After the Divorce, I Found a Thousand Bitcoins - Chapter 34

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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I Got Divorced and Found a Thousand Bitcoins Episode 034

Just one day.

The festival had vanished.

-Fuck…! My money!!

-It really was an AI bubble.

-Is this for real?

-My account melted in just one day…

-Everyone, don’t waver! NASDAQ will eventually go up!

└Yeah, it’ll rise when you sell.

└My account balance is already negative 20% ㅠㅠ

└What did you buy to be down 20%?

└TQQQ

└Dude lol that’s X3 leverage lol

-Everyone! Let’s chant together! Fight! Fight! Fight! Fight!

└Fighting my ass, we’re screwed.

The community was flooded with posts from people who had lost money.

The speed at which prices were falling was terrifying.

But even in this situation, there were people making money.

Kang Hyeon was a prime example.

“With the spread widening, we’ve made $77.5 million profit from CDS and $17.6 million loss from bonds as of today.”

This week’s stock decline came from failed investment funding.

Naturally, credit in the company fell, leading to a decline in bond values.

But since the CDS value was set high, Kang Hyeon’s net profit reached $60 million.

“What’s the current market sentiment?”

“Almost all financial reports are putting out negative outlooks on the AI sector. They’re saying stock prices are too high even without circular trading and book profits.”

“Though it’s only some, there are experts comparing the current state to the dot-com bubble.”

“Especially reports from Dubai are quite aggressively talking about the AI bubble.”

The whole world was talking about the AI bubble.

The current AI market was being evaluated as excessive.

“Circular trading is definitely becoming a problem.”

The biggest problem with AI companies was circular trading.

Semiconductor company Nvidia makes large investments in AI developers, and AI developers use that money to buy Nvidia’s semiconductor chips again to build data centers.

Due to this circular trading, the AI sector as a whole was evaluated as having grown rapidly.

“The advantage of circular trading is that it can grow the entire business quickly, but the downside is that it grows without cash flow, so it also grows bubbles.”

Seong-won was right.

And countless reports were coming out pointing to these problems.

“How far do you think this decline will continue, sir?”

At Kwangho’s question, the employees’ gazes turned to Kang Hyeon.

Instead of answering, Kang Hyeon silently looked at the monitor.

The main monitor showed charts of 50 major companies in the AI sector.

And all those charts were connected by black lines.

At first he thought it was a bubble, but ultimately it meant everything was connected.

“I don’t know how far this decline will continue, but it doesn’t seem like it’ll end anytime soon.”

The important thing was that this decline wasn’t over.

“It doesn’t matter to us whether this industry is a bubble or not. Let’s think about how we can maximize profits at this point.”

What should be prioritized now was maximizing profits.

“If the decline isn’t over, what do you think we should do?”

“Since the company currently has no cash on hand, we need to secure ammunition first.”

“If we execute a loan using the Yeongjong Island site as collateral, we can secure about 150 billion won in cash.”

“In that case, Incheon City might exclude us from business priority.”

Various methods were discussed, from using the Yeongjong Island site to other approaches.

Then a plausible method came from Seong-won’s mouth.

“How about requesting a loan using CDS as collateral?”

“Since the CDS value has risen currently, JP Morgan would likely accept it.”

It wasn’t a bad method.

The CDS value had risen much higher than the initial underlying asset.

Currently, there was room in the margin, so they could request additional credit.

“I’ll inquire about that. Please gather information on companies in the AI sector. Focus on companies with high PER.”

“Understood.”

* * *

Richard received a report.

[KH Capital requests bridge loan using CDS as collateral.]

A bridge loan using CDS as collateral.

This meant they were requesting short-term liquidity.

He immediately picked up the phone and contacted Kang Hyeon.

“Mr. Choi, I didn’t expect we’d be talking again so soon.”

-Neither did I. But the market is making it happen.

“The market has certainly been chaotic lately. Is that why you’re requesting a bridge loan?”

-That’s right. We need liquidity equivalent to the increased CDS value. Is it possible?

“It’s not difficult. But do you think the market will fall further, Mr. Choi?”

This was why Richard had called directly.

He wanted to know what kind of perspective Kang Hyeon had.

Kang Hyeon on the other end of the phone kept silent for a moment before speaking.

-Yes, I see this decline as just the beginning.

An answer close to certainty.

Hearing that answer, Richard nodded.

“Understood, I’ll put this request as top priority and process it. Someone in charge will contact you today.”

-Thank you.

The brief call ended.

But the information gained from the exchanged conversation was considerable.

‘Most experts in the current market don’t think this decline will cause a major shock to the market.’

Reports were discussing the AI bubble, but that was only in reports.

Experts inside investment banks including JP Morgan saw this decline as a short-term shock.

There were opinions that it would spread to the entire AI industry, but that wasn’t the mainstream view.

‘Yet this man thinks it will spread to the entire AI industry.’

If he were an ordinary trader, he wouldn’t have paid attention.

But the NASDAQ short selling and buying timing, plus the NextMove short selling.

Finally, the Dongbang Partners incident that happened in South Korea.

All trades were working in his favor.

As if he was seeing the future.

Such a man was now building short positions on the AI industry.

‘It wouldn’t hurt to be careful.’

He picked up the phone.

This matter couldn’t be decided alone.

It was something that needed to be reported to someone higher up than himself.

* * *

JP Morgan’s approval was quick.

“JP Morgan has given us a limit of $42 million.”

With current net profit at $60 million, they had given 70 percent.

The reason it wasn’t 100 percent was due to volatility issues.

If they provided one hundred percent, losses could occur immediately even with short fluctuations.

“Seeing that they gave us 70 percent, it seems JP Morgan views us favorably.”

Kwangho’s words were correct.

Typically, the limit for this kind of bridge loan comes out conservatively at around 50 percent.

But 70 percent meant JP Morgan had given them favorable treatment.

“CEO, should we enter short positions right away?”

At Seong-won’s question, Kang Hyeon’s gaze turned to the main monitor.

The main monitor displayed charts of the 50 selected stocks.

‘Which stock should I enter to get the best returns?’

Stocks connected by black light.

Though they were all grouped under the AI sector, ultimately prices in this sector moved individually.

Some stocks would fall significantly while others would defend their prices well.

Properly catching this was key to maximizing profits in this downturn.

‘The stock that led this decline is Arkon. If a chain reaction occurs, it’s likely to be in the data center sector.’

Though all were connected through circular shareholding, ultimately the section that became the starting point of the decline was likely to be problematic.

And another field – AI service stocks that jumped in without substance – also seemed likely to have large declines.

“Please show me data centers and AI services, focusing on those with high PERs.”

As the order was given, Kwangho’s hands moved quickly.

With a few clicks, the stocks were organized on screen.

Stocks connected by black light – when he focused on specific stocks among them, the color of the light soon changed.

‘One by one, they’re glowing blue.’

The degree of luminescence differed by stock.

This showed how far each stock would decline.

Among them, there was one stock glowing particularly blue.

‘This one has a different degree of luminescence from the other stocks.’

He could see it would decline by a large margin.

Kang Hyeon immediately placed an order.

“We’re entering a short position on Data Bridge.”

“What ratio should we enter at?”

“5x leverage, all available funds.”

Seong-won’s eyes widened.

But he didn’t ask questions and soon moved his hands while answering.

“Understood!”

The order went in as quickly as his fast-moving hands.

“Data Bridge, 30 percent entry into short position.”

Since the decline in the AI sector was beginning, the volume didn’t go in all at once.

“50 percent entry!”

Still, befitting a stock with abundant liquidity, the volume was caught quickly.

“All volume has entered.”

Now all that remained was waiting.

* * *

Two days had passed since building the position.

KH Capital had entered emergency work mode to prepare for any situation, and Kang Hyeon also forgot about going home as he watched the monitors.

‘The light has become stronger than before.’

The AI sector had been declining little by little for two days.

But so far, no major decline had emerged.

Compared to two days ago, it had fallen 3 percent, but compared to Arkon’s initial decline, it wasn’t a major drop.

It could be called sideways movement at best.

Thanks to this, community reactions were also calming down a bit.

-Seems like it defended its price well for all the fuss?

-AI really is god.

-This level of decline is healthy adjustment.

-I was worried about Arkon because the data center collapsed. Seems like I can hold my position as is?

-This was the last chance given before going to the moon.

-Did everyone catch the last train?

-Did we finish them off?

When people were feeling relieved.

The market faced another shock.

Beep-!

A beep sound from the computer.

And soon warning windows appeared on all monitors.

It was a warning message set to appear during rapid price fluctuations.

Soon Kim Seong-won’s report was heard.

“All AI sector prices are falling! NASDAQ index dropped 100 points! Selling pressure is increasing, widening the decline!”

Kim Ha-ryul’s report followed.

“An article came out saying Michigan might suspend data center approvals!”

“What’s the source?”

“Dubai media. It’s only 3-star reliability, but the market is currently reacting sensitively.”

3-star media.

Normally it would be reliability that could be ignored, but not now.

‘A bridge that’s already shaking can collapse with just a small shock.’

And what received the biggest shock from this vibration was.

“Data Bridge! It’s widening its decline!!”

Data Bridge.

He kept his ears open and watched the main monitor.

‘When should I sell?’

Buying is technique, selling is art.

As those words suggested, selling was a difficult area even for experts.

But not for Kang Hyeon.

‘How far will it fall?’

In his eyes, he could see Data Bridge’s falling light glowing intensely.

It meant it wasn’t time to sell yet.

“Data Bridge down 3 percent! Current profit is 6.3 million dollars!”

Seong-won, the operator, reported the current account situation in real time.

‘It needs to fall more.’

All the stocks displayed on the main monitor were widening their declines.

The decline that started with Arkon was affecting the entire data center sector.

“Massive selling pressure! Data Bridge down 7 percent! Current profit is 14.7 million dollars!”

“Bloomberg Terminal breaking news! Reports that technical flaws have been discovered in Data Bridge!”

“Data Bridge’s selling pressure is getting stronger! It’s fallen 15 percent compared to position! Profit is 31.5 million dollars!”

A 75 percent return on investment capital had occurred.

At this level, partial profit-taking would be fine.

But Kang Hyeon didn’t do that.

‘There’s no major change in the entire AI sector. It means the decline continues.’

His judgment was accurate.

“Widening the decline to 20 percent! Profit is 42 million dollars!”

Even while reporting, Kim Seong-won doubted his own eyes.

‘He recovered all the investment capital in just two days? Does this make sense?’

He knew better than anyone that Kang Hyeon was an incredible trader.

But this trade was on a different level.

‘To pick out the stock that would fall the most among countless falling stocks….’

What would the probability be mathematically?

No, what was even more surprising was.

‘When is he planning to sell?’

Even after falling this far, Kang Hyeon showed no movement whatsoever.

‘This is beyond having a beast’s heart…!’

Even watching from the sidelines made his heart tremble and cold sweat break out.

Yet Kang Hyeon, looking at the main monitor, remained unshaken.

“31.5 percent reached!! The profit is…!”

“Sell!”

Kang Hyeon’s brief command.

Seong-won’s hands moved reflexively.

He entered the quantity and placed orders, quickly clearing the positions.

Tap-tap-tap-tap-!

Click!

[Order has been executed.]

Tap-tap-tap-tap-tap-!

Click!

[Order has been executed.]

With the repetitive movements, the positions quickly diminished.

Since it was a falling stock, despite the considerable volume, it took less than a minute to clear everything.

“All… all positions cleared! Final return rate… 157.5 percent, profit is 66.15 million dollars….”

An unbelievable figure.

But an even more unbelievable story reached their ears.

“Breaking news! Arkon will be taking over TikTok’s US business operations!”

Simultaneously with that news.

“Data Bridge has issued an official statement! They’ve declared that the technical defects were false reports and there are no problems with their technology!”

“WSJ has reported that Michigan is giving positive consideration to data center approvals!”

News that would be positive for the market poured out.

And this phenomenon was.

“The NASDAQ index, including the AI sector, is rebounding!”

The employees were shocked.

The price at which Kang Hyeon had sold was the peak from a short-selling perspective.

Then Kang Hyeon spoke up.

“We’re entering long positions on Arkon.”

Kang Hyeon had no intention of stopping yet.

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This chapter was translated by Lunox Team. To support us and help keep this series going, visit our website: LunoxScans.com
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