๐Ÿฅ› Fresh analyst trade: +18% in 2 days ๐Ÿ“ˆ

Milk Roadยทยท6 min read
Crypto/Web3FinanceTechnology
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AI Summary

Milk Road covers analyst Martin's trade on SK Square, a Korean holding company with ~20% stake in SK Hynix (Nvidia's primary HBM memory supplier), which gained 18% in two days. The newsletter uses the trade as a case study to highlight friction in traditional finance and the potential of RWAs (real-world assets) to democratize global stock market access. Additional news touches on the CLARITY Act at 62% on Polymarket, Coinbase layoffs, and Japan's yen intervention.

Key Facts

โœ“SK Square, a Korean holding company with a ~20% stake in SK Hynix (Nvidia's HBM supplier), is trading at a 40% discount to its holdings and rose 18% in two days after Milk Road analyst Martin initiated a position.
โœ“Coinbase cut ~14% of its workforce citing market conditions and AI efficiency gains, while the CLARITY Act sits at 62% on Polymarket.
โœ“Onchain stocks (RWAs) represent only ~$1.2B of a $150T global equity market, highlighting massive friction and opportunity in tokenizing real-world assets.

Author Takes

BullishMilk Road

RWA adoption and global investing friction

The $150T global stock market vs $1.2B onchain represents massive untapped potential, and RWAs are built to remove the friction that blocks billions of dollars of investment intent daily.

NeutralMilk Road

CLARITY Act trading

Stop trying to trade around the CLARITY Act outcome on Polymarket.

BullishMilk Road

Korean stock discount

The historical governance discount on Korean stocks is changing as the government pushes reform and SK Hynix management explores a U.S. listing, making now an attractive entry window.

Contrarian Angle

Buying SK Hynix Exposure at a Double Discount via SK Square

Instead of buying SK Hynix directly or overvalued US AI chip stocks, analyst Martin bought SK Square โ€” a holding company whose ~20% SK Hynix stake represents 95% of its value, but trades at a 40% discount to NAV with management incentivized to close the gap.

Buys the AI memory theme at a 40% discount via an obscure Korean holding company rather than the obvious (and expensive) US-listed AI hardware names

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