GMTEight Special Offer | Crypto market welcomes bonanza, detailed explanation of Hong Kong stock Bitcoin concept targets

As a supporter of cryptocurrency, Trump officially took office, and Bitcoin once again experienced a frenzy, reaching heights of nearly $110,000 at one point. After the launch of Trump Coin (TRUMP), it quickly rose 500 times in three days, but after tasting success, the market quickly turned downward. Within two days, it was cut in half, leading to a large number of leveraged investors being liquidated and suffering heavy losses. It is understood that on January 20, 2025, Trump returned to the White House throne, and Trump, as well as followers like Musk, mostly support cryptocurrency. Investors expect cryptocurrency policies to become clearer, leading to the surge in the price of Bitcoin. However, the cryptocurrency market is highly polarized, with mainstream coins like Bitcoin and Ripple receiving continuous funding and rising, while smaller tokens face high risks due to their high volatility. To support cryptocurrency, Trump introduced his own Meme coin TRUMP and promoted it on social media. After TRUMP went online, it skyrocketed more than a hundred times. His wife Melania also took advantage of this and launched Melania Coin. This crazy move sparked market dissatisfaction, with many believing that the Trumps were disrupting the digital asset market. This also led to significant market fluctuations, with TRUMP falling back after being listed on multiple exchanges. For example, after rising to a high of $82 on the day of its listing on EuYi, it has since dropped by 60% from its peak, with a current market value of $8.2 billion. In the Hong Kong stock market, the "Trump" concept has always attracted attention from investors. From Trump's advocated route, the concept includes tariffs, precious metals, agriculture, rare earths, and cryptocurrency, with cryptocurrency being the most recognizable. Trump is expected to consider Bitcoin as a reserve currency. However, does the bull market in cryptocurrency caused by Trump's inauguration have sustainability, and what are the stock targets under this theme? Under global capital flows, the Bitcoin market will hit new highs The cryptocurrency market has the same attributes in trading as stocks and bonds, but its acceptance varies from country to country. Some countries do not see value in the cryptocurrency market, especially Bitcoin, as mining requires huge amounts of electricity and some countries have policies against it, such as mainland China, where cryptocurrency exchanges left the market in 2021. However, financial hubs like Hong Kong and the United States maintain an open stance towards cryptocurrency. Every market needs capital flow, and the Bitcoin market is influenced by many factors, with the attitude of the US government playing a crucial role. Trump is a key figure in driving capital activity in the cryptocurrency market, and during the election he held a positive attitude towards the future development of the cryptocurrency market, promising to establish a national "strategic" Bitcoin reserve. Since taking office, Trump has also pushed for individual Meme coins, indicating that he will provide greater support for the cryptocurrency market in his policies. There is a strong expectation for Bitcoin to become a reserve currency. According to market information, eight states in the US have proposed bills to establish a cryptocurrency reserve, and capital inflows have been visible recently. In 2024, investment institutions in the US (such as BlackRock and Fidelity) and Hong Kong (such as Huaxia and Bosh) set up multiple Bitcoin ETFs, leading to a continuous rise in Bitcoin prices, with an increase of 122.8% since 2024. The continuous rise in Bitcoin prices has also driven a bull market in mainstream coins like ETH (Ethereum), SOL, and OKB, while smaller coins have higher volatility but are generally on an upward trend. Recently, Trump's inauguration has brought XRP (Ripple) into the spotlight, with a more than 6-fold increase in the past three months. It is worth mentioning that despite the trend of Trump's government policies and market trends, there is still considerable controversy among investors regarding Bitcoin. On one hand, Bitcoin is expected to become a US reserve currency. Considering the acceptance of trading countries and creditor countries, the existing stock may not be significant, especially since the largest creditor country to the US is China, with close trade relations, but China does not support Bitcoin, so the threat of Bitcoin to gold reserves is not high. On the other hand, Bitcoin consumes a large amount of electricity, and after halving every four years, mining difficulty increases leading to higher consumption. In addition, mainstream currencies also face similar issues, leading to rejection by most countries and hindering becoming a global currency. However, Trump has a clear strategic intent towards Bitcoin. As the Tianfeng research report states, Bitcoin is the Plan B of the Trump government in the event of AI failure, where if the global reserve currency status of the US dollar is seriously threatened, the US can at least weaken the status of gold by controlling Bitcoin to prolong the dominance of the US dollar. The controversy may not disrupt the market, as cryptocurrency has become an independent market under the support of Trump's policies and global capital accumulation, Bitcoin prices are still expected to hit new highs. Opportunities for speculative stocks, the mining sector may be favored As Bitcoin prices continue to rise, concept stocks will have repeated speculative opportunities. The main areas of involvement include three sectors: mining, such as Canaan Technology and Bitmain Group (01263), holding companies, including OKG TECH (01499), Xiong'an Technology (01647), and ASIAN CITRUS (00073), as well as cryptocurrency exchanges, with SINOHOPE TECH (01611) being the only Hong Kong stock target that provides cryptocurrency trading. According to the Tianfeng research report, after meeting with several executives from cryptocurrency mining companies, Trump proposed in June of this year to fully realize "Made in America" for Bitcoin, opening up prospects for the mining sector in the US market. Bitmain and Canaan Technology are the leaders in mining machine supply, with Canaan Technology being a publicly traded company on the US stock market. Mining machines require large amounts of computing power chips, with NVIDIA's AI chip computing power leading in the industry, and Bitmain Group being a customer of NVIDIA. Canaan Technology's main revenue is in China and, due to the impact of Bitcoin prices and policies, sought to transform into an artificial intelligence company in 2019. However, the transformation has not been significant, and its performance has been declining. The company has a market presence in the US, with an estimated revenue share in 2023 of about 13.3%. Trump's policies may open up avenues for the company's mining machine sales, and the company also holds thousands of Bitcoins, which are expected to have a good fair value premium in 2024. Bitmain Group's wholly-owned subsidiary, Baoneng Wealth, in 2019, collaborated with Bitmain Group in the mining equipment sector and has a market layout in the US. The Trump policy may open up opportunities for its mining machine sales, and the company also holds thousands of Bitcoins, expected to have a good fair value premium in 2024.The partner established a joint venture company in China, mainly engaged in mining operations. However, due to domestic policy pressures, there was no further news, and the mining business was not included in the company's financial report. Nevertheless, the company manufactures and promotes its own graphic card brands, ZOTAC, Inno3D, and Manli, and has a long-term partnership with NVIDIA to purchase high computing power AI chips to meet the demand for mining machines.OKG TECH, Xiong'an Technology, and ASIAN CITRUS are targets that hold Bitcoin. With the price of Bitcoin breaking through $100,000, on one hand, most of the targets with low-cost holdings of Bitcoin begin to sell off, even clearing their positions, such as OKG TECH. Holding Bitcoin and Ethereum, as of September 2024, they have basically sold off over a thousand Bitcoins. Meitu has also cleared all of its holdings of cryptocurrencies, selling all purchased cryptocurrencies by December 4, 2024, and making a profit of $80 million. On the other hand, new targets entering at a high cost will face significant fair value losses if there is a decline, such as ASIAN CITRUS, which purchased Bitcoin in November 2024 at a price of approximately $92,000 per coin. New Fire Technology is the only cryptocurrency exchange in Hong Kong Stock Exchange, with its main source of income being cryptocurrency trading revenue. Although the exchange has expelled Chinese market investors, trading overseas still remains normal. With the clarification of the US cryptocurrency trading policy, it is expected that the company will increase its expansion efforts in the US market. In addition, in October 2024, the company entered into a quantitative arbitrage service agreement with the independent third party Top Value. HotGroup will deposit a total of 8 million Tether coins (approximately HK$62.4 million) into the account, which will be managed in spot and futures arbitrage trading by Top Value. Overall, Trump's presidency has brought a frenzy to the cryptocurrency market. Many members of the Trump administration are supporters of Bitcoin, and the commitment to use Bitcoin as a reserve currency is likely to become a reality, further boosting the price of Bitcoin. Despite the controversy surrounding Bitcoin in various countries worldwide, under capital flows, this "controversy" clearly cannot shake the trend, and the continuous rise of Bitcoin will also drive a bullish market in the cryptocurrency market. As the price of Bitcoin rises, Hong Kong and US stock concept stocks will gain favor from investors, especially companies in the mining industry such as Canaan Technology and Bitmain Group.