$MU Micron’s CEO directly announced a $10 billion R&D plan this time, and Binance’s perpetual contract market, within 24 hours, moved only -0.7%.
With R&D spending at this scale, the market first asks where the money will be spent and whether near-term gross margin will be pressured. At the moment, we only have the amount—no timeline for the spending, and no orders yet to absorb the new production capacity.
On Binance’s side, the funding rate has already been pushed down to 0, and the total open interest (OI) across the market only increased by 0.1%. In other words, this news is still stuck in the headline; it hasn’t made it into pricing.
I’ll first look at the next set of guidance to see how the company aligns the investment with orders. If they can’t match up, then this -0.7% can’t be considered as evidence of strong, proactive execution to take on the spillover—and it also can’t be simply categorized as wash trading.
With R&D spending at this scale, the market first asks where the money will be spent and whether near-term gross margin will be pressured. At the moment, we only have the amount—no timeline for the spending, and no orders yet to absorb the new production capacity.
On Binance’s side, the funding rate has already been pushed down to 0, and the total open interest (OI) across the market only increased by 0.1%. In other words, this news is still stuck in the headline; it hasn’t made it into pricing.
I’ll first look at the next set of guidance to see how the company aligns the investment with orders. If they can’t match up, then this -0.7% can’t be considered as evidence of strong, proactive execution to take on the spillover—and it also can’t be simply categorized as wash trading.
