The prices of major coins, including Bitcoin, are falling day after day. Seohak ants, who followed “..
After-effect of cooling virtual asset market\n\nBitcoin, which had attracted a large number of investors, and the stock price plummeted\n\nBitMine, a quarter of the market line compared to its high point, “Attention of Coin Holding Companies.”
사진 확대 Bitcoin’s market price is displayed on the electronic board of Bithumb Lounge in Gangnam-gu, Seoul on the 17th. As of 12:50 p.m. that day, Bitcoin is trading at around 95,277 dollars each on Coinbase, a U.S. cryptocurrency exchange, and 142 million won on Bithumb, a domestic exchange. [Yonhap News]
The prices of major coins, including Bitcoin, are falling day after day. Seohak ants, who followed “Bitcoin evangelist” Michael Saylor and bought a large number of related stocks, were also caught in a huge loss trap.
According to Bloomberg on the 17th, the price of Bitcoin fell below $93,714 (about 140 million won), returning to the closing level at the end of last year. Compared to the record high of $126,251 (about 198 million won) recorded on October 6, it plunged more than 25% in just over a month. Bitcoin also traded around 140 million won on the Korean virtual asset exchange Upbit on the same day, showing a significant drop from its high point in October (about 170 million won).
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Investors who have invested in the coin itself as well as Western scholars who have invested in DAT (Digital Asset Stockpile) companies are suffering increasing losses due to falling stock prices. A DAT company is a company that makes buying specific coins with its assets a growth strategy. Typical places are MicroStrategy (MSTR), which buys Bitcoin, and BitMine (BNMR), which was chaired by Tom Lee Fundstrat, the co-founder of Wall Street’s leading optimist. BitMine Takes A Strategy To Buy Ethereum.
Streets shares, which hit $455.9 along with the Bitcoin rally in July this year, fell to $199.75 on the New York Stock Exchange on the 14th (local time), down $200 from the stock market. The market capitalization has evaporated by 56% compared to its peak in more than eight months. The stock price fell 39% compared to the closing price ($327.67) on November 14 last year, after U.S. President Donald Trump, who is friendly to virtual currency, won the presidential election a year ago. It enjoyed a leverage effect during the Bitcoin upturn, but the risk returned as a poison during the downturn.
The situation of BitMine, which has emerged as the world’s No. 1 Ethereum-owned listed company, is even more disastrous. With speculative funds seeking short-term gains flocking, BitMine has been soaring this summer without any clear performance or favorable factors. The report soared to $135 on July 3 and fell to $34.4 on the 14th on the good news of appointing Tom Lee, co-founder, as chairman of the board of directors on July 1. The stock price was cut by a quarter during this period.
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Streets shares remained above the $200 mark from October 11 to the 13th last year. According to the Korea Securities Depository, the amount of stretch stocks net purchased by Seohak ants during this period amounted to $3.69 billion (about 5.3883 trillion won). As of the 13th, the amount held is $869.66 million (about 1.2678 trillion won), ranking 14th among net purchases of Seohak Ant (excluding exchange-traded funds).
Bitmin’s stock price has been higher than $36 from August 6th (the closing price is $38.47) to November 13th (the closing price is $36.57) this year, and the net purchase of Seohak Ant during this period amounted to $1.76112 billion (about 2.5692 trillion won). It currently holds 867.2 million dollars, ranking 15th among U.S. stocks. In addition, Seohak ants bought a large number of ETF products, such as MSTU, which follows twice the stock price of the Strategy.
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Although the investment strategies of these companies were different, they have something in common that they made an “all-in” bet on a single variable called “Bitcoin or Ethereum market price,” not the company’s essential fundamentals.
In a recent report, 10X Research, a virtual asset research institute, estimated that individuals’ losses in these DAT companies totaled $17 billion (about 22 trillion won) worldwide.
Meanwhile, there is a gloomy outlook that the shares of Strategy and Bitcoin will fall further for a while.
It is pointed out that these companies used altcoins, not bitcoin and Ethereum, which are rich in cash or liquidity, in the process of stockpiling virtual assets. In other words, DAT companies inflated their ransom based on altcoins that arbitrarily set high prices.
According to Artemis Terminal, a virtual asset data platform, the total net asset value (NAV) of DAT companies peaked at about $125 billion (W162 trillion) in early October. The ‘mNAV multiple’, which shows how many times the stock price is traded (premium) compared to the net asset value, exceeded 40 times for some DAT companies. It was traded 40 times more expensive than the value of its assets. However, as the market cooled after October, this premium disappeared in an instant, and has now plummeted to one to two times.
Experts point out that this “in-kind contribution” method is virtually like an “electronic transaction” in which insiders supply assets, value themselves, and only decorate the “look” of successful financing.
For example, Tarimune, which recently turned into a DAT company, attracted $545 million to purchase “Canton Coins,” but 80% of them were in-kind Canton Coins, which were unlisted. The company set its value at 20 cents per unit, but the price fell to 11 cents after going public on the 10th of this month.
