“That’s because there’s money.”
– Willie Sutton, Why he took the bank
Circles are traded at 1x aum
At its history-making peak on June 23, the circle trades at a corporate value of approximately $62 billion (market capitalization minus cash).
It’s wild. Because the circle’s managed assets…wait… $62 billion!
In other words, stock market investors were temporarily valuing the circle at 100% of AUM.
(Now it’s about 67%.)
In contrast, BlackRock Asset Management’s enterprise value is legitimate 1.5% Of the $11.5 trillion assets it manages.
It’s clearly not a metric that circle investors care about, but I still think it’s extraordinary – and stocks look very expensive even on a more standard indicator.
largely However, the extraordinary metric is simply the performance of the stock. CRCL shares closed the first day, which rose 180% from the IPO price, and rose 247% on the second day.
luck This reports that Circle will be the best-performing IPO for large inventory. 1980 -A truly incredible achievement considering the dot com boom is included in its large sample size.
But things got even more crazy. CRCL then traded 750% above IPO.
However, I don’t think the IPO was low priced.
In the first research report, analysts at Goldman Sachs (who leads the IPO) set a price target of $80 for the stock.
(Interestingly, Goldman still rates the stock as “pending.”)
Naturally, you can wonder why Goldman priced the IPO at $31. Especially considering that this issue is 25x oversubscribe.
However, investment banks do not unilaterally decide the IPO price. Instead, it is primarily a feature of what customers of their institutions willing to pay.
And the circle’s offer was $31 for oversubscribe for 25x, but could have been subscribed at zero speed for example $41.
Institutional accounts usually incorporate more than you actually want to get a better allocation, so “over-registering time” statistics are mere marketing.
Anyway, the huge IPO pop instantly changed the perception of the circle as a business.
I think the circle is the asset manager who runs tokenized money market funds. This could have been assessing 10% or 20% of AUM (to explain its positive growth outlook).
However, the stock market clearly considers the circle to be a tech stock and anything could be valued.
And the stock market is always right.
So even if the circle left money on the table, I would say it was well spent money.
BMNR has risen 30 times over three days
The latest Bitmine, which continues to grow in Crypto Treasury stock, is trading at $135 today. $4.50.
Bitmine aims to be the Ethereum version of MicroStrategy and has a great start, so we can achieve that.
(I’ll probably spend money on Sbet, but I know because I think all of this is ridiculous.)
But in their right mind, who thinks they will pay more than 30 times more stock than professional investors 3 days ago Is it a good idea?
It’s hard to imagine and I don’t know what to do with it.
But, along with the circle, this reminds us that the stock market has far more money than the crypto market, and there are far fewer ways to buy “crypto”.
This sudden discrepancy between supply and demand has created a strange situation in which stock market investors seem to be far more bullish than crypto investors.
Cryptographic tokens have been flat-ringed for several months, but are crypto-related stock It’s booming.
There are also boomlets in crypto-related mergers and acquisitions.
IPO, speculative excess, M&A: The next crypto bull market is here. That’s not happening in Crypto.
Why is it happening in the stock market instead?
Because that’s the place of money.
Traditional investment advisors still love crypto.
Ric Edelman, founder of a registered investment company, has $300 billion in assets under management, but recommends investors allocate it equally. 40% Savings to Crypto.
The most conservative investors should allocate 10%, he says.
wonderful.
In short, Edelman’s reasoning is that 1) long-lived people and even 60-year-old investors need to invest in a 50-year period, and 2) Crypto is one of the “index technology” that long-term investors should seek exposure.
“Thousands of companies in dozens of industries are at risk of obsolescence or massive market decline due to technological advances,” Edelman warns before making crypto claims as a future industry (for Bitcoin and Stubcoin).
I skimmed his promotional PDF (thoughtfully written in a font large enough for a 110-year-old investor to read comfortably), so I’m a bit skeptical that Edelman has done such a thorough and thorough study of the multinational decade of trajectory of this brand-new asset class.
But no matter how right or wrong you are (check it back in 2085), the most important thing in his presentation might be “dozens of ways” to invest in the codes he quotes. Stock market.
Crypto is the future, but I don’t think he recommends using it.
Still, if the type of investors Edelman advises is trying to put 40% of their savings in exchange-listed crypto, or 10% even numbers, then more exchange-listed crypto would be required.
1,000 times more used crypto trading now available
Hyperliquid’s new crypto exchange, Opt.Fun, offers 1,000 times more leverage in “one minute” Crypto transactions.
That seems like a bad idea to me – for a moment.
1,000x leverage means a 0.1% stock margin.
Therefore, if you purchase anything with a spread of further bids/offices, you will be stopped immediately for a complete loss.
That may not be how Opt.Fun works, but I’m not sure.
However, I remembered the AI-enabled Quant Fund, which was able to lose all his assets under management by halting Luna from his short position the same week. It’s fallen 99.99%.
Even the Zoom In charts could barely tell the rise that must have got it.
However, the AI was shorted with so many leverages that the position stopped almost immediately.