A Unique Approach to Capitalizing on Nvidia's Success
While Nvidia's stock has certainly seen impressive growth, there exists an alternative avenue to benefit from its influence in the realm of artificial intelligence applications: purchasing claims on the bankrupt FTX.
Examining the Numbers
Claims pertaining to the defunct crypto exchange, previously under the leadership of Sam Bankman-Fried, currently exhibit a bid-ask range of 85 to 90 cents on the dollar. Recent data from Cherokee Acquisition, a secondary market operator specializing in claims exceeding $1 million, sheds light on this intriguing scenario.
Initially, these claims traded at a meager 6 to 10 cents on the dollar post-FTX bankruptcy. Noteworthy transactions took place on Feb. 15, totaling nearly $2 million in value.
An Intriguing Comparison
For context, Nvidia's stock closed at $785.38 on Thursday, contrasting significantly with FTX's lowest value of $154 on the Cherokee market back in November 18, 2022.
Factors at Play
The impressive rebound in cryptocurrency prices serves as a crucial factor propelling FTX creditors toward potential recovery. Furthermore, FTX's ownership stake in Anthropic, recently granted approval for sale by a judge, adds another layer to this complex narrative. In 2021, FTX secured a 7.8% stake in Anthropic by investing $500 million, showcasing foresight into the burgeoning AI and language model sector.
Future Outlook
FTX's court filings indicate a positive outlook for creditors, attributing much of the optimism to the accelerated value appreciation of the Anthropic stake. Although plans remain undisclosed regarding the timing or method of stake sale, speculations abound.
Interconnected Successes
Notably, Nvidia's triumphant journey has left indelible marks across multiple industries, including cryptocurrencies. The correlation between Nvidia's accomplishments and market movements extends to the behavior of Bitcoin and Ether. Approval for spot bitcoin ETFs by the SEC stands out as an additional influencer within this ecosystem.
Remaining Commitment
FTX reiterates its commitment to repaying all customers in full, factoring in cryptocurrency valuations from its November 2022 bankruptcy. The roadmap to financial restoration seems promising but requires close monitoring.
Also read: Nvidia’s stock price isn’t the only thing that sets it apart from the rest of the Magnificent Seven
PREVIOUS POST
STM Group Revenue Outlook 2023
NEXT POST
