After the Divorce, I Found a Thousand Bitcoins - Chapter 37

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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 037

 

The institutions moved first.

 

“The institutions are dumping Arkon shares!”

 

“The decline is widening. Down 2 percent, no, falling to 3 percent.”

 

They had analyzed the earnings report data in detail and ultimately reached the same conclusion as Kang Hyeon.

 

‘I thought it was a money-making machine. Suddenly it became a money-burning machine.’

 

The data center was Arkon’s core revenue source.

 

But in this quarter’s earnings report, they announced that it had actually become a money pit.

 

“The decline is widening to 4 percent!”

 

Arkon was a castle built on data centers.

 

The castle they thought was built with solid bricks turned out to be made of sand.

 

Naturally, the people living in that castle fled like a receding tide.

 

“It’s exceeded 6 percent!!”

 

“The conference call has started.”

 

A conference call held in this situation.

 

In this session where questions were directed at the CEO, a WSJ reporter threw a fastball.

 

[Looking at this earnings report, the average utilization rate is low compared to BEP. Isn’t this essentially operating at a loss?]

 

A 100-mile fastball right down the middle.

 

But the opponent was also a veteran batter with experience, swinging with a strategy in mind.

 

[That’s true for now, but starting next quarter when the adjusted centers begin commercial operation…]

 

A clear swing and miss.

 

It wasn’t the answer the market wanted.

 

The result?

 

“It’s exceeded 8 percent!! The selling is accelerating!!”

 

The exodus gained momentum.

 

* * *

 

Arkon’s collapse soon brought down the surrounding foundation.

 

“Aegis Data Systems is also widening its decline!”

 

Aegis, which had the second-largest weight in the overall portfolio, also began falling.

 

“Bantik, down 7 percent!”

 

Bantik Data Grid also widened its decline.

 

The characteristic of the falling stocks was that they were all unicorn companies or places focused on data centers.

 

With Arkon, which was in the top 5, collapsing, they believed related companies would be affected similarly.

 

This impact soon hit other companies as well.

 

“Nvidia, down 3 percent!”

 

Nvidia, which could be called the flagship of AI, widened its decline.

 

The impact didn’t end there.

 

“Alphabet stock is falling!”

 

“Meta has also started declining.”

 

“Microsoft is widening its decline to 4 percent.”

 

The stocks that were supporting the NASDAQ index began crumbling.

 

And this phenomenon soon affected the entire index.

 

“The NASDAQ index is widening its decline beyond 300 points!”

 

“The dollar index is rising.”

 

“Gold is surging, the yen is also rising.”

 

“The exchange rate is also rising.”

 

As the index fell, fear began spreading through the market.

 

Funds began flowing to safe assets as the entire market started reacting.

 

Kang Hyeon’s gaze turned to the main monitor.

 

‘All stocks are connected. And they’re glowing bright blue.’

 

It was exactly as his ability indicated.

 

“Holding positions.”

 

Now was the time to wait.

 

* * *

 

Arkon’s first decline was merely a precursor.

 

[Shocking decline, NASDAQ falls 5.1 percent in just one day.]

 

[1,700 trillion won disappeared. NASDAQ Black Friday recreated.]

 

[Has the AI era bubble burst? NASDAQ’s great decline begins.]

 

Black Friday was recreated.

 

As NASDAQ fell sharply, 1 trillion dollars, 1,700 trillion won evaporated.

 

Most stocks hit negative territory, and individual investors and institutions who were shouting long until yesterday got hit hard by the decline.

 

-What is this?

 

-Wasn’t the bear market over?

 

-Why is it falling again after hitting the peak?

 

-Damn, is this Bitcoin? What index falls 5 percent in one day?

 

-What’s a data center that it would fall this much?

 

-Wow… the exchange rate is rising like crazy.

 

-Is South Korea’s season over?

 

└Before South Korea’s season ends, my life will end first.

 

-Can I get a refund on this?

 

└Refund jokes are out of season now.

 

-Did it fall? Oh, it’s fine, I’ll just die.

 

Individual investors were screaming on community forums.

 

“Crazy! What index falls like this?”

 

“That’s not the problem! Looking at their data, there’s a high possibility this is a structural issue!”

 

“Should we average down? Or just sell everything?”

 

“What are you going to do by selling now! We need to somehow lower our average price and aim for a rebound!”

 

Institutions gathered in Yeouido even on weekends, continuing meetings while screaming.

 

A scene where the majority of individuals and institutions were entangled and screaming.

 

And this scene wasn’t just South Korea’s problem.

 

Emergency strategy meetings were also held at various companies on Wall Street, the center of global finance.

 

JP Morgan was no exception.

 

“Let’s start the meeting.”

 

Executive meeting.

 

A meeting where the top executives from each department gathered.

 

And Halvorsen, JP Morgan’s head who usually didn’t attend meetings, was present.

 

“The cause of this decline is the data center’s…”

 

“The government has expressed concern about this decline…”

 

“The SEC has also entered emergency meetings and the chairman issued an emergency statement…”

 

“Our losses shouldn’t be significant thanks to the report team’s data allowing us to enter emergency hedging.”

 

Information that JP Morgan could handle was released in succession.

 

Halvorsen, who had been listening to the discussion, looked at Richard Blake.

 

“Richard.”

 

“Yes, Chairman.”

 

“I heard you gave an order to focus the report on the decline side before this situation occurred?”

 

“Yes, that’s correct.”

 

“Did you predict it in advance?”

 

“It wasn’t me who did it. One of our clients predicted it that way, and I issued special orders to the report team accordingly.”

 

“Is that client special enough to warrant special orders?”

 

Richard nodded with a more confident expression than ever before.

 

“Very special.”

 

“Really?”

 

Interest appeared on Halvorsen’s face.

 

He had known Richard Blake for over 20 years now.

 

During all those years, there were only a few occasions when he spoke with such confidence.

 

Moreover, to have such a confident response about a client.

 

“I’d like to meet that client sometime soon.”

 

Kang Hyeon had unknowingly become someone who caught the interest of JP Morgan’s chairman.

 

* * *

 

This decline, dubbed the Arkon Crisis, turned the entire globe upside down in just one week.

 

[The stock market recorded catastrophic declines for a week straight.]

 

[NASDAQ broke below the 20,000 mark for the first time this year, falling to 19,800 points, a drop of 3,700 points from its peak.]

 

[Experts are pouring out reports saying the trend has essentially changed and we must prepare for even greater shocks.]

 

[Meanwhile, the exchange rate soared to 1,495 won during trading, approaching a breakthrough of 1,500 won, but the government urgently injected capital and succeeded in containing it.

 

However, the exchange rate is still recording 1,485 won.]

 

Fear dominated the market.

 

Bleeding could be seen everywhere in the market.

 

Screams could be heard as well.

 

Institutions that couldn’t overcome the fear began raising white flags.

 

[TM Capital, which was active mainly in Singapore, has surrendered.]

 

[Worldstone Fund, which had been active on Wall Street for 30 years, has entered bankruptcy proceedings.]

 

[As funds that used excessive leverage are closing down, there’s talk that this Arkon Crisis might be prolonged.]

 

Desperate articles poured out day after day.

 

KH Capital also continued internal meetings.

 

“The market’s assessment of the NASDAQ index breaking 20,000 points is negative.”

 

“Bitcoin also broke $100,000, then plummeted to $80,000, and is currently trading in the upper $80,000 range.”

 

Kang Hyeon had come this far starting with Bitcoin.

 

That’s why Bitcoin’s crash hit him a bit differently.

 

But what mattered now wasn’t that.

 

“How are the articles about Arkon?”

 

“They’re releasing press statements daily to calm the market, but it’s not easy.”

 

“There were also reports from Michigan that they could discuss reviewing the data center establishment.”

 

Bad news poured out as if it had been waiting.

 

The review of the center that was being pursued at the state government level could be the final blow to Arkon.

 

“Still, it finished flat on Friday and didn’t fall as much as 20 percent.”

 

Friday.

 

The stock price performed surprisingly well.

 

This was because AI-related companies began presenting solutions one by one, along with talk that all the bad news might have come out.

 

Nvidia’s solution was particularly strong.

 

“The market received Nvidia’s self-rescue plan well.”

 

Nvidia announced it would focus on reducing circular investments and increasing data center profits.

 

Following this, other AI-related companies also presented solutions, and the market began to regain stability.

 

“Will it end like this?”

 

Kim Seong-won asked while observing Kang Hyeon.

 

Even while conducting the meeting, Kang Hyeon didn’t take his eyes off the charts displayed on the conference room monitor.

 

Seong-won watched him silently, seeing eyes that looked like they were searching for prey.

 

“There are still many unstable factors.”

 

The employees listened carefully to Kang Hyeon’s words.

 

“Let’s maintain our positions for now and watch the market’s response.”

 

“Yes.”

 

“Understood.”

 

There was one reason for maintaining the positions.

 

The light was saying it wasn’t time to close yet.

 

This was also puzzling to Kang Hyeon.

 

‘The AI bubble can ultimately be narrowed down to two factors. An industry that hasn’t been profitable yet was excessively inflated, and AI-related companies expanded through circular investments.’

 

If the industry continued to grow, circular investments would certainly create a virtuous cycle.

 

But Arkon turned confidence in continued growth into doubt and damaged the market that had grown through circular investments.

 

‘Now each company is poking holes in the balloon with needles to reduce their size.’

 

Instead of bursting the inflated balloon all at once, they were poking holes to gradually let out air.

 

As air escaped and their size decreased, the shock when it burst could also be mitigated.

 

With enough time, they might even be able to burst just the bubble without causing any shock.

 

‘But the light is still strong.’

 

It was shining as blue as looking at the Atlantic Ocean.

 

‘I hope nothing happens over the weekend.’

 

* * *

 

A weekend like the calm before the storm was passing.

 

And early Monday morning, Korean time.

 

Another bomb dropped on the market that was thought to flow quietly.

 

[President Harvey Goldwin announced via SNS that “tariff impositions that have been delayed will begin from December 1st.”]

 

[Stock market entering bear territory, and President Harvey Goldwin pours oil on the fire!]

 

[President Harvey Goldwin announces policy via SNS, stating he will impose tariffs up to 30 percent!]

 

President Harvey Goldwin’s tariff increase.

 

And not just a slight increase, but an absurd 30 percent tariff increase announced via SNS.

 

He had detonated the tariff bomb he’d been handling at the worst possible timing.

 

Naturally, this news spread rapidly worldwide, and Bitcoin, which had open markets, received the first intense shock.

 

[Bitcoin falls 3% simultaneously with President Harvey Goldwin’s tariff announcement! $80,000 broken!]

 

Bitcoin broke $80,000.

 

Predictions followed that this market shock would carry over to the stock market.

 

And these predictions were exactly right.

 

“Asian markets opened! Starting with unanimous declines!”

 

“Nikkei Index plummeting! Over 4 percent!”

 

Along with AI bubble issues, President Harvey Goldwin’s tariff increase policy exploded.

 

The shock the market would receive exceeded expectations.

 

“Nikkei Index circuit breaker activated!”

 

Circuit breakers were triggered on Japan’s Nikkei Index.

 

“KOSPI sidecar activated!”

 

“Hang Seng Index continues falling!”

 

“Shanghai Composite Index declining!”

 

“Taiwan Capitalization Weighted Stock Index also widening its decline! TSMC is reacting strongly!”

 

And Japan being shocked meant global financial markets were shaking.

 

“Yen/dollar, won/dollar, yuan/dollar all turned weak, and NASDAQ and S&P 500 futures are also recording declines of over 4 percent!”

 

Harvey Goldwin delivered the final blow to the already reeling global financial markets.

 

Everyone was in panic.

 

Kang Hyeon was calmly looking at the charts.

 

‘Even though it’s declining like this…’

 

The light visible to his eyes was gradually changing.

 

‘Why is the black light getting weaker?’

 

Seeing this, Kang Hyeon made one assumption.

 

‘Does this mean the decline won’t be long?’

 

The time for reversal was approaching.

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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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