🔑 The first crypto conflict
![ATMs for bitcoin and banks in Istanbul [Chris McGrath/Getty Images]](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/11qIxvUROyBZbbBJV2eb75_1_GettyImages-1312850748.jpg)
Hey Snackers,
After a week of war — and despite Ukrainians’ tougher-than-expected resistance — officials said Russian troops had captured a major city, a first during this invasion. So far, more than 800K people have fled Ukraine.
Stocks rebounded yesterday after Fed Chair Powell signaled that a smaller-than-expected rate hike is coming, which eased some investors’ worries — even as oil continued to climb.
Crypto becomes a new tool in war as Ukraine and Russia leverage digital currencies
The first big crypto conflict… The war in Ukraine has boosted demand for crypto on both sides of the fight, helping to lift the price of Bitcoin nearly 25% since the start of Russia’s invasion — and thrusting decentralized finance (DeFi) into a major military conflict. How crypto is impacting the war so far:
- Crowdfunded resistance: Ukraine has raised over $35M in crypto to finance its ops. After Ukraine’s deputy PM tweeted a link to a digital wallet, donations poured in from around the world. Still, Ukraine’s crypto war chest is tiny compared to the $270M it’s raised from war bonds.
- Sanction resistance: Russia can also use crypto to blunt the damage of sanctions, since crypto transactions are harder to block. Russia’s access to global banking is mostly frozen and its currency is nearly worthless — but it can still spend bitcoin.
- Exchange resistance: Ukraine officials asked crypto exchanges to bar all Russian users from their platforms, but Coinbase, Kraken, and Binance refused to pull the plug. Kraken’s CEO said a ban would contradict bitcoin’s “libertarian values.”
A geopolitical X factor… Russia wouldn’t be the first country to use crypto to get around sanctions: Iran and North Korea have reportedly deployed crypto after being frozen out of global markets. Analysts are concerned Russia and China could do the same, and both countries are also rolling out state-sponsored digital currencies.
Crypto could reshape war… and war could reshape crypto. Digital currencies may change how wars are fought and financed by providing a new way to move money quickly and securely. But by the same (decentralized) token, crypto’s influence in Russia’s war on Ukraine could push lawmakers to accelerate plans to crack down. US regulators plan to clarify their crypto rules sometime this year.
AMC will charge more for blockbusters as the struggling movie chain entertains “variable pricing”
Break out the Batmobile… If you want to catch Robert Pattinson in tights on opening night, it could cost extra. AMC's testing a new pricing strategy by raising the cost of tickets for popular movies, like Warner's "The Batman'' (hits theaters Friday). In LA and NYC, ticket prices are running about a buck more, but that hasn’t dampened demand:
- Batty expectations: “The Batman” could be the first blockbuster of the year: it’s tracking for a $245M+ worldwide open, and not a moment too soon for chains like AMC.
Strategy shift... During the pandemic, some studios have embraced a new way to reach viewers at home (think: same-day streaming releases). That’s had mixed results: Warner's "Dune" pulled in $400M at the global box office. But the studio’s other day-and-date releases, like “In the Heights” and “Matrix 4,” bombed on the big screen. With North American ticket sales still down 60% from pre-Covid levels, theater chains are getting creative:
Lux-ification: reclining seats, contactless concessions, and 4D experiences are some ways theaters are enticing people back. Pricier seats for popular showings of studio tentpoles could add to the premium feel.
BTW: AMC is already charging European theatergoers extra for prime theater seats (think: middle, not too close).
Movie tix are getting “premium-ized”... Movie tickets are famously uniform: you’ll pay the same to see a $200M Marvel blockbuster as a $2M indie flick. And dynamic pricing has long been a popular model in other industries, from flights to hotels to concerts. Whether you’re booking a last-minute red-eye or front-row seats to a J. Biebs show, high demand = higher cost. But hiking prices could jeopardize attendance — at a time when theaters are struggling to fill seats.
What else we’re Snackin’
- Endemic: In his first State of the Union, President Biden said the CDC’s new mask guidelines and Pfizer’s antiviral pill would help the US return to “more normal routines.”
- Ripple: Hold on to your Cheerios: Grocery prices are expected to spike — again — this time because Russia is a major supplier of the fertilizer used to produce many snack-aisle staples.
- Transformer: Ford’s splitting itself into two businesses, one for gas-powered models and one for EVs, as a way to juice its electrification efforts. The Blue Oval expects to spend $50B on EVs over the next five years.
- Cupertino: Apple’s holding its first product event of the year on Tuesday. The big reveal is expected to be a cheaper iPhone SE model and an updated iPad Air.
- Burned: Fitbit is recalling 1.7M smartwatches because of a risk of the battery overheating while on users’ wrists. Google snatched up Fitbit last year for $2B to get deeper into wearables.
Thursday
- Weekly jobless claims
- Earnings expected from Costco, Kroger, Broadcom, TD Bank, Best Buy, Brown Forman, Gap, Duolingo, Sweetgreen, and Utz
Authors of this Snacks own: Bitcoin, and shares of Ford, Amazon, Apple, Pfizer, and Google
ID: 2063213