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The forecasts speak of growth, of course. Numbers dance across the screens – fifty percent annual increases, a tripling of investment by the decade’s end. But these are merely the outward signs. Beneath them lies a fundamental shift, a re-ordering of the digital terrain. Taiwan Semiconductor Manufacturing speaks of demand, Cathie Wood of trillions. These are not simply financial projections; they are the echoes of a new world taking form. It is as if the very soil of computation is quickening, preparing for a harvest unlike any seen before.

The divestment, it should be noted, coincided with a period of peculiar volatility for Tencent Music. The stock, a creature of habit and expectation, dipped nearly 25% during that quarter, a fall that likely prompted a reassessment of risk-reward ratios. One imagines portfolio managers, those meticulous gardeners of wealth, compelled to make difficult choices, perhaps with a sigh and a glance at the quarterly reports. The subsequent rally, a 37.2% ascent over the year—a performance that rather outstripped the S&P 500 by a comfortable 25.05 percentage points—only complicates the narrative. Was this a vote of no confidence, or simply a demonstration of disciplined portfolio management?

Bitmine, unlike some of its brethren, didn’t chase the gold rush of Bitcoin. It sought a different vein, a path paved with the potential of Ethereum. And they began to buy, hand over fist, amassing a significant portion of the outstanding tokens – over three percent, to be exact. A bold move, costing some $16.3 billion at the time, predicated on an Ether price of around $3,800. Now, that price is halved, and Bitmine’s holdings feel less like a fortune and more like a weight.

The shares have diminished by nearly twenty percent since the commencement of trading this week, a figure corroborated by data from S&P Global Market Intelligence. This is not merely a correction; it is a demonstration of the market’s growing discomfort with the inherent contradictions within Iren’s operational structure. The company persists in deriving the vast majority – ninety percent, as of December 31, 2026 – of its revenue from Bitcoin mining, a practice increasingly viewed as…peripheral to its stated ambitions. It is a foundation of sand upon which a digital palace is being constructed.

The current rally appears linked to broader trends within the semiconductor sector, specifically the anticipated capital expenditures of major cloud providers. Amazon (AMZN 6.44%), for instance, has announced a substantial $200 billion spending plan for 2026. Such figures, however, are often presented with a degree of optimism that does not always translate into concrete gains. It is prudent to examine where precisely these funds will be allocated.

One observes such episodes with a certain detached amusement, for history is replete with these phantom menaces, these fleeting anxieties. The market, that capricious beast, is ever prone to fits of hysteria, mistaking shadows for substance. Yet, to dismiss it entirely would be folly. For even the most preposterous rumour can, in the hands of a sufficiently excitable populace, become a self-fulfilling prophecy. And so, Nvidia tumbled, a spectacle for the vultures and the bargain hunters.

For years, the Chinese market was a Volkswagen, Toyota, and General Motors free-for-all. But then, these plucky Chinese manufacturers started popping up like… well, like electric scooters in a crowded city. And now, they’re calling the shots. It’s a bit like a tiny David taking on a bunch of automotive Goliaths, except David has a really big factory and a government backing him.

Yesterday, we commenced a modest exploration of this behemoth, tracing its origins and the early acquisitions that laid the foundation for its prosperity. Today, we turn our attention to the financial statements themselves, a realm where clarity is often obscured by a fog of accounting practices. Beware, dear reader, for within these reports lurk pitfalls for the unwary, illusions that can lead one to draw entirely incorrect conclusions about the underlying strength of the enterprise.

They exited, which is corporate-speak for “we’re done,” or, in my personal translation, “we’ve found a slightly less depressing place to park our money.” It represented 1.58% of their “AUM,” which is another acronym I try to avoid. It’s like a virus. The whole thing feels…transient. Like a particularly well-funded sandcastle.