasized the importance of non-interference while also highlighting Nigeria's commitment to maintaining international relationships.

Takeaway: In response to recent unrest, the Department of State Services (DSS) is investigating the involvement of seven Polish nationals who were arrested in Kano for allegedly waving Russian flags. The DSS emphasized that the arrests were based on security enforcement and were not targeted at any specific nationality. The Minister of Information and National Orientation, Mohammed Idris, reaffirmed the government's support for peaceful assembly and freedom of expression, vowing to investigate and address any violence during the protests. (Read Deeper)

ENTERTAINMENT & SPORTS

USA Knock Out Nigeria D’Tigress Out Of The Olympic

The United States women's basketball team defeated Nigeria 88-74 in the quarter-finals of the Olympic Games, continuing their quest for an eighth consecutive gold medal. They will face Australia in the semi-finals, who won against Serbia 85-67. Nigeria made history as the first African team to reach the Olympic quarter-finals but struggled against the experienced USA team. (Read Deeper)

Taylor Swift's Vienna Shows Canceled After Thwarted Terror Attack

Taylor Swift's three planned concerts in Vienna this week were canceled due to confirmed terrorism threats. Barracuda Music, the promoter, announced the cancellation on Instagram, citing government confirmation of a planned attack at Ernst Happel Stadium. Swift's official website confirmed the cancellations and stated that refunds would be issued within 10 business days. Swift was scheduled to perform sold-out shows from Thursday to Saturday, with an expected 170,000 fans. (Read Deeper)

PODCAST(WHAT WE ARE LISTENING TO)

• Elon Musk: Neuralink and the Future of Humanity. (Listen)

EXTRA BREVITI

• Techstars Announces Layoff of 17% Workforce and Ends J.P. Morgan-backed Programs. (Read More)

• SoftBank Returns to Profit with Vision Fund, Announces Up to $3.4 Billion Share Buyback. (Read More)

• Quincy Hall Stuns with Comeback Victory in Men's 400m(Read More)