โถ Coinbase Website: Coinbase.com
โถ CEX Website: cex.io
The Trump administration has taken a stake in several mining companies. Earlier this week, Australia’s South32 sold part of its stake in Canadian Trilogy Metals to the US Department of War. UNSW Business School associate professor, Mark Humphery-Jenner, says the strategy is partly due to the US push to reduce its reliance on China for critical minerals. But he says it’s also done for commercial reasons, where the government wants to be able to earn a profit. Professor Humphery-Jenner says the practice is “highly unusual.” He says for now the companies that are being targeted don’t seem to mind because they need to refinance their debt or raise money or in some instances to be able to export their products. Nvidia is one example that springs to mind. The tech darling reached an agreement with the US government to give it a 15 per cent slice of its chip exports to China to secure export permits. He says these arrangements may suit all parties in the short-term, but in the long-term, they raise the risk of the government exercising its shareholder rights and intervening in how these businesses are run. Professor Humphery-Jenner says he wouldn’t be at all surprised if the Trump administration wanted to invest in Australian companies next. He says if that were to happen, Foreign Investment Review Board considerations aside, the boards of these companies should be asking themselves how big a stake are they willing to offer the US government because that will determine the level of its influence.
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โถ Coinbase Website: Coinbase.com
โถ CEX Website: cex.io
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