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    BlockFi secret financials show a $1.2 billion relationship with Sam Bankman-Fried’s crypto empire

    Financial documents that were mistakenly uploaded from bankrupt crypto firm BlockFi show a $1.2 billion relationship with FTX and Alameda Research.
    The presentation, assembled by M3 Partners, offers a previously unseen overview of BlockFi’s balance sheet.
    BlockFi filed for bankruptcy in late November after the collapse of Sam Bankman-Fried’s crypto empire.

    BlockFi logo displayed on a phone screen and representation of cryptocurrencies are seen in this illustration photo taken in Krakow, Poland on November 14, 2022.
    Jakub Porzycki | Nurphoto | Getty Images

    Bankrupt crypto lender BlockFi had over $1.2 billion in assets tied up with Sam Bankman-Fried’s FTX and Alameda Research, according to financials that had previously been redacted but were mistakenly uploaded on Tuesday without the redactions.
    BlockFi’s exposure to FTX was greater than prior disclosures suggested. The company filed for Chapter 11 bankruptcy protection in late November, following the collapse of FTX, which had agreed to rescue the struggling lender before its own meltdown.

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    The balance shown in the unredacted BlockFi filing includes $415.9 million worth of assets linked to FTX and $831.3 million in loans to Alameda. Those figures are as of Jan. 14. Both of Bankman-Fried’s firms were wrapped into FTX’s November bankruptcy, which sent the crypto markets reeling.
    Lawyers for BlockFi had said earlier that the loan to Alameda was valued at $671 million, while there were an additional $355 million in digital assets frozen on the FTX platform. Bitcoin and ether have since rallied, lifting the value of those holdings.
    The financial presentation was assembled by M3 Partners, an advisor to the creditor committee. The firm is represented by law firm Brown Rudnick and is entirely composed of BlockFi clients who are owed money by the bankrupt lender.

    A lawyer for the creditor committee confirmed to CNBC that the unredacted filing was uploaded in error but declined to comment further. Attorneys for BlockFi did not respond to a request for comment.
    Other information that’s now available regarding BlockFi includes its customers numbers and high-level detail on the size of their accounts as well as trading volume.

    BlockFi had 662,427 users, of which close to 73%, had account balances under $1,000. In the six months from May to November of last year, those clients had a cumulative trading volume of $67.7 million, while total volume was $1.17 billion. BlockFi made just over $14 million in trading revenue over that period, according to the presentation, averaging $21 in revenue per customer.
    The company had $302.1 million in cash, alongside wallet assets valued at $366.7 million. In all, the crypto lender has unadjusted assets worth almost $2.7 billion, with close to half tied to FTX and Alameda, the presentation shows.
    BlockFi’s failure was precipitated by exposure to Three Arrows Capital, a crypto hedge fund that filed for bankruptcy protection in July. FTX had arranged a rescue plan for BlockFi, through a $400 million revolving credit facility, but that deal fell apart when FTX faced its own liquidity crisis and rapidly sank into bankruptcy.
    According to the latest released BlockFi financials, the value of both the Alameda loan receivable and the assets connected to FTX have been adjusted to $0. After all adjustments, BlockFi has just shy of $1.3 billion in assets, only $668.8 million of which is described as “Liquid / To Be Distributed.”
    BlockFi’s 125 remaining employees are being paid handsomely as part of the proposed retention plan designed to keep some people on board during the bankruptcy process, the filing shows.
    The retained employees will collect an aggregate $11.9 million on an annualized basis. Among the remaining staffers are three client success employees, who will each take home an annualized average of over $134,000.
    Five employees still with the company make an average of $822,834, according to the presentation, which shows that BlockFi’s retention “plans are larger than comparable crypto cases.”
    WATCH: FTX’s collapse is shaking crypto to its core

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    Tesla plans to spend $3.6 billion more on battery and truck manufacturing in Nevada

    Tesla said in a statement that its its expanding facilities in Nevada will include a 100 GWh battery cell factory and high-volume factory to manufacture the Semi.
    Today, the original Gigafactory primarily manufactures and supplies Tesla’s Fremont, California, vehicle assembly plant with high-voltage battery packs.
    Tesla CEO Elon Musk held a ceremony in Nevada in December to kick off deliveries of the company’s Tesla Semi to a key early customer, PepsiCo.

    An aerial view of the Tesla Gigafactory near Sparks, Nevada
    Bob Strong | Reuters

    Tesla plans to spend $3.6 billion more on expanded battery and heavy duty truck manufacturing in Nevada, the company said Tuesday on social media.
    According to its public statements, Tesla intends to hire 3,000 more people across two new facilities eventually.

    It wasn’t immediately clear whether Tesla’s plans expand the company’s manufacturing footprint beyond the property it is already developing outside of Reno in Sparks, Nevada.
    Tesla said in a statement that its new facilities will include a 100 GWh battery cell factory, where the company expects to have the capacity to produce battery cells for 2 million light duty vehicles annually, and a high-volume factory where it will eventually manufacture its class 8 heavy-duty, fully electric truck, the Tesla Semi.
    Tesla began construction of its first battery factory in Nevada in 2014. It operates this plant today with a key cell supplier, co-tenant and co-investor in the factory, Panasonic. The sprawling factory is known as GF1, Giga Nevada or the original Tesla Gigafactory. It primarily manufactures and supplies Tesla’s Fremont, California, vehicle assembly plant with high-voltage battery packs.
    Republican Nevada Gov. Joe Lombardo revealed details about Tesla’s plans for expansion in the state early on Monday. Tesla confirmed the plans on Tuesday ahead of its fourth-quarter earnings update, which is scheduled for Wednesday after markets close.
    Tesla CEO Elon Musk held a ceremony in Nevada in December to kick off deliveries of the company’s Tesla Semi to a key early customer, PepsiCo. Tesla first announced its plans to produce the Semi in 2017, and had a targeted start of production in 2019 that was delayed until 2022. The company is not yet manufacturing a high volume of Semi trucks, but is making some at the Nevada Gigafactory.

    Fans and critics of Tesla have been posting images of Tesla Semi trucks emblazoned with Pepsi Frito Lay branding that they’ve seen on the road since that announcement, including some broken down on the shoulder.
    Tesla has yet to reveal publicly how much each truck costs, and did not say how many it has produced or sold in its fourth-quarter deliveries report.
    The company is expected to share further details on its Semi program in its Q4 earnings call.

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    Cramer’s lightning round: Amicus Therapeutics is an ideal spec

    Monday – Friday, 6:00 – 7:00 PM ET

    It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

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    Inmode Ltd: “It sells for incredibly cheap. … Frankly, I don’t get it, and that makes me want to look more into it, not just say buy.”

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    Exact Sciences Corp: “They’re losing too much money, to be honest. I’m baffled. … That’s what I don’t like about it.”

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    Rupert Murdoch calls off proposed Fox-News Corp merger

    Rupert Murdoch withdrew his proposal to explore a reunion of Fox News’ parent and Wall Street Journal owner News Corp.
    Murdoch and his son Lachlan Murdoch “determined that a combination is not optimal” at this time.
    The proposal has been withdrawn as News Corp is in advanced discussions to sell its stake in Move Inc. to CoStar, News Corp confirmed Tuesday.

    Rupert Murdoch, chairman of News Corp and co-chairman of 21st Century Fox, arrives at the Sun Valley Resort of the annual Allen & Company Sun Valley Conference, July 10, 2018 in Sun Valley, Idaho.
    Drew Angerer | Getty Images

    Rupert Murdoch has withdrawn his proposal to re-combine Fox Corp and News Corp.
    Fox said Tuesday its board received a letter from Murdoch, its chairman, and his son and Fox CEO Lachlan Murdoch that “determined that a combination is not optimal for the shareholders” of either of the companies at the time.

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    The withdrawn proposal comes as News Corp has been in advanced discussions to sell its stake in Move Inc., the parent company of Realtor.com, to commercial real estate company CoStar Group, according to a person familiar with the matter.
    News Corp confirmed in a regulatory filing Tuesday that it is engaged in discussions with CoStar regarding a potential sale of its stake in Move.
    “Any potential transaction would support News Corp’s strategy to optimize the value of its Digital Real Estate Services segment, while strengthening Realtor.com’s competitive position in the market,” News Corp said in the filing. News Corp added that there was no assurance a transaction would result from the talks and it wouldn’t comment further on the matter at this time.
    A CoStar Group spokesperson said in a statement Tuesday the company “continuously evaluates M&A opportunities across a broad range of companies to maximize shareholder value.”
    A News Corp spokesperson didn’t respond to requests for further comment on the matter. Reuters first reported the deal talks.

    In addition to Wall Street Journal Publisher Dow Jones, News Corp also owns assets such as book publisher HarperCollins and the New York Post. In 2014, News Corp acquired an 80% stake in Move. REA Limited Group, an Australian real estate business that News Corp holds a 61.6% interest in, acquired the remaining 20% stake in Move.
    News Corp CEO Robert Thomson told employees Tuesday the decision to call off the proposed deal would have no impact on employees, according to a memo reviewed by CNBC. He also urged them to keep tight-lipped about the matter.
    “As I advised at the beginning of this process, it is best not to speculate on speculation, and so if you do hear from any media, shareholders, customers or others, please alert the communications team in your business,” Thomson wrote.
    In October, the companies said they had formed a special committee to consider the deal.
    A combination of the two companies would have unified leadership in Murdoch’s empire and cut costs at a time when the audience is shrinking for both print and TV media. News Corp owns Wall Street Journal publisher Dow Jones. Fox, with what was left over from the $71.3 billion Twenty-First Century Fox sale to Disney in 2019, owns right-wing networks Fox News and Fox Business, which is a CNBC competitor.
    Murdoch had split up the companies in 2013. The Murdoch family trust controls about 40% of the voting rights of both companies.
    At the time, the thinking behind the reunion would have been to simply give the merged company greater scale to compete at a time when media companies are competing for subscribers and digital advertising spending, CNBC previously reported.
    The potential merger had faced opposition from shareholders in recent months, who didn’t believe a merger would show the true value of News Corp. if it merged with Fox.
    Some shareholders, like Independent Franchise Partners, believed the merger wouldn’t have realized the full potential value of News Corp, and other alternatives, such as a breakup of News Corp, should have been considered. The London firm is one of the largest shareholders in both News Corp and Fox that isn’t Murdoch.
    Irenic Capital Management was another shareholder that pushed back on the proposed merger, saying Fox didn’t serve News Corp’s strategic goals. Both Irenic and Independent Franchise believe News Corp shares are undervalued. Class A shares of Fox closed at $32.67 on Tuesday, while News Corp’s Class A shares closed at $19.53.
    –CNBC’s Gabrielle Fonrouge contributed to this article.

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    Jim Cramer says to consider an analyst’s call timeframe when investing

    Monday – Friday, 6:00 – 7:00 PM ET

    CNBC’s Jim Cramer on Tuesday reminded investors to pay close attention to the scope of an analyst’s calls.
    He used recent notes on Advanced Micro Devices to illustrate his point.

    CNBC’s Jim Cramer on Tuesday reminded investors to pay close attention to the scope of an analyst’s calls.
    “In the crazy world of Wall Street, it’s not enough to think about the company or the sector or the asset class or the macro, including the [Federal Reserve] — you also need to consider the reaction and even the reactors themselves,” he said.

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    He used recent analyst calls on Advanced Micro Devices to illustrate his point:
    Barclays upgraded the semiconductor maker to overweight from equal weight on Monday, sending the stock up 10%. A day later, Bernstein downgraded the company’s stock to market perform from outperform, citing concerns over a worsening PC market. Shares of AMD fell 2.39%.
    Cramer said that in this case, neither analyst is necessarily wrong, because their arguments rely on different timeframes.
    “The bearish analyst [is] right as rain because AMD’s business is awful now and shows no signs of improving, but over the long-haul, the bullish analyst is going to be right, because eventually, the semiconductor downturn will end,” he said.
    Cramer added that while those periods of trading can be confusing, they can also be advantageous to investors, as long as they don’t act rashly.

    “As we head into the heart of earnings season, I need you to understand that the reaction is often right, depending upon your time frame. However, it can also be wrong,” he said, adding, “Either way, if you have conviction, the reaction can often be a great opportunity to buy, buy, buy, or sell.”
    Disclaimer; Cramer’s Charitable Trust owns shares of AMD.

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    Stocks making the biggest moves after hours: Microsoft, Texas Instruments, Capital One & more

    A building with offices belonging to Microsoft is seen in Chevy Chase, Maryland, January 18, 2023.
    Saul Loeb | AFP | Getty Images

    Check out the companies making headlines after the bell: 
    Microsoft — The tech giant saw shares rise 4% in extended trading after the company reported fiscal second-quarter results that exceeded analysts’ estimates, driven by the strong growth in its cloud unit. Microsoft’s total revenue increased by 2% year over year in the quarter, marking the slowest rate since 2016, however.

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    Capital One — The financial stock dipped more than 1% in extended trading after the company posted an earnings miss. Capital One reported net income per diluted common share of $3.03 in the latest quarter, compared to $3.87 expected by analysts polled by FactSet. Total net revenue of $9.04 billion is slightly below the $9.07 billion estimate.
    Texas Instruments — The chip stock rose under 1% in extended trading after the company reported quarterly results that came in above expectations. Texas Instruments reported earnings of $2.13 per share, beating expectations of $1.98 per share, according to FactSet. Revenue also came in above analysts’ estimates.
    Canadian National Railway — Canadian National Railway saw its shares dip more than 4% in extended trading, even as its quarterly results beat expectations. The company reported an EPS of 2.10 in Canadian dollars, compared to FactSet’s estimate of C$2.08. Revenue of C$4.54 billion was also higher than the C$4.49 billion forecasted by analysts.

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    Stocks making the biggest moves midday: 3M, Paccar, Bed Bath & Beyond, AMD and more

    A woman walks near a Bed Bath & Beyond branch on January 11, 2023 in New York City.
    Leonardo Munoz | View Press | Corbis News | Getty Images

    Check out the companies making headlines in midday trading Tuesday.
    Lyft — The ride-sharing app’s stock lost 0.7% following an upgrade to overweight from sector weight by KeyBanc. The firm said cost-saving strategies such as layoffs and stabilizing demand could help the stock.

    Bed Bath & Beyond — The retail stock gained 15.3% as traders continued to pile into the heavily shorted name. Bed Bath & Beyond has warned of a potential bankruptcy and recently beefed up its legal team ahead of a possible filing. Shares of the meme-stock favorite are up 32% year to date.
    Paccar — Shares of Paccar rose 8.6% after the truck manufacturer reported fourth-quarter results, posting a profit of $2.64 per share and $8.13 billion in revenue. An increasing number of e-commerce deliveries have boosted demand for trucks. The company beat analysts’ expectations for per-share earnings, according to StreetAccount.
    Advanced Micro Devices — Shares slid 2.4% after Bernstein downgraded the semiconductor maker to market perform from outperform. The firm said the personal computer market and new parts markets were growing increasingly unfavorable for the company.
    3M — Shares of the industrial conglomerate lost 6.2% to hit a new 52-week low after the company said it would cut 2,500 manufacturing jobs amid a demand slowdown. 3M also reported lower earnings excluding items with a profit of $2.28 per share compared to $2.45 per share a year earlier.
    Synchrony Financial — Shares of the financial company rose 2.3% on Tuesday, erasing a post-earnings drop for the stock in the previous trading session. An analyst at JMP reiterated a market outperform rating for Synchrony on Tuesday, saying in a note that the company appears more resilient than its peers in the consumer lending space.

    Union Pacific — Shares of the railroad stock ticked 3.3% lower after posting fourth-quarter earnings that fell short of analysts’ expectations on both the top and bottom lines, according to StreetAccount. Union Pacific reported earnings of $2.67 a share on $6.18 billion in revenue.
    Lululemon — Shares of Lululemon slid 1.5% after Bernstein downgraded the apparel company to underperform from market-perform and slashed its price target to $290, a $50 cut. The firm cited slowing earnings growth as demand cools and consumers become more cautious.
    Raytheon Technologies – Shares of the aerospace company added 3.4% after Raytheon posted its fourth quarter. Raytheon posted adjusted earnings per share of $1.27, compared with analysts’ estimates of $1.24 per share, according to Refinitiv. The company posted $18.09 billion in revenue, falling short of the Street’s expectations of $18.15 billion.
    Zions Bancorp — The bank’s shares slumped 1.7% even after Zions posted fourth-quarter earnings per share that beat analysts’ expectations. The company posted per-share earnings of $1.84, compared to the $1.64 anticipated by analysts polled by Refinitiv. In a statement, Harris Simmons, CEO of Zions, noted that the company has “continued to build our loss reserves due to both continued loan growth and the prospect of a slowing or recessionary economic environment in coming months.”
    — CNBC’s Alex Harring, Jesse Pound, Yun Li, Carmen Reinicke, Michelle Fox Theobald, Samantha Subin and Darla Mercado contributed reporting.

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    Wells Fargo gives a bullish endorsement to a beleaguered Disney. We’re awaiting Iger’s turnaround plan

    Wells Fargo on Tuesday said it expects Walt Disney (DIS) to “come out swinging” when the entertainment conglomerate reports fiscal first-quarter results early next month. At the Club, we’re slightly more cautious and will be looking closely for a detailed turnaround plan from CEO Bob Iger. When Disney releases its first-quarter earnings on Feb. 8, analysts expect earnings-per-share to come in at 80 cents a share, down 24.5% from the same period last year, while total revenue should climb 7% year-over-year, to $23.35 billion, according to estimates from Refinitiv. “We think DIS management will come out swinging on the F1Q23 call to fend off criticism. We see a refocus on [intellectual property] instead of [subscriber targets], aggressive cost action and the potential for earnings upgrades. We like this setup into the print,” Wells Fargo analysts wrote in a research note. The analysts predicted Disney’s financial performance could improve if the company revives its focus on generating revenue from intellectual property assets like brands, characters and properties associated the classic entertainment franchise, rather than chasing direct-to-consumer subscriber targets. At the same time, Wells Fargo forecasted Disney could announce a roughly $2 billion cost-cutting plan at its direct-to-consumer (DTC) business — mainly comprised of its beleaguered streaming operations — to jump start profitability by early fiscal year 2024. The streaming division includes Disney+, Hulu and ESPN+. Disney launched an advertising tier for Disney+ in early December, but the company has said it doesn’t expect to reap the rewards until later this year. Disney suffered a $1.47 billion operating loss at its DTC unit in the company’s fiscal fourth — a dismal quarter that prompted the board to oust CEO Bob Chapek and return veteran Disney executive Bob Iger to the corner office. The run-up to Disney’s next earnings release comes as Nelson Peltz, the CEO and founder of activist investment firm Trian Partners, has been waging an ongoing proxy battle to gain a seat on Disney’s board. Peltz has said he wants to “work collaboratively with Bob Iger and other directors to take decisive action that will result in improved operations and financial performance.” Disney’s board earlier this month unanimously decided against offering Peltz a seat, according to a recent SEC filing. Trian currently holds a nearly $1 billion stake in Disney. Like other investors — including the Club — Trian has expressed frustration over Disney’s streaming losses, overspending and a share price decline of more than 44% last year. Shares of Disney have climbed by more than 21% since the start of 2023. “Trian wants a higher stock price and is going to push management to decisions that it believes will deliver that aim,” according to Wells Fargo. The bank reiterated its overweight, or buy, rating on Disney, with a price target of $125 a share. Disney closed out Tuesday up 0.29%, at $106 apiece. The Club take Disney’s upcoming earnings will be a chance for Iger to recalibrate the company’s strategy and address some of the pain points investors are worried about, including excess spending, debilitating losses in streaming and a deteriorating balance sheet. If the company announces a robust and comprehensive plan to rein in costs, it could help improve Disney’s profitability over the long run and allow the stock to move higher. As we have argued for months, many companies — particularly those in the technology space — need to make a pivot toward profitability, and we think cost reductions would be well received by the market. We remain guardedly optimistic that Iger, who in his prior postings as CEO and chairman helped generate value for an iconic company, can right the ship at this pivotal moment. But we are also in support of Peltz joining the board because he would push for the cost discipline the company sorely needs. (Jim Cramer’s Charitable Trust is long DIS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

    Disney World’s Magic Kingdom in Orlando, Florida.
    Joe Raedle | Getty Images News | Getty Images

    Wells Fargo on Tuesday said it expects Walt Disney (DIS) to “come out swinging” when the entertainment conglomerate reports fiscal first-quarter results early next month. At the Club, we’re slightly more cautious and will be looking closely for a detailed turnaround plan from CEO Bob Iger. More