🖥 China's crypto crackdown

Mine, uncrafted... China's not playing games. Bitcoin plunged to a two-week low yesterday after China cracked down on miners. Chinese authorities reportedly ordered a halt to crypto mining, forcing the shutdown of many mining "farms." China already bans companies from offering crypto-related services — but this crackdown is next-level:

• Strike #1: An estimated ~90% of China's Bitcoin mining capacity has been shut down.
• Strike #2: China set up "snitching hotlines" to report anyone pumping out BTC.
• Strike #3: China urged Alipay and other major banks to kill any crypto trading.

Much coin energy... An estimated 65% of global Bitcoin mining happens in China. Mining computers use mountains of electricity to validate transactions and mine new coins. China relies heavily on coal power, so that electricity burns a lot of "dirty" energy. Now, China is cracking down to help meet its climate goals. The authoritarian state also doesn't love the decentralized nature of BTC (#digiyuan-only).

• Mass mine-gration: Miners have started exiting China to move operations to the US, where energy is cleaner but pricier.
• Already here: American mining companies, like Riot Blockchain and Marathon Digital, have been growing. Riot's mining revenue nearly 10X'd to $23M last quarter.

Return of the samples... Nothing sweeter than a free Lindt chocolate. While Amazon Prime Day(s) are in full swing, Costco is still winning over hearts and shopping carts with its old-school approach. Online sales make up only 6% of Costco's total, because shoppers dig the in-store "treasure hunt" (come for the TP, leave with a foldable grill). Now, the Disneyland of bulk retail is increasingly appealing to Millennials — especially first-time home buyers:

• 2M+ Americans bought homes for the first time last year. Nearly 40% of those were Millennials, the most of any generation.
• Costco is catering to Millennial homebuyers with a fresh offering of "healthy" options to stock their starter houses. Think: almond flour and organic applesauce for Baby #1.

Signature rosé... for the Millennial mom. Costco has a secret weapon that other food retailers envy: Kirkland. The private-label offers everything from vodka, to eggs, batteries, and toilet paper. Most Kirkland products are made by third parties. Read: shoppers can sneakily get brand names at off-brand prices. Kirkland coffee = Starbucks, Kirkland diapers = Huggies, Kirkland cran juice = Ocean Spray.

• Bigger than Coke: Kirkland did $52B in sales last year — nearly $20B more than Coca-Cola, and double Kraft-Heinz's annual sales.
• Bigger than cable: Costco memberships now exceed cable TV subscriptions in the US. Kirkland is a key driver of that success.

• Primed: Supply chain snafus and global shortages could affect what’s available during Amazon's Prime Day-palooza.
• Vax: Moderna is adding new production lines at a Covid vaccine plant as part of a push to prepare for making booster shots.
• OhChip: The global chip shortage is starting to hit consumers, driving up prices for laptops and printers (smartphones could be next).
• Awk: Lordstown Motors execs sold millions worth of stock before the e-truck company's problems became public.
• ET: Netflix struck a multiyear deal with Steven Spielberg — the iconic director will be making fresh flicks for the Flix.
• Cloud: As cash-strapped cities welcome Big Tech data centers, critics are questioning the environmental cost.

• Earnings expected from Korn Ferry
• Existing home sales report

Authors of this Snacks own shares of: Amazon

ID: 1694274