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Don't remind me again today

Recently noticed a rather contradictory phenomenon - that publicly listed company that is crazily hoarding coins now has a market capitalization of 64 billion USD, holding more than 640,000 BTC (, which according to the current price amounts to 66.5 billion USD ).



The question arises: their market capitalization is surprisingly cheaper than the coins they are holding? This doesn't add up.

More importantly, the BTC spot ETF has been approved, and ordinary investors can directly buy the ETF. Who still needs to go through the trouble of buying their stocks to indirectly hold coins? The moat of this business logic is basically gone.

A more dangerous operation is— they have been borrowing money to buy coins, and the collateral is precisely their own stocks. Once this high-leverage play triggers liquidation due to a stock price crash, what scene will it be when 640,000 BTC floods the market? Just thinking about it is terrifying.

I heard a piece of news ( unconfirmed ): there are rumors that they might be kicked out of the S&P 100, and some funds have quietly started to withdraw. This matter is worth keeping an eye on.
BTC-0.29%
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MEVEyevip
· 5h ago
This leverage is more dangerous than a bomb, it's really not an exaggeration. The market capitalization inversion should have raised alarms long ago, and it’s indeed ridiculous to still be playing with such high leverage. Wait, are their stocks really kicked out of the S&P? We need to keep a close eye on this. Isn't it better to directly buy Spot ETFs? Why take the roundabout way to buy their stocks, is there something wrong with their brains? If 640,000 BTC gets dumped, how long will this market tremble... just thinking about it is scary. When the moat disappears, it’s time to wake up; this strategy of borrowing money to sustain life can’t last much longer. This operation is simply gambling on divine intervention, the risk of liquidation is truly extreme.
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CafeMinorvip
· 11-14 05:04
This logic is indeed brainless. How do you play with a company whose market capitalization is even lower than its coin value? I think once it starts to liquidate, the market will be smashed into a hole. With ETFs out, how can you rely on this arbitrage? The moat is long gone. If it really gets kicked out of the S&P, I'll be waiting to buy the dip, but the risk is too great, so I still have to watch closely. Borrowing money to buy coins and using stocks as collateral is no different from gambling with your life.
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LiquidityHuntervip
· 11-13 12:56
This game is a bit precarious; if the stock price falls and liquidation is triggered... 640,000 coins dumping could bury the entire market, right?
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Blockchainiacvip
· 11-13 12:56
This leverage play is really like licking blood on the edge of a knife; once the liquidation leads to dumping, that would truly be a "black swan" event.
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just_another_fishvip
· 11-13 12:54
The valuation logic of this company is directly broken; if the Bitcoin price falls by half, they will be gone.
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GateUser-1a2ed0b9vip
· 11-13 12:40
Oh my, this leveraged trading is really amazing. Once it triggers a liquidation of 640,000 BTC dumping, that scene... I am really worried.
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PerpetualLongervip
· 11-13 12:34
Hey, wait a minute, I need to refute this logic... A market capitalization lower than holdings is a discount, isn't this an opportunity to buy the dip? Once I recoup investment, it will double, I'll just hold on to these 640,000 coins without moving. ETFs are convenient, but can't you see the premium space they have? I am in a Full Position. --- The rumors about the S&P 100 are terrifying, but the harder it falls, the more I dare to increase the position, the bearish traders want to dump. --- High leverage is indeed dangerous, but faith is meant to withstand pressure, I bought one last time. --- Don't panic, the crypto world is always whipsawing like this, endure and you'll win. --- To be honest, I'm a bit anxious, but if I cut loss now, I'll lose, let's continue to soar, everyone.
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SmartContractDivervip
· 11-13 12:30
Wow, this operation is really something. Borrowing money to buy coins with stocks as collateral, isn't this just building blocks? --- The market capitalization isn't worth more than the coins, why do we need stocks? --- Once it triggers a liquidation, 640,000 coins get dumped, how many people will be buried with it? --- Spot ETF is already out, why bother trading this? Isn't it better to just buy coins? --- If that S&P thing really happens, how fast will the funds do a Rug Pull? Just thinking about it makes one breathless. --- How is this leverage ratio set? Stocks keep falling and the collateral is depreciating, who approved this? --- Is the market capitalization cheaper than coins? This logic is upside down, what can you play with when the moat is gone? --- Rumors, rumors, anyway, this kind of high-wire walking will fall down sooner or later.
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