Happy Saturday! Here are the top questions from Ask Titan Anything this week. As always, let us know if you have any questions.
Q: Any plans to raise APY for cash?
This has been one of the most common inbounds by clients and the short answer is yes. As interest rates continue to climb, we plan to increase both the APY paid to clients on cash (Titan cash and strategic cash) as well as the maximum amount that qualifies. Stay tuned for an announcement in the coming week or so that highlights the product enhancements!
Q: What does Microsoft's investment in ChatGPT mean for the company?
Microsoft announced plans to invest $10 billion in OpenAI, the parent company of ChatGPT, as part of a funding round that would value the company at $29 billion. Microsoft will reportedly get a 75% share of OpenAI’s profits until it makes back the money on its investment, after which the company would assume a 49% stake in OpenAI. The bet should help Microsoft boost its efforts in web search via Bing and is reportedly to be included in their office suite products (Word, Powerpoint, Excel etc.). With OpenAI reportedly burning $3million a day in compute costs, the cash infusion and partnership expansion give the company plenty of runway to continue to grow. This is best categorized as an M&A transaction that can be added to the list of impressive moves by the technology giant. Incorporating this feature across its suite of products (inclusive of Azure and gaming) while doubling down efforts on search represents a meaningful growth opportunity for the company, in our eyes.
Q: Why is Bitcoin going up?
Bitcoin (BTC) was up 6+% in 24 hours, climbing above $18,000 on Thursday for the first time since mid December. The rally comes after the Consumer Price Index released Wednesday showed signs of cooling, slowing to 6.5% down from 7.1% in the November reading. Investors are hoping the moderate improvement may encourage the Fed and other central banks to take some gas off the pedal when it comes to rate hikes. Some other (sort of) positive news in the crypto universe came yesterday as FTX’s restructuring team said they have recovered ~$5B in assets, a small step towards refunding customers. Nonetheless, we think think risk/reward probably still skews toward the downside in the case of this rally. We’ll wait and see.
Ask Titan Anything is intended to be informational in nature and does not take into account the specific objectives, financial situation, or particular needs of any specific person. Nothing in this content should be construed as investment advice, or a recommendation to buy or sell securities. Certain investments are not suitable for all investors. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not ensure a profit or protect against loss. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income.Various Registered Investment Company (“RIC”) products offered by Third-Party Fund families and investment companies are made available on the platform. Titan Global Capital Management USA LLC ("Titan") is an SEC registered investment adviser and subsidiary of Titan Global Capital Management, Inc. Before investing in such RIC products, you should consult the specific supplemental information available for each product for a full description of the objectives, risks, fees, and expenses. Please refer to Titan's Program Brochure for important additional information. The RIC products that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Please visit the RIC product’s webpage for important additional disclosures. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is a registered broker-dealer and member of FINRA/SIPC. TGT provides no advice nor makes any recommendations to its customers with regard to participation in the cash sweep program, which is done voluntarily upon election by each customer.
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