Prediction markets – once a small, experimental corner of crypto and retail speculation are rapidly entering mainstream finance, according to a new report from Bernstein Research. The firm highlighted that platforms such as Polymarket and Kalshi have seen exponential growth this year, both in volumes and institutional participation, signaling that event-based trading is maturing into a legitimate asset class.

Bernstein’s analysts estimate that prediction-market trading volumes have surged past $2 billion per week, with liquidity increasingly driven by professional traders and data-driven funds. What began as a niche retail phenomenon tied to political events has expanded into a broad ecosystem covering macroeconomic indicators, corporate outcomes, and sports results.

Why Prediction Markets Are Gaining Ground

Bernstein attributes the sector’s momentum to three key forces: regulatory developments, institutional adoption, and technological scalability. The CFTC’s ongoing reviews of event-contract frameworks, coupled with recent approvals for limited prediction-market operations in the U.S., have helped legitimize the space. Meanwhile, companies such as Gemini and Coinbase have explored derivatives-style prediction products, further blurring the line between speculative forecasting and traditional finance.

Institutional players are beginning to use these platforms for hedging, sentiment analysis, and probabilistic forecasting, according to the report. For instance, some hedge funds are experimenting with prediction-market data to inform macro positioning, while corporate treasuries and policy analysts view these markets as real-time indicators of crowd expectations.

Bernstein likened the current stage of prediction markets to the early growth phase of crypto derivatives a decade ago – nascent but increasingly impossible for major financial institutions to ignore.

Future Growth and Institutional Adoption

Looking ahead, Bernstein forecasts the total value of traded prediction contracts could quadruple within three years, surpassing $10 billion in annual volume. The analysts said that regulatory clarity and integration with traditional exchanges could accelerate adoption.

Still, challenges remain. The sector must balance compliance with its open-market ethos, mitigate manipulation risks, and ensure transparent liquidity mechanisms. Despite these hurdles, Bernstein’s report suggests the momentum behind prediction markets is “structural, not speculative,” implying they may soon be treated as a standard financial instrument within diversified portfolios.

For Wall Street, this evolution represents both a new source of price discovery and a potential shift in how markets interpret uncertainty – turning predictions into tradable probabilities.

Biotech firm BillionToOne, based in Menlo Park, California, made a resounding market entrance this week, raising $273 million in its initial public offering and seeing its shares climb 67% on debut.

The company sold roughly 4.55 million shares at $60 per share, well above its expected range of $49 to $55. Its opening price reached approximately $100, pushing its valuation to around $4.4 billion.

Why the IPO Resonated

BillionToOne focuses on molecular diagnostic tests, including non-invasive prenatal screening and oncology blood work, using single-molecule sequencing technology.

Its rapid traction – revenues increased nearly 82% year-over-year in the first half of 2025 and gross profit more than doubled – captured investor interest as biotech and AI-adjacent firms regain favour. The strong surge reflects renewed IPO momentum after earlier market pullbacks and a thirst for high-growth companies in emerging healthcare segments.

The oversubscription and premium priced offering suggest investors view diagnostic innovation as a key thematic play in the next tech–healthcare wave. With major underwriters on board, BillionToOne’s execution left little room for investor hesitation, highlighting the potency of niche biotech stories in the current market climate.

Welcoming @BIllionToOneInc to the @NasdaqExchange Opening Bell. https://t.co/bl67CcBkCN

— Nasdaq Exchange (@NasdaqExchange) November 6, 2025

For public-markets observers, BillionToOne’s debut offers several important take-aways. First, it signals that investors are willing to pay for growth even in firms that are not yet profitable provided the addressable market is large and the technology distinctive.

Second, the strong opening suggests the IPO window for biotech may be reopening, especially for companies operating at the intersection of diagnostics, genomics and data analytics.

However, risks remain. The company must scale commercial operations, navigate regulatory pathways and deliver on product pipelines. Investors will be watching for the speed of diagnostic adoption, margin expansion, and how the company manages capital discipline. Key metrics to monitor include test volumes, average reimbursement rates, and new market launches.

Overall, BillionToOne’s successful debut may embolden other healthcare-tech firms to go public, but it also raises the stakes: today’s high expectations leave little room for execution missteps.

Shares of Duolingo plunged 27% after the language-learning platform delivered weaker-than-expected guidance for the current quarter, despite reporting stronger third-quarter revenues. The sharp selloff reflects investor concerns over the company’s pivot toward long-term growth and away from short-term profit maximization.

The Pittsburgh-based firm now expects fourth-quarter bookings between $329.5 million and $335.5 million, falling short of analysts consensus estimate of $344.3 million. Adjusted EBITDA is projected to come in between $75.4 million and $78.8 million, also below expectations of $80.5 million.

Strategic Shift Toward Long-Term Growth

CEO and co-founder Luis von Ahn said Duolingo has deliberately shifted investment priorities to build for the future. “We’ve made a slight shift over the last quarter in how we invest, and we’re investing a lot more in long-term things because we see that as such a big opportunity ahead of us,” von Ahn said.

The company’s recent strategy involves prioritizing user acquisition, platform expansion, and content innovation over short-term monetization metrics. Duolingo believes that investing in its product ecosystem now particularly in AI-driven personalization and course diversification will yield sustainable growth and retention over time.

While this approach supports Duolingo’s mission of global reach and education accessibility, it has raised investor concerns about near-term profitability. Analysts noted that the new guidance suggests slower revenue acceleration through the end of 2025.

User Metrics and Market Reaction

During the third quarter, Duolingo grew its paid subscribers to 11.5 million, slightly exceeding expectations of 11.38 million. However, the platform’s daily active users (DAUs) reached 50.5 million – short of the 51.2 million expected – while monthly active users (MAUs) came in at 135.3 million versus forecasts of 137.4 million.

Despite the strong subscriber growth, the weaker activity metrics reinforced fears that user engagement may be plateauing. Still, Duolingo’s leadership emphasized that engagement levels remain historically high, supported by growing interest in premium tiers and educational partnerships.

Investors reacted swiftly, sending the stock down to its lowest level in months. Market watchers said the selloff reflects skepticism that Duolingo’s long-term vision can sustain short-term earnings pressure.

Looking ahead, the company’s next few quarters will test whether its focus on scaling users and AI-driven product development can translate into a broader monetization rebound.

Tangem has launched Tangem Pay, a virtual Visa card designed to connect directly with its self-custody hardware wallet and enable spending of USDC stablecoin at any merchant that accepts Visa. The product is developed in collaboration with payment infrastructure provider Paera and supports Apple Pay and Google Pay. The service is set to roll out in the U.S., Latin America and key Asia-Pacific regions starting late November, with European availability planned for 2026.

Self-Custody Payments With KYC Filings

The introduction of Tangem Pay represents a hybrid approach: while users retain full control over their hardware wallet (meaning Tangem has no access to their keys or funds), accessing the Visa-linked card requires user identification. Tangem’s CEO emphasized that KYC applies only to the card-balance account and not the wallet itself, meaning user identity is not tied to self-custody holdings. The firm says service will initially support payments via the Polygon network in USDC and is available in 42 jurisdictions at launch.

By marrying peer-to-peer crypto ownership with regulated payment rails, Tangem aims to serve users who demand true self-custody yet also expect modern debit-card utility. This dual model addresses longstanding friction points in crypto from off-ramp usability to identity compliance while protecting user sovereignty over private keys.

Crypto Payments Evolve

For the payments and crypto sectors, Tangem Pay marks a meaningful evolution. The product tightens the link between hardware-wallet independence and mainstream spendability, potentially driving higher crypto adoption among users seeking both autonomy and convenience. Successful execution could position Tangem as a leader in bridging the gap between wallets and everyday payments.

However, challenges loom. User adoption will depend on card-network acceptance, stablecoin support across networks, and navigating regulatory requirements in each jurisdiction. It remains unclear how the product will handle fiat conversions, network fees, and U.S. regulatory compliance around stablecoins. Key indicators to monitor: issuance numbers, regional roll-out pace, stablecoin volumes processed, and user retention. As previously covered, the world of crypto payments is shifting from speculative trading to real-world utility and Tangem’s launch may accelerate that shift.

United Airlines has unveiled the MileagePlus Debit Rewards Card, its first loyalty-program debit card designed for mileage accumulation through spending and savings. Available now to United’s MileagePlus members in the U.S., the card is issued by Sunrise Banks (Member FDIC) in partnership with banking-tech platform Galileo Financial Technologies.

Everyday Banking with MileagePlus Perks

The card allows users to earn one MileagePlus mile for every $1 spent on United purchases and one mile for every $2 on all other eligible purchases. New cardmembers can earn a 10,000-mile bonus after making $500 in purchases within the first four months.

It also offers annual bonus miles – ranging from 2,500 to 70,000 – based on average daily account balances from $2,500 upward. Accounts maintaining an average daily balance of $2,000 or more enjoy a waived monthly fee ($4 for balances below the threshold). No credit check is required for card approval.

United says the card targets loyalty-program members who prefer debit-card simplicity over credit offerings, emphasizing that the product is ‘a natural next step’ in loyalty expansion. The move positions United alongside the few U.S. airlines now offering co-branded debit rewards options.

What It Means for Travelers and Savers

For frequent flyers and savings-minded members, the new debit card opens additional mileage-earning routes: not just spending but also holding balances. The savings-based bonus structure allows members to convert cash holdings into miles an uncommon pairing in aviation loyalty.

However, the rate of return is modest compared to many co-branded credit cards, so the new product appeals best to those seeking mileage rewards without credit-card qualification or annual-fee burdens.

For many card-eligible consumers who lack credit-card access, this debit-based rewards option may provide meaningful value. That said, the value-comparison needs scrutiny – some savings accounts or travel credit cards may yield higher effective returns for certain users.

China has achieved a milestone in its gold-custody strategy, with Cambodia becoming the first foreign government to move ahead with storing its reserves in Chinese vaults. The deal comes as Beijing extends its role in the global bullion ecosystem and challenges traditional custody hubs like London and New York.

Under the agreement, Cambodia will transfer part of its sovereign gold reserves into China­based vaults, leveraging the infrastructure managed through the Shanghai Gold Exchange and aligned state banks. Analysts say the move reflects China’s ambition to deepen its leverage over global reserve chains and reduce reliance on Western-dominated financial networks.

Strategic Shift in Gold Custody

The agreement signifies a key step in China’s broader financial strategy. By inviting foreign reserves into its custody vaults, China is positioning itself as an alternative to traditional bullion centres, offering storage tied to yuan-settled transactions and reduced exposure to dollar-based systems.

Lonely as it may be now in partner count, the Cambodia deal underlines the concept of ‘reserves beyond politics’ with China catering to nations seeking less exposure to Western banking and sanctions risk. Gold stored in China may be perceived as less subject to external freezing or geopolitical clamp-downs than assets held in traditional Western centres.

Reserve Diversification and Market Signals

For the global gold market, the deal further validates gold’s role beyond retail and jewellery demand to sovereign-reserve strategy. Central banks around the world continue to add gold, and China’s custody solution may prompt fresh reserve flows into bullion. If more governments follow Cambodia’s lead, gold demand could rise meaningfully, further tightening physical availability and supporting higher prices over time.

Key indicators to watch now include whether other countries formalise gold-transfer deals with China, how much gold moves into Chinese custody, and whether gold-price benchmarks reflect a shift in custody flows. The evolving scenario may mark the start of a new chapter in how global reserves are held and managed.

Crypto exchange Gemini, founded by Tyler and Cameron Winklevoss, has filed with the Commodity Futures Trading Commission to launch a regulated platform called ‘Gemini Titan’, enabling trading in prediction-market contracts on real-world events. This move comes as weekly trading volumes in prediction-markets recently topped $2 billion, signalling a surge in institutional and retail interest.

Gemini’s Strategic Expansion Beyond Crypto Trading

Gemini’s pivot reflects an ambition to diversify beyond spot crypto-trading at a time when its core business faces headwinds. The company posted a net loss of $282 million in the first half of 2025, while its share price has dropped roughly 40% since its IPO. By entering the prediction-market sector, Gemini aims to tap into a burgeoning ecosystem where firms like Kalshi and Polymarket have already gained traction.

Prediction markets allow participants to trade contracts on the outcome of elections, earnings reports, sports games and macroeconomic data. For Gemini, the proposed exchange would position it directly against both crypto-native platforms and traditional venues. However, the initiative depends on obtaining regulatory approval, navigating a complex intersection of gaming and derivatives law, and differentiating its offering in a crowded field.

Regulatory Hurdles and Growth Prospects Ahead

For investors, Gemini’s initiative signals both opportunity and risk. If approved, Gemini Titan could become a new growth engine by broadening product-scope and increasing user engagement beyond standard exchange services. Key signals to monitor include: whether the CFTC grants Gemini the designated contract market status, how quickly the product launches, whether liquidity and user adoption follow, and how Gemini positions itself relative to competitors.

Yet major obstacles remain. Approval timelines are uncertain, and the legality of event-contract trading remains contested in various U.S. states. Additionally, delivering meaningful volume and profit will require overcoming significant hurdles in product design and regulatory tagging. The coming months will test whether Gemini’s prediction-market ambition becomes a scalable reality or another expansion that stalls amid regulatory complexity and competitive pressure.

Bitcoin (BTC) tumbled below the $100,000 mark, dropping to around $100,800 and marking its lowest level in four months. Driven by a surge in selling, large‐scale ETF outflows and thinning liquidity, the flagship cryptocurrency is now facing growing concern among analysts about further downside risk.

Why the Fall Is Happening

Multiple factors are driving Bitcoin’s recent slump. Liquidation maps show leveraged long positions near $100,000 are being unwound, and there is a liquidity gap down toward the $88,000 – $95,000 zone. Many traders had positioned around the $100,000 threshold expecting support, but with that failing to hold, sentiment has shifted. Additionally, analysts note that Bitcoin has fallen below its weekly 50‐day moving average before each major drawdown in history, raising technical red flags. Some speculate that the autumn liquidation—following a massive $20 billion wipeout earlier still reverberates through the market, as hedged funds press to cover losses and lock in reduced leverage. With volatility high and liquidity shallow, the risk of accelerated downside is elevated.

Future Scenarios

For investors, the current environment calls for caution. Important signals to monitor include whether Bitcoin can reclaim the $100,000 support level, whether ETF flows stabilise, and how quickly the next range of liquidity (around $88,000 – $95,000) is tested. If an additional sell-off hits, analysts suggest a deeper retracement could unfold. On the other hand, if Bitcoin reclaims key moving averages and liquidity improves, the current pullback could serve as a consolidation phase rather than a trend reversal. Either way, this episode underscores that even the largest crypto asset is susceptible to structural risks – leveraged positions, shallow liquidity and macro spill-ins can still trigger sharp corrections.

Market-making firm Wintermute has officially denied widespread claims that it plans to sue Binance over losses incurred from the October 10 crypto-asset market crash. CEO Evgeny Gaevoy said his company ‘never had plans to sue Binance, nor see any reason to do it in future’, adding that rumours spreading online were based on insufficient facts.

literally nothing changed since this tweet and we never had plans to sue binance, nor see any reason to do it in future

I should probably ask to make a note of all the people spreading baseless rumors, but most of people believing these have goldfish memory capacity, so I wont https://t.co/0oHShby0Uk

— wishful_cynic (@EvgenyGaevoy) November 3, 2025

The statement follows speculation that Wintermute intended to seek recompense from Binance for alleged losses caused by a breakdown in a margin system. That incident, which led to the liquidation of more than $20 billion in leveraged crypto positions, triggered market uproar and prompted allegations of exchange liability.

Rumors, Response, and Clarification

Wintermute, which provides liquidity on major cryptocurrency platforms including Binance, was named by social-media accounts as a potential claimant in legal action. A prominent user claimed Wintermute had transferred over $700 million into a Binance wallet shortly before the market crash and planned to file suit. Gaevoy dismissed these allegations as ‘complete bullshit’, emphasising that no formal damages claim or legal filing has been initiated.

Binance’s then-CEO responded to the situation by advising followers to rely on verified information rather than unconfirmed social-media posts. The exchange said it did not recognise any legal demand from Wintermute and declined to comment on individual firm positions. The market maker’s denial aims to restore clarity amid persistent rumours, uncertainty and trading-volume disruption following the crash.

Industry Response and Forward View

The episode highlights the fragile intersection between decentralised trading firms, centralized exchanges and the legal environment in crypto markets. For liquidity providers and exchanges, the dispute underscores how quickly operational incidents can evolve into accusations of structural failure, even if no formal legal action is taken.

Observers should monitor how Wintermute and other market-makers adjust their risk-management and exchange-relationship frameworks. Key indicators include whether any litigation is filed, how other exchanges respond to liability questions, and how transparency improves around exchange auto-deleverage systems. Although the immediate legal temp­tarion appears defused, the broader question remains: how will firms govern exposure and accountability in volatile crypto events?

The October crash marked a tremor in the crypto ecosystem not just for prices, but for how infrastructure participants evaluate counter-party risk and operational resilience. Wintermute’s clarification may serve as a stabilising message, but the incident’s after-effects may continue shaping market behaviour.

France’s National Assembly has voted to introduce a new 1% annual tax on ‘unproductive wealth’ for individuals with total assets exceeding €2 million. The measure redefines the country’s existing property wealth tax, expanding it to include cryptocurrencies, art, yachts, private jets, and other non-productive holdings that previously escaped taxation.

Lawmakers said the reform aims to rebalance the French tax system by targeting idle wealth rather than assets that contribute directly to the economy. Properties rented long-term or used for business activity remain exempt. However, high-value personal assets and digital tokens now fall within the scope of the new levy.

Purpose and Economic Rationale

The tax overhaul marks France’s most significant shift in wealth policy in recent years. By labeling digital and luxury assets as ‘unproductive’ the government seeks to encourage investment in businesses, real estate, and job creation rather than passive wealth storage. Officials project the change could generate up to €2 billion annually in new revenue.

Crypto assets are a key focus of the reform. Policymakers view large-scale crypto holdings as both a source of inequality and a potential threat to financial transparency. The new law ensures that even unrealized digital-asset holdings are taxed as part of total wealth, not just when profits are realized.

Supporters of the measure argue it will redirect capital toward more productive sectors and close long-standing tax loopholes. Critics, however, warn that the flat 1% rate may penalize mid-level millionaires and drive wealthy individuals to relocate their assets abroad.

Market Reactions and Future Implications

For investors and crypto holders in France, the reform raises new challenges in valuation, reporting, and asset planning. Authorities will now require comprehensive declarations of digital wallets and high-value collections, making crypto wealth a visible part of the national tax base.

Analysts say the move could inspire similar actions across Europe, where governments are seeking to adapt tax frameworks to a digital economy. The success of France’s approach will depend on enforcement efficiency and whether it sparks new tax migration among the wealthy.

The boundary between finance and digital assets continues to blur and France’s new wealth tax signals that governments are increasingly treating crypto holdings as tangible economic assets rather than speculative instruments.

Three entrepreneurial 22-year-olds – Brendan Foody (CEO), Adarsh Hiremath (CTO) and Surya Midha (Board Chairman) – have become the world’s youngest self-made billionaires following a major funding round that valued their San Francisco-based AI recruiting startup, Mercor, at approximately $10 billion. The company secured $350 million in fresh investment, fueling its climb to the top of the wealth charts and surpassing the previous youngest-founder record.

Founded in 2023, Mercor specializes in matching skilled contractors—including PhDs, software engineers and lawyers with leading AI labs that require human-in-the-loop support for model training, data annotation and short-term AI-development tasks. The platform currently engages more than 30,000 contractors globally, paying out over $1.5 million per day to support its rapid growth and high-demand operations.

Startup Success in the AI Talent Economy

Mercor’s success reflects a surge of demand for human talent to train and refine artificial-intelligence models jobs that are often overlooked but essential. The company’s platform manages large-scale sprints of human judgment and niche skillsets, tapping into a labour category that intersects software, law, data science and content moderation. By positioning itself at this intersection, Mercor gained traction with major AI labs and venture-capital firms alike.

The co-founders’ unconventional path also stands out. Hiremath and Midha both left Ivy League institutions – Harvard and Georgetown respectively – while Foody departed his economics studies to focus on building the business full-time. Their early decision to turn down traditional career tracks and scale a venture at 18-20 years old became a critical factor in their fast ascent.

Beyond the founders’ personal journey, Mercor’s expansion shows how the AI-economy is no longer just about algorithms – it’s about the human input behind them. The company’s growth signals that the “talent pipeline” for AI is itself a major startup opportunity, with funding and valuations reflecting that shift.

Startup Trends and Future Challenges

For the broader startup ecosystem, Mercor’s achievement raises several signals. First, AI-adjacent businesses beyond model architecture, such as training data, human workflows and platform orchestration – are attracting high valuations. Second, youth entrepreneur stories are once again capturing investor imagination, especially in next-wave tech sectors.

However, executing at scale remains a challenge. Promising growth depends on maintaining service quality, managing global labour compliance, core-team retention and staying ahead of automation, which may eventually reduce the need for large human pools. Investors and industry watchers will track whether Mercor can extend its model beyond labour-sourcing into adjacent AI-service verticals and whether it can defend its valuation in an economy that is already recalibrating AI’s real-world returns.

Romania’s gambling regulator, the National Office for Gambling (ONJN), has officially blacklisted Polymarket, describing the prediction-market platform as an unlicensed gambling operator. The move follows the regulator’s findings that Polymarket-enabled event trading generated trading volumes exceeding $600 million during the country’s recent presidential and local-government elections.

Under national legislation, the ONJN said Polymarket’s “counter-party betting” model – where users wager directly against one another on future outcomes – qualifies as gambling regardless of whether the bets are denominated in fiat or crypto. As a result, internet service providers in Romania are now required to block access to the platform.

Regulatory Push and Enforcement Context

The ONJN emphasised that its decision is motivated by legal obligations, not the underlying technology. “Whether you bet in lei or crypto, it must be licensed,” said ONJN President Vlad‑Cristian Soare. The regulator highlighted several breaches, including a lack of fiscal reporting, inadequate anti-money-laundering controls and the absence of player-protection mechanisms standard requirements under Romania’s gambling framework.

Polymarket has faced similar scrutiny in other jurisdictions. Authorities in Belgium, France, Poland, Singapore and Thailand have also restricted the platform, while the U.S. Commodity Futures Trading Commission previously fined the company for operating unregistered derivative markets. The escalating global regulatory focus signifies growing tension between innovative crypto-asset services and existing gambling and financial laws.

Industry Implications and Market Signals

For the broader sector of crypto-enabled prediction markets, Romania’s action is a critical signal. It underlines that despite decentralised architectures, platforms which facilitate outcome-based wagers may be treated as gambling under national law with or without crypto involvement. Operators in this space must now anticipate regulatory enforcement across multiple markets and plan for access restrictions or structural adjustments.

Investors and users should watch for three key signals: how Polymarket responds in terms of licensing or product redesign; whether other national regulators follow Romania’s lead; and how ancillary markets, such as sports or economic-event trading adjust to tightened oversight. As previously covered, the shift from experimental blockchain services to regulated financial environments is occurring rapidly. Romania’s blacklisting of Polymarket may mark a turning point for how event-trading platforms align with traditional compliance regimes.

Warren Buffett’s Berkshire Hathaway reported another strong quarter, posting record cash reserves of $381.7 billion and a sharp increase in operating earnings. The figures underscore the conglomerate’s ability to generate profit even as it maintains a conservative stance toward new acquisitions in a high-rate environment.

Operating earnings rose 34% year over year to $13.5 billion, compared with $10.1 billion a year earlier. The surge was driven primarily by a tripling in insurance underwriting profit, thanks to exceptionally low disaster-related claims during the quarter.

Net income – which includes both operational performance and investment results – climbed 17% to $30.8 billion, up from $26.3 billion in the same period last year. Despite the record profit, Berkshire did not repurchase its own shares in the quarter, signaling that Buffett still views the stock as fully valued in the current market.

Inside Berkshire’s Record Quarter

The company’s investment portfolio grew to $283.2 billion from $257.5 billion in the previous quarter. Nearly two-thirds of Berkshire’s holdings are concentrated in five major U.S. companies: Apple, American Express, Bank of America, Coca-Cola, and Chevron.

Insurance remained the standout performer, while the railroad, utilities, and energy divisions delivered steady – though more modest – gains. The strength in insurance underwriting offset weaker results in some industrial holdings, helping Berkshire post one of its strongest quarters in recent years.

Buffett’s strategy of stockpiling cash and limiting major acquisitions continued to pay off. By the end of the quarter, the company’s cash balance had risen from $344 billion in the second quarter to $381.7 billion, marking the highest level in its history.

Investor Outlook and Market Implications

Analysts say Berkshire’s record liquidity positions it as both a stabilizer and an opportunistic buyer if market conditions shift. With interest rates still elevated, Buffett’s cautious approach allows the firm to earn meaningful returns on short-term Treasury holdings while keeping capital ready for future deals.

The company’s rising profits also highlight the resilience of its core businesses, particularly insurance, which has benefited from disciplined underwriting and higher investment income.

However, Buffett has repeatedly warned that attractive acquisition targets are scarce, suggesting Berkshire’s massive cash position may remain untouched unless valuations decline. For investors, the quarter reinforces Berkshire’s reputation as a defensive powerhouse – capable of outperforming through cycles while waiting for the next major opportunity.

Elon Musk revealed plans for a new messaging application named X Chat, built on his platform X and expected to launch independently in the coming months. The app features a peer-to-peer encryption system that Musk described as “kind of like Bitcoin,” and is built to support secure texting, file sharing, and audio/video calls without the advertising infrastructure common in competing services.

Architecture and Strategy Unpacked

Musk said that X Chat represents a complete rebuild of X’s direct-messaging stack, now engineered for privacy and decentralised communication. He noted that unlike rivals such as WhatsApp, the app will strip out the traditional “hook” for ad targeting, arguing that such hooks are security vulnerabilities. The new encryption model is designed to avoid the collection of metadata and tracking, aligning more closely with how blockchain ecosystems protect value and identity.

By framing the encryption layer as “Bitcoin-style,” Musk highlighted the peer-to-peer architecture – users connect directly rather than through centralised servers. The app is expected to debut first within the X ecosystem and later as a standalone download, signalling Musk’s ambition to turn X into a multifunctional platform with messaging as one pillar of an “everything app” strategy.

Market and Industry Implications

For the tech and communications industries, X Chat brings a new entrant into the highly competitive encrypted-messaging market. The privacy upgrade positions X against apps with significant user bases, such as WhatsApp, which is part of Meta and signals that messaging platforms are racing to offer deeper security. If executed properly, X Chat could challenge incumbents by appealing to users dissatisfied with ad-driven models or metadata collection.

However, the road ahead is not without challenges. User adoption will depend on trust in the encryption design, the ability to attract contacts and integrate mainstream features like group chats and calls. Regulatory oversight is another concern given global scrutiny of encrypted communication. Key indicators to watch include the launch timing, supported features, encryption protocol transparency and whether X-Chat’s usage metrics grow independently of X’s social network traffic. As previously covered, the shift toward privacy-centric messaging reflects a broader demand for data self-sovereignty and X Chat may become a test case for how that demand scales.