Science & Environment
Jack Dorsey dramatically shutters Block’s TBD crypto unit
Jack Dorsey, co-founder of Twitter Inc., speaks during the Bitcoin 2021 conference in Miami, Florida, U.S., on Friday, June 4, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
During the crypto-crazed summer of 2021, when memecoins like dogecoin and Shiba Inu were rocketing alongside bitcoin and ethereum, Square founder Jack Dorsey announced that his payments company was starting a new business unit, with the goal of “making it easy to create non-custodial, permissionless, and decentralized financial services.”
“Our primary focus is #Bitcoin,” Dorsey proclaimed on Twitter. The name of the business unit would be TBD.
In December of that year, Dorsey went a step further, changing the name of Square Inc. to Block, a reference, he said, to a number of things, including blockchain, the technology underpinning bitcoin. The Square Crypto business became known as Spiral.
Three years later, Dorsey is in retreat.
On Block‘s third-quarter earnings call on Thursday, CFO Amrita Ahuja said Block has “made some recent decisions with respect to some of our emerging initiatives” and is “winding down our TBD efforts.”
Block continues to own a hefty amount of bitcoin on its balance sheet, with the current value of its holdings swelling to $630 million. And the company said it will be investing in a bitcoin mining initiative as well as Bitkey, its bitcoin wallet, while continuing to allow users to buy bitcoin through Cash App.
It’s a notable change of tune.
TBD was designed to be Block’s platform for developers. Block called it Web5 and said the mission was to create a more decentralized, secure and private internet. Dorsey said in a tweet in mid-2022 that Web5 “will likely be our most important contribution to the internet.”
Square’s five-year stock chart
But Wall Street’s view on crypto was starting to sour dramatically. With inflation soaring in 2022 and interest rates on the rise, shareholders demanded quicker returns on their investments. After peaking in 2021, Block shares lost more than 80% of their value before bottoming in October of last year.
Block said in late 2023 that it would cut its headcount — then about 13,000 staffers — by as much as 1,000 by the end of 2024. Fortune reported that Block laid off employees at TBD in recent weeks. And in the third-quarter shareholder letter, Block said it was “scaling back” its investment in Tidal, the music-streaming service founded by Jay-Z, after spending about $300 million on a majority stake in the business in 2021. Tidal was part of TBD.
Dorsey was asked by an analyst on Thursday’s call about the company’s current bitcoin strategy.
“What we’re focused on in terms of our strategy overall on bitcoin is making it more accessible, making sure that more people can access bitcoin, buy, sell it, obviously, but also send it peer-to-peer,” Dorsey said.
Dorsey added that he wants “the internet to have a native currency,” because that would allow Block to move money faster and offer Cash App and other products in more markets.
A Block spokesperson reiterated the company’s public statement and pointed to Dorsey’s comments from the earnings call.
What’s become clear is that Dorsey can only do so much with crypto while trying to appease a more discerning Wall Street. Shares of Block were down about 1% at market close on Friday, after the company reported revenue that trailed estimates and issued weaker gross profit guidance than some analysts were expecting.
In his 1,400-word letter to shareholders, Dorsey focused entirely on the company’s lending offerings for small businesses. A significant chunk of that is the buy now, pay later product from Afterpay, which Block acquired for $29 billion in 2021.
Dorsey didn’t mention crypto or bitcoin once.
Science & Environment
Fintechs Upstart and Toast soar on earnings
Chris Comparato, CEO, the Toast, Inc. IPO at the New York Stock Exchange, on September 22, 2021.
Source: NYSE
Upstart, which uses artificial intelligence to inform online lending decisions, soared 46% on Friday, its best day in over three years. Toast, which sells payments technology to restaurants, jumped 14%, closing at its highest since 2021.
Both companies reported better-than-expected results, sparking the rallies.
Upstart’s revenue jumped 20% in the third quarter to $162 million, easily beating analyst estimates. CEO David Girouard said on the company’s earnings call that, “we’re in growth mode.”
Toast is still well off its pandemic highs of 2021, but the stock has now more than doubled this year. The company’s adjusted earnings forecast of $90 million to $100 million for the current quarter sailed past estimates.
The two stocks were part of a huge rally on Wall Street this week that followed Donald Trump’s election victory on Tuesday night. All three major indexes closed at records, with the tech-heavy Nasdaq finishing the week up 5.7%, its second-best week of the year.
Within fintech, companies tied to crypto were some of the top performers, after candidates funded by the crypto industry won races up and down the ballot.
Coinbase shares jumped 48% for the week, their strongest performance since January 2023. Coinbase was one of the top corporate donors in the election cycle, giving more than $75 million to Fairshake and its affiliate PACs, including a fresh pledge of $25 million to support the pro-crypto super PAC in the 2026 midterms.
Trump has vowed to oust SEC Chair Gary Gensler, which potentially bodes well for companies like Coinbase fighting the regulator in court over alleged securities offenses.
Robinhood, which allows users to buy and sell a number of digital currencies, rose 27% for the week. The online brokerage received a Wells Notice from the SEC in May, a move that often precedes formal charges.
Bitcoin hit a new intraday high above $77,300, ending the week 11% higher. Ether, solana, and dogecoin outpaced bitcoin’s gains.
Not all fintechs rallied.
Block, the parent company of Square, reported third-quarter revenue on Thursday that trailed Wall Street’s expectations, leading to a slight drop in the stock on Friday. Shares of Jack Dorsey’s company underperformed the boarder tech market for the week, rising 3.3%.
Affirm, the provider of buy now, pay later loans, beat on the top and bottom line, but the stock still dropped 4.7% on Friday, leaving it slightly ahead of the Nasdaq for the week.
WATCH: Robinhood Crypto general manager reacts to bitcoin rally
Science & Environment
Why did the UK’s first satellite end up thousands of miles from where it should have been?
Someone moved the UK’s oldest satellite and there appears to be no record of exactly who, when or why.
Launched in 1969, just a few months after humans first set foot on the Moon, Skynet-1A was put high above Africa’s east coast to relay communications for British forces.
When the spacecraft ceased working a few years later, gravity might have been expected to pull it even further to the east, out over the Indian Ocean.
But today, curiously, Skynet-1A is actually half a planet away, in a position 22,369 miles (36,000km) above the Americas.
Orbital mechanics mean it’s unlikely the half-tonne military spacecraft simply drifted to its current location.
Almost certainly, it was commanded to fire its thrusters in the mid-1970s to take it westwards. The question is who that was and with what authority and purpose?
It’s intriguing that key information about a once vital national security asset can just evaporate. But, fascination aside, you might also reasonably ask why it still matters. After all, we’re talking about some discarded space junk from 50 years ago.
“It’s still relevant because whoever did move Skynet-1A did us few favours,” says space consultant Dr Stuart Eves.
“It’s now in what we call a ‘gravity well’ at 105 degrees West longitude, wandering backwards and forwards like a marble at the bottom of a bowl. And unfortunately this brings it close to other satellite traffic on a regular basis.
“Because it’s dead, the risk is it might bump into something, and because it’s ‘our’ satellite we’re still responsible for it,” he explains.
Dr Eves has looked through old satellite catalogues, the National Archives and spoken to satellite experts worldwide, but he can find no clues to the end-of-life behaviour of Britain’s oldest spacecraft.
It might be tempting to reach for a conspiracy theory or two, not least because it’s hard to hear the name “Skynet” without thinking of the malevolent, self-aware artificial intelligence (AI) system in The Terminator movie franchise.
But there’s no connection other than the name and, in any case, real life is always more prosaic.
What we do know is that Skynet-1A was manufactured in the US by the now defunct Philco Ford aerospace company and put in space by a US Air Force Delta rocket.
“The first Skynet satellite revolutionised UK telecommunications capacity, permitting London to securely communicate with British forces as far away as Singapore. However, from a technological standpoint, Skynet-1A was more American than British since the United States both built and launched it,” remarked Dr Aaron Bateman in a recent paper on the history of the Skynet programme, which is now on its fifth generation.
This view is confirmed by Graham Davison who flew Skynet-1A in the early 70s from its UK operations centre at RAF Oakhanger in Hampshire.
“The Americans originally controlled the satellite in orbit. They tested all of our software against theirs, before then eventually handing over control to the RAF,” the long-retired engineer told me.
“In essence, there was dual control, but when or why Skynet-1A might have been handed back to the Americans, which seems likely – I’m afraid I can’t remember,” says Mr Davison, who is now in his 80s.
Rachel Hill, a PhD student from University College London, has also been scouring the National Archives.
Her readings have led her to one very reasonable possibility.
“A Skynet team from Oakhanger would go to the USAF satellite facility in Sunnyvale (colloquially known as the Blue Cube) and operate Skynet during ‘Oakout’. This was when control was temporarily transferred to the US while Oakhanger was down for essential maintenance. Perhaps the move could have happened then?” Ms Hill speculated.
The official, though incomplete, logs of Skynet-1A’s status suggest final commanding was left in the hands of the Americans when Oakhanger lost sight of the satellite in June 1977.
But however Skynet-1A then got shifted to its present position, it was ultimately allowed to die in an awkward place when really it should have been put in an “orbital graveyard”.
This refers to a region even higher in the sky where old space junk runs zero risk of running into active telecommunications satellites.
Graveyarding is now standard practice, but back in the 1970s no-one gave much thought to space sustainability.
Attitudes have since changed because the space domain is getting congested.
At 105 degrees West longitude, an active satellite might see a piece of junk come within 50km of its position up to four times a day.
That might sound like they’re nowhere near each other, but at the velocities these defunct objects move it’s starting to get a little too close for comfort.
The Ministry of Defence said Skynet-1A was constantly monitored by the UK’s National Space Operations Centre. Other satellite operators are informed if there’s likely to be a particularly close conjunction, in case they need to take evasive action.
Ultimately, though, the British government may have to think about removing the old satellite to a safer location.
Technologies are being developed to grab junk left in space.
Already, the UK Space Agency is funding efforts to do this at lower altitudes, and the Americans and the Chinese have shown it’s possible to snare ageing hardware even in the kind of high orbit occupied by Skynet-1A.
“Pieces of space junk are like ticking time bombs,” observed Moriba Jah, a professor of aerospace engineering at the University of Texas at Austin.
“We need to avoid what I call super-spreader events. When these things explode or something collides with them, it generates thousands of pieces of debris that then become a hazard to something else that we care about.”
Science & Environment
Tesla was the top ‘Trump Trade’ of the week, along with some energy and financial stocks
Science & Environment
The Impossible Man review: What is the price of genius, asks biography of Roger Penrose
The Impossible Man
Patchen Barss (Atlantic Books (UK, 14 November); Basic Books (US, 12 November))
Many people still believe (and many scientists tell themselves) that genius is a solitary affair, that what they do is so important it merits exemption from everyday life and the obligations of intimate relationships.
As his subtitle suggests, Patchen Barss doesn’t endorse this notion in The Impossible Man: Roger Penrose and the cost of genius, as he charts the life of one of the most influential physicists of the 20th century. The biography…
Science & Environment
Quantum Rubik's cube has infinite patterns but is still solvable
Allowing for moves that create quantum superpositions makes a quantum version of a Rubik’s cube incredibly complex, but not impossible to solve
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Science & Environment
COP29 chief secretly filmed promoting fossil fuel deals
A senior official at COP29 climate change conference in Azerbaijan appears to have used his role to arrange a meeting to discuss potential fossil fuel deals, the BBC can report.
A secret recording shows the chief executive of Azerbaijan’s COP29 team, Elnur Soltanov, discussing “investment opportunities” in the state oil and gas company with a man posing as a potential investor.
“We have a lot of gas fields that are to be developed,” he says.
A former head of the UN body responsible for the climate talks told the BBC that Soltanov’s actions were “completely unacceptable” and a “betrayal” of the COP process.
As well as being the chief executive of COP29, Soltanov is also the deputy energy minister of Azerbaijan and is on the board of Socar.
Azerbaijan’s COP29 team has not responded to a request for comment.
Oil and gas accounts for about half of Azerbaijan’s total economy and more than 90% of its exports, according to US figures.
COP29 will open in Baku on Monday and is the 29th annual UN climate summit, where governments discuss how to limit and prepare for climate change, and raise global ambition to tackle the issue.
However, this is the second year in a row the BBC has revealed alleged wrongdoing by the host government.
The BBC has been shown documents and secret video recordings made by the human rights organisation, Global Witness.
It is understood that one of its representatives approached the COP29 team posing as the head of a fictitious Hong Kong investment firm specialising in energy.
He said this company was interested in sponsoring the COP29 summit but wanted to discuss investment opportunities in Azerbaijan’s state energy firm, Socar, in return. An online meeting with Soltanov was arranged.
During the meeting, Soltanov told the potential sponsor that the aim of the conference was “solving the climate crisis” and “transitioning away from hydrocarbons in a just, orderly and equitable manner”.
Anyone, he said, including oil and gas companies, “could come with solutions” because Azerbaijan’s “doors are open”.
However, he said he was open to discussions about deals too – including on oil and gas.
Initially, Soltanov suggested the potential sponsor might be interested in investing in some of the “green transitioning projects” Socar was involved in – but then spoke of opportunities related to Azerbaijan’s plans to increase gas production, including new pipeline infrastructure.
“There are a lot of joint ventures that could be established,” Soltanov says on the recording. “Socar is trading oil and gas all over the world, including in Asia.”
Soltanov then described natural gas as a “transitional fuel”, adding: “We will have a certain amount of oil and natural gas being produced, perhaps forever.”
The UN climate science body, the Intergovernmental Panel on Climate Change, acknowledges there will be a role for some oil and gas up to 2050 and beyond. However, it has been very clear that “developing… new oil and gas fields is incompatible with limiting warming to 1.5C”.
It also goes against the agreement the world made at the last global climate summit to transition away from fossil fuels.
Soltanov appeared eager to help get discussions going, telling the potential sponsor: “I would be happy to create a contact between your team and their team [Socar] so that they can start discussions.”
A couple of weeks later the fake Hong Kong investment company received an email – Socar wanted to follow up on the lead.
Attempting to do business deals as part of the COP process appears to be a serious breach of the standards of conduct expected of a COP official.
These events are supposed to be about reducing the world’s use of fossil fuels – the main driver of climate change – not selling more.
The standards are set by the UN body responsible for the climate negotiations, the United Nations Framework Convention on Climate Change (UNFCCC).
The UN said it could not comment directly on our findings but remarked that “the same rigorous standards” are applied to whoever hosts the conference, and that those standards reflect “the importance of impartiality on the part of all presiding officers”.
Its code of conduct for COP officials states they are “expected to act without bias, prejudice, favouritism, caprice, self-interest, preference or deference, strictly based on sound, independent and fair judgement.
“They are also expected to ensure that personal views and convictions do not compromise or appear to compromise their role and functions as a UNFCCC officer.”
Christiana Figueres, who oversaw the signing of the 2015 Paris agreement to limit global temperature rises to well below 2C, told the BBC that she was shocked anyone in the COP process would use their position to strike oil and gas deals.
She said such behaviour was “contrary and egregious” to the the purpose of COP and “a treason” to the process.
The BBC has also seen emails between the COP29 team and the fake investors.
In one chain, the team discusses a $600,000 (£462,000) sponsorship deal with a fake company in return for the Socar introduction and involvement in an event about “sustainable oil and gas investing” during COP29.
Officials offered five passes with full access to the summit and drafted a contract which initially required the firm to make some commitments to sustainability. Then it pushed back, one requirement was dropped and “corrections” were considered to another.
The BBC asked Azerbaijan’s COP29 team and Socar for comment. Neither responded to the requests.
The findings come a year after the BBC obtained leaked documents that revealed plans by the UAE to use its role as host of COP28 to strike oil and gas deals.
COP28 was the first time agreement was reached on the need to transition away from fossil fuels.
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