I previously lost money buying Meitu. Can I invest this time? 'The low entry barrier of cloud mining means I can earn BTC without buying mining machines?'
This morning, the fan group was exploded by the news of 'Hong Kong stock giants entering crypto'—some old fans shared screenshots of Ruihe Zhizhi's announcement: investing 20 million HKD to cooperate with Bitmain for cloud mining, and also planning to create a 'crypto SAAS platform', allowing retail investors to participate with just a few dozen HKD. Some even dug up the history of Meitu making a net profit of 600 million from crypto trading in 2021, shouting 'this is the next Meitu moment', and the group was instantly in an uproar: some feared missing out on institutional dividends, while others worried about repeating the 'traditional companies profiting from crypto by cutting down retail investors' fiasco.
Today, let's break this down: Ruihe Zhizhi is not just 'another company following the trend in crypto trading'. Its 20 million investment hides the grand logic of 'traditional finance entering crypto', can retail investors benefit from the dividends? Are small and medium miners really going to be eliminated? Is the target of 100,000 USD for Bitcoin realistic?
First, let's look at the genuine reactions in the fan group: some are excited, some are scared, with three core concerns.
This morning, I reviewed over 500 group messages and found that what everyone is most concerned about is 'whether they can make money'. Several typical questions are particularly representative.
Retail investor A Xin asks: 'I bought a cloud mining platform before, and it turned out to be a scam. Ruihe Zhizhi is a publicly listed company, it won't run away with the money, right?'— this is the fear of 'institutions' endorsement being unreliable'.
Miner Lao Lin is anxious: 'I have 10 mining machines myself, and now the hash rate is already 800 EH/s. Will Ruihe Zhizhi's entry raise the difficulty even higher? Can I still make money with this hash rate?'—worried about 'institutions coming in and taking the food'.
Hong Kong stock investor Lao Ning said: 'Meitu's trading crypto rose from 2 HKD to 20 HKD back then. Ruihe Zhizhi is currently at 5 HKD. Can it replicate this trend?'— wanting to benefit from the 'Hong Kong stock crypto concept dividend'.
In fact, everyone's dilemma is essentially 'wanting to ride the institutional wave while being afraid of being harvested by institutions'. After all, Meitu allowed retail investors to make money in 2021 when trading crypto, but in 2022, many traditional companies 'followed the trend and quietly withdrew their investments'. This time, is Ruihe Zhizhi's move a 'real transformation' or just 'hype'?
Second, Ruihe Zhizhi's 'uniqueness': not crypto trading, but 'building a platform to earn stable money'.
Many people think 'Ruihe Zhizhi is buying BTC like Meitu', but after looking at the announcement details, it's clear that its approach is more 'intelligent' and may even change the dynamics of cloud mining.
20 million HKD didn't buy mining machines, but 'built a platform' so retail investors can enter with low thresholds.
It does not buy mining machines, find sites, or pay electricity bills like traditional miners. Instead, it collaborates with Bitmain to do 'outsourced mining + SAAS platform':
Bitmain provides hash rate: responsible for supplying mining machines and mining fields, Ruihe Zhizhi does not have to bear hardware depreciation or policy risks.
Ruihe Zhizhi creates a platform: breaking the hash rate into 'small portions', retail investors can buy a '1T hash rate package' on its SAAS platform for as little as 50 HKD. According to the current hash rate, 1T can mine 0.00005 BTC daily (about 5 HKD), and can recoup costs in 10 days?
Transparent profit sharing: the platform earns a '10% service fee', and the remaining mining profits go entirely to retail investors. Each hash rate output can be checked on-chain to avoid 'platform stealing hash rate'— compared to a previous cloud mining platform that 'claimed 10% returns but actually only provided 3%', Ruihe Zhizhi's status as a publicly listed company at least guarantees that 'data won't be fabricated'.
This morning, a friend in fintech told me: 'Ruihe Zhizhi's move is brilliant. It serves 80% of Hong Kong banks and has a client acquisition advantage. Now turning bank clients into 'cloud mining users' is equivalent to leveraging 20 million to tap into a hundred billion market, which is more profitable than simply buying BTC.'
Hong Kong license + independent director resources, aiming to create a 'Hong Kong version of Grayscale'?
More crucially, the 'policy dividend': the Hong Kong (stablecoin regulations) will take effect next month. Ruihe Zhizhi's independent director Yang Huan is a former senior executive of the Hong Kong Monetary Authority and holds 'compliance license resources'—this means it may potentially create 'crypto funds' in the future.
Helping institutional clients allocate BTC: for example, bank wealth management funds and family trusts can buy hash rates through its platform for compliant and low-risk mining.
Connecting fiat to crypto: retail investors can directly buy hash rate with HKD, and the mined BTC can be converted into cash through compliant exchanges it cooperates with, without having to 'find underground money changers to exchange for USDT'—this is equivalent to creating 'an entry into the crypto world', which is much larger than Meitu's simple 'buying and trading coins'.
149 software copyrights and 64 patents, not 'outsiders following the trend'.
Many traditional companies entering crypto are just 'riding the wave', but Ruihe Zhizhi has a technical foundation.
It has already been in the fintech business, with 149 software copyrights related to 'blockchain payment systems' and 'digital asset custody', not starting from scratch.
This transformation is 'from IT service provider to digital financial infrastructure provider': previously helping banks with systems, now helping bank clients with 'crypto asset allocation', the business logic is connected, not 'cross-industry chaos'.
Third, three chain reactions for the crypto world: hash rate, Hong Kong stocks, and Bitcoin all need to change?
Don't just look at whether retail investors can enter. Ruihe Zhizhi's entry will trigger a 'butterfly effect'.
The hash rate war is escalating, and small and medium miners may be eliminated.
Currently, the total hash rate of Bitcoin is 780 EH/s. Ruihe Zhizhi plans to add 100 million HKD in the next three months to increase the hash rate to 10 EH/s (accounting for 1.2% of the total network), combined with other institutions entering the market, the hash rate may surpass 800 EH/s.
Mining difficulty will rise by 20%: small and medium miners' 'old mining machines' (such as Bitmain S9) are already close to not being profitable. If the difficulty increases, they may directly incur losses and shut down.
Hash rate centralization: in the future, hash rate will concentrate towards 'institutions + large mining farms', and retail investors wanting to mine can only 'buy small portions of hash rate' through platforms like Ruihe Zhizhi. The era of buying mining machines themselves may come to an end.
Does the Hong Kong stock crypto concept need to 'catch up'?
On the A-share side, blockchain financial stocks (such as Sifang Jinchuan) have risen 30% this year, but the Hong Kong stock crypto concept has remained stagnant. Ruihe Zhizhi may trigger a wave of market activity.
Comparing to Meitu: when Meitu was trading crypto in 2021, its market value rose from 5 billion to 50 billion, a tenfold increase; Ruihe Zhizhi now has a market value of 3 billion. If it can become 'the Hong Kong version of Grayscale', reaching a market value of 10 billion is not impossible.
Driving other Hong Kong stocks: for example, companies like Xiong'an Technology holding BTC and Huobi Technology working on blockchain may rise together, creating a 'Hong Kong stock crypto sector' effect.
Are institutional funds accelerating their entry, making Bitcoin 100,000 USD feasible?
The Federal Reserve may cut interest rates in September, and institutions need 'high yield, low risk' assets, which is exactly what Ruihe Zhizhi's 'cloud mining package' offers.
Low risk: with compliance licenses and the endorsement of a listed company, it has less volatility than directly buying BTC.
Stable returns: with the current hash rate, the annualized yield can reach 15%, much higher than bank wealth management.
If institutional funds come in, for example, a bank buying 1 billion HKD in hash rates, it will directly push up BTC demand. The previous Grayscale ETF relied on institutional funds to push BTC from 19,000 to 69,000, and this time Ruihe Zhizhi may replicate this logic.
Fourth, what retail investors care about the most: can it be profitable? Three suggestions to avoid pitfalls.
If you want to participate in cloud mining: first understand '3 differences', don't be fooled by 'high yields'.
Difference 1: Is it a 'hash rate package' or a 'pyramid scheme'? Ruihe Zhizhi's hash rate can be checked on the Bitmain official website (by entering the mining machine number). If the platform only provides 'profit promises' but you can't verify the real hash rate, it's a scam.
Difference 2: Can costs be covered? Currently, the electricity cost is 0.3 HKD/kWh, and the electricity cost for 1T hash rate is about 2 HKD per day. If BTC drops to 80,000 USD, the daily profit for 1T would only be 3 HKD, leaving a profit of just 1 HKD. Don't think it's 'guaranteed profits'.
Difference 3: Can the platform withdraw funds? Confirm that the mined BTC can be transferred to your own wallet, not 'only tradable within the platform'. Previously, there were platforms that 'did not allow withdrawals and forced exchanges for platform tokens', which eventually went to zero.
If you want to trade Hong Kong stocks: don't chase highs, wait for 'pullbacks to support levels'.
Ruihe Zhizhi (stock code: 06916.HK) rose 15% yesterday, from 5 HKD to 5.75 HKD. If you want to buy:
Support level at 5 HKD: this is the previous fluctuation platform. Buying again at this level is safer than chasing highs.
Don't go all in: at most, take 20% of your Hong Kong stock position. After all, its cloud mining business has just started, and whether it can make money is still unknown. Don't bet that 'it must be the next Meitu'.
If you want to hoard BTC: don't expect 'institutions entering will drive prices up', set stop losses.
If you want to buy BTC because of Ruihe Zhizhi's news, remember:
Support level at 115,000 USD: if it breaks this, it may pull back to 110,000, don't hold positions.
Don't chase highs: currently, BTC is at 121,000. If it doesn't break 125,000, don't blindly increase positions. Wait for it to stabilize before entering.
Finally, to be honest: this is not 'crypto trading', but 'traditional finance entering crypto'.
Ruihe Zhizhi's entry is not 'just another company following the trend in crypto trading', but 'traditional financial institutions beginning to enter the crypto world in their own way'— they don't gamble on 'price fluctuations', but rather create 'platforms, develop channels, and earn service fees'. This model is more stable and likely to change the landscape of the crypto market.
What retail investors need to do is not 'blindly follow and buy stocks or hash rates', but understand 'institutional strategies': they make money through 'compliance, low risk, and scalability', and retail investors should also learn 'not to be greedy for high yields, control risks, and leverage institutional channels'.
I will monitor Ruihe Zhizhi's hash rate progress (can be checked on Bitmain's official website) and the fluctuations of Hong Kong stocks in real-time in the fan group. If there are signals like 'platform launching hash rate packages' or 'institutions increasing positions', I will inform everyone immediately. If you want to ride the institutional wave but are afraid of pitfalls, just follow me— the next wave of opportunities in the crypto world may not be in 'small altcoins', but in 'the combination of traditional forces and crypto'.
Let's discuss in the comments: will you participate in Ruihe Zhizhi's cloud mining? Do you think the crypto concept in Hong Kong stocks can rise? Are you planning to buy stocks or hoard BTC?