Andrew Kang, the founder of crypto venture firm Mechanism Capital, has significantly increased his investment in Bitcoin, placing a $200 million long position on the cryptocurrency. He doubled down on his original $100 million wager. This daring move comes following the encouragement of former US President Donald Trump’s recent endorsement of Bitcoin posted on his Truth Social Platform. Leading crypto on-chain analytics firm Arkham called out Kang’s $248 million investment on April 12. This action highlights how dangerously intermingled political speech and crypto markets have become.
On April 9, shortly after Trump's post stating "THIS IS A GREAT TIME TO BUY!!!", Kang's crypto address executed a $100 million leverage-long bet on Bitcoin, adding to a similar existing position. Based on onchain data, this increased his long position to a total of $200 million. Arkham intelligence called out the activity in an X post on April 12, drawing attention to the massive bet.
Kang's decision is reportedly rooted in the concept of the "Trump put," suggesting that potential policy shifts or economic interventions by a future Trump administration could positively impact Bitcoin's value. He believes the combination of trade war capitulation and the "Trump put" presents an ideal scenario for Bitcoin to rebound from its recent downtrend.
In 2023, this means Kang’s hypothetical $1 million Bitcoin investment would have the potential to make or lose Kang $6.8 million. This figure further highlights the high-stakes world of leveraged cryptocurrency trading. This substantial bet underscores the increasing confidence some investors have in Bitcoin, particularly in response to endorsements from influential figures.
