Alternative Investing Report - October 22, 2024

*as of 10/21; Sources: S&P, BTC, FTSE, DJRE, CL50

Fintech Stripe has reportedly acquired the crypto stablecoin platform Bridge for $1.1 billion, which is crypto’s largest-ever acquisition and Stripe’s as well. Bridge helps businesses accept stablecoins, which facilitate global B2B payments. It raised $58 million in August at a reported valuation of $200 million, so the acquisition represents more than a fivefold increase in value.

➨ TAKEAWAY: The deal is a clear signal that Stripe is going to expand into crypto, which should go a long way towards normalizing stablecoin payments. Stripe is one of the biggest payment processors in the world, and facilitated over $1 trillion in payment volume in 2023. It is also the largest private fintech company in the world, with a valuation of $70 billion, and has long been a rumored IPO candidate.

The states that saw the biggest net job migration based on the latest U.S. Census data were Virginia, Texas and Tennessee, while the states that saw the biggest negative outflows were California, Illinois and Louisiana. When measured on a percentage basis, the biggest winners were South Carolina, Maine and Montana.

➨ TAKEAWAY: These are only migration numbers that have to do with jobs, not a complete picture of migration trends, but new workers can have a big impact on local real estate markets. More demand for housing can drive up prices and spur new construction projects, and new workers also drive demand for offices, retail and healthcare facilities. Net job migration is also a measure of economic growth and potential, so investors should keep a close eye on where job-switchers are moving.

📷 Ansel Adams auction: A collection of 96 prints from the famed photographer set 41 separate records for his work and sold for a combined $4.56 million, well above the high estimate of $2.8 million.

🍷 Fake vintage wine: Six people were arrested in France and Italy and charged with selling more than $2 million worth of wine with forged labels, stickers and wax seals to pass off poor quality wine as expensive, five-figure bottles. Wine investors need to be extremely careful about the provenance of bottles they are buying.

🪙 Web3 funding: VC investment into Web3 startups in Q3 fell by 13% compared to Q2, but was still 43% higher than Q3 2023. The deal count was the lowest since 2020, but there were eight funding rounds of $50 million or more, led by Infinite Reality’s $350 million round at a $5.1 billion valuation.

💵 Investors want more private credit: A Goldman Sachs survey of asset managers found that 40% plan to increase their investment intro private credit, and half are now allocating to secondaries and co-investment strategies within the asset class.

🚘 Schumacher’s Ferrari: Seven-time Formula 1 champion Michael Schumacher’s Ferrari 248 will be sold at Sotheby’s next month, and carries a pre-auction estimate of $15 million.

🚜 Blueberry farm sales: A previous Listing of the Week, 12 blueberry farms in Michigan ending up selling for a total of $4.99 million, with an average cost per-acre of $7,715, which was “very good” compared to recent similar auctions.

The Metreon, an iconic San Francisco mall with 312,000 square feet of retail space has been listed for sale, with the price undisclosed. The land itself is not for sale, as it is owned the the City of San Francisco, but the listing is for the building and a leasehold with 58 years left on it. The mall is 92% leased, with anchor tenants Target and an AMC IMAX movie theater that has been there since the mall opened in 1999. It was last sold and renovated in 2012, and the weighted average lease term remaining is 8 years. If a successful, bustling mall is not for you, try the former Westfield Mall, just a few blocks away, that is mostly vacant and over $600 million in debt. It goes to auction on November 14.

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