Yesterday, IBIT had a net inflow of 65 million US dollars, while GBTC had a net inflow of 9 million US dollars

Greg Abel has been leading Berkshire Hathaway for less than a year, yet he has already made a bet of over $10.9 billion on the AI sector, marking a complete break from Buffett’s traditional avoidance of tech stocks. However, Alphabet’s stock price has fallen below their initial purchase cost, and Bending Spoons continues to decline, putting this bold AI gamble to the test. At the same time, third-quarter earnings per share are expected to drop 6% year-over-year, and the share repurchase program is likely to plummet from $4.5 billion to $1.6 billion. How to deploy $358 billion in cash will be a major challenge for the new leader’s capital allocation skills.

The Goldman Sachs trading desk stated that the current wave of sell-offs resembles the 1998 liquidity crisis more than the bursting of the 2000 bubble. It is a forced deleveraging rather than a refutation of business fundamentals. The market is drastically repricing construction financing and timeline expectations, rather than underlying demand. Moreover, the issues currently drawing the most attention from the market—electricity and licensing—are actually the least important, as limited supply does not equate to disappearing demand. The real question that needs to be answered is whether long-term revenues can ultimately justify the capital invested.