__Bad week for oil giants...__ Last month, __[Exxon](https://robinhood.com/stocks/XOM)__'s activist investor __Engine No. 1__ slammed Exxon's energy transition plan — or lack thereof. The hedge fund sounded the "[Blockbuster Alarm](https://snacks.robinhood.com/newsletters/GthYqJXfXa1UXvTAPKzZr/articles/1zYvayrbd8lJxnS8ecuB30/)," saying Exxon faces an existential risk from tying its future to fossil fuels. Unlike Shell and BP, Exxon hasn't vowed to move away from oil and gas, arguing they'll remain key. Now, *it might not have a choice*.

- __Surprise:__ Engine No. 1 won at least two seats on Exxon's board, a historic defeat for Exxon that will likely force it to change its oil-focused strategy. 
- __Receipts:__ Engine's bid to win shareholder votes — and Exxon's quest to prevent that — became one of the most expensive proxy fights *ever*. 

__The little Engine No.1 that could...__ Engine No. 1 owns only  0.02% of Exxon’s stock. Though Exxon aggressively  tried to persuade  investors to vote against Engine, it still managed to snag seats. Engine capitalized on retail investors’ worries about Exxon's shrinking profits —  *and its future in a lower-carbon economy*. 110+ countries have pledged carbon neutrality by 2050. CA, Japan, and the UK said they'll start banning sales of new gas cars in the 2030s.

- __[Shell](https://robinhood.com/stocks/RDS.A) took an L, too:__ Yesterday, a Dutch court [ordered](https://www.wsj.com/articles/shell-ordered-by-dutch-court-to-cut-carbon-emissions-11622038961?mod=business_lead_pos1) the oil giant to cut its carbon emissions, an unprecedented ruling that could set a precedent in other European countries. 
- __[Chevron](https://robinhood.com/stocks/CVX)__ investors just [voted](https://www.reuters.com/business/energy/chevron-shareholders-approve-proposal-cut-customer-emissions-2021-05-26/) in favor of a proposal to cut emissions, rebuking the C-Suite. 


Vote

__Tackle climate change or *be* changed...__ Oil giants are facing heightened pressure from governments and investors to reduce emissions and embrace renewable energy. __[BlackRock](https://robinhood.com/stocks/BLK)__, one of Exxon's largest investors, signed a pledge supporting net zero carbon emissions by 2050 or sooner. That pressure from investors and governments has real consequences, as we saw this week. Now, change-resistant companies like Exxon might be *forced* to change.  

Forced to go green(ish): Exxon and Shell may have to radically rethink their biz models

__*"I-I-I'm in the stars tonight"...*__ __[McDonald's](https://robinhood.com/stocks/MCD)__ has been seeing stars (and $$$ signs) thanks to its Famous Orders program, which launched last year. Fried chicken sandwiches weren't the only stars of McD's  quarter: meal partnerships with Travis Scott and J. Balvin boosted digital sales. In McD's own words: "nothing had a greater impact on our digital business than the introduction of Famous Orders." Last quarter, McD's sales even beat *pre*-pandemic levels. 

- __"The BTS Meal"...__ Yesterday, McD's [released](https://www.cnn.com/2021/05/26/business/bts-meal-mcdonalds-merchandise/index.html) its long-awaited meal with K-pop sensation BTS. It's the first celeb collab to launch globally. 
- __Unbox it:__ 10-piece Chicken McNuggets, medium fries, a Coke, and two Korean-style dipping sauces (sweet chili and Cajun). Missed opp to call them "Dynamite Nuggets."

__So much more than nuggies...__ This BTS deal is more than a meal — *it's a global event*. People are obsessed with BTS, and McDonald's is milking it. Fast food chains operate on razor-slim profit margins, so promotions like these can be game-changers:

- __Merch:__ McD's is dropping a limited-edition BTS merch line (including: a fuzzy purple robe with a fries logo). J. Balvin and T. Scott also got merch.
- __Exclusive content:__ McD's is releasing "never-before-seen digital surprises" featuring BTS in the McD's app to drive digital sales. 
- __Spots:__ McDonald's TV ad — which debuted last night —  uses BTS' newest hit, "Butter." *So smooth*. 

_Apparently,  BTS makes fries taste better [Bonfanti Diego/Cultura via GettyImages]_

Dynamite

__It’s the “Golden Repackage” strategy...__ McD's just proved that you don’t need a new product to gain new customers. The best thing about the BTS meal: it's composed of basic items that McD’s is *already* making. Just ship franchisees the dipping sauces, and voila: BTS Meal. Famous Orders drive sales *without* adding new ingredients or workflows. McD's calls it: "maximizing digital investments without adding any restaurant complexity." This repackaging strategy drives customers to the app and keeps them there, boosting loyalty and sales.


McDonald’s mega-partnership with BTS: it’s the “Golden Repackage” strategy

Dow Jones

S&P 500

Nasdaq

Bitcoin

🍟 McD + BTS = Dynamite

__Can't sprinkle it on an acai bowl...__ But the name says it all: __Chia__ promotes itself as an eco-friendly crypto coin. The digital currency platform has more than [doubled](https://www.google.com/url?q=https://fortune.com/2021/05/25/chia-network-green-blockchain-valuation-ipo/?utm_source%3Demail%26utm_medium%3Dnewsletter%26utm_campaign%3Dterm-sheet%26utm_content%3D2021052514pm%26tpcc%3Dnltermsheet&sa=D&source=editors&ust=1622003041673000&usg=AOvVaw1mmQrBu-7W371oaevSDny4) its valuation, after raising a fresh $61M in funding. It's now reportedly valued at ~$500M, and could go public as soon as this year, even though Chia just started trading this month. The new cash infusion is likely not a coincidence.

__The Prius to Bitcoin's Hummer?...__ What Chia wants investors to see. There's suddenly a lot of attention being paid to Bitcoin's enviro impact (which we [wrote](https://snacks.robinhood.com/newsletters/18QR0SyWNU2shCThYbl30f/articles/35CXk15pizW3Ju68UBK6WO/) about in April). It started in mid-May, when Elon [tweeted](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4OCWE9kGhme60DCcKsfIUl/) that __Tesla__ will no longer accept Bitcoin payment for cars. Elon is concerned about BTC's fuel-burning ways, so Tesla will only accept/buy/sell Bitcoin when “mining transitions to more sustainable energy.” Cue: crypto prices [plunged](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4OCWE9kGhme60DCcKsfIUl/). 

- __Bitcoin__ operations require much more electricity than other cryptos, which can result in more emissions. Tesla said it's looking at other cryptos that use <1% of Bitcoin’s energy. Then again, Elon just [spoke](https://twitter.com/elonmusk/status/1396914548167233537?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1396914548167233537%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.cnbc.com%2F2021%2F05%2F24%2Fbitcoin-price-soars-after-elon-musk-tweet-on-sustainability-efforts.html) to "North American Bitcoin miners" re: sustainability.
- __Chia__ says its operations are less energy-intensive than traditional mining. Instead of relying on special energy-sucking computers, Chia's network uses available storage space on your hard drive to "farm" coins by validating transactions on its network.


_Chia farm life [funky-data/E+ via GettyImages]_

Crypto

__Chia may have a “but-what-about” problem...__ EVs are greener than gas cars, but what about the electricity needed to power them? Electricity is mostly generated by burning fossil fuels (like: gas). For Chia, it's "what about hard drives?" Some are [concerned](https://cointelegraph.com/news/chia-raises-61m-for-eco-friendly-crypto-despite-critics) that Chia farming could burn out a drive in weeks, while drives subjected to normal usage can last over a decade. That could produce a ton of e-waste, and also [lead to](https://fortune.com/2021/05/20/chia-coin-green-cryptocurrency-hard-drives-western-digital-stock/)) a drive shortage. Solving one problem could cause others, and there's still plenty we don't know in the race to become a more energy efficient crypto.


Chia, the "green" alternative to Bitcoin,  just doubled its valuation and could IPO soon

__All the news that's fit to...__ punt? __The New York Times__ is looking into buying The Athletic, [according](https://www.axios.com/new-york-times-nytimes-acquisition-athletic-7f1dabf4-9315-4975-93f9-68e13c642a43.html) to Axios. 

- __The Athletic:__ The subscription-based sports news site is valued at ~$500M, and reportedly has 1.2M subscribers — but it's still not profitable.
- __NYT__ has a $7B market cap and 8M paying subscribers. It's profitable, and the stock has nearly 4X'd in the past five years. That's likely because... 

__Skipped the paper...__ The New York Times is no longer a newspaper — *it's a multi-multi-media company*. As Google and Facebook ate up newspapers' ad revenue, NYT pivoted. It took its core stories and turned them into documentaries, TV shows, and podcasts like *The Daily*. It acquired an app that turns articles into audio. And it leaned into digital subscriptions, which brought in more revenue than print for the first time last year. 

- __Subscribe or die:__ NYT sells subscriptions for its news, games, cooking, and audio products. ~7M of its 8M paying subscribers have digital subs.
- __The Athletic__ and its 1M+ subscribers could be a boon to NYT's subscription offering — especially if it ever decides to bundle them.

Read

__Cast a wide net, catch a wide audience...__ *continue to grow*. NYT is a 170-year-old company that you would've *only* turned to for news 20 years ago. Now, nearly [half](https://www.axios.com/new-york-times-subscription-gains-non-news-products-0690d5ea-9d7f-4225-97ce-9822200da996.html) of NYT's new digital subscribers came from *non*-core news products last quarter. Think: subs for cooking fans, gamers, and audio buffs (aka: pod-heads). The Athletic could broaden NYT's net even further to catch dedicated sports fans. While its core news audience may be saturated, these extracurriculars have room to grow. 


The New York Times is reportedly eyeing The Athletic (to broaden its net)

💵 Chia's "green" crypto fundraise

__*Welcome to the Hotel Starry-fornia*...__ such a lovely space. __[Virgin Galactic](https://robinhood.com/stocks/SPCE)__ stock soared 28% yesterday, following the space tourism company's successful spaceflight test over the weekend. ICYMI: Virgin's trying to [vacation-ify](https://snacks.robinhood.com/newsletters/1r9xFjfsAFNRg58wQ4L06m/articles/6nxi97j9OUO3HLvof2LvA1/) space travel. Think: restaurant bookings on the International Space Station (we're thinking spaghetti Apollo-gnese). 

- __Milestone #1:__ The launch was the first of four remaining spaceflight tests before Virgin starts flying commercial customers — aka: space tourists. 
- __Milestone #2:__ New Mexico became the third US state to launch humans into space. Virgin owner Richard Branson [shared](https://news.satnews.com/2021/05/23/virgin-galactics-first-human-spaceflight-from-spaceport-america-new-mexico/) the love with NM.

__One small step for man...__ One giant leap for Virgin's "Future Astronauts," as it  [calls](https://www.virgingalactic.com/learn/) prospective customers. The flight  was a critical step for Virgin's space tourism program, which aims to launch early next year. Virgin's mission is to become the "Spaceline for Earth." It *hates* that only 600 humans have left Earth’s atmosphere, and wants to "open space to everybody." But Richard Branson has some intergalactic competition from *other* famous billionaire entrepreneurs (it's a theme with space companies)....

- __[SpaceX](https://robinhood.com/stocks/SPCE):__ Last year, Elon Musk's rocket company [sent](https://snacks.robinhood.com/newsletters/1r9xFjfsAFNRg58wQ4L06m/articles/6nxi97j9OUO3HLvof2LvA1/) NASA astronauts into orbit with a private spacecraft for the first time. In April, SpaceX won a $2.9B NASA contract to build a lunar landing system, beating Blue Origin.
- __Blue Origin:__ This week, a bid to be the first passenger with Jeff Bezos' spacecraft company [hit](https://www.washingtonexaminer.com/news/bidding-nears-3-million-for-bezos-founded-space-firm-first-flight) a whopping $2.8M. The 11-minute crewed flight is set to launch on July 20.


_Space Tourism: where no one can beat your vacay Insta post [peepo/E+ via GettyImages]_

Launch

__The space tourism race is on...__ And there may *not* be plenty of room at Hotel Starry-fornia. NASA is leaning on private companies to help it commercialize space. But when it comes to space travel, the fastest out the gate (read: out of Earth's atmosphere), may have the biggest advantage. Space tourism could be a major market one day — and the companies breaking in early could gain a longer-term advantage. 


Virgin Galactic completes its first-ever human spaceflight: space tourism is near

__Exactly one year ago...__ George Floyd was murdered, leading to protests for racial justice across the US —  and a nation-wide reckoning over race and policing. For corporate America, silence was [no longer](https://snacks.robinhood.com/newsletters/7gqswmVojTVAwxoi4AyfDv/articles/69m6uDAmNzTcLDko3aNntx/) an option. From __[Apple](https://robinhood.com/stocks/AAPL)__'s Tim Cook to __[Goldman](https://robinhood.com/stocks/GS)__'s David Solomon, CEOs spoke about the need to better address racial disparities, both in society and in their own companies. Mentions of “systemic racism” at company events [spiked](https://www.ft.com/content/67e79b20-bc41-4cb0-992f-a28e3eaa5695) to 300+ last quarter, up from nearly zero the year before. Now, we're looking at what companies have actually done.

__Pledge vs. reality...__ Since Floyd’s death, American companies have pledged $50B to racial equity initiatives — __[Chase](https://robinhood.com/stocks/JPM)__ alone [pledged](https://snacks.robinhood.com/newsletters/6CYbtZgaeQFf8W6pRxaYg0/articles/5APdARhy7BYjqPv9X5dWHs/) $30B. Update: only ~$250M has so far been spent or committed to specific initiatives, according to Creative Investment Research. Pledges included donations to civil rights orgs, investments in communities of color, and internal diversity initiatives.

- __Goldman__ started sharing detailed demographic data in January, revealing that just 49 of its 1.5K senior execs and managers are Black. Black Americans hold only 3% of senior roles in companies with 100+ employees.
- __[Lyft](https://robinhood.com/stocks/LYFT), [Levi's](https://robinhood.com/stocks/LEVI), and [Verizon](https://robinhood.com/stocks/VZ)__ conducted pay equity audits, saying they found no systemic pay differences between ethnicities. Only 31 of the 100 largest US companies are analyzing how equitably they pay employees of different races and ethnicities.
- __[Chase]([https://robinhood.com/stocks/PTON](https://robinhood.com/stocks/JPM))__ and other major banks will [reportedly](https://snacks.robinhood.com/newsletters/4C8RPXufy6QttN9RCr8VDz/articles/4SFa7U4G3EmK6YjL3groXb/) give credit cards to people with no credit score, as part of a gov-backed initiative to increase credit access to underserved communities. The plan was launched after Floyd's death.
- __[Peloton](https://robinhood.com/stocks/PTON)__ recently [announced](https://www.instagram.com/p/CNsNu90g78U/?igshid=1w7j5lghvtaz9) its portfolio of partners for its four-year, $100M investment pledge to fight racial injustice.


Year

__There's still much more to be done...__ One year in, corporate pledges are still mostly in progress — or haven't even begun. We can expect companies to update us on their commitments throughout the year. For example: __Amazon__ pledged to double the number of Black leaders at the company to ~8% by the end of 2021. But it’s not just one-time commitments that will make a difference. Addressing systemic injustice requires sustained efforts. And corporations will likely be held increasingly accountable.


One year later: how companies have acted on $50B worth of racial equity pledges 

🚀 Virgin has liftoff

__From NYC to Beijing...__ Big Tech earnings season is (almost) over. This month, Wall Street's "Big Tech 5" –  __[Apple](https://robinhood.com/stocks/AAPL)__, __[Amazon](https://robinhood.com/stocks/AMZN)__, __[Google](https://robinhood.com/stocks/GOOG)__, __[Microsoft](https://robinhood.com/stocks/MSFT)__, and __[Facebook](https://robinhood.com/stocks/FB)__ –  [demolished](https://snacks.robinhood.com/newsletters/4yfojyZE9WLvdIySo7B6GF/articles/5HHwtkiQ6PZUclm1Kohn61/) results with back-to-back records. Still, the techy Nasdaq index is up just 6% this year — half of the S&P 500 and the Dow's gains. Now, we're looking at China, to see how the world’s other tech epicenter stacked up:

- __[Alibaba](https://robinhood.com/stocks/BABA)__ (aka: the Amazon of China) posted its first loss *ever* as a public company, though sales soared 64%. Blame a record fine by China’s regulator. Shares are down 7% this year.
- __[Tencent](https://robinhood.com/stocks/TCEHY)__ is the world's largest video games publisher, and the owner of WeChat (the app for [everything](https://qpsoftware.net/blog/all-wechat-features-2020)). Despite impressive earnings growth, shares have barely budged this year. 
- __[Pinduoduo](https://robinhood.com/stocks/PDD)__ is the ecomm app that connects farmers/distributors with Chinese consumers. We'll see how it fared when it reports tomorrow. Shares have plunged 22% this year. 

__*You've been warned*...__ For years, Chinese tech titans were seen as untouchable sources of national pride. This year, China has been cracking down. China ordered 34 of the country's largest tech cos, including TikTok-owner __ByteDance__, to comply with anti-monopoly laws or face “severe punishment." The scrutiny is hitting companies where it hurts: their share prices and balance sheets. 

- __Alibaba__ was fined $2.8B, while Pinduoduo, ride service __Didi Chuxing__, and others were each fined $200K for “improper pricing behavior.”
- __Fintech giant Ant Group__ will likely be overseen by China’s central bank, after regulators [halted](https://snacks.robinhood.com/newsletters/2aUdFDcS8HbDWWvTUoLlRp/articles/7hzAn3zqutap8eurhdXv40/) its mega IPO. Oh, and China wants companies to know that crypto services are still [banned](https://www.bbc.com/news/business-57169726). 


Down

__China is a window...__ Despite strong earnings, tech stocks are on the struggle bus. While Chinese and US regulation are *very* different, China's crackdown begs the question of how intervention might change in the US —  where it’s been much more light-handed. Antitrust scrutiny is rising, and President Biden’s FTC pick Lina Khan is a well-known tech [critic](https://snacks.robinhood.com/newsletters/2Z4BofvGDzgoroXZ4OTaiL/articles/75lgUHK9VCoHmFBsxK4D6C/). While US regulation isn’t likely to look like China’s, more intervention doesn’t seem far-fetched.


Tech earnings are wrapping up for the US and China — but problems aren't over for tech cos

__Treasure hunt vibes...__ Retailers' sales rebounded last quarter, as you attended your first get-together *without* a virtual background (bye, clouds). __[TJ Maxx](https://robinhood.com/stocks/TJX)__ and __[Ross](https://robinhood.com/stocks/ROST)__ sales soared past pre-pandemic levels on the "affordable splurge." __[Target](https://robinhood.com/stocks/TGT)__ shined as you caved for the floral dresses in the front. __[Macy's](https://robinhood.com/stocks/M)__ sales jumped 56% from last year, and __[Kohl's](https://robinhood.com/stocks/KSS)__ crushed expectations. TBD if pent-up demand will continue as stimulus benefits run out. Macy's CEO thinks it isn't a fluke.

__Tim Cook-ing in the kitchen...__ and it's getting heated. __[Apple](https://robinhood.com/stocks/AAPL)__ CEO Tim Cook was grilled on Friday as the Epic-Apple trial wrapped up. Cook's testimony was highly anticipated — but [anticlimactic](https://techcrunch.com/2021/05/21/tim-cook-plays-innocent-in-epic-v-apples-culminating-testimony/). If Fortnite-maker __Epic__ wins the suit, Apple could be forced to give up control of app distribution. Read: customers could be allowed to freely install software on iPhones (not just through the App Store). It could be a [make-or-break](https://snacks.robinhood.com/newsletters/5mrz8IgUB1Bjuc9ILsHQOj/articles/4GARoezVkzR6VmTXvlwEa1/) moment for Apple's antitrust future.


Zoom Out

Stories we're watching...

__Anniversary of George Floyd's death...__ Tuesday marks the one-year anniversary of George Floyd's murder, which led to months of protests for racial justice across the US. Since then, American companies have pledged to spend $50B on racial equity initiatives. Yet only [~$250M](https://www.ft.com/content/67e79b20-bc41-4cb0-992f-a28e3eaa5695) has so far been spent or committed to specific initiatives, according to Creative Investment Research. Stay tuned for more coverage on whether companies have lived up to their pledges. 

__Buying the lip...__ __[Ulta](https://robinhood.com/stocks/ULTA)__, aka: Sephora's less flashy rival, reports earnings on Thursday. If Ulta's quarter was anything like __[Estée Lauder](https://robinhood.com/stocks/EL)__'s, we can expect that skincare sales [thrived](https://snacks.robinhood.com/newsletters/5mrz8IgUB1Bjuc9ILsHQOj/articles/4nwSv0BGXlf0C4iUX8PR4C/), while makeup struggled (eye serum = new eyeshadow). But __[Walmart](https://robinhood.com/stocks/WMT)__ saw more sales of beauty products and teeth whitener last quarter. Since the CDC lifted mask mandates for fully vaxed peeps (FVPs), beauty companies are preparing for a "buy the lip" situation. Matte is already [rallying](https://www.businessinsider.com/lipstick-sales-increase-expected-after-cdc-lifts-mask-mandate-2021-5). 


Events

Coming up this week...

- __[F-150 Lightning](https://snacks.robinhood.com/newsletters/1N31BqWqFLT91MgZLUXNEq/articles/1l4IxVAMdm6rt4WUz7BL1b/):__ __[Ford](https://robinhood.com/stocks/F)__ unveiled an electric version of the most successful car in American history (and President Biden took a joyride).
- __[Daenerys](https://snacks.robinhood.com/newsletters/6VJuUvnCuWaf7dDbGJi9xR/articles/5e1LVdk7m9ydgNb5z1uBbf/):__ __[AT&T's](https://robinhood.com/stocks/T)__ big experiment in entertainment is over — it's breaking up with WarnerMedia (and GOT).
- __[Crypto](https://snacks.robinhood.com/newsletters/2i8nwaSyl2Kc0M8lzycHlU/articles/78Ghj5v2Fg1jUW5XO8wCIb/):__ __[Bitcoin](https://robinhood.com/crypto/BTC)__ and other cryptocurrencies plunged last week — and it's related to Elon, China, and kitchen furniture.

ICYMI

Highlights from last week...

_Weekend mood: treasure hunting at Ross [Mordolff/E+ via GettyImages]_

🇨🇳 Big Tech: a tale of two internets

__No more FICO scores on Hinge...__ even 800s. __[JPM Chase](https://robinhood.com/stocks/JPM)__, __[Wells Fargo](https://robinhood.com/stocks/WFC)__, and other banks are taking the “history” out of credit history. When reviewing credit card applications, banks will consider *deposit* account info for people with no credit, [according](https://www.wsj.com/articles/jpmorgan-others-plan-to-issue-credit-cards-to-people-with-no-credit-scores-11620898206?mod=hp_lead_pos3) to WSJ's #PFWTM — *and share that info with each other*. Think: $$$ in checking and savings accounts, and overdraft history. It's part of a gov-backed initiative to extend credit to underserved people. The pilot, aimed at financially responsible people without credit scores, could launch this year. 

- __To build credit,__ you need to borrow. Think: credit card spending, car or student loans, or a mortgage. To build *good* credit and avoid interest, you need to pay IOUs on time. 
- __The "chicken or the egg"__ of the banking world: When you've never had a credit card, and need a credit score to get a credit card with your bank (womp). 

__Give the people credit...__ 53M adults in the US don’t have credit scores — many only pay with cash/debit, or  are new to the US. If this program launches, Chase could check your Wells Fargo checkings when reviewing your *Chase* card app. That means millions more Americans could get access to credit — and it could be a boon for banks and credit card companies.

- __Banks make $$$ from merchants__ each time you swipe. That "[Swipe Tax](https://snacks.robinhood.com/newsletters/23rAZNGewLgeWZFmLjk94T/articles/6vidwtG5Jrrkpq1vsrsRcB/)" is why purchase minimums exist (the bodega doesn't want plastic for a $2 muffin).
- __Banks also earn interest__ on overdue balances. But thanks to stimulus checks and #lockdownlife, Americans have reduced their credit card debt (big time): balances are now $157B [lower](https://www.newyorkfed.org/newsevents/news/research/2021/20210512) than pre-pandemic. 


Swipe

__Credit = opportunity...__ Good credit can help people take out cheaper loans like mortgages. Homeownership has been one of the greatest contributors to wealth creation for families. But mortgages are hard to get without a credit score. In 2015, Black and Hispanic adults in the US were more likely than white or Asian adults to lack credit scores — and they're still more likely to be denied mortgages.  Increasing credit access to historically disadvantaged communities is key to narrowing the [racial wealth gap](https://snacks.robinhood.com/newsletters/bg6FaCgu8qc8z1Zllmofx/articles/3ZVsKmCRQNLUOSaAVHfNJi/).


Chase and other major banks will reportedly give credit cards to people with no credit scores

__Starbucks is out of oat milk...__ What else is new? Oat milk icon __[Oatly](https://robinhood.com/stocks/OTLY)__ raised $1.4B in its IPO on Wednesday, snagging a frothy $10B valuation — more than __[Beyond Meat](https://robinhood.com/stocks/BYND)__'s market cap. Yesterday, Oatly shares soared 19% during their first day on the Nasdaq. The IPOat [eased](https://www.reuters.com/business/oatly-procore-debuts-calm-us-ipo-jitters-2021-05-20/) investors' concerns about IPOs, which have been [underwhelming](https://snacks.robinhood.com/newsletters/3o33BaDrVUn7Qvhf5sZumz/articles/f4BjysDmhW5MRxiVgZX7x/) recently. A few things investors were sweet on...

- __Sales:__ Sales of Oatly's sustainable milk ~2X'd in 2020 from 2019 .
-  __Starbs:__ In March, Oatly [won](https://snacks.robinhood.com/newsletters/3J3tNJcBtoyAbAt64x7tUV/articles/3We9DJQD38acMPoUoV1AQq/) the milk lottery: a nationwide rollout at __Starbucks__.
- __Stars:__ The Swedish company is backed by celebs like Oprah, Natalie Portman, and Jay-Z.

__My oat milk brings all the boys...__ to the Starbs. Oat milk is a barista staple today, but for decades after Oatly was born in 1994, it was pretty obscure. Wild stat: the founder of Oatly [literally](https://www.cnbc.com/2021/05/20/oatly-ipo-how-the-swedish-oat-milk-became-popular-in-us.html) invented oat milk. In 2017, Oatly expanded to the US and launched a major rebrand. That hip, spunky branding has been key to its growth. Oatly's marketing strategy =  *anti*-marketing (see: [these](https://medium.com/the-mission/oatlymarketingadcampaign-eeae9250c018) murals, these [cartons](https://thechallengerproject.com/blog/2017/ctw/oatly), and this Super Bowl [ad](https://www.youtube.com/watch?v=_HQU0MB0D5A)). And it's provocative...


__Provocative marketing comes with risks...__ Oatly highlighted its "provocative and unconventional marketing" as a business *risk*, which could expose it to more scrutiny from food regulators and lawsuits from dairy lobbyists. Oatly's slogan: "It's like milk, but made for humans." But for Oatly, the branding strategy has also come with big rewards. Oat milk is oat milk, but people seek out Oatly specifically, thanks to its "cool brand" factor. That's likely why Starbs chose to feature Oatly, too. 

Oatly, the spunky company that invented oat milk, raises $1.4B in its IPO

_Give the people credit cards...and Oatly? [pixelfit/E+ via GettyImages]_

💳  Give the people credit 

__A Shiba with a bone to pick...__  ICYMI, cryptocurrency prices have been plummeting. A week ago, __[Bitcoin](https://robinhood.com/crypto/BTC)__ was trading around $57K, down from its record of $63K in mid-April. At one point yesterday, Bitcoin plunged to  ~$30K. Meanwhile, __[Ethereum](https://robinhood.com/crypto/ETH)__, __[Doge](https://robinhood.com/crypto/DOGE)__, and __[Litecoin](https://robinhood.com/crypto/LTC)__ all dropped more than 40%, before recovering (some) losses. 

- __Nearly $1T has been wiped off__ total crypto market value since last week, when it was over $2T. 
- __Shares of crypto-invested companies__ like __[Coinbase](https://robinhood.com/stocks/COIN)__, __[Square](https://robinhood.com/stocks/SQ)__, and __[MicroStrategy](https://robinhood.com/stocks/MSTR)__ — an analytics company that invests in Bitcoin — also dipped.

__Decrypted...__ [More](https://www.gemini.com/state-of-us-crypto) than half of crypto investors say they’re buying for the long-term. Still, crypto prices are infamously volatile compared to other assets. The current annualized historical volatility for the S&P 500 index is about 15% — for Bitcoin, it's *80%*. Historical volatility = how much an asset price deviates (on average) from the average price over a time period. What may have caused this latest plunge:

- __Elon:__ BTC fell last week after Elon tweeted that __[Tesla](https://robinhood.com/stocks/TSLA)__ would no longer accept it. This week, it fell *again* after Elon's reply in a thread ("Indeed") led to  speculation that Tesla had sold Bitcoin. It hadn’t.  
- __China:__ On Tuesday, China reiterated its ban on offering cryptocurrency services, saying crypto is dangerous to the financial order.


_Home improvement, feat. crypto stools [Morsa Images/E+ via GettyImages]_

__The three-legged stool of crypto cracked...__ Cryptocurrencies sit upon a three-legged stool. The first leg: public enthusiasm (culturally-driven momentum). The second: corporate validation (like company investments, or crypto payments support). The third: government regulation — or its lack thereof, a key element of crypto. Last week, Elon cracked the corporate validation leg. This week, China cracked the regulation leg. That doesn't mean the crypto stool is broken. But when any of the legs show cracks, prices tend to wobble.


Bitcoin’s big plunge: how it relates to Elon, China, and kitchen furniture

__Still retiling the bathroom...__ When lockdowns hit last March, Americans shifted their spending from restaurants and clothes to the only place that mattered: home. People re-painted kitchens, and bought enough scented candles to light a small town. We [thought](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/3djXYQJYytx1qKMDTR9yG1/) the DIY House Hype might start slowing down *last May*. A year later, the House Hype is going stronger than ever. 

- __Wild:__ __[Home Depot](https://robinhood.com/stocks/HD)__'s sales soared 33% last quarter to $37.5B. For reference: Home Depot's quarterly sales growth for the same quarter in 2019 and 2018 was ~5%. Oh, and profit nearly doubled. 
-  __[Lowe's](https://robinhood.com/stocks/LOW)__ sales jumped 24% on the continued home improvement hype. 

__"I was lightning, before the lumber"...__ If Imagine Dragons wrote a home improvement song. Home Depot says there's a "storm environment" for lumber right now. That's partly thanks to the housing market boom and a reopening-driven building frenzy. Zillow-scrolling just got pricier...

- __Wild stat:__ Lumber prices have more than 4X'd in the past year. The surge has added [$36K](https://www.cnbc.com/2021/04/30/soaring-lumber-prices-add-36000-to-the-cost-of-a-new-home.html) to the price of an average new single-family home. 
- __Soaring lumber demand__ boosted Home Depot's sales, both to professionals (think: contractors) and DIY customers (think: Uncle Bobby).

Homey

__"Homevesting" has arrived...__ The initial House Hype was driven by spending to make our 24/7 biodomes more enjoyable. You had to stare at the bedroom wall all day, so you painted it pastel blue. As the US reopens, we're seeing a different kind of spending: "Homevesting." Home sales are hitting 15-year highs, so prices are soaring. Now, people are investing to level-up their precious homevestments. Home Depot's CEO thinks that's a great sign for the home improvement industry looking ahead. 


The House Hype lives on: Home Depot's killer earnings reveal something else, too

🌀 Crypto's chaotic week 

__Cybertruck is shaking...__ Yesterday, President Biden visited __[Ford](https://robinhood.com/stocks/F)__'s Dearborn, Michigan plant to check out a shiny new toy: the all-electric F-150 Lightning pickup. Tonight, Ford will publicly reveal deets about the highly-anticipated EV. [Spoiler](https://www.detroitnews.com/story/business/autos/2021/05/18/biden-tour-ford-plant-dearborn-electric-vehicle-priorities/5133176001/) from Biden, who took it for a spin: "This sucker’s quick."  But there was more to Biden’s agenda than a joy ride...

- __Clean energy future:__ Biden pitched his $174B EV plan, part of his $2.3T [proposal](https://snacks.robinhood.com/newsletters/5LFeKLcW6vcwl0ortNgrtm/articles/4n7AMG2fFNs2TmR0EXgTgO/) to give US infrastructure a green makeover.
- __Chip-independence:__ Biden also advocated to move more chip production to the US, as the auto industry struggles with a shortage. 

__The Madonna of metal...__ Ford's F-150 (*non*-electric) has been the best-selling vehicle in the US for *39 years straigh*t. Ford sold nearly 800K F-Series vehicles last year, because America loves a good pickup...

- __Pickup trucks accounted for *half*__ of the auto industry’s top 10 best-selling vehicles last year. 
- __The three best-selling vehicles were *all* pickups__, and made up [13%](https://www.cnbc.com/2021/01/08/pickup-trucks-dominate-americas-10-best-selling-vehicles-of-2020.html) of all cars sold in the US last year. GM's Chevy Silverado was #2, and Chrysler's Ram was #3. 
- __Wild stat:__ Ford's annual sales from F-150s are more than Tesla's *total* yearly sales of all its models. 


Pickup

__This could be the first "EV ambassador"...__ Tesla gets a lot of hype, but it's not an "ambassador" for democratizing EVs across the US. CA accounts for 35% of Tesla's sales. Meanwhile, F-150 sales are strongest in red states, with Texas being its No. 1 market. Winning over F-150 owners means winning over America’s heartland — *and electrifying it*. That's exactly what Biden's trying to do. If F-150 owners like Lightning, it could be a turning point for EV adoption. 

Ford gives Biden a peek at the most successful car in American history (EV-style)

__When Bezos buys a lion...__ it comes with a whole movie studio. __[Amazon](https://robinhood.com/stocks/AMZN)__ is [reportedly](https://variety.com/2021/digital/news/amazon-mgm-acquisition-talks-9-billion-1234975168/?stream=top) in negotiations to purchase __MGM__ for $9B. This would be the 'Zon's biggest move yet into entertainment. Amazon has made big investments in Prime Video, which attracted 175M viewers over the past year. But Netflix still gets most of Hollywood's spotlight. With this acquisition...

- __Content:__ MGM has a major library. Think: 4K movie titles, from *James Bond* to *Rocky*.  It also has 17K TV episodes — from *The Handmaid's Tale* to *Real Housewives*.
- __Swagger:__ MGM is old Hollywood. Its historic name and titles would bring prestige to "newbie" Prime Video. 

__Coming to America...__ and the red carpet. Streamers are investing to become more Hollywood, less Chrome tab. In 2020, the 'Zon spent $11B on shows, movies, and music for Prime, up 40% from 2019. __[Netflix](https://robinhood.com/stocks/NFLX)__ spent more than *$17B* on content last year, mostly on originals. But it's deeper than content splurges...

- __Theaters:__ Netflix bought iconic theaters in Hollywood and NYC to premiere its Oscar-worthy films, like *Roma*. Last May, there were [rumors](https://snacks.robinhood.com/newsletters/3E2MYqmOkTAKbBTKPPKQw7/articles/4IOYTvbMXdjgzwwFYRqYdL/) that Amazon wanted to buy AMC. 
- __Awards:__ Netflix snagged 36 Oscar noms this year, the most of any studio. __[Disney](https://robinhood.com/stocks/DIS)__ won five, Amazon won two, and *Nomadland* — which premiered on Hulu — got Best Picture.


Action

__Streamers are becoming studios...__ In 2017, Netflix and Amazon [became](https://www.hollywoodreporter.com/news/general-news/amazon-netflix-score-first-streaming-service-oscar-wins-2017-salesman-white-helmets-980725/) the first streamers to ever win Oscars (and there was [pushback](https://variety.com/2019/film/awards/steven-spielberg-oscars-netflix-1203155528/)). Now, streamers are getting dozens of Oscar noms and spending billions on big originals. Meanwhile, studios are leaning into streaming. Think: Universal's Peacock, Warner's HBO Max, and Viacom's Paramount+ — plus, more direct-to-streaming releases. 


When streamers become studios: Amazon is reportedly in talks to buy MGM for $9B 

_Pickup Party in the USA [Leo Patrizi/E+ via GettyImages]_

🚘 Elon's Cybertruck has competition

__*90 Day Fiancé* meets GOT...__  __[AT&T](https://robinhood.com/stocks/T)__ is ditching the entertainment biz, leaving its media assets to fend for themselves. The telecom giant [reached](https://www.wsj.com/articles/at-t-to-combine-warnermedia-division-with-discovery-11621250928) a deal with __[Discovery](https://robinhood.com/stocks/DISCA)__ to combine their media assets into a new, publicly-traded company (name TBD). Meet the cast...

- __AT&T:__ Famous for its phone plans, but also for buying __WarnerMedia__ for $81B in 2018. That gave it CNN, HBO, TBS, and Warner Bros. In 2015, it snagged DirecTV. 
- __Discovery:__ Famous for reality shows like *Shark Week*, *Extreme Makeover*, and *90 Day Fiancé*. Its networks: Food Network, Animal Planet, HGTV, and... Discovery Channel. 

__Do you think you're better off alone?...__ If the deal is approved, AT&T will get $43B — around half of what it paid for Warner (womp). AT&T's media biz has [struggled](https://snacks.robinhood.com/newsletters/3VYgq4XRGydXCiWCpJd3rW/articles/5XPdRwH7GPf2fZGiyykxV5/) thanks to cord-cutting, streaming, and pandemic movie theater closures. In February, it sold a large stake in its DirecTV business. The Warner spin-off marks the end of AT&T's big bet on entertainment — which ended up costing it $93B. Some big plot points:

- __71%:__ AT&T shareholders' stake in the new company. Discovery shareholders get the rest.
- __$20B:__ How much AT&T and Discovery spend on content combined (more than Netflix). 
- __Two__ streaming services: HBO Max and Discovery+. TBD if they'll merge.

Finale

__Losing focus can be dangerous...__ especially in quickly-changing industries. AT&T lost more than money — it lost focus on wireless, which is going through a 5G revolution. Instead of just competing against __Verizon__ and __T-Mobile__, AT&T was *also* competing against __Netflix__ and __Disney__. Now, it'll need to spend tens of billions to match broadband/wireless investments made by Verizon and T-Mobile to upgrade their networks. This sale would help it do that, but it has already fallen behind. 


AT&T’s big experiment in entertainment is over (it's breaking up with Daenerys)

__Still haven't finished the Amazon 100-pack...__ While you were collecting crumpled-up masks from your car and purse, the CDC dropped a big one. On Thursday, America's public health agency [said](https://www.cnn.com/2021/05/13/health/cdc-mask-guidance-vaccinated/index.html) people who are fully Covid-vaccinated *don't* need to wear masks indoors or outdoors (except in certain cases). Fully-vaxed peeps (FVPs) also don't need to social distance. Companies moved quickly:

- __Unmasked:__ __Target__, __Starbucks__, __Chipotle__, __CVS__, __Walmart__, __Costco__, and TJ’s are allowing mask-free shopping for FVPs.
- __Half-masked:__ __Disney__ Orlando is letting FVPs roam mask-free in outdoor common areas (but not while waiting for Space Mountain — or riding it).
- __Full-masked:__ __Home Depot__, __Gap__, __Kroger__, and __Ulta__ are among those maintaining their mask precautions for now. 

__Mask on, mask off?...__ The answer may be as confusing as LA street parking signs. Plus, state and local laws take precedence over company policies (eg: FVPs can unmask in Starbs Miami, but not in LA). The new guidelines could encourage more Americans to get vaxed. But many stores aren't verifying vax status. That "honor code" comes with risks — especially to immunocompromised people. For companies...

- __Foot traffic:__ The guidelines could increase capacity and help bring customers back — *or* scare some away. Think: bar seating and regularly-spaced tables. 
- __Employees:__ The option to go mask-free during a long shift could help lure workers back (ICYMI, there's a [labor shortage](https://snacks.robinhood.com/newsletters/3o33BaDrVUn7Qvhf5sZumz/articles/2rjYa4D3zFcw5Zgdm33xCE/)). But some companies are still requiring *employees* to wear masks, while customers can go mask-free.


_Trying to understand new mask guidelines like [mediaphots/E+ via GettyImages]_

Unmask

__Companies can act like mini-governments...__ The hierarchy of health mandates has three layers: nation-wide (CDC), state and local (22 states still have mask mandates), and corporate. While government rules take precedence, companies can shape policies of places we visit every day. We'll see if "unmasked" vs. "masked" companies gain a leg up over each other — and if these rules-within-rules create public confusion. 

From Disney to Starbucks, companies are making their own (confusing) mask rules

🍿 AT&T says bye to GOT

__Check the math...__ Something strange is happening in US employment. 9M+ Americans are still unemployed, and companies are scrambling to hire as the economy revs up — *but they can't find enough people*. In March, job openings hit a record 8.1M... but exceeded hires by 2M+. And in April, the unemployment rate *jumped*. Now, companies are [boosting](https://www.wsj.com/articles/big-companies-woo-scarce-hourly-workers-with-higher-pay-bonuses-11620930575) wages to lure workers (and your Chipotle delivery just got pricier).

- __[Amazon](https://robinhood.com/stocks/AMZN)__ is now paying new hires an average starting wage of $17/hour (up from $15). It's also offering $1K signing bonuses. 
- __[Chipotle](https://robinhood.com/stocks/CMG)__ is bumping average pay for restaurant workers to $15/hour, and says employees can earn $100K/year after three years. Meanwhile, __[McDonald's](https://robinhood.com/stocks/MCD)__ is raising wages for 36K+ workers. 
- __[Uber](https://robinhood.com/stocks/UBER) and [Lyft](https://robinhood.com/stocks/LYFT)__, which are dealing with driver shortages, are offering large bonuses to get people driving. 
- __[Walmart](https://robinhood.com/stocks/WMT)__, aka: America's largest private employer, raised its average hourly wage to $15+.

__*Now add it up*...__ Average hourly earnings for private-sector employees rose by 21 cents to $30.17 in April, as companies struggled to hire. A few potential reasons workers aren’t returning:

- __Unemployment $$$:__ President Biden extended the  $300 extra/week benefit through September. Now, the [average](https://www.wsj.com/articles/millions-are-unemployed-why-cant-companies-find-workers-11620302440?mod=hp_lead_pos1) monthly unemployment payout is ~$2.5K (tax-free up to $10.2K). 42% of people receiving benefits earn more than they did at their jobs. 
- __Childcare:__ Only 60% of the largest US school districts were fully open in April, leaving some without childcare. Women [carried out](https://snacks.robinhood.com/newsletters/4FiPxYkU4FGEKs36P1LNJJ/articles/4kp1BqJkQIJqk2dJ3iMTuU/) the bulk of duties.
- __Corona:__ Workers are worried about catching Covid while rolling burritos side-by-side.


_"When Uber surge pricing never ends" [Henrik Sorensen/DigitalVision via GettyImages]_

__The Hiring Dilemma could have two outcomes...__ #1: it could help workers and the economy through rising wages — real wage growth has been [sluggish](https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/) for decades. #2: it could become an Economic Dilemma. Wage growth could be canceled out by weaker purchasing power if prices continue to [spike](https://snacks.robinhood.com/newsletters/7HkkS4VanKbpTUDjbeQ51k/articles/5tVDiejV1yGV2RWElrSk28). Rising prices [especially](https://www.cnn.com/2021/05/13/economy/inflation-lower-income-households/index.html) hurt low-income households. The labor shortage could also slow econ growth. Workers will likely return as benefits expire and schools reopen — but businesses may find it hard to lower wages, which could result in downsizing. 

 The Hiring Dilemma: corporate America is raising wages to bring reluctant workers back 

__Retiled the bathroom (five times)...__ Fresh off the House Hype of 2020, __[Home Depot](https://robinhood.com/stocks/HD)__ and __[Lowe's](https://robinhood.com/stocks/LOW)__ report first quarter earnings this week. Home retailers *thrived* last year as home ownership rose, and we invested in our 24/7 biodomes — from $5 candles to pastel paint. Home Depot rode the DIY wave to its [best](https://snacks.robinhood.com/newsletters/2TDWxjOTY5rfmtK8uZVDWC/articles/6xBACHifKO398SwGZL49TI/) quarter in 20 years. Lowe's also saw jaw-dropping growth. Investors want to know if the House Hype continued... or cooled with reopenings.

__The Tractor Factor intensifies...__ Tractor legend __[John Deere](https://robinhood.com/stocks/DE)__ rolls up with earnings on Friday. In February, Deere reported a killer profit and boosted its outlook as farming and construction perked up. Since then, US manufacturing and home building has [boomed](https://www.barrons.com/articles/u-s-building-boom-is-sending-lumber-and-steel-prices-through-the-roof-51618482600), sending lumber and steel prices soaring (#flated). We'll see if Deere experienced greener pastures last quarter thanks to its construction machinery. 


__Crypto carbon in the spotlight...__ Cryptocurrency prices plunged last week after a bombshell tweet from Elon: __[Tesla](https://robinhood.com/stocks/TSLA)__ will no longer accept Bitcoin payment, because it [burns](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4OCWE9kGhme60DCcKsfIUl/) too much fossil fuel. At one point, as much as $365B was wiped from crypto market value.  Now, Tesla is looking at altcoins that use <1% of Bitcoin’s energy. The big reckoning with crypto’s energy footprint could boost companies building greener crypto pipes… and potentially add volatility. 

__IPOh No...__ IPOs kicked off 2021 hot and heavy, raising a record $162B in the first quarter. But the momentum seems to be cooling: big IPOs like __[Bumble](https://robinhood.com/stocks/BMBL)__ and __[Coinbase](https://robinhood.com/stocks/COIN)__ have struggled in recent weeks, as many inflation-worried investors move away from high-growth stocks. Now, a few IPOs are getting [delayed](https://www.bloomberg.com/news/articles/2021-05-13/ipos-are-getting-delayed-as-market-volatility-spooks-debutants?srnd=premium&sref=q3KSFp38) as market volatility spooks companies.


- __[Hack](https://snacks.robinhood.com/newsletters/4G8N3WpBgRoMSpXHAML44t/articles/v7Ixe754ezFPvMk4gSHBw/):__ The US' largest fuel pipeline got hacked by "DarkSide," causing gas shortages and panic-buying. Aaaand: it had to pay a $5M ransom. 
-  __[AAPI](https://snacks.robinhood.com/newsletters/4xclkSJaYAU12PaicjZrLh/articles/4cJEgATKMsqbzHNdcLDEtg/):__ Asian American businesses have suffered “Twin Crises” and an outsized impact during the pandemic. 
- __[Swipe](https://podcasts.apple.com/us/podcast/hot-vax-summer-bumbles-friend-zone-bitcoins-hummer/id1386234384?i=1000521696564):__ Hot Vax Summer is coming, so we jumped into __[Bumble](https://robinhood.com/stocks/BMBL)__'s expectation-beating earnings (psst: it wants to friend-zone you). 

💰  Why paychecks are getting bigger

__Technoking, or Cryptoking?...__ Elon Musk tweeted a bombshell on Wednesday: __[Tesla](https://robinhood.com/stocks/TSLA)__ will no longer accept __[Bitcoin](https://robinhood.com/crypto/BTC)__ payment for cars. Then: *as much as [$365B](https://www.cnbc.com/2021/05/13/bitcoin-btc-price-falls-after-tesla-stops-car-purchases-with-crypto.html) was wiped from cryptocurrency market value* (that loss = Mastercard's entire market cap). Elon is #concerned about Bitcoin's fuel-burning environmental impact (we [covered](https://snacks.robinhood.com/newsletters/18QR0SyWNU2shCThYbl30f/articles/35CXk15pizW3Ju68UBK6WO/) that last month). That's a major reversal from the Technoking's previous stance:

- __February:__ Tesla [invested](https://www.cnbc.com/2021/02/08/tesla-buys-1point5-billion-in-bitcoin.html) in $1.5B worth of Bitcoin, and started accepting it as payment for cars. Bitcoin soared on the news. Side note: is anyone *actually* buying Teslas with BTC? 
- __Wednesday:__ BTC payments = suspended. Tesla also won’t be selling any of its Bitcoin, but will only transact when “mining transitions to more sustainable energy.”
- __Yesterday:__ Bitcoin, __[Ethereum](https://robinhood.com/crypto/ETH)__, __[Dogecoin](https://robinhood.com/crypto/DOGE)__, __[Ripple](https://robinhood.com/crypto/XRP)__, and other cryptocurrencies plunged. 

__The EV senses a disturbance...__ Tesla is worried about the rapidly rising use of fossil fuels (like: coal) for Bitcoin mining and transactions. Bitcoin is a sneaky carbon emitter, because powering it requires much more electricity than other cryptos. Bitcoin mining computers verify the legitimacy of blockchain transactions, making quintillions of attempts per second to solve increasingly complex equations (aka: major energy suck).

- __Bitcoin alone__ accounts for [0.5%](https://fortune.com/2021/03/28/crypto-bitcoin-carbon-energy-consumption/) of global electricity consumption — more than entire countries like Argentina. A single BTC transaction generates the same amount of carbon as [~1M](https://digiconomist.net/bitcoin-energy-consumption/) Visa transactions.
- __In context:__ Bitcoin consumes [707 KWh](https://www.trgdatacenters.com/most-environment-friendly-cryptocurrencies/) of energy per transaction — that's 11X more than Ethereum, 38X more than Litecoin, and nearly 6,000X more than Doge. That's partly because the systems required to verify BTC transactions are more complex, and less energy-efficient.


_When Elon wants greener crypto mining [OJO Images via GettyImages]_

__The next phase in crypto mainstreamification...__ has arrived. The new trend of culturally-driven "coin crowding" is colliding with another trend: commitment to a clean energy future. Tesla said it's looking at other cryptos that use <1% of Bitcoin’s energy. Regardless of Elon’s next move, this has sparked a wider reckoning on crypto’s environmental impact — among individual investors, to climate-minded corporate investors. This shift could boost companies looking to make crypto’s infrastructure more sustainable. Like: Bitcoin-focused investment company __Seetee__ and the new, more eco-friendly network, __Chia__.


Crypto’s price collision: Elon’s green move spotlights Bitcoin’s environmental impact

__Lay down the stats…__ The pandemic has brought suffering for everyone, hitting small business owners especially hard. On a national scale, [34%](https://www.visualcapitalist.com/mapped-the-state-of-small-business-recovery-in-america/) of America’s small businesses have closed since January 2020. And Asian American-owned businesses have suffered an outsized impact: [according](https://www.nbcnews.com/news/asian-america/asian-american-owned-businesses-suffer-outsized-toll-pandemic-rcna678) to a recent report from the NY Fed, small firms owned by Asian Americans suffered more than those owned by Black, white, and Hispanic Americans.

- __~90%__ of small Asian-American firms lost sales last year, a rate higher than for other groups. 
- __~60%__: By the end of March, sales for Asian American businesses were down by [60%](https://www.jpmorganchase.com/institute/research/small-business/small-business-financial-outcomes-during-the-onset-of-covid-19#finding-4) from 2019 — compared to a ~50% drop suffered by others.

__Explain it…__ Only ~9% percent of firms owned by Asian Americans were financially “distressed” in 2019 — compared to 19% of Black-owned firms and 16% of Hispanic owned businesses. Despite starting the pandemic in a stronger financial position, Asian-American businesses suffered a heavier financial toll. A few reasons why...

- __Business type:__ Pandemic-related closures and restrictions were particularly hard on the restaurants, stores, nail salons, spas, and other service industries in which many Asian-owned businesses are concentrated.
- __Trouble accessing aid:__ Language barriers and a lack of banking relationships made it hard for some business owners to access government aid like PPP loans. 
- __Racism,__ violence, and prejudiced rhetoric blaming Asians for the coronavirus may also have contributed to business declines. Over the past year, there has been a disturbing uptick in violence and hate crimes against Asian-Americans. 
- __Geography:__ Asian populations are concentrated in states like NY, NJ, and CA, and in big urban areas — all of which have taken crushing financial hits.


AAPI

__Asian Americans have been facing “Twin Crises”...__ Economic struggle paired with racism amplified by the pandemic. Emily Yueh, a partner at McKinsey, [says](https://www.marketwatch.com/story/asian-american-businesses-are-dealing-with-two-viruses-reeling-from-racist-incidents-many-are-hurting-financially-during-covid-19-11613610159) that while causation is difficult to prove, there is a correlation between rising discrimination and the financial injury experienced by Asian businesses. Looking ahead, Asian businesses are also taking longer to recover relative to others. 