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eToro CEO Highlights Retail Investor Surge as Q2 Profit Beats Estimates

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Trading and cryptocurrency platform eToro reported stronger-than-expected second-quarter profits, fueled by a surge in retail investor activity during market volatility, CEO Yoni Assia said Tuesday.

MARKET CONTEXT
Retail investors actively “bought the dip” following sharp declines in April after U.S. President Trump announced new tariffs. Assia noted investors targeted high-growth stocks such as Google, Nvidia, and Tesla, echoing patterns seen during the COVID-19 market disruptions when institutional investors pulled back.

Despite the Q2 profit beat, shares of eToro fell 8% post-earnings, reflecting expectations set by the company’s recent May IPO, which saw shares debut above the marketed range. Analysts said the surge in April trading activity was not sustained through July, tempering market enthusiasm.

CRYPTO AND PRODUCT EXPANSION
eToro saw heightened crypto trading activity in July, driven by bitcoin reaching all-time highs. Assia highlighted that regulatory clarity in the U.S. is helping fintech firms expand crypto offerings and attract younger, tech-savvy investors.

The company plans to expand into AI-driven trading strategies and cater to more sophisticated users while maintaining its core retail trading platform, which allows users to invest in stocks, crypto, and other assets while mirroring strategies of top investors.

FINANCIAL HIGHLIGHTS

  • Adjusted Q2 profit: $0.56 per share (est. $0.50)

  • Market focus: Retail investors driving stock and crypto activity

Rumble Eyes $1.2 Billion Deal for Germany’s Northern Data

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Video-sharing platform Rumble (RUM.O), which hosts former U.S. President Donald Trump’s Truth Social, is exploring a $1.17 billion acquisition of German tech firm Northern Data (NB2.DE) to expand its global AI cloud infrastructure.

The potential deal would give Rumble control of Northern Data’s Taiga cloud business, which owns a vast inventory of high-performance Nvidia GPUs (20,480 H100s and over 2,000 H200s), as well as its Ardent data center operations. Rumble plans to integrate these into its existing services.

As part of the transaction, Tether, the world’s largest stablecoin issuer, would become a key customer with a multi-year GPU purchase commitment. Tether, which already owns 48% of Rumble and 54% of Northern Data, invested $775 million in Rumble in December 2023. Under the proposed structure, Tether would emerge as the largest single holder of Rumble’s Class A common stock, while CEO Chris Pavlovski would retain majority voting control.

Rumble is considering offering 2.319 shares for each Northern Data share, valuing the German company at around $18.3 per share—a 32% discount to its recent Frankfurt closing price. If accepted, Northern Data shareholders would hold about 33.3% of Rumble.

Northern Data’s board confirmed it is reviewing the proposal and remains open to discussions, though both companies stressed that talks may not result in a formal offer. Meanwhile, Northern Data would sell its crypto mining unit, Peak Mining, and use proceeds to repay part of a €575 million loan from Tether.

Rumble, which went public in 2021 through a SPAC deal, counts Peter Thiel and Narya Capital (co-founded by U.S. Vice President JD Vance) among its early investors.

If completed, the acquisition would significantly boost Rumble’s AI cloud capabilities and deepen ties between Rumble, Northern Data, and Tether in the fast-growing GPU-driven infrastructure market.

Malaysian Anti-Corruption Commission Adopts Blockchain and AI to Tackle Complex Crimes

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Malaysia is turning to cutting-edge technologies like Artificial Intelligence (AI) and blockchain to enhance its anti-corruption efforts. Azam Baki, chief commissioner of the Malaysian Anti-Corruption Commission (MACC), stated that these advanced tools will improve the agency’s ability to track and investigate complex financial crimes. The MACC has been ramping up efforts to tackle high-profile corruption cases, particularly those under investigation since 2022. By integrating AI-driven analytics and blockchain’s immutable record-keeping capabilities, the commission aims to strengthen its detection and enforcement mechanisms.

Speaking at an event in the Maldives, Baki elaborated on the advantages of these technologies. According to a report by The Edge Malaysia, he emphasized that blockchain ensures transparent and tamper-proof financial records, making it harder for illicit transactions to go undetected. Meanwhile, AI enhances data processing and pattern recognition, helping investigators identify suspicious financial activities more efficiently. This dual approach is expected to significantly improve Malaysia’s ability to combat financial misconduct and fraud.

Corruption has been a persistent issue in Malaysia, with the country facing criticism in global corruption perception indexes. Reports from the World Bank highlight the challenges in tackling financial crime, as well as the institutional barriers that have historically allowed corruption to thrive. However, recent government efforts, coupled with technological advancements, suggest that Malaysia is making progress in its fight against corruption.

The adoption of AI and blockchain reflects Malaysia’s broader commitment to leveraging technology for governance and transparency. Experts believe that these tools will not only strengthen enforcement but also act as deterrents, making it increasingly difficult for criminals to manipulate financial systems. As the MACC continues to modernize its operations, Malaysia could set a precedent for other nations looking to integrate emerging technologies into their anti-corruption frameworks.