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The U.S. Department of the Treasury has completed a $2 billion debt buyback operation. (Cointelegraph)

BlockBeats News, July 2nd. Morgan Stanley's technical analyst Jason Hunter stated in a client report that the current internal divergence in AI trading is starting to resemble the period just before the 1999 Internet bubble. The issue lies in the fact that semiconductor, storage, and AI hardware vendor stocks have been continuously rising, while the truly massive-scale cloud players that bear the brunt of capital expenditure show a noticeably lagging performance. This kind of divergence is crucial in the market. The AI hardware companies surge on the back of continued large-scale chip, server, storage, and data center equipment purchases by Microsoft, Meta, Alphabet, Amazon, and other cloud players. If the stocks of these "buyers" continue to be under pressure while the stocks of the "sellers" keep skyrocketing, investors will sooner or later question the sustainability of this capital expenditure cycle. Morgan Stanley pointed out that if the stocks of large cloud players fail to stabilize during the summer, the market may face even greater retreat pressure in the fall. In other words, while the AI market can rely on hardware profits and orders in the short term, it needs to see a market revalidation of the cloud players themselves in the medium term.

Jinse Finance reported that on July 2, Bitwise Chief Investment Officer Matt Hougan stated in an article that, based on current data, there is no risk of liquidation or forced closure for Strategy. The market rumors about liquidation conspiracies are completely inconsistent with financial calculations—Strategy's liquid assets total $52 billion, while its total debt is just $7 billion. Bitcoin prices would need to plunge more than 70% and remain at low levels for a long time to threaten the company's survival. Bears believe that the $15 billion preferred stock redemption pressure is a long-term drag, but in extreme cases, Strategy has the right to suspend preferred stock dividend payments.