Moore Threads:From Domestic Nvidia Dream to Buying Bank Products with Your Money |Digging into China

Hi, I'm Dong Shong. Welcome to Digging into China, where we take a deep dive into what's really happening in China and share some unique insights. Everyone knows the Asia market has always had its share of wild stocks. But over the past couple of years with the big national push to make China an AI superpower, it feels like we've entered a whole new era of mass producing these crazes. Remember Camricorn, the company that once surged past Ma Thai to claim the title of a stock king? Well, now we have more threats proudly calling the self the domestic Nvidia. one wide ride topping the loss. Just 5 days after going public, more thread saw its share price get pumped from around 100 yen to a peak near 1,000 yen. That's a small company with revenue still in the low billions and deep in the red. Yet, its market value got hyped all the way up to over 440 billion yen at one point. The real kicker, they raised roughly 7.58 billion yen net from the IPO, then announced they park up to 7 and a half billion of it in bank wealth management products. In plain terms, all that talk in the prospectors about pouring the money into the chip R&D, it looks like smoke. Even if the company itself seems to think earning safe interest beats betting big on research. The moment that the news hit, Asia investors lost their minds. Plenty of patriotic types saw it as some kind of attack on the national AI drive. But honestly, this is just a business as usual in the Asia world, the standard playbook. The only difference this time is that it latched onto a huge national narrative which made it tougher for those patriots to swallow. So today, let's peel back the layers using more threads as our window. We'll look at how Asia companies really pull off this insane pump and then take a calm hard look at what the national AI push actually weights in the capital markets. First, let's meet more threads. The company that brands itself as China's Nvidia. How solid is it really? From the numbers in its prospectus, it's a GPU chip company that's only been around a short time. Fullyear revenue in 2024 was just 43.8 billion yen. And for the first three quarters of 2025, it was 78.5 billion yen. It's still in the early startup stage, pouring cash into R&D nonstop. So it's losing money every year about the six billion you have burned over the past three years combined. Bottom line on fundamentals more threads is a classic researchdriven startup still living off investor money to buy time. So how does a young company like this explode from 100 to nearly 1,000 yen in its first five trading days? almost an eight-fold jump with a market cap hitting over 440 billion yen at the peak that put it briefly as the third highest priced stock in Asares trading only Ma Thai and the Camry Kong it's jawdropping the Asia market has gotten so warped that it's slapping global AI giant valuations on a homegrown GPU startup that is still bleeding cash heavily pretty over the top right from that point on we can safely call more threads a classic wild stock but why did it become the monster of this cycle a lot of folks probably think it's just because it perfectly rode the AI national strategy wave and that's part of it policy tailwinds matter but that alone wouldn't turn a company into a 10-fold winner in days the real driver is the full machinery ary asia have for churning out these wild stocks. It comes in three layers. Let's unpack them one by one. The first layer is the float structure. Sure, more threads is a public now, but only a tiny fraction of shares are actually freely trading. About 29 million shares or roughly 6 and a4%. The rest are locked up with original shareholders for one or two years, meaning they can't hit the market yet. That tiny float means even at the risk skyhigh prices the tradable portion is under 30 billion yen and a big player with a cash can easily drive it straight up. That's layer one. Layer two a shares have basically no short sailing restraint. A new listing like a more threads doesn't have all those trapped shares hanging overhead like older stocks do. Once it starts climbing there is little selling pressure. Historically, most wild stocks emerge right around the new or recent listing phase. Plus, in China, going long is easy with margin, but borrowing shares to short is tough. A shares are essentially a one-way street upward. Bulls can rampid it fearlessly. If this happens in the US, shorts will pile in after a 10-fold pop post IPO, forcing the price back to something reasonable. That balance is what keeps markets healthy. The third layer is the domestic GPU story itself. When a company like more threads lands right on a policy hotspot, the stock stops being just a stock. It takes on a whole ideological meaning. The narrative pushed out there is that buying more thread is patriotic. With the US China AI race heating up, retail investors are snapping up homegrown shares. is standing up to America, helping China win. If I had to boil down how Asia has turned out to wild stocks in one line, the rules set the stage. The story fused the frenzy. Tight float provides leverage. Big players hit the gas and retail ends up holding the back. But right as more threads was waving the flag of national AI destiny with its market cap exploding, it pulled off something deeply ironic. Out of nowhere, the company announced it would use up to 7 and a half billion of the freely of the freshly raised IPO money for wealth management products. They brought in about a 7.58 billion net and parking nearly all of it safely. That's like admitting the prospectus was mostly hype. All the promises about the funding chip development apparently not. The company itself doesn't seem confident enough to go all in on R&D better to earn steady interest. Investors were furious. I bought your stock believing in domestic GPUs, they said. And you park my money in safe products. I could do that myself. Suddenly, it looked less like a tech company and more like a middleman. Emotions boiled over, much like when dieh hard patriots realize they've been freezed by some bigname influencer padding the same line. Under the backlash, more threads quickly tried to calm things, saying R&D spending happens in stages, not all at once. to make the best use of cash. They temporarily park unused funds in safe products and pull them out when needed. Is that just a spin? Let's not jump to conclusions. Let's break it down. First, the rules. Yes, listed company are allowed to use idle IPO proceeds for wealth management as long as it's compliant. In theory, their explanation holds projects roll out gradually so short-term idle cash can earn a bit on the side. That's standard of financial management. But here is the big issue. They raised 7.58 billion net and almost all of it is suddenly idle enough for wealth management. That doesn't sound like a temporary spare cash anymore. Big questions arise. First, GPUs are a brutally capital field. Why so much sitting around? Look at Nvidia. Massive ongoing investment in architecture, instruction sets, compilers, drivers, ecosystem. Every new generation means a huge risky tape outs and validation. It's one of the most cash hungry longhaul races on the planet. Yet more threats. The self-proclaimed domestic Nvidia raises seven and a half billion and can't spend it fast enough to park it all safely. Makes you wonder, are they truly in the heat of the tech battle or is there really nothing ready to fund right now? Maybe the whole operation is more about the listing than the tech. Second question, if R&D is moving so slowly, why did the market price it like a future Nvidia winner? Simple. If progress is leisurely, the sky high valuation doesn't match. Veteran Asia players know the drill. Grab the policy wave, list quick, figure out the spending later. Right now, real projects might be thin on the ground. For outfits like a more threads, the domestic Nvidia hype is loud, but how much substance? Hard to say. Listing often feels like the real endgame. All the talk of catching Nvidia, of building domestic GPU strength, take it with a grain of salt. Finally, circling back to our opening question, how much real heft does the grand national AI drive have in the capital markets? Put it bluntly, AI is a classic decade plus marathon while Aar emotional unbalanced arena chasing quick payoffs. Shove one into the other and a distortion is guaranteed. The more threads saga shows it plan as a date. A GPU firm still in startup mode exploring its model needing constant funding. Yet Asia has prematurely pumped its value past 440 billion yen. It's like a judging a halfbuilt sky streak scraper scaffolding up foundation barely poor the plan still changing and handing it a lifetime architecture award. Anyway, this isn't just more threats. It's what happens in the market with no shorts and lockep narratives. Valuations raise way ahead of reality. Price isn't reflecting today. It's a cashing in the dreamed of future all at once. In a healthy system, national strategies steer capital to long-term bats. In Asia, they quickly turn into valuation weapons. Tag a company or sector as a core national track or destiny project and it becomes more than a business, an emotional symbol, a stance you can't question. The price gets a kind of don't fall political shield. In the end, any big strategy just gets financialized into a way to divvy up gains. People call Asia a casino for a reason. The logic is upside down. Healthy markets see value rise with fundamentals. Here price surges first and companies scramble to catch up. for more threats. Decades of potential growth got the prepaid in days, killing the incentive to grind. Valuation already delivered. Why bust a gut building the business? So when more threads parks raise the cash safely, reasonable or not, only the retail leaks truly buy the grand strategy and the catchup dreams. Capital doesn't believe it. The system doesn't. The companies never did. They just teamed up for the play. Thank you so much for watching. 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