Selling SoFi After $25 Billion Stablecoin Update
The financial services firm announced a major crypto agreement with Mastercard.
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On Tuesday morning, portfolio holding SoFi Technologies (SOFI) and Mastercard (MA) announced that stablecoin settlement is now live across SoFi Bank’s debit and credit card program. As part of this launch, SoFi Bank is migrating its entire $25 billion card program to stablecoin settlement of transactions using SoFiUSD.
On the matter, SoFi CEO Anthony Noto said, “Merchants do not need to hold stablecoins, build new infrastructure, or change how they operate. Through SoFi’s Big Business Banking platform, any merchant can receive settlement funds instantly in a SoFi Bank account and withdraw (funds converted) to cash around the clock and at zero cost.”
SoFi said it is talking to large merchants across the U.S. regarding stablecoin-based settlement arrangements.
Paramount News
On Monday, we addressed the probability of a settlement between Paramount Skydance (PSKY) and the Democratic party-led states that were blocking that firm’s merger with Warner Bros Discovery (WBD). By now, everyone who watches the news or reads a newspaper knows that a deal has been struck.
A coalition of 12 state attorneys general secured a settlement with Paramount Skydance on Monday that resolved the multi-state lawsuit alleging the company’s merger with Warner Bros. Discovery would harm competition. The settlement, pending a court approval, includes a five-year court enforceable commitment to increase film output, and a minimum of an additional $1.5 billion commitment to bolster domestic film production.
On the labor and consumer sides, this agreement also includes a $47.5 million fund for employees of both firms that are impacted by the merger, as well as restrictions on how the company handles cable negotiations to help keep prices competitive.
Paramount has agreed to a five-year term, where the merged company, after closing, will commit to release 30 films per year, including 20 wide releases, for the first two years, then 32 films a year with 21 wide releases for years three, four and five. Paramount has also committed to releasing at least four independent films during each year of the commitment period.
Other Portfolio News
Planet Labs (PL)
On Tuesday, Planet Labs completed the firm’s facility handover in Berlin, Germany. The firm achieved its cleanroom fit-out and is scheduled to begin production of its 300-kg, 30-cm resolution class Pelican satellites later this fall. Katherina Reiche, Germany’s Federal Minister for Economic Affairs and Energy, was on hand to open the state-of-the-art satellite manufacturing facility that had been announced less than a year ago. The facility has been designed to scale to up to 60 satellites manufactured per year.
Peloton Interactive (PTON)
On Tuesday morning, Peloton Interactive announced the launch of a new, more accessibly priced, space-saving model and exciting new features for runners through its AI-powered coaching platform, Peloton IQ. Three new treadmills — Peloton Tread Flex, its first folding treadmill; Peloton Tread Vision, and Peloton Tread+ Vision — combine next-generation equipment with intelligent personalization to level up each run, walk and hike, and take Peloton’s vision for connected wellness further than ever.
Trading
The intention on Tuesday will be to initiate Paramount Skydance (PSKY) to the portfolio, but only at a discount. We’re also going to take a small profit in SoFi Technologies, but again, only at a premium. Tuesday’s order will bear limits.
Monday’s Intention vs Actual Trade
Intention: Sell 20 shares of (VELO) at or close to the last sale of $10.94.
Actual trade: Sold 20 shares of VELO at $11.42.
Tuesday’s Intentions
Sell 10 shares of SOFI at $18.25 (limited) or better
Purchase 15 shares of PSKY at $9.75 (limited) or better
Current Positions
Long 60 shares of (ASPN) at $5.1083. Target price: $10. Last sale: $4.92.
Long 100 shares of (EVLV) at $5.7883. Target price: $8.50. Last sale: $4.94.
Long 110 shares of (OCUL) at $8.6209. Target price: $14. Last sale: $10.05.
Long 250 shares of (ONDS) at $8.0932. Target price: $12. Last sale: $7.41.
Long 100 shares of PL at $20.3367. Target price: $26. Last sale: $17.20.
Long 50 shares of PTON at $5.0815. Target price: $9. Last sale: $5.12.
Long 7 shares of (RKLB) at $73.8629. Target price: $97. Last sale: $71.14.
Long 120 shares of SOFI at $16.0609. Target price: $24. Last sale: $18.01.
Short one SOFI $22 November 19 call at $1.20. Last sale: $0.30.
Long 50 shares of (SWBI) at $14.0414. Target price: $19. Last sale: $13.87.
Long 50 shares of (VELO) at $10.265. Target price: $18. Last sale: $11.46.
Cash: $369.60.
Portfolio value: $9,985.95, -0.1% from inception on March 24.
At the time of publication, Guilfoyle was long ASPN, EVLV, OCUL, ONDS, PL, PTON, RKLB, SOFI, SWBI and VELO.
